NEWARK, N.J., Oct. 3, 2017 /PRNewswire/ -- IDT Corporation
(NYSE: IDT) reported a $(0.41) loss
per share and non-GAAP earnings per share (EPS)* of $0.07 on revenue of $395.0
million for the fourth quarter of FY 2017, the three months
ended July 31, 2017.
For the full FY 2017, IDT reported EPS of $0.35 and non-GAAP EPS of $0.51 on revenue of $1.5
billion.
HIGHLIGHTS
(4Q17 results are compared
to 4Q16. FY 2017 results refer to full fiscal year 2017
results and are compared to FY 2016)
- 4Q17 revenue of $395.0 million
compared to $368.1 million. FY
2017 revenue of $1,501.7 million
compared to $1,496.3 million;
- 4Q17 income from operations of $3.7
million compared to $6.2
million. FY 2017 income from operations of
$5.5 million compared to $26.2 million;
- 4Q17 Adjusted EBITDA* of $8.6
million compared to $10.0
million. FY 2017 Adjusted EBITDA of $37.7 million compared to $45.0 million;
- 4Q17 loss per share of $(0.41)
compared to diluted EPS of $0.48. FY 2017 diluted EPS of $0.35 compared to $1.03;
- 4Q17 non-GAAP EPS* of $0.07
compared to $0.35. FY
2017 non-GAAP EPS of $0.51 compared
to $1.00;
- On June 22, 2017, IDT announced
an agreement to sell its Gibraltar-based bank. The deal is
awaiting regulatory approval and is expected to close later this
calendar year;
- IDT has declared a dividend of $0.19 per share for 4Q17 to be paid on or about
October 20, 2017.
REMARKS BY SHMUEL JONAS, CEO
OF IDT CORPORATION
"This quarter showcased the resilience
of our core communications and payments businesses while we
continued to invest heavily in our growth initiatives including
net2phone's unified communications as a service business, National
Retail Solutions, BOSS Revolution international money transfer, and
the BOSS Revolution mobile service that we expect to launch later
this quarter.
"IDT's Board of Directors has declared a 4th quarter dividend of
$0.19. The dividend will be paid on
or about October 20th.
"We continue to work toward the spin-off our non-core assets to
IDT stockholders, including our real estate assets, our interests
in Rafael Pharmaceuticals, Inc. and other investments, and
$50 to $60 million in cash."
4Q17 AND FY 2017 CONSOLIDATED RESULTS
The
IDT Corporation FY 2017 audit by its independent auditors is
ongoing and has not yet been completed.
Results
(in millions,
except EPS)
|
4Q17
|
3Q17
|
4Q16
|
4Q17 -
4Q16
Change
(%/$)
|
FY
2017
|
FY
2016
|
FY 2017 -FY
2016 Change
(%/$)
|
Revenue
|
$395.0
|
$370.0
|
$368.1
|
+7.3%
|
$1,501.7
|
$1,496.3
|
+0.4%
|
Direct cost of
revenue
|
$337.1
|
$314.7
|
$309.1
|
+9.0%
|
$1,275.7
|
$1,246.6
|
+2.3
|
Direct cost of
revenue as a
percentage of revenue
|
85.3%
|
85.0%
|
84.0%
|
+130 BP
|
84.9%
|
83.3%
|
+160 BP
|
SG&A
expense
|
$49.3
|
$46.2
|
$48.9
|
+0.9%
|
$188.3
|
$204.7
|
(8.0)%
|
Depreciation and
amortization
|
$5.6
|
$5.5
|
$5.0
|
+12.8%
|
$21.7
|
$20.5
|
+5.7%
|
Severance
expense
|
-
|
-
|
$6.3
|
$(6.3)
|
-
|
$6.5
|
$(6.5)
|
Other gains
(losses)
|
$0.8
|
$(10.2)
|
$7.5
|
$(6.7)
|
$(10.5)
|
$8.2
|
$(18.7)
|
Income (loss) from
operations
|
$3.7
|
$(6.5)
|
$6.2
|
$(2.5)
|
$5.5
|
$26.2
|
$(20.7)
|
Adjusted
EBITDA*
|
$8.6
|
$9.1
|
$10.0
|
(14.3)%
|
$37.7
|
$45.0
|
(16.2)%
|
Net (loss) income
attributable to IDT
|
$(9.8)
|
$(4.8)
|
$11.0
|
$(20.8)
|
$8.2
|
$23.5
|
$(15.3)
|
Diluted (loss)
earnings per share
|
$(0.41)
|
$(0.21)
|
$0.48
|
$(0.89)
|
$0.35
|
$1.03
|
$(0.68)
|
Non-GAAP net
income*
|
$1.8
|
$2.8
|
$8.0
|
$(6.2)
|
$11.9
|
$22.9
|
$(11.0)
|
Non-GAAP
EPS*
|
$0.07
|
$0.12
|
$0.35
|
$(0.28)
|
$0.51
|
$1.00
|
$(0.49)
|
|
|
*Throughout
this release, Non-GAAP EPS, Adjusted EBITDA, and Non-GAAP Net
Income for all periods presented are Non-GAAP measures intended to
provide useful information that supplements IDT's or the relevant
segment's core results in accordance with GAAP. Please refer
to the Reconciliation of Non-GAAP Financial Measures at the end of
this release for an explanation of these terms and their respective
reconciliations to the most directly comparable GAAP measure.
|
Consolidated results in 4Q16 and FY 2016 include the results of
Zedge, which was spun off to IDT stockholders on June 1, 2016. In 4Q16, Zedge contributed
revenue of $812 thousand, a loss from
operations of $32 thousand and
Adjusted EBITDA of $15
thousand. In FY 2016, Zedge contributed revenue of
$9.5 million, income from operations
of $2.3 million and Adjusted EBITDA
of $2.6 million.
Consolidated results for all periods presented include corporate
overhead. In 4Q17, corporate G&A expense decreased 17.4%
to $2.2 million from $2.7 million in the year ago quarter. For
FY 2017, corporate G&A expense decreased 20.5% to $8.0 million from $10.1
million in FY 2016.
