NEW YORK, May 3, 2017
/PRNewswire/ --
- First quarter 2017 total revenues of $52.2 million, net income of $1.3 million and diluted EPS of $0.03
- Cash flow from operations of $14.5
million and Adjusted EBITDA of $10.5
million
- Announces plan for strategic divestitures of certain businesses
to optimize execution of its tech-focused plan
- Continued progress on new initiatives with Open Web reaching
30% of Dice recruitment packages, solid growth in Dice Careers app
usage and launch of assessment products
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
March 31, 2017.
"In November 2016, we announced
not only an initiative to review strategic alternatives related to
the ownership of the Company, but also a tech-focused strategy to
reinvigorate growth. While the Company's Board of Directors decided
to terminate the review of strategic alternatives in April, we have
been continuing to execute on the initiatives to improve our core
tech talent acquisition services, add next generation solutions,
and deepen our engagement with tech professionals," said
Michael Durney, President and Chief
Executive Officer of DHI Group, Inc. "Today, we announce a critical
step in our strategy, a plan to divest certain businesses and align
our talent in a more unified operating structure behind our core
tech business to focus our resources on the global technology
recruiting market, which we believe offers the greatest opportunity
for growth and ultimately shareholder value creation."
Q1 2017 Tech-Focused Product and Business Highlights
- "Open Web First" (i.e. leading with social sourcing)
go-to-market strategy drove 98% year-over-year growth in Open Web
customers, increasing penetration of Dice recruitment package
customers to 30% as of March 31,
2017, up from 24% as of December 31,
2016 and 14% a year ago
- Dice Careers app new downloads grew 71% year-over-year in the
first quarter and total downloads as of March 31, 2017 increased 91% year-over-year,
driving 86% growth in monthly average unique visitors during the
first quarter
- Deepened integration in customer work flow: On-boarded over 140
search API clients in the first quarter compared to approximately
120 last year and have over 700 customers with API integrations as
of March 31, 2017
- ClearanceJobs employer-to-candidate connections on The Cleared
Network increased 46% year-over-year in the first quarter, due to
strong employer activity sourcing and connecting with cleared
professionals
Q1 2017 Financial Highlights
"In the first quarter, we continued to face difficult
competitive dynamics on customer onboarding and renewals, which we
are addressing with our new recruitment service offerings. Positive
early results from these new offerings give us confidence that they
will help drive improved customer trends as the services gain
scale," said Luc Grégoire, Chief Financial Officer. "The strong
fundamentals of our business continue to generate healthy cash
flow, even while we're investing, which, combined with our solid
financial position, will enable us to carry out our tech-focused
strategy and return our business to growth."
The following summarizes consolidated financial results for the
quarters ended March 31, 2017 and 2016 presented with and
without Slashdot Media, which the Company sold in the first quarter
of 2016:
($ in millions,
except per share data)
|
|
|
Q1
2017
|
|
Q1
2016
|
|
Change
|
Revenues
|
|
$
|
52.2
|
|
|
$
|
58.3
|
|
|
(10)
|
%
|
Revenues, excluding
Slashdot Media
|
|
$
|
52.2
|
|
|
$
|
57.5
|
|
|
(9)
|
%
|
Net
income
|
|
$
|
1.3
|
|
|
$
|
1.1
|
|
|
18
|
%
|
Net income, excluding
Slashdot Media and disposition related and other charges
|
|
$
|
1.8
|
|
|
$
|
3.4
|
|
|
(47)
|
%
|
Diluted earnings
per share
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
50
|
%
|
Diluted earnings per
share, excluding Slashdot Media and disposition related and other
charges
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
(43)
|
%
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
10.5
|
|
|
$
|
12.9
|
|
|
(19)
|
%
|
Adjusted EBITDA
margin
|
|
20.1
|
%
|
|
22.1
|
%
|
|
|
Adjusted EBITDA,
excluding Slashdot Media and disposition related and other
costs
|
|
$
|
10.5
|
|
|
$
|
14.0
|
|
|
(25)
|
%
|
Adjusted EBITDA
margin, excluding Slashdot Media and disposition related and other
costs
|
|
20.1
|
%
|
|
24.3
|
%
|
|
|
|
|
|
|
|
|
|
Net income in Q1 2017
was reduced by $0.6 million due to additional income tax expense
related to the adoption of a new accounting standard, ASU No.
