* Revenues totaled $38.2 million, an increase of $16.5 million, or 76%,
including $10.3 million from the October 2006 eFinancialCareers acquisition
* Net income increased 33% to $4.2 million
* Earnings per diluted share were $0.07
* Cash flow from operations totaled $11.1 million
* Adjusted EBITDA totaled $16.7 million, an increase of 76% (See "Notes
Regarding the Use of Non-GAAP Financial Measures")
NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Dice Holdings, Inc. (NYSE:
DHX), a leading provider of specialized career websites for professional
communities, today reported financial results for the quarter ended
September 30, 2007.
Third Quarter Operating Results
Total revenues for the quarter ended September 30, 2007 increased 76%
to $38.2 million versus $21.7 million in the comparable quarter of 2006.
The increase was primarily driven by revenues from the eFinancialCareers
businesses acquired in October 2006 and by an increase in the number of
recruitment package customers and in the average revenue per recruitment
package customer at Dice.com. Pro forma total revenues for the third
quarter of 2006 would have been $27.7 million, and the year over year
increase would have been 38%, had Dice Holdings owned the eFinancialCareers
businesses during that period.
Operating income for the quarter ended September 30, 2007 increased
$4.0 million to $9.8 million, from $5.8 million for the comparable period
in 2006. The increase in operating income reflects higher revenues and
greater operating leverage at Dice.com and the impact of the results of
eFinancialCareers. Net income for the current quarter was $4.2 million, an
increase of $1.0 million, compared with $3.2 million for the third quarter
of 2006. Earnings from continuing operations per diluted share were $0.07
for the current quarter, compared with $0.06 for the same period last year.
Net cash provided by operating activities for the third quarter ended
September 30, 2007 was $11.1 million, compared with $8.8 million for the
third quarter last year.
Adjusted EBITDA for the third quarter of 2007 was $16.7 million,
compared with $9.5 million for the third quarter of 2006. See "Notes
Regarding the Use of Non-GAAP Financial Measures."
Operating Segments
Dice Holdings, Inc. operates in two distinct business segments: DCS
Online and eFinancialCareers. The other businesses operated by Dice
Holdings, which include the eFinancialCareers operations within the United
States, JobsintheMoney.com, Targeted Job Fairs, and the Company's joint
venture in India, are reported in the Other category.
DCS Online, which accounted for 70% of Dice Holdings' consolidated
revenues in the third quarter of 2007, consists of Dice.com and
ClearanceJobs.com. For the third quarter of 2007, DCS Online revenues were
$26.6 million, a 28% increase over the third quarter of 2006, primarily
driven by an increase in recruitment package customers at Dice.com and an
overall increase in revenue at ClearanceJobs.com. Within the segment,
Dice.com represented a significant majority of total revenues for the
period.
eFinancialCareers, which accounted for 22% of Dice Holdings'
consolidated revenues in the third quarter of 2007, consists of the
eFinancialCareers operations outside the United States. For the third
quarter of 2007, eFinancialCareers' revenues were $8.3 million. Pro forma
revenues for the third quarter of 2006 would have been $4.7 million for
this segment had Dice Holdings owned eFinancialCareers during that period.
Other revenues accounted for the remainder of Dice Holdings'
consolidated revenues in the third quarter of 2007. For the third quarter
of 2007, Other revenues were $3.3 million, compared with $0.9 million for
the comparable period in 2006. Pro forma revenues for the third quarter of
2006 would have been $2.2 million for this segment had Dice Holdings owned
the eFinancialCareers businesses during that period.
Nine-Month Operating Results
Total revenues for the nine months ended September 30, 2007 increased
81% to $103.2 million, compared to $57.0 million in the comparable period
in 2006. The increase was primarily driven by an increase in the number of
recruitment package customers and in the average revenue per recruitment
package customer at Dice.com, as well as revenues from the addition of the
eFinancialCareers businesses. Pro forma total revenues for the nine months
ended September 30, 2006 would have been $72.9 million had Dice Holdings
owned the eFinancialCareers businesses during that period.
