NEW YORK, Nov. 2, 2017
/PRNewswire/ --
- Third quarter 2017 total revenues of $52.4 million, net income of $1.1 million and diluted EPS of $0.02, including a $0.05 negative impact from items impacting
comparability to previous periods
- Cash flow from operations of $3.5
million; Adjusted EBITDA of $10.0
million which was impacted by approximately $1.0 million of disposition and related
costs
- Discontinued getTalent as a stand-alone business as the Company
narrows its focus to the core mission of connecting highly skilled
tech professionals and tech recruiters
DHI Group, Inc. (NYSE: DHX) ("DHI" or the "Company"), a leading
online career resource and talent acquisition platform for
technology professionals and other select professional communities,
today reported financial results for the quarter ended
September 30, 2017.
"We continued to make good progress on our strategic goals for
the second half of 2017, largely completing the realignment of our
organization and implementing the first set of initiatives designed
to return our core tech business to growth," said Michael Durney, President and Chief Executive
Officer of DHI Group, Inc. "We remain intently focused on executing
and refining our growth initiatives. The early successes we have
seen, for instance with content consumption by professionals, are
encouraging signs that we are on the right course to reinforce our
position as the leading tech talent solution platform, and
ultimately reinvigorate the Company's growth."
Q3 2017 Tech-Focused Product and Business Highlights
DHI achieved the following as part of its tech-focused
strategy:
- Finalized the realignment of the DHI organization into a more
simplified and efficient tech-focused operating structure
- As part of the Company's organizational simplification it has
hired an Executive Vice President of Sales North America, with
oversight of direct and indirect sales channels for North America and responsibility for driving
growth in the business
- "Open Web First" go-to-market strategy that leads with social
sourcing drove 82% year-over-year growth in Dice customers with
Open Web, increasing penetration of Dice recruitment package
customers to 38% as of September 30, 2017, up from 34% as of
June 30, 2017 and from 19% a year
ago
- On-boarded 59 search API clients in the third quarter and now
have 874 customers with API integrations as of September 30, 2017, a 52% increase
year-over-year
- Dice Careers app new downloads grew 5% year-over-year in the
third quarter. As of September 30,
2017, cumulative downloads were 69% higher than September 30, 2016; average monthly unique
visitors grew 15% year-over-year
- ClearanceJobs Voice, which launched in the second quarter and
connects employers and candidates real-time through the website, is
gaining traction with customers and will be further integrated into
ClearanceJobs in 2018
- Increased non-job content consumption, with eFinancialCareers
monthly content visits surpassing 2 million for the first time in
the third quarter, and Dice users who visit content increasing 69%
year-over-year in the third quarter
Update on Operational Efficiency
The Company continued to pursue several initiatives to realize
efficiencies, enhancing its ability to commit resources to the
tech-focused strategy
- Discontinued getTalent as a standalone business, in which the
Company's spending this year was approximately $3 million. A portion of getTalent resources and
products were realigned to support the core tech business
- Began serving the Mainland China market from Hong Kong creating a more efficient cost
structure by exiting Shanghai
- Launched the new tech professional site serving the U.K. market
on the U.S. site platform
- Lowered the available commitments on the Company's revolving
credit facility by $100 million due
to lower anticipated borrowing needs, saving approximately
$0.4 million in annual fees
- Reduced headcount by 6.5% year-to-date through increased
productivity and selective reductions
Q3 and Year-to-Date 2017 Financial Highlights
"Our third quarter financial results were consistent with the
outlook we provided in July, with improved revenue trends compared
to the first half of 2017 and modestly higher growth in operating
costs," said Luc Grégoire, Chief Financial Officer. "Through
prudent investment and portfolio refinement, we are supporting the
transition to our tech-focused strategy, which we believe will
ultimately maximize shareholder value. Importantly, we are pursuing
a methodical financial approach to ensure we balance near-term
performance and long-term investment, and effectively employ
shareholder capital."
