NEW YORK, July 27, 2017
/PRNewswire/ --
- Second quarter 2017 total revenues of $52.4 million, net income of $1.8 million and diluted EPS of $0.04
- Cash flow from operations of $9.2
million; Adjusted EBITDA of $9.5
million, which was impacted by $1.1
million of disposition related and other costs
- Commenced process of divesting non-tech businesses to
streamline the operating portfolio
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
June 30, 2017.
"Our business performed in line with our expectations in the
second quarter as we transitioned to a new organization structure
that will enable us to operate as a more focused, flexible, and
agile company to execute our tech-focused strategy," said
Michael Durney, President and Chief
Executive Officer of DHI Group, Inc. "In addition, we made progress
on our product initiatives to deepen engagement with professionals
and address customer pain points. The positive impact we've seen so
far strengthens our conviction in the plan and our ability to
change the arc of growth and profitability for the Company, and
ultimately enhance shareholder value."
Q2 2017 Tech-Focused Product and Business Highlights
- Launched new marketing initiatives for Dice with the "Hack Your
Career" campaign to increase engagement with tech professionals,
and partnerships with Bustle, a digital media company serving
millennial women, and Spiceworks, a tech networking community
- "Open Web First" go-to-market strategy that leads with social
sourcing drove 103% year-over-year growth in Open Web customers,
increasing penetration of Dice recruitment package customers to 34%
as of June 30, 2017, up from 30% as
of March 31, 2017 and from 16% a year
ago
- Dice Careers app new downloads grew 28% year-over-year in the
second quarter. As of June 30, 2017,
cumulative downloads were 81% higher than June 30, 2016, which drove 52% growth in average
monthly unique visitors
- Launched ClearanceJobs Voice, which adds live discussion
between employers and candidates through the website
Q2 and Year-to-Date 2017 Financial Highlights
"The market dynamics for our business remained challenging to
our renewal and new business efforts. While we're not content with
these results, they are consistent with the 2017 outlook we
provided in May," said Luc Grégoire, Chief Financial Officer.
"However, we advanced our strategy to return the business to growth
with the current process to divest our non-tech businesses,
redeploying resources in a more effective and cost efficient
manner, and increasing the focus on key drivers and levers of our
technology talent solutions business. Looking forward, we are
optimistic that the steps we have taken will begin to stabilize our
business."
The following summarizes consolidated financial results for the
quarters ended June 30, 2017 and 2016:
($ in millions,
except per share data)
|
|
|
|
Q2
2017
|
|
Q2
2016
|
|
Change
|
|
Revenues
|
|
$
|
52.4
|
|
|
$
|
57.7
|
|
|
(9)%
|
|
|
Net income
(1)(2)
|
|
$
|
1.8
|
|
|
$
|
4.9
|
|
|
(63)%
|
|
|
Diluted earnings
per share (3)
|
|
$
|
0.04
|
|
|
$
|
0.10
|
|
|
(60)%
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(4) (5)
|
|
$
|
9.5
|
|
|
$
|
16.0
|
|
|
(41)%
|
|
|
Adjusted EBITDA
margin
|
|
|
18.2
|
%
|
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes the impact of disposition related and others costs, net of
tax, of $0.7 million and $0.1 million for Q2 2017 and 2016,
respectively.
(2) Net
income in Q2 2017 was reduced by $0.2 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. No material difference to Q2 2016, had the
new standard been applied to that period.
(3) Disposition related and other
costs reduced diluted earnings per share in Q2 2017 by $0.01 with
no material change to Q2 2016.
(4) Q2 2017 includes the impact of
disposition related and other costs of $1.1 million.
(5)
Reconciliations of Net Income to Adjusted EBITDA and of Operating
Cash Flows to Adjusted EBITDA are included toward the end of this
press release.
|
|
|
|
|
|
|
|
|
The following summarizes Revenues, Adjusted EBITDA and Adjusted
EBITDA Margin results for the quarter and year-to-date periods
ended June 30, 2017 and 2016 ($ in millions). A reconciliation
of Operating Income (Loss) to Adjusted EBITDA is included toward
the end of this press release.