Income from operations in 4Q17 totaled $3.7 million including a gain of $0.8 million related to certain regulatory and
legal matters. Income from operations in 4Q16 of
$6.2 million included a gain of
$7.5 million on the sale of IDT's
Gibraltar-based bank's member
interest in Visa Europe and $6.3
million in severance expense. Income from operations
in FY 2017 was $5.5 million including
a charge of $10.1 million related to
a legal settlement. Income from operations in FY 2016 was
$26.2 million, including gains
totaling $8.2 million and severance
expense of $6.5 million.
IDT's loss per share in 4Q17 was $(0.41), which included income tax expense of
$11.1 million from a decrease in the
book value of deferred tax assets, compared to diluted EPS of
$0.48 in 4Q16 including a
$2.7 million gain on foreign currency
transactions and a benefit from income taxes of $2.1 million. IDT's diluted EPS in FY 2017
was $0.35 compared to $1.03.
At July 31, 2017, IDT reported
$148.6 million in unrestricted cash,
cash equivalents and marketable securities. Current assets totaled
$371.1 million and current
liabilities totaled $362.8
million. Reflecting IDT's agreement to sell its
Gibraltar-based bank, all of the
bank's assets and liabilities at July 31,
2017 and 2016 are classified as "Held for sale" in the
consolidated balance sheets.
Net cash provided by operating activities during 4Q17 was
$18.5 million compared to
$13.2 million in 4Q16. In the
corresponding periods, capital expenditures were $5.9 million and $4.4
million, respectively. FY 2017 net cash provided by
operating activities totaled $19.0
million compared to $49.1
million in FY 2016. In the corresponding periods, capital
expenditures were $22.9 million and
$18.4 million, respectively.
4Q17 AND FY 2017 RESULTS BY SEGMENT
(Results are
for 4Q17 unless otherwise noted).
Quarterly
Results by Segment
(in
millions)
|
TPS
|
UCaaS
|
CPS
|
ALL
OTHER
|
4Q17
|
4Q16
|
4Q17
|
4Q16
|
4Q17
|
4Q16
|
4Q17
|
4Q16
|
Revenue
|
$384.8
|
$358.1
|
$7.8
|
$7.0
|
$1.3
|
$1.6
|
$1.2
|
$1.4
|
Direct cost of
revenue
|
$333.4
|
$304.8
|
$2.8
|
$3.5
|
$0.6
|
$0.7
|
$0.3
|
$0.1
|
SG&A
expense
|
$41.9
|
$41.9
|
$4.5
|
$3.0
|
$0.4
|
$0.6
|
$0.3
|
$0.7
|
Depreciation and
amortization
|
$4.0
|
$3.9
|
$1.2
|
$0.7
|
-
|
-
|
$0.4
|
$0.5
|
Income (loss) from
operations
|
$5.4
|
$9.1
|
$(0.8)
|
$(0.2)
|
$0.3
|
$0.2
|
$0.2
|
$0.1
|
Adjusted
EBITDA
|
$9.4
|
$11.4
|
$0.4
|
$0.5
|
$0.3
|
$0.2
|
$0.6
|
$0.6
|
Full Fiscal
Year Results by
Segment (in millions)
|
TPS
|
UCaaS
|
CPS
|
ALL
OTHER
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
Revenue
|
$1,464.1
|
$1,451.6
|
$29.4
|
$26.4
|
$5.5
|
$6.9
|
$2.7
|
$11.5
|
Direct cost of
revenue
|
$1,261.0
|
$1,229.1
|
$12.0
|
$13.4
|
$2.5
|
$3.1
|
$0.3
|
$1.0
|
SG&A
expense
|
$162.4
|
$174.8
|
$15.5
|
$11.8
|
$1.9
|
$2.6
|
$0.5
|
$5.4
|
Depreciation and
amortization
|
$16.1
|
$15.8
|
$3.9
|
$2.8
|
-
|
-
|
$1.7
|
$2.0
|
Income (loss) from
operations
|
$24.4
|
$32.8
|
$(1.9)
|
$(1.6)
|
$1.1
|
$1.2
|
$0.3
|
$4.2
|
Adjusted
EBITDA
|
$40.6
|
$47.7
|
$2.0
|
$1.2
|
$1.1
|
$1.2
|
$2.0
|
$5.1
|
Telecom Platform Services (TPS)
The TPS segment
contributed 97.4% of IDT's revenue in 4Q17 and 97.5% of IDT's
revenue in FY 2017. TPS markets and distributes multiple
communications and payment services across three verticals each
comprised of multiple offerings: Retail Communications, Wholesale
Carrier Services and Payment Services.
TPS' 4Q17 revenue increased 7.4% to $384.8 million – the highest level in two years –
while TPS' revenue less direct costs declined 3.7% to $51.3 million. The Wholesale Carrier
Services and Payment Services verticals achieved robust revenue
growth – more than offsetting a decline in Retail Communications
revenues. TPS' FY 2017 revenue increased by 0.9% to
$1,464.1 million, while revenue less
direct costs decreased 8.7% to $203.1
million.
TPS Revenue by
Business Vertical
($ in
millions)
|
4Q17
|
3Q17
|
4Q16
|
4Q17 -
4Q16
%
Change
|
4Q17-4Q16
% Change
in Minutes
of Use
|
4Q17
Revenue
as % of
all TPS
|
FY
2017
|
FY
2016
|
FY 2017
– FY
2016 %
Change
|
Retail
Communications
|
$151.4
|
$148.6
|
$163.5
|
(7.5)%
|
(20.5)%
|
39.3%
|
$610.2
|
$664.9
|
(8.2)%
|
Wholesale Carrier
Services
|
$167.4
|
$152.1
|
$139.1
|
+20.4%
|
+4.4%
|
43.5%
|
$608.6
|
$567.4
|
+7.3%
|
Payment
Services
|
$66.0
|
$60.1
|
$55.5
|
+18.9%
|
na
|
17.2%
|
$245.3
|
$219.3
|
+11.8%
|
Total
TPS
|
$384.8
|
$360.8
|
$358.1
|
+7.4%
|
(2.8)%
|
100.0%
|
$1,464.1
|
$1,451.6
|
+0.9%
|
Retail Communications:
IDT's flagship BOSS Revolution® calling service – which
accounted for over 90% of Retail Communications' revenue in 4Q17 -
continued to be impacted by increased adoption of over-the-top
voice and messaging, unlimited calling plans, as well as decreased
immigration into the US. These secular trends and events
resulted in a 4.8% reduction in BOSS Revolution calling service
revenues compared to the year ago quarter and a 5.4% reduction
compared to FY 2016. Revenues from the sale of traditional
'hard' prepaid calling cards in the US and overseas as well as
other legacy offerings also continued to decrease in line with
expectations.
