NEW YORK, July 27, 2016
/PRNewswire/ --
- Revenues totaled $57.7 million in
Q2 2016
- Generated diluted EPS in the second quarter of $0.10 on net income of $4.9 million
- Cash flow from operations totaled $12.2
million and Adjusted EBITDA $16.0
million
- Launch of all new Dice Careers mobile app leads to markedly
higher engagement with the Dice service
- Company announces CFO transition
DHI Group, Inc. (NYSE: DHX) ("DHI" or the "Company"), a leading
provider of data, insights and employment connections through our
specialized services for professional communities in technology and
security clearance, financial services, energy, healthcare and
hospitality, today reported financial results for the quarter ended
June 30, 2016.
"We're pleased overall with the work done to date against our
strategic plan focused on continuing to drive value to
professionals and employers. While these efforts haven't yet
translated into the financial results we expect, we have put in
place a number of initiatives in our core brands and our new
products that give us confidence in our ability to return the
business to profitable growth," said Michael Durney, President and CEO of DHI Group,
Inc. "Strategically, DHI will continue to focus on our core talent
acquisition brands, candidate pipelining, recruitment marketing and
developing new services addressing the evolving needs of the
recruitment marketplace."
Q2 2016 Product and Business Highlights
- The Global Industry Group (GIG) has implemented its new team
structure to achieve greater operating leverage, including refining
its marketing approach to afford efficiencies of scale.
- eFinancialCareers, on a constant currency basis, saw 6% revenue
growth, primarily attributable to increased usage of products and
services and higher customer engagement levels. Most of
eFinancialCareers' key markets saw continued revenue growth this
quarter, with Asia Pacific and
Continental Europe particularly strong.
- ClearanceJobs continues to benefit from a heightened demand for
security cleared professionals along with higher sales of its pay
for performance product, driving revenue up 22% year/year.
- Health eCareers revenue rose 8% year/year, primarily driven by
stronger sales and usage of core products, new pricing models and
favorable market conditions.
- The launch of the Dice Careers mobile app— which provides tech
professionals with tools, including predictive analysis of future
salary based on career goals and skill improvements— resulted in an
82% year/year jump in new users and higher engagement, enriching
our overall data and ability to serve passive candidates.
Q2 2016 Financial Highlights
The following summarizes consolidated financial results for the
quarters ended June 30, 2016 and 2015 ($ in millions, except
per share data) including the impact with and without Slashdot
Media, which the company sold in the first quarter of 2016:
|
|
Q2
2016
|
|
Q2
2015
|
|
YoY %
Change
|
|
Revenues
|
|
$
|
57.7
|
|
|
$
|
65.8
|
|
|
(12)
|
%
|
|
Revenues, excluding Slashdot Media (1)
|
|
$
|
57.7
|
|
|
$
|
61.9
|
|
|
(7)
|
%
|
|
Net income
(2)
|
|
$
|
4.9
|
|
|
$
|
5.7
|
|
|
(14)
|
%
|
|
Diluted earnings per
share
|
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
(9)
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
|
$
|
16.0
|
|
|
$
|
19.1
|
|
|
(16)
|
%
|
|
Adjusted EBITDA
margin (4)
|
|
27.7
|
%
|
|
29.0
|
%
|
|
|
|
(1) Sale
of Slashdot Media completed in Q1 2016.
(2) No
material difference between Net income and Net income, excluding
Slashdot Media.
(3) No
material difference between Adjusted EBITDA and Adjusted EBITDA,
excluding Slashdot Media.
(4)
Adjusted EBITDA margin is computed as Adjusted EBITDA divided by
Revenues.