By segment, DCS Online revenues increased 37% to $75.1 million for the
nine month period ended September 30, 2007, while eFinancialCareers
contributed revenues of $20.0 million. Other revenues for the nine months
ended September 30, 2007 increased to $8.1 million from $2.2 million in the
comparable period of 2006. Pro forma revenues for the nine months ended
September 30, 2006 would have been $12.0 million for the eFinancialCareers
segment and $6.2 million for the Other segment had Dice Holdings owned the
eFinancialCareers businesses during that period.
Operating income for the nine months ended September 30, 2007 increased
$9.7 million to $21.5 million from $11.8 million for the comparable period
in the prior year. Net income for the first nine months of 2007 was $13.7
million, compared with $5.4 million for the year ago period.
For the nine month period ended September 30, 2007, net cash provided
by operating activities was $38.6 million, compared with $29.0 million for
the same period last year.
Adjusted EBITDA for the nine months ended September 30, 2007 was $42.8
million, compared with $24.4 million for the same period in 2006. See
"Notes Regarding the Use of Non-GAAP Financial Measures."
Balance Sheet
Deferred revenue at September 30, 2007 was $44.0 million, representing
a 57% increase from the balance of $27.6 million at September 30, 2006. The
increase was primarily attributable to having a greater number of
recruitment package customers and a higher percentage of those customers
under annual agreements than at September 30, 2006, and to the addition of
the eFinancialCareers businesses. This also represented a 28% increase from
the $34.5 million balance at December 31, 2006.
Net debt, defined as total debt less cash and cash equivalents and
marketable securities, was $81.2 million at September 30, 2007 (consisting
of total debt of $124.7 million minus cash and cash equivalents and
marketable securities of $43.5 million), compared to a net debt balance of
$171.4 million at June 30, 2007 (consisting of total debt of $180.0 million
minus cash and cash equivalents and marketable securities of $8.6 million).
The Company raised $81.0 million (before expenses) of proceeds from the
initial public offering on July 23, 2007.
Management Comments
Scot Melland, Chairman, President and Chief Executive Officer, stated
"We were pleased with third quarter results, which were characterized by
strong organic growth in a more challenging market environment. Once again,
Dice.com was the primary contributor, although eFinancialCareers continued
to exhibit strong growth and profitability, particularly in the European
marketplace." Melland continued, "As our recent growth rates suggest, our
focus serving professional communities is providing value and efficiency to
employers and recruiters, as well as job seekers. We are confident that our
model will continue to drive value over the long run."
Mike Durney, Senior Vice President, Finance and Chief Financial
Officer, added "We achieved excellent operating results in each of our
segments in the third quarter. Dice.com continued to add recruitment
package customers while also generating higher average revenue per
customer. At eFinancialCareers we continued our strong year over year
performance both in our core European markets, and in the U.S. and Asia.
Overall, operating margins for the period reached 43% at the Adjusted
EBITDA level, and we generated $11.1 million in cash from operations. The
indicators of profitability continue to highlight our ability to generate
significant free cash flow above and beyond the investments we make to
drive growth over the long term."
Business Outlook
As of October 31, 2007, the Company anticipates the following financial
performance for the remainder of 2007:
Quarter
Ended
December
31, 2007
Total Revenue $39 -$40mm
Estimated Contribution % By Segment
DCS Online 68 %
eFinancialCareers 25 %
Other 7 %
% of Revenue:
Sales & Marketing expense 37 - 39%
Net Income Margin 11 - 12%
Adjusted EBITDA Margin 42 - 43%
Other Items:
Non-cash stock based compensation expense $1.1 - 1.2 mm
Depreciation and Amortization $5.4 - 5.5 mm
Interest rate on indebtedness 8.6 %
Effective income tax rate 40 %
Share count 62 mm
Option count 8.2 mm
Conference Call Information
The Company will host a conference call to discuss third quarter 2007
financial results today at 8:30 AM Eastern Time. Hosting the call will be
Scot W. Melland, Chairman, President and Chief Executive Officer, and
Michael P. Durney, Senior Vice President, Finance and Chief Financial
Officer.