Wholesale Carrier
Services: Wholesale Carrier Services grew revenue in the
fourth quarter compared to 4Q16 and full fiscal year compared to FY
2016 by 20.4% and 7.3% respectively, and increased overall minutes
of use by 4.4% compared to the year ago quarter and by 2.9%
compared to the prior fiscal year. Wholesale Carrier
Services' operations are managed to maximize gross profit.
Wholesale Carrier Service's revenues have historically been more
volatile than Retail Communications revenues, and changes in
revenue do not necessarily generate corresponding changes in gross
profit.
Payment Services:
Payment Services revenue increased by $10.5
million in the fourth quarter and by $25.9 million in fiscal 2017. The recent
introduction of new mobile partners has contributed to the renewed
growth of mobile top-up revenues, which achieved a record level in
4Q17. The continued growth of the BOSS Revolution international
money transfer service and National Retail Solutions' merchant
services offerings also contributed to the robust growth of Payment
Services' revenue.
TPS' direct cost of revenue in 4Q17, expressed as a percentage
of TPS' revenue, increased to 86.7% from 85.1% in 4Q16, and to
86.1% in FY2017 from 84.7% in FY 2016. This increase
primarily reflects a mix shift within TPS towards Wholesale Carrier
Services revenue, which generates relatively lower gross margins
than Retail Communications' offerings.
TPS' SG&A expense in 4Q17 - $41.9
million – was unchanged compared to the year ago quarter as
increases in legal and marketing costs were offset by lower
personnel and bad debt expense. TPS' full fiscal year
SG&A expense decreased 7.1% to $162.4
million on reduced personnel expense. SG&A expense
expressed as a percentage of revenue decreased 80 basis points to
10.9% in 4Q17 compared to the year ago quarter. For the full
fiscal year 2017, SG&A expense as a percentage of revenue
decreased 90 basis points to 11.1% compared to the prior year.
TPS' D&A expense increased to $4.0
million in 4Q17 from $3.9
million in the year ago quarter, and increased to
$16.1 million in FY 2017 from
$15.8 million in FY 2016.
TPS' income from operations decreased to $5.4 million in 4Q17 from $9.1 million in 4Q16. Income from
operations in 4Q16 included a gain of $7.5
million on the sale of IDT's Gibraltar-based bank's member interest in Visa
Europe, and severance expense of $6.0
million. TPS' income from operations in FY 2017 was
$24.4 million compared to income from
operations of $32.8 million in FY
2016 (that included other gains of $7.1
million – primarily from the sale of the member interest in
Visa Europe - and severance expense of $6.2
million).
TPS' Adjusted EBITDA decreased to $9.4
million in 4Q17 from $11.4
million in 4Q16 reflecting the increase in the direct cost
of revenue as a percentage of revenue. The same factor -
partially offset by the reduction in SG&A expense - reduced FY
2017's Adjusted EBITDA to $40.6
million from $47.7 million in
FY 2016.
Unified Communications as a Service (UCaaS)
The UCaaS
segment is comprised of offerings from IDT's net2phone®
division, including cable telephony, hosted PBX, and SIP
trunking.
UCaaS' 4Q17 revenue increased to $7.8
million from $7.0 million in
4Q16. UCaaS' FY 2017 revenue increased to $29.4 million from $26.4
million in FY 2016. The quarterly and full year
revenue growth was driven by sales of net2phone's cloud-based
communications offering and, to a lesser extent, by SIP trunking
and cable telephony.
UCaaS' loss from operations in 4Q17 increased to $771 thousand from $190
thousand in 4Q16. UCaaS' loss from operation in FY
2017 increased to $1.9 million from
$1.6 million in FY 2016. The
increases in the quarterly and full year losses primarily reflect
increased employee compensation and commission expense as IDT
increased investment in net2phone sales and technical personnel and
increased depreciation and amortization expense, partially offset
by a significant decrease in direct costs.
Consumer Phone Services (CPS)
The Consumer Phone
Services segment sells postpaid local and long-distance services in
the U.S., marketed under the brand name IDT America. CPS has
been in harvest mode for more than a decade - maximizing revenue
from current customers while maintaining SG&A and other
expenses at the minimum levels essential to operate the business.
CPS' financial results are provided in the segment results
chart above and conformed to expectations.
All Other
All Other includes IDT's real estate
holdings, comprised of its public garage in Newark and commercial properties in
Newark, Piscataway and Jerusalem, as well as other small businesses
and investments, including an investment in Rafael Pharmaceuticals,
Inc., (formerly Cornerstone Pharmaceuticals, Inc.).
Rafael Pharmaceuticals is a clinical stage, oncology-focused
pharmaceutical company committed to the development and
commercialization of therapies that exploit the metabolic
differences between normal cells and cancer cells.
All Other previously included Zedge, a platform and mobile app
centered on self-expression. Zedge was fully spun off from
IDT to IDT's shareholders on June 1,
2016. Because the disposition of IDT's interest in Zedge did
not meet the criteria to be reported as a discontinued operation,
Zedge's results of operations and cash flows continue to be
included in prior comparative periods.
All Other's financial results are provided in the segment
results chart above and conformed to expectations.