|
The following summarizes segment Revenues, Adjusted EBITDA and
Adjusted EBITDA Margin results for the quarters ended June 30,
2016 and 2015 ($ in millions):
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
|
|
Q2
2016
|
|
Q2
2015
|
|
YoY
%
Change
|
|
Q2
2016
|
|
Q2
2016
Margin
|
|
Q2
2015
|
|
Q2
2015
Margin
|
|
Tech &
Clearance
|
|
$
|
34.2
|
|
|
$
|
35.1
|
|
|
(3)
|
%
|
|
$
|
16.6
|
|
|
49
|
%
|
|
$
|
16.4
|
|
|
47
|
%
|
|
Global Industry
Group
|
|
16.5
|
|
|
20.3
|
|
|
(19)
|
%
|
|
4.2
|
|
|
25
|
%
|
|
5.8
|
|
|
29
|
%
|
|
Healthcare
|
|
7.0
|
|
|
6.5
|
|
|
8
|
%
|
|
0.9
|
|
|
13
|
%
|
|
0.9
|
|
|
14
|
%
|
|
Talent Acquisition
Brands
|
|
57.7
|
|
|
61.9
|
|
|
(7)
|
%
|
|
21.7
|
|
|
38
|
%
|
|
23.1
|
|
|
37
|
%
|
|
Corporate
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
(4.1)
|
|
|
n.m.
|
|
|
(3.3)
|
|
|
n.m.
|
|
|
Talent Acquisition
Brands less Corporate
|
|
57.7
|
|
|
61.9
|
|
|
(7)
|
%
|
|
17.7
|
|
|
31
|
%
|
|
19.9
|
|
|
32
|
%
|
|
Brightmatter
Group
|
|
—
|
|
|
0.1
|
|
|
n.m.
|
|
|
(1.7)
|
|
|
n.m.
|
|
|
(0.9)
|
|
|
n.m.
|
|
Slashdot
Media
|
|
—
|
|
|
3.9
|
|
|
(100)
|
%
|
|
0.1
|
|
|
n.m.
|
|
|
0.2
|
|
|
5
|
%
|
|
Total
|
|
$
|
57.7
|
|
|
$
|
65.8
|
|
|
(12)
|
%
|
|
$
|
16.0
|
|
|
28
|
%
|
|
$
|
19.1
|
|
|
29
|
%
|
|
|
|
GIG Revenues by
Brand
|
|
|
Q2
2016
|
|
Q2
2015
|
|
YoY
%
Change
|
eFinancialCareers
|
|
$
|
9.1
|
|
$
|
8.9
|
|
1
|
%
|
Rigzone
|
|
2.4
|
|
5.7
|
|
(58)
|
%
|
Hcareers
|
|
4.0
|
|
4.3
|
|
(6)
|
%
|
BioSpace
|
|
1.0
|
|
1.4
|
|
(25)
|
%
|
Global Industry
Group
|
|
$
|
16.5
|
|
|
$
|
20.3
|
|
|
(19)
|
%
|
($ in
millions)
|
|
June 30,
2016
|
|
December 31,
2015
|
|
June
30,
2015
|
|
YTD 2016
Change
|
|
YTD 2015
Change
|
|
Deferred
revenue (1)
|
|
$
|
85.9
|
|
|
$
|
83.3
|
|
|
$
|
86.4
|
|
|
$
|
2.6
|
|
|
$
|
1.4
|
|
|
Long-Term Debt,
net
|
|
$
|
97.6
|
|
|
$
|
99.4
|
|
|
$
|
103.1
|
|
|
$
|
(1.8)
|
|
|
$
|
(6.0)
|
|
|
Plus: Deferred
financing costs
|
|
1.4
|
|
|
1.6
|
|
|
1.1
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
Total principal
outstanding
|
|
$
|
99.0
|
|
|
$
|
101.0
|
|
|
$
|
104.3
|
|
|
$
|
(2.0)
|
|
|
$
|
(6.3)
|
|
|
Less: Cash
|
|
29.5
|
|
|
34.1
|
|
|
32.7
|
|
|
(4.6)
|
|
|
5.9
|
|
|
Net
debt
|
|
$
|
69.5
|
|
|
$
|
67.0
|
|
|
$
|
71.6
|
|
|
$
|
2.5
|
|
|
$
|
(12.1)
|
|
|
|
(1) The
YTD increase in deferred revenue primarily reflects an increase in
the Tech & Clearance segment of $3.8 million, partially offset
by a decrease in the Global Industry Group, primarily
Rigzone.
|
"This quarter, we saw some solid wins across the organization,
in spite of continued headwinds in Energy and foreign currency
impacts. In particular, we saw continued revenue growth in
healthcare, security clearance and financial services, on a
constant currency basis," said John
Roberts, CFO. "Despite an overall revenue decline, we
continue to generate healthy EBITDA margins, while simultaneously
investing to deliver new products and services."