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
|
Q2
2017
|
|
|
Q2
2016
|
|
|
Change
|
|
Fx
Impact
|
|
Q2
2017
|
|
|
Q2 2017
Margin
|
|
Q2
2016
|
|
|
Q2 2016
Margin
|
Tech &
Clearance
|
|
$
|
31.3
|
|
|
$
|
34.2
|
|
|
(8)%
|
|
$(0.1)
|
|
$
|
13.0
|
|
|
42%
|
|
$
|
16.6
|
|
|
49%
|
Global Industry Group
(GIG)
|
|
14.5
|
|
|
16.5
|
|
|
(12)%
|
|
(0.7)
|
|
1.5
|
|
|
10%
|
|
4.2
|
|
|
25%
|
Healthcare
|
|
6.6
|
|
|
7.0
|
|
|
(6)%
|
|
—
|
|
0.2
|
|
|
3%
|
|
0.9
|
|
|
13%
|
Talent Acquisition
Brands
|
|
52.4
|
|
|
57.7
|
|
|
(9)%
|
|
(0.8)
|
|
14.7
|
|
|
28%
|
|
21.7
|
|
|
38%
|
Corporate
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
(2.7)
|
|
|
n.m.
|
|
(4.1)
|
|
|
n.m.
|
Talent Acquisition
Brands less
Corporate
|
|
52.4
|
|
|
57.7
|
|
|
(9)%
|
|
(0.8)
|
|
12.0
|
|
|
23%
|
|
17.7
|
|
|
31%
|
Brightmatter
Group
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
(2.5)
|
|
|
n.m.
|
|
(1.7)
|
|
|
n.m.
|
Slashdot
Media
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
—
|
|
|
n.m.
|
|
0.1
|
|
|
n.m.
|
Total
|
|
$
|
52.4
|
|
|
$
|
57.7
|
|
|
(9)%
|
|
$(0.8)
|
|
$
|
9.5
|
|
|
18%
|
|
$
|
16.0
|
|
|
28%
|
|
|
Revenues
|
|
Adjusted
EBITDA
|
|
|
YTD
2017
|
|
|
YTD
2016
|
|
|
Change
|
|
|
Fx
Impact
|
|
YTD
2017
|
|
|
YTD
2017
Margin
|
|
YTD
2016
|
|
YTD
2016
Margin
|
Tech &
Clearance
|
|
$
|
63.0
|
|
|
$
|
68.2
|
|
|
(8)%
|
|
|
$(0.4)
|
|
$
|
26.4
|
|
|
42%
|
|
$
|
31.7
|
|
|
46%
|
Global Industry Group
(GIG)
|
|
28.3
|
|
|
33.1
|
|
|
(15)%
|
|
|
(1.5)
|
|
2.6
|
|
|
9%
|
|
7.0
|
|
|
21%
|
Healthcare
|
|
13.3
|
|
|
13.9
|
|
|
(4)%
|
|
|
—
|
|
0.6
|
|
|
5%
|
|
1.6
|
|
|
12%
|
Talent Acquisition
Brands
|
|
104.6
|
|
|
115.2
|
|
|
(9)%
|
|
|
(1.9)
|
|
29.6
|
|
|
28%
|
|
40.3
|
|
|
35%
|
Corporate
|
|
—
|
|
|
—
|
|
|
n.m.
|
|
|
—
|
|
(5.3)
|
|
|
n.m.
|
|
(7.6)
|
|
|
n.m.
|
Talent Acquisition
Brands
less Corporate
|
|
104.6
|
|
|
115.2
|
|
|
(9)%
|
|
|
(1.9)
|
|
24.3
|
|
|
23%
|
|
32.7
|
|
|
28%
|
Brightmatter
Group
|
|
—
|
|
|
0.1
|
|
|
n.m.
|
|
|
—
|
|
(4.3)
|
|
|
n.m.
|
|
(3.6)
|
|
|
n.m.
|
Slashdot
Media
|
|
—
|
|
|
0.7
|
|
|
n.m.
|
|
|
—
|
|
—
|
|
|
n.m.
|
|
(0.2)
|
|
|
n.m.