IDT intends to spin-off the real estate and pharmaceutical
holdings included in All Other to its shareholders under the name
Rafael Holdings, Inc.
DIVIDEND
On September
28th, 2017, IDT's Board of Directors declared a
quarterly dividend of $0.19 per share
of Class A and Class B common stock for 4Q17 to be paid on or about
October 20, 2017. The dividend
will be paid to stockholders of record as of the close of business
on October 16th. The
ex-dividend date will be October
12th. This distribution will be treated as
a return of capital for tax purposes.
IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL
INFORMATION
This release is available for download in the
"For Investors" section of the IDT Corporation website
(http://idt.net/ir) and has been filed on a current report
(Form 8-K) with the SEC.
IDT will host an earnings conference call beginning at
5:30 PM ET today with management's
discussion of results, outlook and strategy followed by Q&A
with investors.
To listen to the call and participate in the Q&A, dial
toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243
(international) and request the IDT Corporation call.
A recording of the conference call can be accessed beginning one
hour after the call concludes through October 10, 2017 by dialing 1-844-512-2921 (toll
free from the US) or 1-412-317-6671 (international) and providing
this pin code: 10111313. The recording will also be available
via streaming audio at the IDT investor relations website
(www.idt.net/ir) following the call.
ABOUT IDT:
IDT Corporation (NYSE: IDT), through its
IDT Telecom division, provides telecommunications and payment
services to individuals and businesses primarily through its
flagship BOSS Revolution® and net2phone®
brands. IDT Telecom's wholesale business is a leading global
carrier of international long-distance calls. For more
information on IDT, visit www.idt.net.
All statements above that are not purely about historical
facts, including, but not limited to, those in which we use the
words "believe," "anticipate," "expect," "plan," "intend,"
"estimate," "target" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important
factors. Our filings with the SEC provide detailed
information on such statements and risks, and should be consulted
along with this release. To the extent permitted under applicable
law, IDT assumes no obligation to update any forward-looking
statements.
IDT
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
July 31
(in thousands, except per share data)
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
90,344
|
|
$
|
104,001
|
|
Marketable
securities
|
|
|
58,272
|
|
|
52,949
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $2,657 and
$3,957 at July 31, 2017 and 2016, respectively
|
|
|
64,979
|
|
|
47,230
|
|
Prepaid
expenses
|
|
|
14,506
|
|
|
14,601
|
|
Other current
assets
|
|
|
18,749
|
|
|
13,188
|
|
Assets held for
sale
|
|
|
124,267
|
|
|
107,084
|
|
TOTAL CURRENT
ASSETS
|
|
|
371,117
|
|
|
339,053
|
|
Property, plant and
equipment, net
|
|
|
88,994
|
|
|
87,334
|
|
Goodwill
|
|
|
11,326
|
|
|
11,218
|
|
Investments
|
|
|
26,894
|
|
|
14,024
|
|
Deferred income tax
assets, net
|
|
|
11,841
|
|
|
9,554
|
|
Other
assets
|
|
|
3,657
|
|
|
3,345
|
|
Assets held for
sale
|
|
|
5,134
|
|
|
5,130
|
|
TOTAL
ASSETS
|
|
$
|
518,963
|
|
$
|
469,658
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
40,989
|
|
$
|
29,797
|
|
Accrued
expenses
|
|
|
125,359
|
|
|
117,268
|
|
Deferred
revenue
|
|
|
76,451
|
|
|
85,700
|
|
Other current
liabilities
|
|
|
4,659
|
|
|
14,092
|
|
Liabilities held for
sale
|
|
|
115,318
|
|
|
96,963
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
362,776
|
|
|
343,820
|
|
Other
liabilities
|
|
|
1,080
|
|
|
1,200
|
|
Liabilities held for
sale
|
|
|
550
|
|
|
435
|
|
TOTAL
LIABILITIES
|
|
|
364,406
|
|
|
345,455
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
IDT Corporation
stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock, $.01
par value; authorized shares—10,000; no shares issued
|
|
|
—
|
|
|
—
|
|
Class A common stock,
$.01 par value; authorized shares—35,000; 3,272 shares issued and
1,574 shares outstanding at July 31, 2017 and 2016
|
|
|
33
|
|
|
33
|
|
Class B common stock,
$.01 par value; authorized shares—200,000; 25,561 and 25,383 shares
issued and 23,264 and 21,452 shares outstanding at July 31, 2017
and 2016, respectively
|
|
|
256
|
|
|
254
|
|
Additional paid-in
capital
|
|
|
394,462
|
|
|
396,243
|
|
Treasury stock, at
cost, consisting of 1,698 and 1,698 shares of Class A common stock
and 2,297 and 3,931 shares of Class B common stock at July 31, 2017
and 2016, respectively
|
|
|
(83,304)
|
|
|
(115,316)
|
|
Accumulated other
comprehensive loss
|
|
|
(2,343)
|
|
|
(3,744)
|
|
Accumulated
deficit
|
|
|
(163,370)
|
|
|
(153,673)
|
|
Total IDT Corporation
stockholders' equity
|
|
|
145,734
|
|
|
123,797
|
|
Noncontrolling
interests
|
|
|
8,823
|
|
|
406
|
|
TOTAL
EQUITY
|
|
|
154,557
|
|
|
124,203
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
518,963
|
|
$
|
469,658
|
|
|
See accompanying
notes to consolidated financial statements.