The conference call can be accessed live over the phone by dialing 866-
770-7129 or for international callers by dialing 617-213-8067; the
participant passcode is 94327031. A replay will be available two hours
after the call and can be accessed by dialing 888-286-8010 or 617-801-6888
for international callers; the replay passcode is 37653331. The replay will
be available until November 7, 2007. The call will also be webcast live
from the Company's website at http://www.diceholdingsinc.com under the investor
relations section (http://www.investor.diceholdingsinc.com).
About Dice Holdings, Inc.
Dice Holdings, Inc. is a leading provider of specialized career
websites for professional communities, including technology and
engineering, capital markets and financial services, accounting and
finance, and security clearance. Our mission is to help our customers
source and hire the most qualified professionals in select and highly
skilled occupations, and to help those professionals find the best job
opportunities in their respective fields and further their careers. For
more than 16 years, we have built our company by providing our customers
with quick and easy access to high-quality, unique professional communities
and offering those communities access to highly relevant career
opportunities and information. Today, we serve multiple markets in North
America, Europe, the Middle East, Asia and Australia.
Notes Regarding the Use of Non-GAAP Financial Measures
Dice Holdings, Inc. (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 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 share
based compensation expense and add back of deferred revenue written off
("Adjusted EBITDA"), free cash flow and net debt, provides useful
information to management and investors regarding certain financial and
business trends relating to its financial condition and results of
operations. In addition, the Company's management uses these measures for
reviewing the financial results of the Company and for budgeting and
planning purposes.
Adjusted EBITDA
Adjusted EBITDA is a 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 Amended and Restated Credit Facility, represents net income (loss)
before interest expense, interest income, income tax expense, depreciation
and amortization, non-cash stock compensation expense, extraordinary or
non-recurring non-cash charges or expenses, and to add back the deferred
revenues written off in connection with the Dice Inc. acquisition and the
eFinancialCareers acquisition purchase accounting adjustments.
We consider Adjusted EBITDA, as defined above, to be an important
indicator to investors because it provides information related to our
ability to provide cash flows to meet future debt service, capital
expenditures and working capital requirements and to fund future growth as
well as to monitor compliance with financial covenants. 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 present this discussion of Adjusted EBITDA because covenants in our
Amended and Restated Credit Facility contain ratios based on this measure.
Our Amended and Restated Credit Facility 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 Amended and Restated Credit
Facility that are based on Adjusted EBITDA may be violated and could cause,
among other things, an inability to incur further indebtedness and in
certain circumstances a default or mandatory prepayment under our Amended
and Restated Credit Facility.
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 or as an alternative to cash flow from operating activities as a
measure of our profitability or liquidity.
Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA is defined as Adjusted EBITDA (as defined
above) with an addition for the Adjusted EBITDA of eFinancialCareers, as
though we owned the business for all periods presented. We believe Pro
Forma Adjusted EBITDA is an important non-GAAP measure as it provides a
basis for comparing the current period performance against prior periods.
Free Cash Flow
We define free cash flow as net cash provided by operating activities
from continuing operations 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 excludes cash used for capital
expenditures during the period.