Recent Developments
Effective August 31, 2016,
John Roberts, Chief Financial
Officer, will leave the Company.
Mr. Roberts has served as CFO of the Company since October 2013 with overall responsibility for the
financial organization, including financial planning, corporate
development, accounting, financial reporting, investor relations,
treasury, internal audit and tax, as well as the Company's legal
organization.
"John has played an important role as our Company has evolved,
taking over as CFO as I transitioned to the CEO role," said
Michael Durney, President and CEO.
"He provided a great amount of stability and direction during the
transition and I thank him for his financial leadership and the
contributions he has made to DHI."
Mr. Roberts will continue to be employed by the Company through
August 31 and will assist with the
transition of his responsibilities. The Company has begun a process
to appoint a successor to Mr. Roberts and a further announcement
will be made in due course.
Stock Repurchase Program
During the second quarter of 2016, the Company purchased
approximately 1.4 million shares of its common stock at an average
cost of $6.95 per share for a total
cost of approximately $9.5
million. At June 30, 2016, approximately
$25.1 million remained authorized for
repurchase under a $50 million plan
that expires in December 2016.
Business Outlook
Current Q3 2016
and Full-Year 2016 Business Outlook
|
($ in millions,
except diluted earnings per share)
|
Q3
2016
|
FY
2016
|
|
|
|
Revenues
|
$57.5 -
$58.5
|
$233.0 -
$237.0
|
|
|
|
Talent acquisition
brands Adjusted EBITDA (1)
|
$21.5 -
$22.5
|
$86.0 -
$90.0
|
Corporate
expenses
|
$2.8 -
$3.0
|
$13.0 -
$13.5
|
Talent acquisition
brands Adjusted EBITDA less corporate expenses
(1)
|
$18.5 -
$19.5
|
$74.0 -
$77.0
|
|
|
|
Brightmatter Group
Adjusted EBITDA
|
($2.0) -
($2.5)
|
($8.0) -
($9.0)
|
Total Adjusted
EBITDA
|
$16.0 -
$17.0
|
$67.0 -
$70.0
|
|
|
|
Depreciation and
amortization
|
$4.1 -
$4.3
|
$17.5 -
$18.0
|
Non-cash stock
compensation expense
|
$2.5 -
$2.6
|
$10.0 -
$10.5
|
Interest expense,
net
|
$0.7 -
$0.8
|
$2.9 -
$3.3
|
Income tax
rate
|
36% - 38%
|
36% - 38%
|
|
|
|
Net
income
|
$5.4 -
$6.0
|
$22.5 -
$24.0
|
|
|
|
Diluted earnings per
share
|
$0.11 -
$0.12
|
$0.44 -
$0.47
|
Diluted share
count
|
50 million
|
50 million
|
|
|
|
Estimated yearly
change in revenue by segment (in US dollars):
|
Tech &
Clearance
|
(4%) -
(2%)
|
(2%) -
(1%)
|
Global Industry
Group:
|
|
|
eFinancialCareers
|
(6%) -
(4%)
|
(2%) - 0%
|
Rigzone
|
(57%) -
(53%)
|
(54%) -
(52%)
|
Hcareers
|
6% - 9%
|
4% - 6%
|
BioSpace
|
0% - 2%
|
(8%) -
(6%)
|
Healthcare
|
8% - 12%
|
10% - 14%
|
|
(1) Talent
acquisition brands includes the Company's Tech & Clearance,
Global Industry Group, and Healthcare segments
|
Estimated financial performance for 2016 reflects:
- Expectation for negative impact to Revenues from currency
fluctuations of roughly $1.0 - $1.5
million in Q3 2016 and $3.0 - $4.0
million for FY 2016 relative to the same periods in the
prior year, which primarily is reflected in the Global Industry
Group segment.
- Ongoing impact of depressed conditions in the Energy hiring
market and strategic business investments primarily in Brightmatter
Group.
- For the full year, excludes Slashdot Media and disposition
related and other costs related to the Company's sale of Slashdot
Media and to the organizational changes described in the Q1 2016
Earnings Release.
Conference Call Information
The Company will host a conference call to discuss second
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 10089467. The replay
will be available until August 4,
2016.
The call will also be webcast live from the Company's website at
www.dhigroupinc.com under the Investor Relations section.