|
IDT
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
Year ended July
31
(in thousands, except per share data)
|
|
2017
|
|
2016
|
|
2015
|
|
REVENUES
|
|
$
|
1,501,729
|
|
$
|
1,496,261
|
|
$
|
1,596,777
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Direct cost of
revenues (exclusive of depreciation and amortization)
|
|
|
1,275,708
|
|
|
1,246,594
|
|
|
1,328,363
|
|
Selling, general and
administrative (i)
|
|
|
188,293
|
|
|
204,655
|
|
|
222,239
|
|
Depreciation and
amortization
|
|
|
21,704
|
|
|
20,535
|
|
|
18,418
|
|
Research and
development
|
|
|
—
|
|
|
—
|
|
|
1,656
|
|
Severance
|
|
|
—
|
|
|
6,510
|
|
|
8,363
|
|
TOTAL COSTS AND
EXPENSES
|
|
|
1,485,705
|
|
|
1,478,294
|
|
|
1,579,039
|
|
Other operating
expenses
|
|
|
(10,412)
|
|
|
(326)
|
|
|
(1,552)
|
|
Gain on sale of
member interest in Visa Europe Ltd
|
|
|
(63)
|
|
|
7,476
|
|
|
—
|
|
Gain on sale of
interest in Fabrix Systems, Ltd
|
|
|
—
|
|
|
1,086
|
|
|
76,864
|
|
Income from
operations
|
|
|
5,549
|
|
|
26,203
|
|
|
93,050
|
|
Interest income
(expense), net
|
|
|
1,254
|
|
|
1,216
|
|
|
(159)
|
|
Other income
(expense), net
|
|
|
817
|
|
|
2,049
|
|
|
(688)
|
|
Income before income
taxes
|
|
|
7,620
|
|
|
29,468
|
|
|
92,203
|
|
Benefit from
(provision for) income taxes
|
|
|
2,021
|
|
|
(4,110)
|
|
|
(6,088)
|
|
NET
INCOME
|
|
|
9,641
|
|
|
25,358
|
|
|
86,115
|
|
Net income
attributable to noncontrolling interests
|
|
|
(1,464)
|
|
|
(1,844)
|
|
|
(1,625)
|
|
NET INCOME
ATTRIBUTABLE TO IDT CORPORATION
|
|
$
|
8,177
|
|
$
|
23,514
|
|
$
|
84,490
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to IDT Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.35
|
|
$
|
1.03
|
|
$
|
3.69
|
|
Diluted
|
|
$
|
0.35
|
|
$
|
1.03
|
|
$
|
3.63
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
23,182
|
|
|
22,765
|
|
|
22,903
|
|
Diluted
|
|
|
23,309
|
|
|
22,815
|
|
|
23,247
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
3,740
|
|
$
|
2,680
|
|
$
|
5,185
|
|
|
See accompanying
notes to consolidated financial statements.
|
IDT
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Year ended July
31
(in thousands)
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,641
|
|
$
|
25,358
|
|
$
|
86,115
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
21,704
|
|
|
20,535
|
|
|
18,418
|
|
Deferred income
taxes
|
|
|
(2,328)
|
|
|
3,809
|
|
|
5,877
|
|
Provision for
doubtful accounts receivable
|
|
|
686
|
|
|
1,519
|
|
|
97
|
|
Gain on sale of
interest in Fabrix Systems Ltd
|
|
|
—
|
|
|
(1,086)
|
|
|
(76,864)
|
|
Gain on sale of
member interest in Visa Europe Ltd
|
|
|
—
|
|
|
(7,476)
|
|
|
—
|
|
Net realized (gain)
loss from marketable securities
|
|
|
(323)
|
|
|
(543)
|
|
|
54
|
|
Interest in the
equity of investments
|
|
|
(356)
|
|
|
362
|
|
|
(1,699)
|
|
Stock-based
compensation
|
|
|
3,740
|
|
|
2,680
|
|
|
5,185
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Restricted cash and
cash equivalents
|
|
|
(17,702)
|
|
|
(22,548)
|
|
|
(28,286)
|
|
Trade accounts
receivable
|
|
|
(17,972)
|
|
|
616
|
|
|
640
|
|
Prepaid expenses,
other current assets and other assets
|
|
|
(4,856)
|
|
|
8,372
|
|
|
2,122
|
|
Trade accounts
payable, accrued expenses, other current liabilities and other
liabilities
|
|
|
17,343
|
|
|
(10,099)
|
|
|
(4,125)
|
|
Customer
deposits
|
|
|
18,980
|
|
|
25,344
|
|
|
25,939
|
|
Deferred
revenue
|
|
|
(9,543)
|
|
|
2,211
|
|
|
(2,939)
|
|
Net cash provided by
operating activities
|
|
|
19,014
|
|
|
49,054
|
|
|
30,534
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(22,949)
|
|
|
(18,370)
|
|
|
(28,556)
|
|
Payment for
acquisition, net of cash acquired
|
|
|
(1,827)
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
interest in Fabrix Systems Ltd., net of cash and cash equivalents
sold
|
|
|
—
|
|
|
9,557
|
|
|
59,678
|
|
Proceeds from sale of
member interest in Visa Europe Ltd
|
|
|
—
|
|
|
5,597
|
|
|
—
|
|
Cash used for
purchase of investments
|
|
|
(9,438)
|
|
|
(2,002)
|
|
|
(125)
|
|
Proceeds from sales
and redemptions of investments
|
|
|
15
|
|
|
634
|
|
|
119
|
|
Purchases of
marketable securities
|
|
|
(53,402)
|
|
|
(46,909)
|
|
|
(52,360)
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
47,996
|
|
|
35,011
|
|
|
24,126
|
|
Net cash (used in)
provided by investing activities
|
|
|
(39,605)
|
|
|
(16,482)
|
|
|
2,882
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(17,874)
|
|
|
(17,358)
|
|
|
(47,594)
|
|
Distributions to
noncontrolling interests
|
|
|
(1,482)
|
|
|
(1,834)
|
|
|
(2,050)
|
|
Sale of Class B
common stock to Howard S. Jonas
|
|
|
24,930
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
interest and rights in Rafael Pharmaceuticals, Inc. to Howard S.