Net Debt
Net Debt is defined as total debt less cash and cash equivalents and
marketable securities. We consider net debt to be an important measure of
liquidity and an 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 contains 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
concerning our possible or assumed future results of operations, including
descriptions of our business strategy. These statements often include words
such as "may," "will," "should," "believe," "expect," "anticipate,"
"intend," "plan," "estimate" or similar expressions. These statements are
based on assumptions that we have made in light of our experience in the
industry as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we believe are
appropriate under the circumstances. Although we believe that these
forward-looking statements are based on reasonable assumptions, you should
be aware that many factors could affect our actual financial results or
results of operations and could cause actual results to differ materially
from those in the forward-looking statements. These factors include, but
are not limited to, competition from existing and future competitors,
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, and the failure to attract qualified professionals or grow the
number of qualified professionals who use our websites. These factors and
others are discussed in more detail in the Company's filings with the
Securities and Exchange Commission, including our Registration Statement on
Form S-1, as amended, under the headings "Risk Factors," "Forward-Looking
Statements" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our quarterly report on Form 10-Q,
all of which are available on the Investor Relations page of our website at
http://www.diceholdingsinc.com.
You should keep in mind that any forward-looking statement made by us
herein, or elsewhere, speaks only as of the date on which we make it. New
risks and uncertainties come up from time to time, and it is impossible for
us 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 federal securities laws.
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share amounts)
For the three months For the nine months
ended September 30, ended September 30,
2007 2006 2007 2006
Revenues $38,208 $21,668 $103,248 $56,984
Operating expenses:
Cost of revenues 2,503 1,162 6,418 3,321
Product development 1,179 511 3,140 1,536
Sales and marketing 13,823 8,510 41,469 23,768
General and administrative 5,352 2,399 13,848 6,712
Depreciation 853 454 2,227 1,174
Amortization of
intangible assets 4,661 2,825 14,663 8,677
Total operating expenses 28,371 15,861 81,765 45,188
Operating income 9,837 5,807 21,483 11,796
Interest expense (3,387) (751) (10,027) (3,013)
Interest income 372 25 530 81
Income from continuing operations
before income taxes and minority
interest 6,822 5,081 11,986 8,864
Income tax expense 2,625 1,975 3,064 3,452
Minority interest in net
loss of subsidiary - 68 121 198
Income from continuing
operations 4,197 3,174 9,043 5,610
Discontinued operations:
Income (loss) from
discontinued operations - (34) (243) (312)
Income tax expense (benefit)
from discontinued operations - (12) (4,887) (117)
Income (loss) from discontinued
operations, net of tax - (22) 4,644 (195)
Net income 4,197 3,152 13,687 5,415
Convertible preferred
stock dividends - - (107,718) -
Income (loss) attributable
to common stockholders $4,197 $3,152 $(94,031) $5,415
Basic earnings (loss) per share:
From continuing operations $0.07 $0.06 $(5.85) $0.11
From discontinued operations - - 0.28 -
$0.07 $0.06 $(5.57) $0.11
Diluted earnings (loss) per share:
From continuing operations $0.07 $0.06 $(5.85) $0.11
From discontinued operations - - 0.28 -
$0.07 $0.06 $(5.57) $0.11
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2007 2006 2007 2006
Cash flows provided by
operating activities:
Net income $4,197 $3,152 $13,687 $5,415
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 853 454 2,227 1,174
Amortization 4,661 2,825 14,663 8,677
Deferred income taxes 1,721 1,675 (1,496) 2,786
Amortization of deferred
financing costs 202 78 538 236
Share based compensation 1,138 245 2,920 724
Changes in operating assets and
liabilities:
Accounts receivable (2,727) (1,321) (1,436) (1,391)
Prepaid expenses and other
assets 165 (185) (1,232) 37
Accounts payable and accrued
expenses 1,566 48 (326) 1,000
Deferred revenue (59) 1,623 9,276 10,576
Other, net (623) 173 (199) (282)
Net cash provided by operating
activities 11,094 8,767 38,622 28,952