2016-09, Improvements to Employee Share-Based Payment
Accounting. Had the new standard been applied to Q1 2016, net
income would have been $0.2 million higher.
|
|
Reconciliations of
Net Income to Adjusted EBITDA and of Operating Cash Flows to
Adjusted EBITDA are included toward the end of this press
release.
|
The following summarizes Revenues, Adjusted EBITDA and Adjusted
EBITDA Margin results for the quarters ended March 31, 2017
and 2016 ($ in millions). A reconciliation of Operating Income
(Loss) to Adjusted EBITDA is included toward the end of this press
release.
|
|
Revenues
|
|
|
Adjusted
EBITDA
|
|
|
Q1
2017
|
|
|
Q1
2016
|
|
|
Change
|
|
Fx
Impact
|
|
Q1
2017
|
|
|
2017
Margin
|
|
|
Q1
2016
|
|
|
2016
Margin
|
Tech &
Clearance
|
|
$
|
31.7
|
|
|
$
|
34.0
|
|
|
(7)%
|
|
$(0.2)
|
|
$
|
13.5
|
|
|
43
|
%
|
|
|
$
|
15.1
|
|
|
44
|
%
|
Global Industry Group
(GIG)
|
|
13.8
|
|
|
16.6
|
|
|
(17)%
|
|
(0.8)
|
|
1.1
|
|
|
8
|
%
|
|
|
2.8
|
|
|
17
|
%
|
Healthcare
|
|
6.7
|
|
|
7.0
|
|
|
(4)%
|
|
—
|
|
0.4
|
|
|
6
|
%
|
|
|
0.6
|
|
|
9
|
%
|
Talent Acquisition
Brands
|
|
52.2
|
|
|
57.5
|
|
|
(9)%
|
|
(1.0)
|
|
14.9
|
|
|
29
|
%
|
|
|
18.5
|
|
|
32
|
%
|
Corporate
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
(2.6)
|
|
|
n.m.
|
|
|
(3.5)
|
|
|
n.m.
|
Talent Acquisition
Brands less
Corporate
|
|
52.2
|
|
|
57.5
|
|
|
(9)%
|
|
(1.0)
|
|
12.3
|
|
|
24
|
%
|
|
|
15.0
|
|
|
26
|
%
|
Brightmatter
Group
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
(1.9)
|
|
|
n.m.
|
|
|
(1.9)
|
|
|
n.m.
|
Slashdot
Media
|
|
—
|
|
|
0.7
|
|
|
(100)%
|
|
—
|
|
—
|
|
|
n.m.