Investor Contact
Courtney Chamberlain
Investor Relations/Public Relations Associate
DHI Group, Inc.
212-448-4181
ir@dhigroupinc.com
Media Contact
Rachel Ceccarelli
Director, Corporate Communications
DHI Group, Inc.
212-448-8288
media@dhigroupinc.com
About DHI Group, Inc.
DHI Group, Inc. (NYSE: DHX) is a leading provider of data,
insights and 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"), Adjusted EBITDA excluding Slashdot Media and
disposition related and other costs, Revenues excluding Slashdot
Media, Net Income excluding Slashdot Media and disposition related
and other costs, Free Cash Flow and Net Debt, provides useful
information to management and investors regarding certain financial
and business trends relating to its financial condition and results
of operations. In addition, the Company's management uses these
measures for reviewing the financial results of the Company and for
budgeting and planning purposes. The Company has provided
required reconciliations to the most comparable GAAP measures in
the section entitled "Supplemental Information and Non-GAAP
Reconciliations."
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP metric used by management to
measure operating performance. Management uses Adjusted
EBITDA as a performance measure for internal monitoring and
planning, including preparation of annual budgets, analyzing
investment decisions and evaluating profitability and performance
comparisons between us and our competitors. The Company also
uses this measure to calculate amounts of performance based
compensation under the senior management incentive bonus
program. Adjusted EBITDA, as defined in our Credit Agreement,
represents net income plus (to the extent deducted in calculating
such net income) interest expense, income tax expense, depreciation
and amortization, non-cash stock option expenses, losses resulting
from certain dispositions outside the ordinary course of business,
certain writeoffs in connection with indebtedness, impairment
charges with respect to long-lived assets, expenses incurred in
connection with an equity offering, extraordinary or non-recurring
non-cash expenses or losses, transaction costs in connection with
the Credit Agreement up to $250,000,
deferred revenues written off in connection with acquisition
purchase accounting adjustments, writeoff of non-cash stock
compensation expense, and business interruption insurance proceeds,
minus (to the extent included in calculating such net income)
non-cash income or gains, interest income, and any income or gain
resulting from certain dispositions outside the ordinary course of
business.
We 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.
Adjusted EBITDA Excluding Slashdot Media and disposition
related and other costs
Adjusted EBITDA excluding Slashdot Media and disposition related
and other costs is a non-GAAP metric used by management to measure
operating performance. Management uses Adjusted EBITDA excluding
Slashdot Media and disposition related and other costs as a measure
of our financial performance given our sale of Slashdot Media and
disposition related and other costs. Adjusted EBITDA excluding
Slashdot Media and disposition related and other costs, represents
Adjusted EBITDA defined above, less Slashdot Media EBITDA and
disposition related and other costs.
Revenues Excluding Slashdot Media
Revenues excluding Slashdot Media is a non-GAAP metric used by
management to measure operating performance. Revenues
excluding Slashdot Media represents Revenues as defined above less
Slashdot Media revenue. We consider Revenues excluding
Slashdot Media to be an important measure to evaluate our financial
performance given our sale of Slashdot Media.
Net Income Excluding Slashdot Media and disposition related
and other costs
Net Income excluding Slashdot Media is a non-GAAP metric used by
management to measure operating performance. Net Income excluding
Slashdot Media and disposition related and other costs is defined
as Net Income less Slashdot Media Net Income (Loss) and disposition
related and other costs. We consider Net Income excluding Slashdot
Media and disposition related and other costs to be an important
measure of our financial performance given our sale of Slashdot
Media and disposition related and other costs.
Free Cash Flow
We define free cash flow as net cash provided by operating
activities minus capital expenditures. We believe free cash flow is
an important non-GAAP measure as it provides useful cash flow
information regarding our ability to service, incur or pay down
indebtedness or repurchase our common stock. We use free cash
flow as a measure to reflect cash available to service our debt as
well as to fund our expenditures. A limitation of using free
cash flow versus the GAAP measure of net cash provided by operating
activities is that free cash flow does not represent the total
increase or decrease in the cash balance from operations for the
period since it includes cash used for capital expenditures during
the period and is adjusted for acquisition related payments within
operating cash flows.