Cash flows used for investing
activities:
Purchases of fixed assets (974) (583) (2,524) (2,081)
Purchases of marketable
securities - - (200) (100)
Maturities and sales of
marketable securities 200 - 400 197
Amounts paid under Targeted
Job Fairs acquisition agreement - - - (965)
Other, net - - (32) -
Net cash used for investing
activities (774) (583) (2,356) (2,949)
Cash flows provided by (used
for) financing activities:
Proceeds from long-term debt - - 113,000 -
Payments on long-term debt (55,300) (9,000) (77,300) (27,000)
Dividends paid on convertible
preferred stock - - (107,718) -
Dividends paid on common stock - - (180) -
Payments to holders of vested
stock options in lieu
of dividends - - (4,602) -
Financing costs paid (7) - (2,246) -
Proceeds from initial public
offering 81,003 - 81,003 -
Payment of costs related to
initial public offering (981) - (1,437) -
Proceeds from stock option
exercises 89 - 89 -
Other - - (175) -
Net cash provided by financing
activities 24,804 (9,000) 434 (27,000)
Net cash provided by (used for)
operating activities of
discontinued operations (102) 12 88 662
Net cash used in investing
activities of discontinued
operations - (4) (6) (86)
Net cash provided by
discontinued operations (102) 8 82 576
Effect of exchange rate
changes 29 - 154 -
Net change in cash and cash
equivalents for the period 35,051 (808) 36,936 (421)
Cash and cash equivalents,
beginning of period 7,680 3,750 5,795 3,363
Cash and cash equivalents, end
of period $42,731 $2,942 $42,731 $2,942
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
September 30, December 31,
ASSETS 2007 2006
Current assets
Cash and cash equivalents $42,731 $5,795
Marketable securities 750 944
Accounts receivable, net of
allowance for doubtful
accounts of $1,016 and $795 16,959 15,014
Deferred income taxes - current 12,143 14,000
Prepaid and other current assets 2,556 1,289
Current assets of discontinued
operations - 809
Total current assets 75,139 37,851
Fixed assets, net 5,842 5,356
Acquired intangible assets, net 86,240 100,186
Goodwill 162,448 156,440
Deferred financing costs, net of
accumulated amortization of
$994 and $457 3,867 1,972
Other assets 473 251
Non-current assets of
discontinued operations - 271
Total assets $334,009 $302,327
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
expenses $13,901 $12,113
Deferred revenue 43,997 34,520
Current portion of long-term debt 750 -
Other current liabilities 168 492
Current liabilities of
discontinued operations - 990
Total current liabilities 58,816 48,115
Long-term debt 123,950 89,000
Deferred income taxes - non-current 25,361 29,582
Other long-term liabilities 6,841 1,295
Total liabilities 214,968 167,992
Total stockholders' equity 119,041 134,335
Total liabilities and
stockholders' equity $334,009 $302,327
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. The supplemental schedules provided include:
Historical Quarterly Statement of Operations and Adjusted EBITDA
Reconciliation
A quarterly statement of operations reflecting the results of each
quarterly period for calendar year 2006 and the first three quarters of
calendar year 2007 is provided. This information provides the reader with
the information necessary to analyze Dice Holdings, Inc. over the recent
past.
Historical Quarterly Statement of Cash Flows and Free Cash Flow
Reconciliation
A quarterly statement of cash flows reflecting the results of each
quarterly period for calendar year 2006 and the first three quarters of
calendar year 2007 is provided. This information provides the reader with
the information necessary to analyze Dice Holdings, Inc. over the recent
past.
Quarterly Supplemental Data and Certain Non-GAAP Reconciliations
On this schedule, the Company provides certain non-GAAP information of
each quarterly period for calendar year 2006 and the first three quarters
of calendar year 2007 that we believe is useful to understanding the
business operations of the Company. A discussion of the significant
sections is below:
Adjusted Pro Forma Revenues By Segment
Adjusted pro forma revenues by segment reflects historical revenues
adjusted for the addition of deferred revenue that was previously written
off as part of purchase accounting adjustments related to the Dice Inc. and
eFinancialCareers acquisitions. In addition, the Company has made an
addition for revenues of eFinancialCareers, as though we owned the business
for all periods presented, in order to provide a comparable revenue basis.