|
|
|
(0.3)
|
|
|
(43)
|
%
|
Total
|
|
$
|
52.2
|
|
|
$
|
58.3
|
|
|
(10)%
|
|
$(1.0)
|
|
$
|
10.5
|
|
|
20
|
%
|
|
|
$
|
12.9
|
|
|
22
|
%
|
|
|
|
|
|
|
GIG Revenues by
Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
millions)
|
|
Q1
2017
|
|
|
Q1
2016
|
|
|
Change
|
|
Fx
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eFinancialCareers
|
|
$
|
7.9
|
|
|
$
|
8.9
|
|
|
(12)%
|
|
$(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigzone
|
|
1.7
|
|
|
2.9
|
|
|
(43)%
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hcareers
|
|
3.6
|
|
|
3.8
|
|
|
(6)%
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BioSpace
|
|
0.7
|
|
|
0.9
|
|
|
(29)%
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Industry
Group
|
|
$
|
13.8
|
|
|
$
|
16.6
|
|
|
(17)%
|
|
$(0.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Balance Sheet
Information
|
|
|
|
($ in
millions)
|
|
March 31,
2017
|
|
December
31, 2016
|
|
Change
|
|
|
|
Deferred
revenue (1)
|
|
$
|
89.7
|
|
|
$
|
84.6
|
|
|
$
|
5.1
|
|
|
|
|
Long-Term Debt,
net
|
|
$
|
76.8
|
|
|
$
|
84.8
|
|
|
$
|
(8.0)
|
|
|
|
|
Plus: Deferred
financing costs
|
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
|
|
Total principal
outstanding
|
|
$
|
78.0
|
|
|
$
|
86.0
|
|
|
$
|
(8.0)
|
|
|
|
|
Less: Cash
|
|
24.7
|
|
|
23.0
|
|
|
1.7
|
|
|
|
|
Net debt
|
|
$
|
53.3
|
|
|
$
|
63.0
|
|
|
$
|
(9.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
YTD increase in deferred revenue primarily reflects an increase in
the Tech & Clearance segment and Global Industry Group segment
of $3.2 million and $1.8 million, respectively.
|
Strategic Divestitures
The Company plans to divest a number of its online professional
communities to achieve greater focus and resource allocation toward
its core tech-focused business. The planned divestitures include:
BioSpace, Hcareers, Health eCareers, and Rigzone. The Company is in
the process of engaging a financial advisor to evaluate
opportunities to conduct value enhancing divestitures of these
non-tech businesses. Proceeds from any dispositions will be
employed in a manner the Company believes is most beneficial to the
interests of shareholders over the long-term, which at this time is
reinvesting in the core tech-focused business, but may also include
opportunities to pursue acquisitions or to return capital to
shareholders in the form of acquisition of Company shares.
"Divesting certain of our non-tech focused businesses is a big
enabler for the execution of our strategy, as it can free us to
create a more unified organization, focused on becoming the leading
global provider of recruitment and next generation talent solutions
focused primarily on tech professionals," said Mr. Durney. "The
businesses we plan to divest are strong franchises with talented,
committed people who make meaningful contributions to DHI. We
believe these businesses could gain operating leverage from greater
investment under different ownership, and concluded that it makes
sense to consider transactions that enhance shareholder value."
Business Outlook
The Company expects its year-over-year rate of revenue decline
to abate later in 2017. The Company plans to increase its level of
spending on its core tech business, but expects some offset from
efficiencies to be gained in realigning and simplifying its
organization. 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 new strategy, including context around
the financial impact of the Company's 2017 strategic objectives and
operational plans.
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 previously announced 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 10105994. The replay
will be available until May 10, 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 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 Margin, Adjusted EBITDA
excluding Slashdot Media and disposition related and other costs,
Adjusted EBITDA margin 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, Diluted Earnings per Share excluding
Slashdot Media and disposition related and other costs, 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 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
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 Margin
Adjusted EBITDA Margin is a
non-GAAP metric used by management to measure operating
performance. Adjusted EBITDA Margin is computed as Adjusted
EBITDA divided by Revenues.
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 and disposition related and other
costs.
Adjusted EBITDA margin, Excluding Slashdot Media and
disposition related and other costs
Adjusted EBITDA margin,
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 margin, 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 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.
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 and
disposition related and other costs 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.
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.
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.