The following summarizes consolidated financial results for the
quarters ended September 30, 2017 and 2016:
($ in millions,
except per share data)
|
|
|
|
|
|
|
|
|
|
Q3
2017
|
|
Q3
2016
|
|
Change
|
|
Revenues
|
|
$
|
52.4
|
|
|
$
|
56.1
|
|
|
(7)
|
%
|
|
Net income
(1)
|
|
$
|
1.1
|
|
|
$
|
(16.8)
|
|
|
n.m.
|
|
|
Diluted earnings
(loss) per share (1)
|
|
$
|
0.02
|
|
|
$
|
(0.35)
|
|
|
n.m.
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2) (3)
|
|
$
|
10.0
|
|
|
$
|
14.9
|
|
|
(33)
|
%
|
|
Adjusted EBITDA
margin
|
|
19.1
|
%
|
|
26.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items
impacting comparability to previous periods reduced net income by
$2.4 million or $0.05 per share in Q3 2017 and $22.6 million or
$0.47 per share in Q3 2016. For Q3 2017 these items included:
disposition related and others costs, getTalent impairment,
acceleration of deferred financing costs included in interest
expense, and certain legal costs. For Q3 2016 these items included
the impairment of goodwill and intangible assets and certain legal
costs.
(2) Q3
2017 includes the impact of certain disposition and related costs
of approximately $1.0 million.
(3)
Reconciliations of Net Income and Operating Income to Adjusted
EBITDA and of Operating Cash Flows to Adjusted EBITDA are included
toward the end of this press release.
|
Q3 and Year-to-Date 2017 Segment Financial Highlights
The Company changed its reportable segments during the third
quarter of 2017 to reflect the current tech-focused operating
structure. Accordingly, all prior periods have been recast to
reflect the current segment presentation. The Company's two
reportable segments are Tech-focused and Healthcare. The
Tech-focused segment includes Dice, Dice Europe, ClearanceJobs,
eFinancialCareers, and Brightmatter (absorbed into Tech-focused in
the third quarter of 2017). The Healthcare segment includes Health
eCareers. Corporate and other includes Hcareers, Rigzone, BioSpace,
as well as Slashdot Media and getTalent, which have been
discontinued.
The following summarizes Revenues, Adjusted EBITDA and Adjusted
EBITDA Margin results for the quarter and year-to-date periods
ended September 30, 2017 and 2016 ($ in millions). A
reconciliation of Operating Income (Loss) to Adjusted EBITDA is
included toward the end of this press release.
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Margin
|
|
|
Q3
2017
|
|
Q3
2016
|
|
Change
|
|
Fx
Impact
|
|
Q3
2017
|
|
Q3
2016
|
|
Q3 2017
|
|
Q3 2016
|
Tech-focused
|
|
$
|
39.8
|
|
|
$
|
42.8
|
|
|
(7)
|
%
|
|
$
|
—
|
|
|
$
|
11.9
|
|
|
$
|
17.3
|
|
|
30
|
%
|
|
40
|
%
|
Healthcare
|
|
6.5
|
|
|
6.7
|
|
|
(4)
|
%
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
8
|
%
|
|
7
|
%
|
Corporate and
other
|
|
6.1
|
|
|
6.6
|
|
|
(7)
|
%
|
|
—
|
|
|
(2.4)
|
|
|
(2.9)
|
|
|
n.m.
|
|
n.m.
|
Total
|
|
$
|
52.4
|
|
|
$
|
56.1
|
|
|
(7)
|
%
|
|
$
|
—
|
|
|
$
|
10.0
|
|
|
$
|
14.9
|
|
|
19
|
%
|
|
27
|
%
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
Margin
|
|
|
YTD
2017
|
|
YTD
2016
|
|
Change
|
|
Fx
Impact
|
|
YTD
2017
|
|
YTD
2016
|
|
YTD 2017
|
|
YTD 2016
|
Tech-focused
|
|
$
|
118.6
|
|
|
$
|
128.9
|
|
|
(8)
|
%
|
|
$
|
(1.8)
|
|
|
$
|
38.3
|
|
|
$
|
50.9
|
|
|
32
|
%
|
|
39
|
%
|
Healthcare
|
|
19.7
|
|
|
20.6
|
|
|
(4)
|
%
|
|
—
|
|
|
1.1
|
|
|
2.1
|
|
|
6
|
%
|
|
10
|
%
|
Corporate and
other
|
|
18.7
|
|
|
22.5
|
|
|
(17)
|
%
|
|
(0.1)
|
|
|
(9.4)
|
|
|
(9.2)
|
|
|
n.m.