Add back of Deferred Revenue Written off in Acquisitions
Deferred revenue is a key metric of the Company's business as it
indicates a level of sales already made that will be recognized as revenue
in the future. Dice Inc. had recorded deferred revenue of $16.1 million on
its consolidated balance sheet, as of August 31, 2005, prior to purchase
accounting adjustments related to its acquisition by Dice Holdings, Inc. As
required by GAAP, in determining the fair value of the liabilities assumed
under purchase accounting, the acquired deferred revenue is to be recorded
at fair value to the extent it represents an assumed legal obligation. The
Company estimated its obligation related to deferred revenue as a result of
the Dice Inc. acquisition using the cost build-up approach, which
determines fair value by estimating the costs related to fulfilling the
obligation plus a normal profit margin. The estimated costs to fulfill the
Company's deferred revenue obligation in connection with the Dice Inc.
acquisition were based on the Company's expected future costs to fulfill
its obligation to its customers. As a result, the Company recorded an
adjustment to reduce the carrying value of deferred revenue by $6.0
million, to $10.1 million.
Similarly, the Company recorded deferred revenue for eFinancialGroup at
the date of the acquisition of $3.6 million, prior to purchase accounting
adjustments. The Company estimated its obligation related to deferred
revenue based on future costs to fulfill its obligation to its customers.
As a result, an adjustment was recorded to reduce the carrying value of
deferred revenue for eFinancialGroup by $2.4 million, to $1.2 million.
Pro Forma Sales and Marketing Expense
Pro forma sales and marketing expense reflects historical sales and
marketing expense adjusted for the addition of sales and marketing expenses
for eFinancialCareers, as though we owned the business for all periods
presented, in order to provide expense analysis comparable to our business
operations today.
DICE HOLDINGS, INC.
HISTORICAL QUARTERLY STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006
Revenues $16,077 $19,239 $21,668 $26,674 $83,658
Operating expenses:
Cost of revenues 1,110 1,049 1,162 1,503 4,824
Product development 434 591 511 822 2,358
Sales and marketing 7,128 8,130 8,510 10,720 34,488
General and administrative 2,058 2,255 2,399 3,755 10,467
Depreciation 335 385 454 656 1,830
Amortization of intangible
assets 3,026 2,826 2,825 4,415 13,092
Total operating
expenses 14,091 15,236 15,861 21,871 67,059
Operating income 1,986 4,003 5,807 4,803 16,599
Interest expense (1,331) (931) (751) (1,775) (4,788)
Interest income 27 29 25 153 234
Income from continuing
operations before income
taxes and minority interest 682 3,101 5,081 3,181 12,045
Income tax expense (benefit) 262 1,215 1,975 1,190 4,642
Minority interest in net loss
of subsidiary 53 77 68 98 296
Income from continuing
operations 473 1,963 3,174 2,089 7,699
Discontinued operations:
Income (loss) from
discontinued operations (232) (46) (34) (1,150) (1,462)
Income tax expense
(benefit) from
discontinued operations (88) (17) (12) (424) (541)
Income (loss) from
discontinued operations, net
of tax (144) (29) (22) (726) (921)
Net income $329 $1,934 $3,152 $1,363 $6,778
Quarters Year to Date
Q1 2007 Q2 2007 Q3 2007 9M 2006 9M 2007
Revenues $30,540 $34,500 $38,208 $56,984 $103,248
Operating expenses:
Cost of revenues 1,897 2,018 2,503 3,321 6,418
Product development 980 981 1,179 1,536 3,140
Sales and marketing 13,601 14,045 13,823 23,768 41,469
General and
administrative 4,024 4,472 5,352 6,712 13,848
Depreciation 651 723 853 1,174 2,227
Amortization of
intangible assets 5,228 4,774 4,661 8,677 14,663
Total operating
expenses 26,381 27,013 28,371 45,188 81,765
Operating income 4,159 7,487 9,837 11,796 21,483
Interest expense (2,347) (4,293) (3,387) (3,013) (10,027)
Interest income 77 81 372 81 530
Income from continuing
operations before income
taxes and minority interest 1,889 3,275 6,822 8,864 11,986
Income tax expense (benefit (1,070) 1,509 2,625 3,452 3,064
Minority interest in net
loss of subsidiary - 121 - 198 121
Income from continuing
operations 2,959 1,887 4,197 5,610 9,043
Discontinued operations:
Income (loss) from
discontinued operations (537) 294 - (312) (243)
Income tax expense
(benefit) from
discontinued operations (5,455) 568 - (117) (4,887)
Income (loss) from
discontinued operations,
net of tax 4,918 (274) - (195) 4,644
Net income $7,877 $1,613 $4,197 $5,415 $13,687
DICE HOLDINGS, INC.