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, 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, 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 March 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenues
|
$
|
52,190
|
|
|
$
|
58,286
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Cost of
revenues
|
7,397
|
|
|
8,535
|
|
Product
development
|
6,451
|
|
|
7,060
|
|
Sales and
marketing
|
19,899
|
|
|
20,502
|
|
General and
administrative
|
11,279
|
|
|
11,213
|
|
Depreciation
|
2,308
|
|
|
2,598
|
|
Amortization of
intangible assets
|
561
|
|
|
2,466
|
|
Disposition related
and other costs
|
—
|
|
|
3,270
|
|
|
|
Total operating
expenses
|
47,895
|
|
|
55,644
|
|
Operating
income
|
4,295
|
|
|
2,642
|
|
Interest
expense
|
(790)
|
|
|
(872)
|
|
Other
expense
|
(16)
|
|
|
(15)
|
|
Income before income
taxes
|
3,489
|
|
|
1,755
|
|
Income tax
expense
|
2,149
|
|
|
644
|
|
Net income
|
$
|
1,340
|
|
|
$
|
1,111
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.03
|
|
|
$
|
0.02
|
|
Diluted earnings per
share
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
47,596
|
|
|
49,451
|
|
Weighted average
diluted shares outstanding
|
48,136
|
|
|
50,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31,
|
|
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
1,340
|
|
|
$
|
1,111
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation
|
2,308
|
|
|
2,598
|
|
|
Amortization of
intangible assets
|
561
|
|
|
2,466
|
|
|
Deferred income
taxes
|
222
|
|
|
(84)
|
|
|
Amortization of
deferred financing costs
|
81
|
|
|
81
|
|
|
Stock based
compensation
|
2,502
|
|
|
3,617
|
|
|
Change in accrual for
unrecognized tax benefits
|
35
|
|
|
14
|
|
|
Loss on sale of
business
|
—
|
|
|
562
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
5,026
|
|
|
2,367
|
|
|
Prepaid expenses and
other assets
|
(1,494)
|
|
|
(505)
|
|
|
Accounts payable and
accrued expenses
|
(2,349)
|
|
|
(2,104)
|
|
|
Income taxes
receivable/payable
|
1,418
|
|
|
(2,920)
|
|
|
Deferred
revenue
|
4,851
|
|
|
5,551
|
|
|
Other, net
|
18
|
|
|
(14)
|
|
Net cash flows from
operating activities
|
14,519
|
|
|
12,740
|
|
Cash flows from
investing activities:
|
|
|
|
|
Cash received from
sale of business
|
—
|
|
|
2,429
|
|
|
Purchases of fixed
assets
|
(4,195)
|
|
|
(2,319)
|
|
Net cash flows (used
in) from investing activities
|
(4,195)
|
|
|
110
|
|
Cash flows from
financing activities:
|
|
|
|
|
Payments on long-term
debt
|
(8,000)
|
|
|
(3,000)
|
|
|
Proceeds from
long-term debt
|
—
|
|
|
3,000
|
|
|
Payments under stock
repurchase plan
|
—
|
|
|
(13,717)
|
|
|
Proceeds from stock
option exercises
|
403
|
|
|
1,028
|
|
|
Purchase of treasury
stock related to vested restricted stock and performance stock
units
|
(1,092)
|
|
|
(2,452)
|
|
Net cash flows used
in financing activities
|
(8,689)
|
|
|
(15,141)
|
|
Effect of exchange
rate changes
|
43
|
|
|
695
|
|
Net change in cash
for the period
|
1,678
|
|
|
(1,596)
|
|
Cash, beginning of
period
|
22,987
|
|
|
34,050
|
|
Cash, end of
period
|
$
|
24,665
|
|
|
$
|
32,454
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
March 31,
2017
|
|
December 31,
2016
|
Current
assets
|
|
|
|
|
Cash
|
$
|
24,665
|
|
|
$
|
22,987
|
|
|
Accounts receivable,
net
|
38,321
|
|
|
43,148
|
|
|
Income taxes
receivable
|
754
|
|
|
731