|
|
n.m.
|
Total
|
|
$
|
157.0
|
|
|
$
|
172.0
|
|
|
(9)
|
%
|
|
$
|
(1.9)
|
|
|
$
|
30.0
|
|
|
$
|
43.8
|
|
|
19
|
%
|
|
25
|
%
|
|
|
Supplemental
Balance Sheet Information
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
YTD 2017
Change
|
|
September 30,
2016
|
|
YOY
Change
|
Deferred
revenue
|
|
$
|
81.8
|
|
|
$
|
84.6
|
|
|
$
|
(2.8)
|
|
|
$
|
82.4
|
|
|
$
|
(0.6)
|
|
Long-Term Debt,
net
|
|
$
|
68.4
|
|
|
$
|
84.8
|
|
|
$
|
(16.4)
|
|
|
$
|
90.7
|
|
|
$
|
(22.3)
|
|
Plus: Deferred
financing costs
|
|
0.6
|
|
|
1.2
|
|
|
(0.6)
|
|
|
1.3
|
|
|
(0.7)
|
|
Total principal
outstanding
|
|
$
|
69.0
|
|
|
$
|
86.0
|
|
|
$
|
(17.0)
|
|
|
$
|
92.0
|
|
|
$
|
(23.0)
|
|
|
Business Outlook
For the fourth quarter, the Company expects the year-over-year
rate of decline in revenue will be similar to the third quarter of
2017. The rate of operating expense growth should be modestly
higher than the third quarter of 2017, with higher marketing
spending in the core tech business. This outlook results in an
Adjusted EBITDA margin that is slightly below the year-to-date
margin through the first nine months of 2017. This outlook does not
consider the impact of potential divestitures, as there is no
assurance as to their timing or execution. On today's conference
call, management will discuss additional details of its
tech-focused strategy, including context around the financial
impact of the Company's 2017 strategic objectives and operational
plans.
Recent Developments
On October 24, 2017 the Company
was paid restitution by a former employee, in the amount of
$3.3 million pursuant to an Order of
Restitution issued by the United States District Court for the
Southern District of New York in
the criminal matter captioned United
States of America v. David W.
Kent. The gain will be recorded as a component of
operating income in the fourth quarter of 2017.
Conference Call Information
The Company will host a conference call accompanied by a
presentation of supporting materials today at 8:30 a.m. Eastern Time to discuss its financial
results, recent developments, and progress on its tech-focused
strategy. Speaking on the call will be Michael Durney, President and Chief Executive
Officer, and Luc Grégoire, Chief Financial Officer.
The conference call and presentation will be available live
through the Company's website in the Investor Relations section
under Presentations & Events at www.dhigroupinc.com. The
conference call can also be accessed by dialing 1-844-890-1790 or
for international callers by dialing 1-412-380-7407. 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 10113606. The replay
will be available until November 9, 2017. The presentation
will be available for download after the conference call through
the Company's website in the Investor Relations section under
Presentations & Events at www.dhigroupinc.com.
Investor
Contact
Brendan
Metrano
VP, Investor
Relations
DHI Group,
Inc.
212-448-4181
ir@dhigroupinc.com
|
|
Media
Contact
Rachel
Ceccarelli
Director, Corporate
Communications
DHI Group,
Inc.
212-448-8288
media@dhigroupinc.com
|
About DHI Group, Inc.
DHI Group, Inc. (NYSE:DHX) is a leading provider of data,
insights and employment connections through our specialized
services for technology professionals and other select online
communities. Our mission is to empower tech professionals and
organizations 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 tech 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
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, other non-recurring income or expense
("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 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, 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 Margin is computed as Adjusted EBITDA divided by
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 net income, operating income or
any other performance measures derived in accordance with GAAP as a
measure of our profitability.