Diluted Earnings per Share Excluding Slashdot Media and
disposition related and other costs
Diluted earnings per share excluding Slashdot Media and
disposition related and other costs is a non-GAAP metric used by
management to measure operating performance. Diluted earnings per
share excluding Slashdot Media and disposition related and other
costs is defined as diluted earnings per share less impact per
share of Slashdot Media and disposition related and other costs. We
consider diluted earnings per share excluding Slashdot Media and
disposition related and other costs to be an important measure of
our financial performance.
Net Debt
Net Debt is defined as total principal outstanding less cash. We
consider Net Debt to be an important measure of liquidity and
indicator of our ability to meet ongoing obligations. We also
use Net Debt, among other measures, in evaluating our choices for
capital deployment. Net Debt presented herein is a non-GAAP
measure and may not be comparable to similarly titled measures used
by other companies.
Forward-Looking Statements
This press release and oral statements made from time to time by
our representatives contain forward-looking statements. You should
not place undue reliance on those statements because they are
subject to numerous uncertainties and factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control. Forward-looking
statements include information without limitation concerning our
possible or assumed future results of operations, including
descriptions of our business strategy. These statements often
include words such as "may," "will," "should," "believe," "expect,"
"anticipate," "intend," "plan," "estimate" or similar
expressions. These statements are based on assumptions that
we have made in light of our experience in the industry as well as
our perceptions of historical trends, current conditions, expected
future developments and other factors we believe are appropriate
under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect our actual financial
results or results of operations and could cause actual results to
differ materially from those in the forward-looking
statements. These factors include, but are not limited to,
competition from existing and future competitors in the highly
competitive market in which we operate, failure to adapt our
business model to keep pace with rapid changes in the recruiting
and career services business, failure to maintain and develop our
reputation and brand recognition, failure to increase or maintain
the number of customers who purchase recruitment packages,
cyclicality or downturns in the economy or industries we serve, 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.
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(in thousands
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June
30,
|
|
For the six
months
ended June
30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
57,673
|
|
|
$
|
65,802
|
|
|
$
|
115,959
|
|
|
$
|
129,572
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
8,079
|
|
|
9,865
|
|
|
16,614
|
|
|
19,490
|
|
Product
development
|
6,245
|
|
|
7,055
|
|
|
13,305
|
|
|
14,144
|
|
Sales and
marketing
|
18,646
|
|
|
20,527
|
|
|
39,148
|
|
|
41,205
|
|
General and
administrative
|
11,508
|
|
|
11,829
|
|
|
22,721
|
|
|
23,101
|
|
Depreciation
|
2,563
|
|
|
2,254
|
|
|
5,161
|
|
|
4,457
|
|
Amortization of
intangible assets
|
2,070
|
|
|
3,756
|
|
|
4,536
|
|
|
7,499
|
|
Disposition related
and other costs
|
77
|
|
|
—
|
|
|
3,347
|
|
|
—
|
|
|
|
Total operating
expenses
|
49,188
|
|
|
55,286
|
|
|
104,832