|
Total
|
|
$
|
104.6
|
|
|
$
|
116.0
|
|
|
(10)%
|
|
|
$(1.9)
|
|
$
|
20.0
|
|
|
19%
|
|
$
|
28.9
|
|
|
25%
|
|
|
Supplemental
Balance Sheet Information
|
|
|
June 30,
2017
|
|
December
31, 2016
|
|
YTD 2017
Change
|
|
June 30,
2016
|
|
YOY
Change
|
Deferred
revenue (1)
|
|
$
|
86.4
|
|
|
$
|
84.6
|
|
|
$
|
1.8
|
|
|
$
|
85.9
|
|
|
$
|
0.5
|
|
Long-Term Debt,
net
|
|
$
|
69.9
|
|
|
$
|
84.8
|
|
|
$
|
(14.9)
|
|
|
$
|
97.6
|
|
|
$
|
(27.7)
|
|
Plus: Deferred
financing costs
|
|
1.1
|
|
|
1.2
|
|
|
(0.1)
|
|
|
1.4
|
|
|
(0.3)
|
|
Total principal
outstanding
|
|
$
|
71.0
|
|
|
$
|
86.0
|
|
|
$
|
(15.0)
|
|
|
$
|
99.0
|
|
|
$
|
(28.0)
|
|
(1) The
YTD increase in deferred revenue primarily reflects an increase in
the Tech & Clearance and Global Industry Group segments of $0.9
million each.
|
Business Outlook
The Company expects its year-over-year rate of decline in
revenue to abate progressively in the second half of 2017, while
spending should increase only modestly as increased investment in
its core tech business will be mostly offset by efficiencies from
realigning and simplifying the 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
tech-focused 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 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 10110589. The replay
will be available until August 3, 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 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 June 30,
|
|
For the six
months
ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
52,400
|
|
|
$
|
57,673
|
|
|
$
|
104,590
|
|
|
$
|
115,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
7,668
|
|
|
8,079
|
|
|
15,065
|
|
|
16,614
|
|
|
Product
development
|
6,356
|
|
|
6,245
|
|
|
12,807
|
|
|
13,305
|
|
|
Sales and
marketing
|
19,751
|
|
|
18,646
|
|
|
39,650
|
|
|
39,148
|
|
|
General and
administrative
|
10,046
|
|
|
11,508
|
|
|
21,325
|
|
|
22,721
|
|
|
Depreciation
|
2,819
|
|
|
2,563
|
|
|
5,127
|
|
|
5,161
|
|
|
Amortization of
intangible assets
|
571
|
|
|
2,070
|
|
|
1,132
|
|
|
4,536
|
|
|
Disposition related
and other costs
|
1,187
|
|
|
77
|
|
|
1,187
|
|
|
3,347
|
|
|
|
|
Total operating
expenses
|
48,398
|
|
|
49,188
|
|
|
96,293
|
|
|
104,832
|
|
|
Operating
income
|
4,002
|
|
|
8,485
|
|
|
8,297
|
|
|
11,127
|
|
|
Interest
expense
|
(814)
|
|
|
(820)
|
|
|
(1,604)
|
|
|
(1,692)
|
|
|
Other
expense
|
9
|
|
|
(17)
|
|
|
(7)
|
|
|
(32)
|
|
|
Income before income
taxes
|
3,197
|
|
|
7,648
|
|
|
6,686
|
|
|
9,403
|
|
|
Income tax
expense
|
1,375
|
|
|
2,794
|
|
|
3,524
|
|
|
3,438
|
|
|
Net income
|
$
|
1,822
|
|
|
$
|
4,854
|
|
|
$
|
3,162
|
|
|
$
|
5,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.04
|
|
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
0.12
|
|
|
Diluted earnings per
share
|
$
|
0.04
|
|
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
47,953
|
|
|
48,607
|
|
|
47,775
|
|
|
49,034
|
|
|
Weighted average
diluted shares outstanding
|
48,268
|
|
|
49,279
|
|
|
48,308
|
|
|
49,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DHI GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months