Forward-Looking Statements
This press release and oral statements made from time to time by
our representatives contain forward-looking statements. You should
not place undue reliance on 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, the review of
potential dispositions of certain of our businesses and the terms
and timing of any such transactions, the results and timing of our
search for a new Chief Executive Officer, 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, 2016, 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 September 30,
|
|
For the nine
months
ended September 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
52,424
|
|
|
$
|
56,073
|
|
|
$
|
157,014
|
|
|
$
|
172,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
7,616
|
|
|
7,943
|
|
|
22,681
|
|
|
24,557
|
|
|
Product
development
|
6,423
|
|
|
6,018
|
|
|
19,230
|
|
|
19,323
|
|
|
Sales and
marketing
|
19,988
|
|
|
19,425
|
|
|
59,638
|
|
|
58,573
|
|
|
General and
administrative
|
9,454
|
|
|
10,101
|
|
|
30,779
|
|
|
32,822
|
|
|
Depreciation
|
2,576
|
|
|
2,478
|
|
|
7,703
|
|
|
7,639
|
|
|
Amortization of
intangible assets
|
554
|
|
|
1,570
|
|
|
1,686
|
|
|
6,106
|
|
|
Impairment of
goodwill
|
—
|
|
|
15,369
|
|
|
—
|
|
|
15,369
|
|
|
Impairment of fixed
and intangible assets
|
2,226
|
|
|
9,252
|
|
|
2,226
|
|
|
9,252
|
|
|
Disposition related
and other costs
|
1,049
|
|
|
—
|
|
|
2,236
|
|
|
3,347
|
|
|
|
Total operating
expenses
|
49,886
|
|
|
72,156
|
|
|
146,179
|
|
|
176,988
|
|
|
Operating income
(loss)
|
2,538
|
|
|
(16,083)
|
|
|
10,835
|
|
|
(4,956)
|
|
|
Interest
expense
|
(1,173)
|
|
|
(901)
|
|
|
(2,777)
|
|
|
(2,593)
|
|
|
Other
expense
|
(3)
|
|
|
(1)
|
|
|
(10)
|
|
|
(33)
|
|
|
Income (loss) before
income taxes
|
1,362
|
|
|
(16,985)
|
|
|
8,048
|
|
|
(7,582)
|
|
|
Income tax (benefit)
expense
|
304
|
|
|
(144)
|
|
|
3,828
|
|
|
3,294
|
|
|
Net income
(loss)
|
$
|
1,058
|
|
|
$
|
(16,841)
|
|
|
$
|
4,220
|
|
|
$
|
(10,876)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.02
|
|
|
$
|
(0.35)
|
|
|
$
|
0.09
|
|
|
$
|
(0.22)
|
|
|
Diluted earnings per
share
|
$
|
0.02
|
|
|
$
|
(0.35)
|
|
|
$
|
0.09
|
|
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
48,021
|
|
|
47,719
|
|
|
47,858
|
|
|
48,596
|
|
|
Weighted average
diluted shares outstanding
|
48,502
|
|
|
47,719
|
|
|
48,397
|
|
|
48,596
|
|
|
|
|
|
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,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,058
|
|
|
$
|
(16,841)
|
|
|
$
|
4,220
|
|
|
$
|
(10,876)
|
|
|
Adjustments to
reconcile net income to net cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
2,576
|
|
|
2,478
|
|
|
7,703
|
|
|
7,639
|
|
|
|
Amortization of
intangible assets
|
554
|
|
|
1,570
|
|
|
1,686
|
|
|
6,106
|
|
|
|
Deferred income
taxes
|
(671)
|
|
|
(2,206)
|
|
|
(23)
|
|
|
(1,977)
|
|
|
|
Amortization of
deferred financing costs
|
480
|
|
|
81
|
|
|
642
|
|
|
243
|
|
|
|
Stock based
compensation
|
1,687
|
|
|
2,327
|
|
|
6,275
|
|
|
8,750
|
|
|
|
Impairment of
goodwill
|
—
|
|
|
15,369
|
|
|
—
|
|
|
15,369
|
|
|
|
Impairment of fixed
and intangible assets
|
2,226
|
|
|
9,252