|
|
|
Prepaid and other
current assets
|
4,880
|
|
|
3,312
|
|
|
|
Total current
assets
|
68,620
|
|
|
70,178
|
|
Fixed assets,
net
|
18,459
|
|
|
16,610
|
|
Acquired intangible
assets, net
|
48,561
|
|
|
49,120
|
|
Goodwill
|
172,406
|
|
|
171,745
|
|
Deferred income
taxes
|
318
|
|
|
306
|
|
Other
assets
|
2,080
|
|
|
2,136
|
|
|
|
Total
assets
|
$
|
310,444
|
|
|
$
|
310,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
17,877
|
|
|
$
|
20,220
|
|
|
Deferred
revenue
|
89,710
|
|
|
84,615
|
|
|
Income taxes
payable
|
4,928
|
|
|
3,467
|
|
|
|
Total current
liabilities
|
112,515
|
|
|
108,302
|
|
Long-term debt,
net
|
76,841
|
|
|
84,760
|
|
Deferred income
taxes
|
8,129
|
|
|
7,901
|
|
Accrual for
unrecognized tax benefits
|
2,548
|
|
|
2,513
|
|
Other long-term
liabilities
|
2,760
|
|
|
2,736
|
|
|
|
Total
liabilities
|
202,793
|
|
|
206,212
|
|
Total stockholders'
equity
|
107,651
|
|
|
103,883
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
310,444
|
|
|
$
|
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 months ended
March 31, 2017 and 2016 and a balance sheet as of
March 31, 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 March 31,
|
|
|
2017
|
|
2016
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
Net
income
|
$
|
1,340
|
|
|
$
|
1,111
|
|
|
Interest
expense
|
790
|
|
|
872
|
|
|
Income tax
expense
|
2,149
|
|
|
644
|
|
|
Depreciation
|
2,308
|
|
|
2,598
|
|
|
Amortization of
intangible assets
|
561
|
|
|
2,466
|
|
|
Non-cash stock
compensation expense
|
2,502
|
|
|
2,717
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
981
|
|
|
Accelerated stock
based compensation expense—Slashdot Media
|
—
|
|
|
900
|
|
|
Loss on sale of
business
|
—
|
|
|
562
|
|
|
Costs related to
strategic alternatives process
|
830
|
|
|
—
|
|
|
Other
|
16
|
|
|
15
|
|
Adjusted
EBITDA
|
$
|
10,496
|
|
|
$
|
12,866
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
Net cash provided
by operating activities
|
$
|
14,519
|
|
|
$
|
12,740
|
|
|
Interest
expense
|
790
|
|
|
872
|
|
|
Amortization of
deferred financing costs
|
(81)
|
|
|
(81)
|
|
|
Income tax
expense
|
2,149
|
|
|
644
|
|
|
Deferred income
taxes
|
(222)
|
|
|
84
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
981
|
|
|
Change in accrual for
unrecognized tax benefits
|
(35)
|
|
|
(14)
|
|
|
Change in accounts
receivable
|
(5,026)
|
|
|
(2,367)
|
|
|
Change in deferred
revenue
|
(4,851)
|
|
|
(5,551)
|
|
|
Costs related to
strategic alternatives process
|
830
|
|
|
—
|
|
|
Changes in working
capital and other
|
2,423
|
|
|
5,558
|
|
Adjusted
EBITDA
|
$
|
10,496
|
|
|
$
|
12,866
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Free
Cash Flow:
|
|
|
|
Net cash provided
by operating activities
|
$
|
14,519
|
|
|
$
|
12,740
|
|
Purchases of fixed
assets
|
(4,195)
|
|
|
(2,319)
|
|
Free Cash
Flow
|
$
|
10,324
|
|
|
$
|
10,421
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
Beginning of
period
|
7,050
|
|
|
7,600
|
|
End of
period
|
6,800
|
|
|
7,450
|
|
|
|
|
|
|
Average for the
period (1)
|
6,900
|
|
|
7,450
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (2)
|
$
|
1,110
|
|
|
$
|
1,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 31, 2017
|
Reconciliation of
Operating Income (Loss) to
Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
11,444
|
|
|
$
|