|
|
|
109,896
|
|
Operating
income
|
8,485
|
|
|
10,516
|
|
|
11,127
|
|
|
19,676
|
|
Interest
expense
|
(820)
|
|
|
(833)
|
|
|
(1,692)
|
|
|
(1,641)
|
|
Other income
(expense)
|
(17)
|
|
|
18
|
|
|
(32)
|
|
|
(9)
|
|
Income before income
taxes
|
7,648
|
|
|
9,701
|
|
|
9,403
|
|
|
18,026
|
|
Income tax
expense
|
2,794
|
|
|
4,023
|
|
|
3,438
|
|
|
7,256
|
|
Net income
|
$
|
4,854
|
|
|
$
|
5,678
|
|
|
$
|
5,965
|
|
|
$
|
10,770
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
$
|
0.21
|
|
Diluted earnings per
share
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.12
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
48,607
|
|
|
51,753
|
|
|
49,034
|
|
|
52,019
|
|
Weighted average
diluted shares outstanding
|
49,279
|
|
|
52,965
|
|
|
49,850
|
|
|
53,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June
30,
|
|
For the six
months
ended June
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
4,854
|
|
|
$
|
5,678
|
|
|
$
|
5,965
|
|
|
$
|
10,770
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
2,563
|
|
|
2,254
|
|
|
5,161
|
|
|
4,457
|
|
Amortization of intangible assets
|
2,070
|
|
|
3,756
|
|
|
4,536
|
|
|
7,499
|
|
Deferred income
taxes
|
313
|
|
|
(1,242)
|
|
|
229
|
|
|
(1,828)
|
|
Amortization of deferred financing costs
|
81
|
|
|
105
|
|
|
162
|
|
|
209
|
|
Stock based compensation
|
2,806
|
|
|
2,577
|
|
|
6,423
|
|
|
5,080
|
|
Change in accrual for unrecognized tax benefits
|
101
|
|
|
81
|
|
|
115
|
|
|
164
|
|
Loss on sale of
business
|
77
|
|
|
—
|
|
|
639
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
2,490
|
|
|
2,502
|
|
|
4,857
|
|
|
4,829
|
|
Prepaid expenses and other
assets
|
336
|
|
|
1,622
|
|
|
(169)
|
|
|
1,127
|
|
Accounts payable and accrued
expenses
|
(2,771)
|
|
|
351
|
|
|
(4,875)
|
|
|
(3,813)
|
|
Income taxes
receivable/payable
|
1,624
|
|
|
3,407
|
|
|
(1,641)
|
|
|
6,330
|
|
Deferred revenue
|
(2,299)
|
|
|
(3,398)
|
|
|
3,252
|
|
|
2,033
|
|
Other, net
|
(63)
|
|
|
176
|
|
|
(77)
|
|
|
132
|
|
Net cash flows from
operating activities
|
12,182
|
|
|
17,869
|
|
|
24,577
|
|
|
36,989
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Cash received for sale of
business
|
—
|
|
|
—
|
|
|
2,429
|
|
|
—
|
|
Purchases of fixed
assets
|
(3,187)
|
|
|
(2,452)
|
|
|
(5,506)
|
|
|
(4,928)
|
|
Net cash flows from
investing activities
|
(3,187)
|
|
|
(2,452)
|
|
|
(3,077)
|
|
|
(4,928)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
(8,000)
|
|
|
(10,625)
|
|
|
(11,000)
|
|
|
(21,250)
|
|
Proceeds from long-term
debt
|
6,000
|
|
|
10,000
|
|
|
9,000
|
|
|
15,000
|
|
Payments under stock
repurchase plan
|
(8,915)
|
|
|
(12,663)
|
|
|
(22,632)
|
|
|
(21,379)
|
|
Payment of acquisition
related contingencies
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,829)
|
|
Proceeds from stock option
exercises
|
—
|
|
|
1,852
|
|
|
1,028
|
|
|
5,139
|
|
Purchase of treasury stock
related to vested restricted stock and
performance stock units
|
(68)
|
|
|
(14)
|
|
|
(2,520)
|
|
|
(1,546)
|
|
Excess tax benefit over book
expense from stock based compensation
|
3
|
|
|
1,045
|
|
|
348
|
|
|
1,421
|
|
Net cash flows from
financing activities
|
(10,980)
|
|
|
(10,405)
|
|
|
(25,776)
|
|
|
(26,444)
|
|
Effect of exchange
rate changes
|
(1,008)
|
|
|
(316)
|
|
|
(313)
|
|
|
267
|
|
Net change in cash
for the period
|
(2,993)
|
|
|
4,696
|
|
|
(4,589)
|
|
|
5,884
|
|
Cash, beginning of
period
|
32,454
|
|
|
27,965
|
|
|
34,050
|
|
|
26,777
|
|
Cash, end of
period
|
$
|
29,461
|
|
|
$
|
32,661
|
|
|
$
|
29,461
|
|
|
$
|
32,661
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
June 30,