|
|
|
2,226
|
|
|
9,252
|
|
|
|
Change in accrual for
unrecognized tax benefits
|
2,288
|
|
|
51
|
|
|
2,358
|
|
|
166
|
|
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
639
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(624)
|
|
|
3,190
|
|
|
10,607
|
|
|
8,047
|
|
|
|
Prepaid expenses and
other assets
|
41
|
|
|
(449)
|
|
|
(1,041)
|
|
|
(618)
|
|
|
|
Accounts payable and
accrued expenses
|
855
|
|
|
1,445
|
|
|
(152)
|
|
|
(3,430)
|
|
|
|
Income taxes
receivable/payable
|
(2,134)
|
|
|
(389)
|
|
|
(3,599)
|
|
|
(1,682)
|
|
|
|
Deferred
revenue
|
(4,875)
|
|
|
(3,745)
|
|
|
(3,774)
|
|
|
(493)
|
|
|
|
Other, net
|
6
|
|
|
(46)
|
|
|
51
|
|
|
(123)
|
|
|
Net cash flows from
operating activities
|
3,467
|
|
|
12,087
|
|
|
27,179
|
|
|
37,012
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
|
|
|
Cash received from
sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
2,429
|
|
|
|
Purchases of fixed
assets
|
(2,430)
|
|
|
(2,955)
|
|
|
(10,160)
|
|
|
(8,461)
|
|
|
|
Purchases of cost
method investments
|
(500)
|
|
|
—
|
|
|
(500)
|
|
—
|
|
—
|
|
|
Net cash flows used
in investing activities
|
(2,930)
|
|
|
(2,955)
|
|
|
(10,660)
|
|
|
(6,032)
|
|
|
Cash flows used in
financing activities:
|
|
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
(2,000)
|
|
|
(15,000)
|
|
|
(17,000)
|
|
|
(26,000)
|
|
|
|
Proceeds from
long-term debt
|
—
|
|
|
8,000
|
|
|
—
|
|
|
17,000
|
|
|
|
Payments under stock
repurchase plan
|
—
|
|
|
(3,547)
|
|
|
—
|
|
|
(26,179)
|
|
|
|
Proceeds from stock
option exercises
|
—
|
|
|
1,636
|
|
|
403
|
|
|
2,664
|
|
|
|
Purchase of treasury
stock related to vested
restricted stock and performance stock units
|
(16)
|
|
|
(259)
|
|
|
(1,125)
|
|
|
(2,779)
|
|
|
Net cash flows used
in financing activities
|
(2,016)
|
|
|
(9,170)
|
|
|
(17,722)
|
|
|
(35,294)
|
|
|
Effect of exchange
rate changes
|
109
|
|
|
(2)
|
|
|
302
|
|
|
(315)
|
|
|
Net change in cash
for the period
|
(1,370)
|
|
|
(40)
|
|
|
(901)
|
|
|
(4,629)
|
|
|
Cash, beginning of
period
|
23,456
|
|
|
29,461
|
|
|
22,987
|
|
|
34,050
|
|
|
Cash, end of
period
|
$
|
22,086
|
|
|
$
|
29,421
|
|
|
$
|
22,086
|
|
|
$
|
29,421
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
September 30,
2017
|
|
December 31,
2016
|
Current
assets
|
|
|
|
|
Cash
|
$
|
22,086
|
|
|
$
|
22,987
|
|
|
Accounts receivable,
net
|
33,146
|
|
|
43,148
|
|
|
Income taxes
receivable
|
2,141
|
|
|
731
|
|
|
Prepaid and other
current assets
|
4,482
|
|
|
3,312
|
|
|
|
Total current
assets
|
61,855
|
|
|
70,178
|
|
Fixed assets,
net
|
17,119
|
|
|
16,610
|
|
Acquired intangible
assets, net
|
47,440
|
|
|
49,120
|
|
Goodwill
|
176,641
|
|
|
171,745
|
|
Deferred income
taxes
|
365
|
|
|
306
|
|
Other
assets
|
2,584
|
|
|
2,136
|
|
|
|
Total
assets
|
$
|
306,004
|
|
|
$
|
310,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
20,572
|
|
|
$
|
20,220
|
|
|
Deferred
revenue
|
81,823
|
|
|
84,615
|
|
|
Income taxes
payable
|
1,302
|
|
|
3,467
|
|
|
|
Total current
liabilities
|
103,697
|
|
|
108,302
|
|
Long-term debt,
net
|
68,402
|
|
|
84,760
|
|
Deferred income
taxes
|
7,909
|
|
|
7,901
|
|
Accrual for