Jonas
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
member interests in CS Pharma Holdings, LLC
|
|
|
1,250
|
|
|
8,750
|
|
|
—
|
|
Cash of Zedge
deconsolidated as a result of spin-off
|
|
|
—
|
|
|
(6,381)
|
|
|
—
|
|
Proceeds from sale of
Zedge equity prior to the spin-off
|
|
|
—
|
|
|
374
|
|
|
—
|
|
Proceeds from
exercise of stock options
|
|
|
836
|
|
|
—
|
|
|
3,424
|
|
Repayments of
borrowings including revolving credit loan payable
|
|
|
—
|
|
|
(6,353)
|
|
|
(13,271)
|
|
Purchase of Class B
common stock from Howard S. Jonas
|
|
|
—
|
|
|
—
|
|
|
(7,500)
|
|
Repurchases of Class
B common stock
|
|
|
(1,838)
|
|
|
(4,773)
|
|
|
(3,202)
|
|
Net cash provided by
(used in) financing activities
|
|
|
6,822
|
|
|
(27,575)
|
|
|
(70,193)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
292
|
|
|
(5,821)
|
|
|
(6,685)
|
|
Net decrease in cash
and cash equivalents
|
|
|
(13,477)
|
|
|
(824)
|
|
|
(43,462)
|
|
Cash and cash
equivalents at beginning of year
|
|
|
109,537
|
|
|
110,361
|
|
|
153,823
|
|
Cash and cash
equivalents at end of year
|
|
$
|
96,060
|
|
$
|
109,537
|
|
$
|
110,361
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Cash payments made
for interest
|
|
$
|
1,209
|
|
$
|
1,205
|
|
$
|
745
|
|
Cash payments made
for income taxes
|
|
$
|
576
|
|
$
|
779
|
|
$
|
320
|
|
SUPPLEMENTAL
SCHEDULE OF NON-CASH FINANCING AND INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Reclassification of
liability for member interests in CS Pharma Holdings,
LLC
|
|
$
|
8,750
|
|
$
|
—
|
|
$
|
—
|
|
Net assets excluding
cash and cash equivalents of Zedge deconsolidated as a result of
spin-off
|
|
$
|
—
|
|
$
|
(4,681)
|
|
$
|
—
|
|
Shares of Visa Inc.
Series C preferred stock received from sale of member interest in
Visa Europe Ltd
|
|
$
|
—
|
|
$
|
1,580
|
|
$
|
—
|
|
Net liabilities
excluding cash and cash equivalents of Fabrix Systems Ltd.
sold
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,333
|
|
Reconciliation of Non-GAAP Financial Measures for the Fourth
Quarter Fiscal 2017 and 2016
In addition to disclosing financial results that are determined
in accordance with generally accepted accounting principles in
the United States of America
(GAAP), IDT also disclosed, for 4Q17, 3Q17 and 4Q16, Adjusted
EBITDA, non-GAAP net income and non-GAAP diluted earnings per
share, or EPS, which are non-GAAP measures. Generally, a non-GAAP
financial measure is a numerical measure of a company's
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP.
IDT's measure of Adjusted EBITDA consists of revenues less
direct cost of revenues and selling, general and administrative
expense. Another way of calculating Adjusted EBITDA is to start
with income from operations, add depreciation and amortization,
severance expense and other operating expenses, and subtract other
operating gain, the gain on the sale of member interest in Visa
Europe Ltd. and the gain on sale of interest in Fabrix Systems
Ltd.
IDT's measure of non-GAAP net income starts with net income in
accordance with GAAP and adds severance expense, stock-based
compensation, other operating expenses, and the tax expense from
the increase in the valuation allowance on deferred tax assets, and
subtracts other operating gain, the gain on the sale of member
interest in Visa Europe Ltd., the gain on sale of interest in
Fabrix Systems Ltd. and the tax benefit from the release of the
valuation allowance and full recognition of deferred tax
assets.
IDT's measure of non-GAAP diluted EPS is calculated by dividing
non-GAAP net income by the diluted weighted-average shares.
Beginning in 4Q17, depreciation and amortization expense is no
longer an adjustment to net income in IDT's measure of non-GAAP net
income. Comparative results have been restated in all periods
presented.
These additions and subtractions are non-cash and/or non-routine
items in the relevant fiscal 2017 and fiscal 2016 periods.
Management believes that IDT's Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS measures provide useful information to both
management and investors by excluding certain expenses and
non-routine gains and losses that may not be indicative of IDT's or
the relevant segment's core operating results. Management uses
Adjusted EBITDA, among other measures, as a relevant indicator of
core operational strengths in its financial and operational
decision making. In addition, management uses Adjusted EBITDA,
non-GAAP net income and non-GAAP EPS to evaluate operating
performance in relation to IDT's competitors. Disclosure of these
financial measures may be useful to investors in evaluating
performance and allows for greater transparency to the underlying
supplemental information used by management in its financial and
operational decision-making. In addition, IDT has historically
reported similar financial measures and believes such measures are
commonly used by readers of financial information in assessing
performance, therefore the inclusion of comparative numbers
provides consistency in financial reporting at this time.
Management refers to Adjusted EBITDA, as well as the GAAP
measures income (loss) from operations and net income, on a segment
and/or consolidated level to facilitate internal and external
comparisons to the segments' and IDT's historical operating
results, in making operating decisions, for budget and planning
purposes, and to form the basis upon which management is
compensated.
While depreciation and amortization are considered operating
costs under GAAP, these expenses primarily represent the non-cash
current period allocation of costs associated with long-lived
assets acquired or constructed in prior periods. IDT's Adjusted
EBITDA, which is exclusive of depreciation and amortization, is a
useful indicator of its current performance.
Severance expense is excluded from the calculation of Adjusted
EBITDA, non-GAAP net income and non-GAAP EPS. Severance expense is
reflective of decisions made by management in each period regarding
the aspects of IDT's and its segments' businesses to be focused on
in light of changing market realities and other factors. While
there may be similar charges in other periods, the nature and
magnitude of these charges can fluctuate markedly and do not
reflect the performance of IDT's core and continuing
operations.