118
|
|
|
$
|
(450)
|
|
|
$
|
(4,625)
|
|
|
$
|
(2,192)
|
|
|
$
|
—
|
|
|
$
|
4,295
|
|
|
Depreciation
|
1,456
|
|
|
225
|
|
|
508
|
|
|
28
|
|
|
91
|
|
|
—
|
|
|
2,308
|
|
|
Amortization of
intangible assets
|
—
|
|
|
364
|
|
|
162
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
561
|
|
|
Non-cash stock
compensation expense
|
565
|
|
|
410
|
|
|
132
|
|
|
1,182
|
|
|
213
|
|
|
—
|
|
|
2,502
|
|
|
Costs related to
strategic alternatives process
|
—
|
|
|
—
|
|
|
—
|
|
|
830
|
|
|
—
|
|
|
—
|
|
|
830
|
|
Adjusted
EBITDA
|
$
|
13,465
|
|
|
$
|
1,117
|
|
|
$
|
352
|
|
|
$
|
(2,585)
|
|
|
$
|
(1,853)
|
|
|
$
|
—
|
|
|
$
|
10,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended March 31, 2016
|
Reconciliation of
Operating Income (Loss) to
Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
11,833
|
|
|
$
|
646
|
|
|
$
|
(278)
|
|
|
$
|
(4,777)
|
|
|
$
|
(2,033)
|
|
|
$
|
(2,749)
|
|
|
$
|
2,642
|
|
|
Depreciation
|
1,738
|
|
|
222
|
|
|
596
|
|
|
33
|
|
|
9
|
|
|
—
|
|
|
2,598
|
|
|
Amortization of
intangible assets
|
728
|
|
|
1,471
|
|
|
218
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
2,466
|
|
|
Non-cash stock
compensation expense
|
814
|
|
|
414
|
|
|
110
|
|
|
1,217
|
|
|
117
|
|
|
45
|
|
|
2,717
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
981
|
|
|
981
|
|
|
Accelerated stock
based compensation
expense—Slashdot Media
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
900
|
|
|
900
|
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
562
|
|
|
562
|
|
Adjusted
EBITDA
|
$
|
15,113
|
|
|
$
|
2,753
|
|
|
$
|
646
|
|
|
$
|
(3,527)
|
|
|
$
|
(1,858)
|
|
|
$
|
(261)
|
|
|
$
|
12,866
|
|
DHI GROUP,
INC.
|
NON-GAAP
SUPPLEMENTAL DATA (CONTINUED)
|
(Unaudited)
|
(in thousands
except per share amounts)
|
|
|
|
|
|
For the three
months ended March 31,
|
|
|
2017
|
|
2016
|
Revenues
|
$
|
52,190
|
|
|
$
|
58,286
|
|
Less Slashdot
Media
|
—
|
|
|
747
|
|
Revenues, excluding
Slashdot Media
|
$
|
52,190
|
|
|
$
|
57,539
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
1,340
|
|
|
$
|
1,111
|
|
Exclude Slashdot
Media net income (loss)
|
—
|
|
|
(1,740)
|
|
Add back severance
related to re-alignment, net of tax
|
—
|
|
|
521
|
|
Add back costs
related to strategic alternatives process, net of tax
|
508
|
|
|
$
|
—
|
|
Net Income, excluding
Slashdot Media and disposition related and other costs
|
$
|
1,848
|
|
|
$
|
3,372
|
|
|
|
|
|
|
|
|
|
|
|
Net Income, excluding
Slashdot Media and disposition related and other costs
|
$
|
1,848
|
|
|
$
|
3,372
|
|
Weighted average
diluted shares outstanding
|
48,136
|
|
|
50,460
|
|
Diluted Earnings per
Share, excluding Slashdot Media and disposition related and
other
costs
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
10,496
|
|
|
$
|
12,866
|
|
Exclude Slashdot
Media
|
—
|
|
|
(261)
|
|
Add back severance
related to re-alignment
|
—
|
|
|
827
|
|
Adjusted EBITDA,
excluding Slashdot Media and disposition related and other
costs
|
$
|
10,496
|
|
|
$
|
13,954
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin, excluding Slashdot Media and disposition related and other
costs
|
20.1
|
%
|
|
24.3
|
%
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dhi-group-inc-announces-first-quarter-2017-results-and-intention-to-divest-certain-businesses-300450317.html
SOURCE DHI Group, Inc.