unrecognized tax benefits
|
4,871
|
|
|
2,513
|
|
Other long-term
liabilities
|
2,809
|
|
|
2,736
|
|
|
|
Total
liabilities
|
187,688
|
|
|
206,212
|
|
Total stockholders'
equity
|
118,316
|
|
|
103,883
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
306,004
|
|
|
$
|
310,095
|
|
|
|
|
|
|
|
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, 2017 and 2016 and a balance sheet
as of September 30, 2017 and December 31, 2016 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,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
1,058
|
|
|
$
|
(16,841)
|
|
|
$
|
4,220
|
|
|
$
|
(10,876)
|
|
|
|
Interest
expense
|
1,173
|
|
|
901
|
|
|
2,777
|
|
|
2,593
|
|
|
|
Income tax expense
(benefit)
|
304
|
|
|
(144)
|
|
|
3,828
|
|
|
3,294
|
|
|
|
Depreciation
|
2,576
|
|
|
2,478
|
|
|
7,703
|
|
|
7,639
|
|
|
|
Amortization of
intangible assets
|
554
|
|
|
1,570
|
|
|
1,686
|
|
|
6,106
|
|
|
|
Impairment of
goodwill
|
|
|
15,369
|
|
|
—
|
|
|
15,369
|
|
|
|
Impairment of fixed
and intangible assets
|
2,226
|
|
|
9,252
|
|
|
2,226
|
|
|
9,252
|
|
|
|
Non-cash stock
compensation expense
|
1,687
|
|
|
2,327
|
|
|
6,275
|
|
|
7,850
|
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
—
|
|
|
981
|
|
|
|
Accelerated stock
based compensation expense—Slashdot Media
|
—
|
|
|
—
|
|
|
—
|
|
|
900
|
|
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
639
|
|
|
|
Costs related to
strategic alternatives process
|
—
|
|
|
—
|
|
|
807
|
|
|
—
|
|
|
|
Costs related to
divestitures
|
372
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
|
Other
|
3
|
|
|
1
|
|
|
10
|
|
|
33
|
|
|
Adjusted
EBITDA
|
$
|
9,953
|
|
|
$
|
14,913
|
|
|
$
|
29,974
|
|
|
$
|
43,780
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
3,467
|
|
|
$
|
12,087
|
|
|
$
|
27,179
|
|
|
$
|
37,012
|
|
|
|
Interest
expense
|
1,173
|
|
|
901
|
|
|
2,777
|
|
|
2,593
|
|
|
|
Amortization of
deferred financing costs
|
(480)
|
|
|
(81)
|
|
|
(642)
|
|
|
(243)
|
|
|
|
Income tax expense
(benefit)
|
304
|
|
|
(144)
|
|
|
3,828
|
|
|
3,294
|
|
|
|
Deferred income
taxes
|
671
|
|
|
2,206
|
|
|
23
|
|
|
1,977
|
|
|
|
Change in accrual for
unrecognized tax benefits
|
(2,288)
|
|
|
(51)
|
|
|
(2,358)
|
|
|
(166)
|
|
|
|
Change in accounts
receivable
|
624
|
|
|
(3,190)
|
|
|
(10,607)
|
|
|
(8,047)
|
|
|
|
Change in deferred
revenue
|
4,875
|
|
|
3,745
|
|
|
3,774
|
|
|
493
|
|
|
|
Costs related to
strategic alternatives process
|
—
|
|
|
—
|
|
|
807
|
|
|
—
|
|
|
|
Costs related to
divestitures
|
372
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
—
|
|
|
981
|
|
|
|
Changes in working
capital and other
|
1,235
|
|
|
(560)
|
|
|
4,751
|
|
|
5,886
|
|
|
Adjusted
EBITDA
|
$
|
9,953
|
|
|
$
|
14,913
|
|
|
$
|
29,974
|
|
|
$
|
43,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
|
Beginning of
period
|
6,750
|
|
|
7,300
|
|
|
7,050
|
|
|
7,600
|
|
|
End of
period
|
6,600
|
|
|
7,250
|
|
|
6,600
|
|
|
7,250
|
|
|
|
|
|
|
|
|
|
|
|
|
Average for the
period (1)
|
6,650
|
|
|
7,200
|
|
|
6,750
|
|
|
7,350
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (2)
|
$
|
1,108
|
|
|
$
|
1,122
|
|
|
$
|
1,109
|
|
|
$
|