2016
|
|
December 31,
2015
|
Current
assets
|
|
|
|
|
Cash
|
$
|
29,461
|
|
|
$
|
34,050
|
|
|
Accounts receivable,
net
|
41,161
|
|
|
46,380
|
|
|
Income taxes
receivable
|
1,999
|
|
|
916
|
|
|
Prepaid and other
current assets
|
3,362
|
|
|
3,072
|
|
|
Assets held for
sale
|
—
|
|
|
4,265
|
|
|
|
Total current
assets
|
75,983
|
|
|
88,683
|
|
Fixed assets,
net
|
15,258
|
|
|
15,255
|
|
Acquired intangible
assets, net
|
60,647
|
|
|
65,292
|
|
Goodwill
|
191,964
|
|
|
198,598
|
|
Deferred income
taxes
|
278
|
|
|
322
|
|
Other
assets
|
650
|
|
|
785
|
|
|
|
Total
assets
|
$
|
344,780
|
|
|
$
|
368,935
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
19,571
|
|
|
$
|
23,883
|
|
|
Deferred
revenue
|
85,940
|
|
|
83,316
|
|
|
Income taxes
payable
|
3,561
|
|
|
4,006
|
|
|
Liabilities held for
sale
|
—
|
|
|
2,334
|
|
|
|
Total current
liabilities
|
109,072
|
|
|
113,539
|
|
Long-term debt,
net
|
97,598
|
|
|
99,436
|
|
Deferred income
taxes
|
11,248
|
|
|
10,849
|
|
Accrual for
unrecognized tax benefits
|
3,551
|
|
|
3,436
|
|
Other long-term
liabilities
|
2,866
|
|
|
3,062
|
|
|
|
Total
liabilities
|
224,335
|
|
|
230,322
|
|
Total stockholders'
equity
|
120,445
|
|
|
138,613
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
344,780
|
|
|
$
|
368,935
|
|
|
|
|
|
|
|
Supplemental Information and Non-GAAP
Reconciliations
On the pages that follow, the Company has provided certain
supplemental information that we believe will assist the reader in
assessing our business operations and performance, including
certain non-GAAP financial information and required reconciliations
to the most comparable GAAP measure. A statement of
operations and statement of cash flows for the three and six month
periods ended June 30, 2016 and 2015 and a balance sheet as of
June 30, 2016 and December 31, 2015 are provided
elsewhere in this press release.
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA
|
(Unaudited)
|
(dollars in
thousands except per customer data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June
30,
|
|
For the six
months
ended June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net
income
|
$
|
4,854
|
|
|
$
|
5,678
|
|
|
$
|
5,965
|
|
|
$
|
10,770
|
|
|
Interest
expense
|
820
|
|
|
833
|
|
|
1,692
|
|
|
1,641
|
|
|
Income tax
expense
|
2,794
|
|
|
4,023
|
|
|
3,438
|
|
|
7,256
|
|
|
Depreciation
|
2,563
|
|
|
2,254
|
|
|
5,161
|
|
|
4,457
|
|
|
Amortization of
intangible assets
|
2,070
|
|
|
3,756
|
|
|
4,536
|
|
|
7,499
|
|
|
Non-cash stock
compensation expense
|
2,806
|
|
|
2,577
|
|
|
5,523
|
|
|
5,080
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
981
|
|
|
—
|
|
|
Accelerated stock
based compensation expense—Slashdot Media
|
—
|
|
|
—
|
|
|
900
|
|
|
—
|
|
|
Loss on sale of
business
|
77
|
|
|
—
|
|
|
639
|
|
|
—
|
|
|
Other
|
17
|
|
|
(18)
|
|
|
32
|
|
|
9
|
|
Adjusted
EBITDA
|
$
|
16,001
|
|
|
$
|
19,103
|
|
|
$
|
28,867
|
|
|
$
|
36,712
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
12,182
|
|
|
$
|
17,869
|
|
|
$
|
24,577
|
|
|
$
|
36,989
|
|
|
Interest
expense
|
820
|
|
|
833
|
|
|
1,692
|
|
|
1,641
|
|
|
Amortization of
deferred financing costs
|
(81)
|
|
|
(105)
|
|
|
(162)
|
|
|
(209)
|
|
|
Income tax
expense
|
2,794
|
|
|
4,023
|
|
|
3,438
|
|
|
7,256
|
|
|
Deferred income
taxes
|
(313)
|
|
|
1,242
|
|
|
(229)
|
|
|
1,828
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
981
|
|
|
—
|
|
|
Change in accrual for
unrecognized tax benefits
|
(101)
|
|
|
(81)
|
|
|
(115)
|
|
|
(164)
|
|
|
Change in accounts
receivable
|
(2,490)
|
|
|
(2,502)
|
|
|
(4,857)
|
|
|
(4,829)
|
|
|
Change in deferred