Other operating expenses and other operating gain, the gains on
the sale of member interest in Visa Europe Ltd. and the sale of
interest in Fabrix Systems Ltd. are components of income from
operations. In fiscal 2017, other operating expenses included a
non-routine expense for a settlement and mutual release, and the
associated legal fees, related to potential liabilities and claims
under agreements related to IDT's spin-off of Straight Path
Communications Inc. in 2013. In the fourth quarter of fiscal 2017,
the other operating gain was primarily the result of insurance
proceeds related to the claims. In fiscal 2016, other operating
expenses included a loss on disposal of property, plant and
equipment. Other operating expenses, other operating gain, and the
gains on the sale of member interest in Visa Europe Ltd. and the
sale of interest in Fabrix Systems Ltd. are excluded from the
calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP
EPS. From time-to-time, IDT may incur costs related to non-routine
legal and regulatory matters or disposal of certain assets. In
addition, IDT may select and incubate promising early stage
businesses outside of its core business for eventual sale or
spin-off to its stockholders. However, such legal and regulatory
matters and disposals do not occur each quarter. IDT does not
believe the gains or losses from asset sales or from non-routine
legal and regulatory matters are components of IDT's or the
relevant segment's core operating results.
The other calculation of Adjusted EBITDA consists of revenues
less direct cost of revenues and selling, general and
administrative expense. As the other excluded items are not
reflected in this calculation, they are excluded automatically and
there is no need to make additional adjustments. This calculation
results in the same Adjusted EBITDA amount and its utility and
significance is as explained above.
Stock-based compensation recognized by IDT and other companies
may not be comparable because of the variety of types of awards as
well as the various valuation methodologies and subjective
assumptions that are permitted under GAAP. Stock-based compensation
is excluded from IDT's calculation of non-GAAP net income and
non-GAAP EPS because management believes this allows investors to
make more meaningful comparisons of the operating results per share
of IDT's core business with the results of other companies.
However, stock-based compensation will continue to be a significant
expense for IDT for the foreseeable future and an important part of
employees' compensation that impacts their performance.
In 1Q17, IDT recorded a foreign income tax benefit of
$16.6 million from the release of the
valuation allowance and full recognition of certain deferred tax
assets, and in 4Q17, IDT recorded a federal income tax expense of
$11.1 million from the increase in
the valuation allowance on deferred tax assets. The income tax
benefit and expense are excluded from IDT's calculation of non-GAAP
net income and non-GAAP EPS because neither was directly related to
the current results of IDT's core operations. These income tax
benefit and expense are not expected to be reoccurring items.
Adjusted EBITDA, non-GAAP net income and non-GAAP EPS should be
considered in addition to, not as a substitute for, or superior to,
income (loss) from operations, cash flow from operating activities,
net income, basic and diluted earnings per share or other measures
of liquidity and financial performance prepared in accordance with
GAAP. In addition, IDT's measurements of Adjusted EBITDA, non-GAAP
net income and non-GAAP EPS may not be comparable to similarly
titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS to the most directly comparable GAAP
measure, which are, (a) for Adjusted EBITDA, income (loss) from
operations for IDT's reportable segments and net income for IDT on
a consolidated basis, (b) for non-GAAP net income, net income and,
(c) for non-GAAP EPS, basic and diluted earnings per share.
IDT
Corporation
Reconciliation of
Adjusted EBITDA to Net (Loss) Income
(unaudited)
in
millions
Figures may not foot
or cross-foot due to rounding to millions.
|
|
|
Total IDT
Corporation
|
|
Telecom Platform
Services
|
UCaaS
|
Consumer Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
July 31, 2017
(4Q17)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
8.6
|
|
$
9.4
|
$
0.4
|
$
0.3
|
$
0.6
|
$
(2.2)
|
Subtract
(Add):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
5.6
|
|
4.0
|
1.2
|
-
|
0.4
|
-
|
Other
operating gain
|
(0.8)
|
|
-
|
-
|
-
|
-
|
(0.8)
|
Income (loss) from
operations
|
3.7
|
|
$
5.4
|
$
(0.8)
|
$
0.3
|
$
0.2
|
$
(1.4)
|
Interest
income, net
|
0.3
|
|
|
|
|
|
|
Other
expense, net
|
(0.7)
|
|
|
|
|
|
|
Income before income
taxes
|
3.3
|
|
|
|
|
|
|
Provision for income taxes
|
(12.8)
|
|
|
|
|
|
|
Net loss
|
(9.5)
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.4)
|
|
|
|
|
|
|
Net loss attributable
to IDT Corporation
|
$
(9.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom Platform
Services
|
UCaaS
|
Consumer Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
April 30, 2017
(3Q17)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
9.1
|
|
$
9.8
|
$
0.6
|
$
0.2
|
$
0.4
|
$
(2.0)
|
Subtract:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
5.5
|
|
4.0
|
1.1
|
-
|
0.4
|
-
|
Other
operating expense
|
10.2
|
|
-
|
-
|
-
|
-
|
10.1
|
(Loss) income from
operations
|
(6.5)
|
|
$
5.8
|
$
(0.5)
|
$
0.2
|
$
-
|
$
(12.1)
|
Interest
income, net
|
0.3
|
|
|
|
|
|
|
Other
expense, net
|
(0.4)
|
|
|
|
|
|
|
Loss before income
taxes
|
(6.6)
|
|
|
|
|
|
|
Benefit
from income taxes
|
2.2
|
|
|
|
|
|
|
Net loss
|
(4.5)
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(0.3)
|
|
|
|
|
|
|
Net loss attributable
to IDT Corporation
|
$
(4.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT
Corporation
Reconciliation of
Adjusted EBITDA to Net Income
(unaudited)
in
millions
Figures may not foot
or cross-foot due to rounding to millions.