1,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2017
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA:
|
Tech-focused
|
|
Healthcare
|
|
Corporate &
Other
|
|
Total
|
Operating income
(loss)
|
$
|
9,485
|
|
|
$
|
(187)
|
|
|
$
|
(6,760)
|
|
|
$
|
2,538
|
|
|
Depreciation
|
1,789
|
|
|
406
|
|
|
381
|
|
|
2,576
|
|
|
Amortization of
intangible assets
|
28
|
|
|
162
|
|
|
364
|
|
|
554
|
|
|
Non-cash stock
compensation expense
|
378
|
|
|
143
|
|
|
1,166
|
|
|
1,687
|
|
|
Impairment of fixed
assets
|
—
|
|
|
—
|
|
|
2,226
|
|
|
2,226
|
|
|
Costs related to
divestiture process
|
228
|
|
|
—
|
|
|
144
|
|
|
372
|
|
Adjusted
EBITDA
|
$
|
11,908
|
|
|
$
|
524
|
|
|
$
|
(2,479)
|
|
|
$
|
9,953
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30, 2016
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA:
|
Tech-focused
|
|
Healthcare
|
|
Corporate &
Other
|
|
Total
|
Operating income
(loss)
|
$
|
14,147
|
|
|
$
|
(366)
|
|
|
$
|
(29,864)
|
|
|
$
|
(16,083)
|
|
|
Depreciation
|
1,743
|
|
|
539
|
|
|
196
|
|
|
2,478
|
|
|
Amortization of
intangible assets
|
278
|
|
|
218
|
|
|
1,074
|
|
|
1,570
|
|
|
Non-cash stock
compensation expense
|
1,079
|
|
|
127
|
|
|
1,121
|
|
|
2,327
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
|
—
|
|
|
24,621
|
|
|
24,621
|
|
Adjusted
EBITDA
|
$
|
17,247
|
|
|
$
|
518
|
|
|
$
|
(2,852)
|
|
|
$
|
14,913
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2017
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA:
|
Tech-focused
|
|
Healthcare
|
|
Corporate &
Other
|
|
Total
|
Operating income
(loss)
|
$
|
30,700
|
|
|
$
|
(1,279)
|
|
|
$
|
(18,586)
|
|
|
$
|
10,835
|
|
|
Depreciation
|
5,144
|
|
|
1,451
|
|
|
1,108
|
|
|
7,703
|
|
|
Amortization of
intangible assets
|
108
|
|
|
487
|
|
|
1,091
|
|
|
1,686
|
|
|
Non-cash stock
compensation expense
|
2,145
|
|
|
416
|
|
|
3,714
|
|
|
6,275
|
|
|
Impairment of fixed
assets
|
—
|
|
|
—
|
|
|
2,226
|
|
|
2,226
|
|
|
Costs related to
strategic alternatives process
|
—
|
|
|
—
|
|
|
807
|
|
|
807
|
|
|
Costs related to
divestitures
|
228
|
|
|
—
|
|
|
214
|
|
|
442
|
|
Adjusted
EBITDA
|
$
|
38,325
|
|
|
$
|
1,075
|
|
|
$
|
(9,426)
|
|
|
$
|
29,974
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30, 2016
|
Reconciliation of
Operating Income (Loss) to Adjusted EBITDA:
|
Tech
|
|
Healthcare
|
|
Corporate &
Other
|
|
Total
|
Operating income
(loss)
|
$
|
40,097
|
|
|
$
|
(537)
|
|
|
$
|
(44,516)
|
|
|
$
|
(4,956)
|
|
|
Depreciation
|
5,508
|
|
|
1,630
|
|
|
501
|
|
|
7,639
|
|
|
Amortization of
intangible assets
|
1,833
|
|
|
654
|
|
|
3,619
|
|
|
6,106
|
|
|
Non-cash stock
compensation expense
|
3,618
|
|
|
361
|
|
|
3,871
|
|
|
7,850
|
|
|
Impairment of
goodwill and intangible assets
|
—
|
|
|
—
|
|
|
24,621
|
|
|
24,621
|
|
|
Slashdot media
related costs and other
|
(102)
|
|
|
—
|
|
|
2,622
|
|
|
2,520
|
|
Adjusted
EBITDA
|
$
|
50,954
|
|
|
$
|
2,108
|
|
|
$
|
(9,282)
|
|
|
$
|
43,780
|
|
|
|
|
|
|
|
|
Segment
Definitions:
|
|
|
|
|
|
|
Tech-focused: Dice,
Dice Europe, eFinancialCareers and ClearanceJobs; Healthcare:
Health eCareers; Other: Hcareers, Rigzone, BioSpace, Slashdot,
getTalent, and Corporate.