ended June 30,
|
|
For the six
months
ended June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,822
|
|
|
$
|
4,854
|
|
|
$
|
3,162
|
|
|
$
|
5,965
|
|
|
Adjustments to
reconcile net income to net cash flows
from operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
2,819
|
|
|
2,563
|
|
|
5,127
|
|
|
5,161
|
|
|
|
Amortization of
intangible assets
|
571
|
|
|
2,070
|
|
|
1,132
|
|
|
4,536
|
|
|
|
Deferred income
taxes
|
426
|
|
|
313
|
|
|
648
|
|
|
229
|
|
|
|
Amortization of
deferred financing costs
|
81
|
|
|
81
|
|
|
162
|
|
|
162
|
|
|
|
Stock based
compensation
|
2,086
|
|
|
2,806
|
|
|
4,588
|
|
|
6,423
|
|
|
|
Change in accrual for
unrecognized tax benefits
|
35
|
|
|
101
|
|
|
70
|
|
|
115
|
|
|
|
Loss on sale of
business
|
—
|
|
|
77
|
|
|
—
|
|
|
639
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
6,205
|
|
|
2,490
|
|
|
11,231
|
|
|
4,857
|
|
|
|
Prepaid expenses and
other assets
|
412
|
|
|
336
|
|
|
(1,082)
|
|
|
(169)
|
|
|
|
Accounts payable and
accrued expenses
|
1,342
|
|
|
(2,771)
|
|
|
(1,007)
|
|
|
(4,875)
|
|
|
|
Income taxes
receivable/payable
|
(2,883)
|
|
|
1,627
|
|
|
(1,465)
|
|
|
(1,293)
|
|
|
|
Deferred
revenue
|
(3,750)
|
|
|
(2,299)
|
|
|
1,101
|
|
|
3,252
|
|
|
|
Other, net
|
27
|
|
|
(63)
|
|
|
45
|
|
|
(77)
|
|
|
Net cash flows from
operating activities
|
9,193
|
|
|
12,185
|
|
|
23,712
|
|
|
24,925
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Cash received from
sale of business
|
—
|
|
|
—
|
|
|
—
|
|
|
2,429
|
|
|
|
Purchases of fixed
assets
|
(3,535)
|
|
|
(3,187)
|
|
|
(7,730)
|
|
|
(5,506)
|
|
|
Net cash flows (used
in) from investing activities
|
(3,535)
|
|
|
(3,187)
|
|
|
(7,730)
|
|
|
(3,077)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Payments on long-term
debt
|
(7,000)
|
|
|
(8,000)
|
|
|
(15,000)
|
|
|
(11,000)
|
|
|
|
Proceeds from
long-term debt
|
—
|
|
|
6,000
|
|
|
—
|
|
|
9,000
|
|
|
|
Payments under stock
repurchase plan
|
—
|
|
|
(8,915)
|
|
|
—
|
|
|
(22,632)
|
|
|
|
Proceeds from stock
option exercises
|
—
|
|
|
—
|
|
|
403
|
|
|
1,028
|
|
|
|
Purchase of treasury
stock related to vested
restricted stock and performance stock units
|
(17)
|
|
|
(68)
|
|
|
(1,109)
|
|
|
(2,520)
|
|
|
Net cash flows used
in financing activities
|
(7,017)
|
|
|
(10,983)
|
|
|
(15,706)
|
|
|
(26,124)
|
|
|
Effect of exchange
rate changes
|
150
|
|
|
(1,008)
|
|
|
193
|
|
|
(313)
|
|
|
Net change in cash
for the period
|
(1,209)
|
|
|
(2,993)
|
|
|
469
|
|
|
(4,589)
|
|
|
Cash, beginning of
period
|
24,665
|
|
|
32,454
|
|
|
22,987
|
|
|
34,050
|
|
|
Cash, end of
period
|
$
|
23,456
|
|
|
$
|
29,461
|
|
|
$
|
23,456
|
|
|
$
|
29,461
|
|
|
DHI GROUP,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
ASSETS
|
June 30,
2017
|
|
December 31,
2016
|
Current
assets
|
|
|
|
|
Cash
|
$
|
23,456
|
|
|
$
|
22,987
|
|
|
Accounts receivable,
net
|
32,335
|
|
|
43,148
|
|
|
Income taxes
receivable
|
737
|
|
|
731
|
|
|
Prepaid and other
current assets
|
4,508
|
|
|
3,312
|
|
|
|