revenue
|
2,299
|
|
|
3,398
|
|
|
(3,252)
|
|
|
(2,033)
|
|
|
Changes in working
capital and other
|
891
|
|
|
(5,574)
|
|
|
6,794
|
|
|
(3,767)
|
|
Adjusted
EBITDA
|
$
|
16,001
|
|
|
$
|
19,103
|
|
|
$
|
28,867
|
|
|
$
|
36,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Free
Cash Flow:
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
12,182
|
|
|
$
|
17,869
|
|
|
$
|
24,577
|
|
|
$
|
36,989
|
|
Purchases of fixed
assets
|
(3,187)
|
|
|
(2,452)
|
|
|
(5,506)
|
|
|
(4,928)
|
|
Free Cash
Flow
|
$
|
8,995
|
|
|
$
|
15,417
|
|
|
$
|
19,071
|
|
|
$
|
32,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
Beginning of
period
|
7,450
|
|
|
7,800
|
|
|
7,600
|
|
|
7,800
|
|
End of
period
|
7,300
|
|
|
7,750
|
|
|
7,300
|
|
|
7,750
|
|
|
|
|
|
|
|
|
|
|
Average for the
period (1)
|
7,350
|
|
|
7,750
|
|
|
7,400
|
|
|
7,800
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (2)
|
$
|
1,124
|
|
|
$
|
1,084
|
|
|
$
|
1,121
|
|
|
$
|
1,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects
the daily average of recruitment package customers during the
period.
|
|
(2) Reflects
the simple average of each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
For the three
months
ended June
30,
|
|
For the six
months
ended June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
$
|
57,673
|
|
|
$
|
65,802
|
|
|
$
|
115,959
|
|
|
$
|
129,572
|
|
Less Slashdot
Media
|
—
|
|
|
3,875
|
|
|
747
|
|
|
7,667
|
|
Revenues, excluding
Slashdot Media
|
$
|
57,673
|
|
|
$
|
61,927
|
|
|
$
|
115,212
|
|
|
$
|
121,905
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
4,854
|
|
|
$
|
5,678
|
|
|
$
|
5,965
|
|
|
$
|
10,770
|
|
Exclude Slashdot
Media net income (loss)
|
(15)
|
|
|
—
|
|
|
(1,755)
|
|
|
316
|
|
Add back severance
related to re-alignment, net of tax
|
—
|
|
|
—
|
|
|
521
|
|
|
—
|
|
Net Income, excluding
Slashdot Media and disposition related and other costs
|
$
|
4,869
|
|
|
$
|
5,678
|
|
|
$
|
8,241
|
|
|
$
|
10,454
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Share, excluding Slashdot Media and disposition related
and
other costs
(3)
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
16,001
|
|
|
$
|
19,103
|
|
|
$
|
28,867
|
|
|
$
|
36,712
|
|
Exclude Slashdot
Media
|
53
|
|
|
153
|
|
|
(208)
|
|
|
852
|
|
Add back severance
related to re-alignment
|
—
|
|
|
—
|
|
|
827
|
|
|
—
|
|
Adjusted EBITDA,
excluding Slashdot Media and disposition related and
other
costs
|
$
|
15,948
|
|
|
$
|
18,950
|
|
|
$
|
29,902
|
|
|
$
|
35,860
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media and disposition related
and
other costs
(4)
|
27.7
|
%
|
|
30.6
|
%
|
|
26.0
|
%
|
|
29.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Definitions:
|
|
|
|
|
|
|
|
Tech &
Clearance: Dice, Dice Europe and ClearanceJobs
|
Global Industry
Group: eFinancialCareers, Rigzone, Hcareers and
BioSpace
|
|
|
|
|
Healthcare: Health
eCareers
|
Corporate &
Other: Corporate related costs, Slashdot Media and
Brightmatter
|
|
|
|
|
|
|
|
|
|
(3) Diluted
Earnings per Share, excluding Slashdot Media and disposition
related and other costs, is computed as Net Income, excluding
Slashdot Media and disposition related and other costs, divided by
weighted average diluted shares outstanding.
|
(4) Adjusted
EBITDA margin, excluding Slashdot Media and disposition related and
other costs, is computed as Adjusted EBITDA, excluding Slashdot
Media and disposition related and other costs, divided by Revenues,
excluding Slashdot Media.
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-second-quarter-2016-results-300304487.html
SOURCE DHI Group, Inc.