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom Platform
Services
|
UCaaS
|
Consumer Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
July 31, 2016
(4Q16)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
10.0
|
|
$
11.4
|
$
0.5
|
$
0.2
|
$
0.6
|
$
(2.7)
|
Subtract
(Add):
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
5.0
|
|
3.9
|
0.7
|
-
|
0.5
|
-
|
Severance
expense
|
6.3
|
|
6.0
|
-
|
-
|
-
|
0.3
|
Gain on sale of member
interest in Visa Europe Ltd.
|
(7.5)
|
|
(7.5)
|
-
|
-
|
-
|
-
|
Income (loss) from
operations
|
6.2
|
|
$
9.1
|
$
(0.2)
|
$
0.2
|
$
0.1
|
$
(3.0)
|
Interest
income, net
|
0.3
|
|
|
Other
income, net
|
2.8
|
|
|
Income before income
taxes
|
9.3
|
|
|
Benefit from income
taxes
|
2.1
|
|
|
Net income
|
11.4
|
|
|
Net income
attributable to noncontrolling interests
|
(0.4)
|
|
|
Net income
attributable to IDT Corporation
|
$
11.0
|
|
|
|
|
|
|
|
|
|
|
|
IDT
Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to
millions.
|
|
|
Total IDT
Corporation
|
|
Telecom Platform
Services
|
UCaaS
|
Consumer Phone
Services
|
All
Other
|
Corporate
|
Year Ended July
31, 2017 (FY 2017)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
37.7
|
|
$
40.6
|
$
2.0
|
$
1.1
|
$
2.0
|
$
(8.0)
|
Subtract:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
21.7
|
|
16.1
|
3.9
|
-
|
1.7
|
-
|
Adjustment to gain on
sale of member interest in Visa Europe Ltd.
|
0.1
|
|
0.1
|
-
|
-
|
-
|
-
|
Other
operating expense
|
10.4
|
|
-
|
-
|
-
|
-
|
10.4
|
Income (loss) from
operations
|
5.5
|
|
$
24.4
|
$
(1.9)
|
$
1.1
|
$
0.3
|
$
(18.4)
|
Interest
income, net
|
1.3
|
|
|
|
|
|
|
Other
income, net
|
0.8
|
|
|
|
|
|
|
Income before income
taxes
|
7.6
|
|
|
|
|
|
|
Benefit
from income taxes
|
2.0
|
|
|
|
|
|
|
Net income
|
9.6
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(1.5)
|
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
8.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom Platform
Services
|
UCaaS
|
Consumer Phone
Services
|
All
Other
|
Corporate
|
Year Ended July
31, 2016 (FY 2016)
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
45.0
|
|
$
47.7
|
$
1.2
|
$
1.2
|
$
5.1
|
$
(10.1)
|
Subtract
(Add):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
20.5
|
|
15.8
|
2.8
|
-
|
2.0
|
-
|
Severance
expense
|
6.5
|
|
6.2
|
-
|
-
|
-
|
0.3
|
Gain on sale of member
interest in Visa Europe Ltd.
|
(7.5)
|
|
(7.5)
|
-
|
-
|
-
|
-
|
Gain on sale of
interest in Fabrix Systems Ltd.
|
(1.1)
|
|
-
|
-
|
-
|
(1.1)
|
-
|
Other operating
expense
|
0.3
|
|
0.3
|
-
|
-
|
-
|
-
|
Income (loss) from
operations
|
26.2
|
|
$
32.8
|
$
(1.6)
|
$
1.2
|
$
4.2
|
$
(10.4)
|
Interest
income, net
|
1.2
|
|
|
|
|
|
|
Other
income, net
|
2.0
|
|
|
|
|
|
|
Income before income
taxes
|
29.5
|
|
|
|
|
|
|
Provision for income taxes
|
(4.1)
|
|
|
|
|
|
|
Net income
|
25.4
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
(1.8)
|
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
23.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT
Corporation
Reconciliations of
Net (Loss) Income to Non-GAAP Net Income and Diluted
EPS to Non-GAAP Diluted EPS
(unaudited)
in millions, except
per share data
Figures may not foot
due to rounding to millions.
|
|
|
4Q17
|
3Q17
|
4Q16
|
Year
Ended
July 31,
2017
|
Year
Ended
July 31,
2016
|
|
|
|
|
|
|
Net (loss)
income
|
$
(9.5)
|
$
(4.5)
|
$
11.4
|
$
9.6
|
$
25.4
|
Adjustments (add)
subtract:
|
|
|
|
|
|
Stock-based
compensation
|
(0.9)
|
(0.7)
|
(0.4)
|
(3.7)
|
(2.7)
|
Gain on sale of
member interest in Visa Europe Ltd.
|
(0.1)
|
-
|
7.5
|
(0.1)
|
7.5
|
Gain on sale of
interest in Fabrix
Systems
Ltd.
|
-
|
-
|
-
|
-
|
1.1
|
Severance
expense
|
-
|
-
|
(6.3)
|
-
|
(6.5)
|
Other operating gain
(expense)
|
0.8
|
(10.2)
|
-
|
(10.4)
|
(0.3)
|
Income tax (expense)
benefit
|
(11.1)
|
-
|
0.9
|
5.5
|
0.9
|
Total
adjustments
|
(11.3)
|
(10.9)
|
1.7
|
(8.7)
|
-
|
Income tax effect of
total adjustments
|
-
|
3.6
|
1.7
|
6.4
|
2.5
|
|
11.3
|
7.3
|
(3.4)
|
2.3
|
(2.5)
|
Non-GAAP net
income
|
$
1.8
|
$
2.8
|
$
8.0
|
$
11.9
|
$
22.9
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
(0.41)
|
$
(0.21)
|
$
0.49
|
$
0.35
|
$
1.03
|
Total
adjustments
|
0.48
|
0.33
|
(0.14)
|
0.16
|
(0.03)
|
Non-GAAP EPS -
basic
|
$
0.07
|
$
0.12
|
$
0.35
|
$
0.51
|
$
1.00
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of basic earnings per
share
|
24.2
|
23.1
|
22.7
|
23.2
|
22.8
|
|
|
|
|
|
|
Diluted
|
$
(0.41)
|
$
(0.21)
|
$
0.48
|
$
0.35
|
$
1.03
|
Total
adjustments
|
0.48
|
0.33
|
(0.13)
|
0.16
|
(0.03)
|
Non-GAAP EPS -
diluted
|
$
0.07
|
$
0.12
|
$
0.35
|
$
0.51
|
$
1.00
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of diluted earnings per
share
|
24.3
|
23.1
|
22.8
|
23.3
|
22.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE IDT Corporation