Total current
assets
|
61,036
|
|
|
70,178
|
|
Fixed assets,
net
|
19,346
|
|
|
16,610
|
|
Acquired intangible
assets, net
|
48,002
|
|
|
49,120
|
|
Goodwill
|
174,790
|
|
|
171,745
|
|
Deferred income
taxes
|
361
|
|
|
306
|
|
Other
assets
|
2,073
|
|
|
2,136
|
|
|
|
Total
assets
|
$
|
305,608
|
|
|
$
|
310,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
19,500
|
|
|
$
|
20,220
|
|
|
Deferred
revenue
|
86,380
|
|
|
84,615
|
|
|
Income taxes
payable
|
2,029
|
|
|
3,467
|
|
|
|
Total current
liabilities
|
107,909
|
|
|
108,302
|
|
Long-term debt,
net
|
69,922
|
|
|
84,760
|
|
Deferred income
taxes
|
8,586
|
|
|
7,901
|
|
Accrual for
unrecognized tax benefits
|
2,584
|
|
|
2,513
|
|
Other long-term
liabilities
|
2,800
|
|
|
2,736
|
|
|
|
Total
liabilities
|
191,801
|
|
|
206,212
|
|
Total stockholders'
equity
|
113,807
|
|
|
103,883
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
305,608
|
|
|
$
|
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 six month
periods ended June 30, 2017 and 2016 and a balance sheet as of
June 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 June 30,
|
|
For the six
months
ended June 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Reconciliation of Net
Income to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
1,822
|
|
|
$
|
4,854
|
|
|
$
|
3,162
|
|
|
$
|
5,965
|
|
|
|
Interest
expense
|
814
|
|
|
820
|
|
|
1,604
|
|
|
1,692
|
|
|
|
Income tax
expense
|
1,375
|
|
|
2,794
|
|
|
3,524
|
|
|
3,438
|
|
|
|
Depreciation
|
2,819
|
|
|
2,563
|
|
|
5,127
|
|
|
5,161
|
|
|
|
Amortization of
intangible assets
|
571
|
|
|
2,070
|
|
|
1,132
|
|
|
4,536
|
|
|
|
Non-cash stock
compensation expense
|
2,086
|
|
|
2,806
|
|
|
4,588
|
|
|
5,523
|
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
—
|
|
|
981
|
|
|
|
Accelerated stock
based compensation expense—
Slashdot Media
|
—
|
|
|
—
|
|
|
—
|
|
|
900
|
|
|
|
Loss on sale of
business
|
—
|
|
|
77
|
|
|
—
|
|
|
639
|
|
|
|
Costs related to
strategic alternatives process
|
(23)
|
|
|
—
|
|
|
807
|
|
|
—
|
|
|
|
Costs related to
divestitures
|
70
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
|
Other
|
(9)
|
|
|
17
|
|
|
7
|
|
|
32
|
|
|
Adjusted
EBITDA
|
$
|
9,525
|
|
|
$
|
16,001
|
|
|
$
|
20,021
|
|
|
$
|
28,867
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Cash Flows to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
9,193
|
|
|
$
|
12,185
|
|
|
$
|
23,712
|
|
|
$
|
24,925
|
|
|
|
Interest
expense
|
814
|
|
|
820
|
|
|
1,604
|
|
|
1,692
|
|
|
|
Amortization of
deferred financing costs
|
(81)
|
|
|
(81)
|
|
|
(162)
|
|
|
(162)
|
|
|
|
Income tax
expense
|
1,375
|
|
|
2,794
|
|
|
3,524
|
|
|
3,438
|
|
|
|
Deferred income
taxes
|
(426)
|
|
|
(313)
|
|
|
(648)
|
|
|
(229)
|
|
|
|
Severance—Slashdot
Media
|
—
|
|
|
—
|
|
|
—
|
|
|
981
|
|
|
|
Change in accrual for
unrecognized tax benefits
|
(35)
|
|
|
(101)
|
|
|
(70)
|
|
|
(115)
|
|
|
|
Change in accounts
receivable
|
(6,205)
|
|
|
(2,490)
|
|
|
(11,231)
|
|
|
(4,857)
|
|
|
|
Change in deferred
revenue
|
3,750
|
|
|
2,299
|
|
|
(1,101)
|