|
|
|
|
|
|
DHI GROUP,
INC.
|
SUPPLEMENTAL DATA
- REVENUE DETAIL
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Q3
2017
|
|
Q3
2016
|
|
Change
|
|
$ Fx
Impact
|
|
YTD
2017
|
|
YTD
2016
|
|
Change
|
|
$ Fx
Impact
|
Dice
(1)
|
|
$
|
27,123
|
|
|
$
|
30,335
|
|
|
(11)%
|
|
$
|
33
|
|
|
$
|
81,933
|
|
|
$
|
91,895
|
|
|
(11)%
|
|
$
|
(336)
|
|
eFinancialCareers
|
|
8,232
|
|
|
8,765
|
|
|
(6)%
|
|
(21)
|
|
|
24,068
|
|
|
26,725
|
|
|
(10)%
|
|
(1,420)
|
|
ClearanceJobs
|
|
4,459
|
|
|
3,639
|
|
|
23%
|
|
—
|
|
|
12,637
|
|
|
10,256
|
|
|
23%
|
|
—
|
|
Tech-focused
businesses
|
|
$
|
39,814
|
|
|
$
|
42,739
|
|
|
(7)%
|
|
$
|
12
|
|
|
$
|
118,638
|
|
|
$
|
128,876
|
|
|
(8)%
|
|
$
|
(1,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health
eCareers
|
|
6,462
|
|
|
6,735
|
|
|
(4)%
|
|
$
|
—
|
|
|
19,741
|
|
|
20,647
|
|
|
(4)%
|
|
$
|
—
|
|
Hcareers
(2)
|
|
3,519
|
|
|
3,631
|
|
|
(3)%
|
|
—
|
|
|
10,880
|
|
|
11,477
|
|
|
(5)%
|
|
—
|
|
Rigzone
(2)
|
|
1,869
|
|
|
2,122
|
|
|
(12)%
|
|
8
|
|
|
5,315
|
|
|
7,455
|
|
|
(29)%
|
|
(87)
|
|
BioSpace
(2)
|
|
746
|
|
|
833
|
|
|
(10)%
|
|
—
|
|
|
2,365
|
|
|
2,796
|
|
|
(15)%
|
|
—
|
|
Non-tech
businesses
|
|
12,596
|
|
|
13,321
|
|
|
(5)%
|
|
8
|
|
|
38,301
|
|
|
42,375
|
|
|
(10)%
|
|
(87)
|
|
Slashdot Media and
getTalent (2)
|
|
14
|
|
|
13
|
|
|
8%
|
|
—
|
|
|
75
|
|
|
781
|
|
|
(90)%
|
|
—
|
|
Total
|
|
$
|
52,424
|
|
|
$
|
56,073
|
|
|
(7)%
|
|
$
|
20
|
|
|
$
|
157,014
|
|
|
$
|
172,032
|
|
|
(9)%
|
|
$
|
(1,843)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes Dice, Dice Europe, and Targeted Job Fairs
|
(2)
Included in Corporate & Other
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-third-quarter-2017-results-300548228.html
SOURCE DHI Group, Inc.