|
|
(3,252)
|
|
|
|
Costs related to
strategic alternatives process
|
(23)
|
|
|
—
|
|
|
807
|
|
|
—
|
|
|
|
Costs related to
divestitures
|
70
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
|
Changes in working
capital and other
|
1,093
|
|
|
888
|
|
|
3,516
|
|
|
6,446
|
|
|
Adjusted
EBITDA
|
$
|
9,525
|
|
|
$
|
16,001
|
|
|
$
|
20,021
|
|
|
$
|
28,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Recruitment
Package Customers
|
|
|
|
|
|
|
|
|
Beginning of
period
|
6,800
|
|
|
7,450
|
|
|
7,050
|
|
|
7,600
|
|
|
End of
period
|
6,750
|
|
|
7,300
|
|
|
6,700
|
|
|
7,300
|
|
|
|
|
|
|
|
|
|
|
|
|
Average for the
period (1)
|
6,750
|
|
|
7,350
|
|
|
6,800
|
|
|
7,400
|
|
|
|
|
|
|
|
|
|
|
|
|
Dice Average
Monthly Revenue per
Recruitment Package Customer (2)
|
$
|
1,108
|
|
|
$
|
1,124
|
|
|
$
|
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 June 30, 2017
|
Reconciliation of
Operating Income (Loss)
to Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
10,712
|
|
|
$
|
510
|
|
|
$
|
(642)
|
|
|
$
|
(3,906)
|
|
|
$
|
(2,672)
|
|
|
$
|
—
|
|
|
$
|
4,002
|
|
|
Depreciation
|
1,695
|
|
|
247
|
|
|
537
|
|
|
26
|
|
|
314
|
|
|
—
|
|
|
2,819
|
|
|
Amortization of
intangible assets
|
—
|
|
|
363
|
|
|
163
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
571
|
|
|
Non-cash stock
compensation expense
|
545
|
|
|
408
|
|
|
141
|
|
|
1,131
|
|
|
(139)
|
|
|
—
|
|
|
2,086
|
|
|
Costs related to
strategic alternatives
process
|
—
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
|
Costs related to
divestiture process
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
Adjusted
EBITDA
|
$
|
12,952
|
|
|
$
|
1,528
|
|
|
$
|
199
|
|
|
$
|
(2,702)
|
|
|
$
|
(2,452)
|
|
|
$
|
—
|
|
|
$
|
9,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30, 2016
|
Reconciliation of
Operating Income (Loss)
to Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
13,291
|
|
|
$
|
2,477
|
|
|
$
|
107
|
|
|
$
|
(5,452)
|
|
|
$
|
(1,914)
|
|
|
$
|
(24)
|
|
|
$
|
8,485
|
|
|
Depreciation
|
1,770
|
|
|
230
|
|
|
495
|
|
|
33
|
|
|
35
|
|
|
—
|
|
|
2,563
|
|
|
Amortization of
intangible assets
|
729
|
|
|
1,074
|
|
|
218
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
2,070
|
|
|
Non-cash stock
compensation expense
|
781
|
|
|
428
|
|
|
124
|
|
|
1,357
|
|
|
116
|
|
|
—
|
|
|
2,806
|
|
|
Loss on sale of
business
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
77
|
|
Adjusted
EBITDA
|
$
|
16,571
|
|
|
$
|
4,209
|
|
|
$
|
944
|
|
|
$
|
(4,062)
|
|
|
$
|
(1,714)
|
|
|
$
|
53
|
|
|
$
|
16,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended June 30, 2017
|
Reconciliation of
Operating Income (Loss)
to Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
22,156
|
|
|
$
|
628
|
|
|
$
|
(1,092)
|
|
|
$
|
(8,533)
|
|
|
$
|
(4,862)
|
|
|
$
|
—
|
|
|
$
|
8,297
|
|
|
Depreciation
|
3,151
|
|
|
472
|
|
|
1,045
|
|
|
54
|
|
|
405
|
|
|
—
|
|
|
5,127
|
|
|
Amortization of
intangible assets
|
—
|
|
|
727
|
|
|
325
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
1,132
|
|
|
Non-cash stock
compensation expense
|
1,110
|
|
|
818
|
|
|
273
|
|
|
2,313
|
|
|
74
|
|
|
—
|
|
|
4,588
|
|
|
Costs related to
strategic alternatives
process
|
—
|
|
|
—
|
|
|
—
|
|
|
807
|
|
|
—
|
|
|
—
|
|
|
807
|
|
|
Costs related to
divestiture process
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
Adjusted
EBITDA
|
$
|
26,417
|
|
|
$
|
2,645
|
|
|
$
|
551
|
|
|
$
|
(5,289)
|
|
|
$
|
(4,303)
|
|
|
$
|
—
|
|
|
$
|
20,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended June 30, 2016
|
Reconciliation of
Operating Income (Loss)
to Adjusted EBITDA:
|
Tech &
Clearance
|
|
Global
Industry
Group
|
|
Healthcare
|
|
Corporate
|
|
Brightmatter
Group
|
|
Slashdot
Media
|
|
Total
|
Operating income
(loss)
|
$
|
25,124
|
|
|
$
|
3,123
|
|
|
$
|
(171)
|
|
|
$
|
(10,229)
|
|
|
$
|
(3,947)
|
|
|
$
|
(2,773)
|
|
|
$
|
11,127
|
|
|
Depreciation
|
3,507
|
|
|
452
|
|
|
1,091
|
|
|
67
|
|
|
44
|
|
|
—
|
|
|
5,161
|
|
|
Amortization of
intangible assets
|
1,456
|
|
|
2,545
|
|
|
436
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
4,536
|
|
|
Non-cash stock
compensation expense
|
1,595
|
|
|
842
|
|
|
234
|
|
|
2,575
|
|
|
233
|
|
|
44
|
|
|
5,523
|
|
|
Slashdot media
related costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,520
|
|
|
2,520
|
|
Adjusted
EBITDA
|
$
|
31,682
|
|
|
$
|
6,962
|
|
|
$
|
1,590
|
|
|
$
|
(7,587)
|
|
|
$
|
(3,571)
|
|
|
$
|
(209)
|
|
|
$
|
28,867
|
|
Segment
Definitions:
|
|
|
|
|
|
|
|
Tech & Clearance:
Dice, Dice Europe and ClearanceJobs; Global Industry Group:
eFinancialCareers, Rigzone, Hcareers and BioSpace; Healthcare:
Health eCareers
|
|
|
|
|
|
DHI GROUP,
INC.
|
SUPPLEMENTAL DATA
- REVENUE DETAIL
|
(Unaudited)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
($ in
millions)
|
|
Q2
2017
|
|
Q2
2016
|
|
Change
|
|
$ Fx
Impact
|
|
YTD
2017
|
|
YTD
2016
|
|
Change
|
|
$ Fx
Impact
|
Tech and
Clearance
|
|
$
|
31.3
|
|
|
$
|
34.2
|
|
|
(8)%
|
|
$
|
(0.1)
|
|
|
$
|
63.0
|
|
|
$
|
68.2
|
|
|
(8)%
|
|
$
|
(0.4)
|
|
eFinancialCareers
|
|
8.0
|
|
|
9.1
|
|
|
(12)%
|
|
(0.6)
|
|
|
15.9
|
|
|
18.1
|
|
|
(12)%
|
|
(1.4)
|
|
Tech-focused
businesses
|
|
39.3
|
|
|
43.3
|
|
|
(9)%
|
|
(0.7)
|
|
|
78.9
|
|
|
86.3
|
|
|
(9)%
|
|
(1.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health
eCareers
|
|
6.6
|
|
|
7.0
|
|
|
(6)%
|
|
—
|
|
|
13.3
|
|
|
13.9
|
|
|
(4)%
|
|
—
|
|
HCareers
|
|
3.8
|
|
|
4.0
|
|
|
(5)%
|
|
—
|
|
|
7.4
|
|
|
7.8
|
|
|
(5)%
|
|
—
|
|
Rigzone
|
|
1.7
|
|
|
2.4
|
|
|
(29)%
|
|
(0.1)
|
|
|
3.4
|
|
|
5.3
|
|
|
(36)%
|
|
(0.1)
|
|
BioSpace
|
|
1.0
|
|
|
1.0
|
|
|
—%
|
|
—
|
|
|
1.6
|
|
|
2.0
|
|
|
(20)%
|
|
—
|
|
Non-tech
businesses
|
|
13.1
|
|
|
14.4
|
|
|
(9)%
|
|
(0.1)
|
|
|
25.7
|
|
|
29.0
|
|
|
(11)%
|
|
(0.1)
|
|
Slashdot
Media
|
|
—
|
|
|
—
|
|
|
n.m.
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
n.m
|
|
—
|
|
Total
|
|
$
|
52.4
|
|
|
$
|
57.7
|
|
|
(9)%
|
|
$
|
(0.8)
|
|
|
$
|
104.6
|
|
|
$
|
116.0
|
|
|
(10)%
|
|
$
|
(1.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/dhi-group-inc-reports-second-quarter-2017-results-300495068.html
SOURCE DHI Group, Inc.