HISTORICAL QUARTERLY ADJUSTED EBITDA RECONCILIATIONS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006
Reconciliation of Net Income
to Adjusted EBITDA:
Net income $329 $1,934 $3,152 $1,363 $6,778
Discontinued operations 144 29 22 726 921
Minority interest in net
loss of subsidiary (53) (77) (68) (98) (296)
Interest income (27) (29) (25) (153) (234)
Interest expense 1,331 931 751 1,775 4,788
Income tax expense
(benefit) 262 1,215 1,975 1,190 4,642
Depreciation 335 385 454 656 1,830
Amortization of intangible
assets 3,026 2,826 2,825 4,415 13,092
Non-cash stock compensation
expense 237 242 245 743 1,467
Deferred revenue adjustment 1,202 650 189 926 2,967
Adjusted EBITDA $6,786 $8,106 $9,520 $11,543 $35,955
Reconciliation of Operating
Cash Flows to Adjusted EBITDA:
Net cash provided by operating
activities $9,571 $10,614 $8,767 $10,232 $39,184
Interest expense 1,331 931 751 1,775 4,788
Interest income (27) (29) (25) (153) (234)
Income tax expense
(benefit) 262 1,215 1,975 1,190 4,642
Deferred income taxes (74) (1,037) (1,675) (341) (3,127)
Change in accounts
receivable 51 19 1,321 3,357 4,748
Change in deferred revenue (6,665) (2,288) (1,623) (5,693) (16,269)
Changes in working capital 1,122 (1,841) (36) (262) (1,017)
Adjustments for
discontinued operations 13 (128) (124) 512 273
Deferred revenue adjustment 1,202 650 189 926 2,967
Adjusted EBITDA $6,786 $8,106 $9,520 $11,543 $35,955
Quarters Year to Date
Q1 2007 Q2 2007 Q3 2007 9M 2006 9M 2007
Reconciliation of Net Income
to Adjusted EBITDA:
Net income $7,877 $1,613 $4,197 $5,415 $13,687
Discontinued operations (4,918) 274 - 195 (4,644)
Minority interest in
net loss of subsidiary - (121) - (198) (121)
Interest income (77) (81) (372) (81) (530)
Interest expense 2,347 4,293 3,387 3,013 10,027
Income tax expense
(benefit) (1,070) 1,509 2,625 3,452 3,064
Depreciation 651 723 853 1,174 2,227
Amortization of
intangible assets 5,228 4,774 4,661 8,677 14,663
Non-cash stock
compensation expense 574 1,208 1,138 724 2,920
Deferred revenue
adjustment 758 518 248 2,041 1,524
Adjusted EBITDA $11,370 $14,710 $16,737 $24,412 $42,817
Reconciliation of Operating
Cash Flows to Adjusted EBITDA:
Net cash provided by
operating activities $14,594 $12,934 $11,094 $28,952 $38,622
Interest expense 2,347 4,293 3,387 3,013 10,027
Interest income (77) (81) (372) (81) (530)
Income tax expense
(benefit) (1,070) 1,509 2,625 3,452 3,064
Deferred income taxes 7,386 (4,169) (1,721) (2,786) 1,496
Change in accounts
receivable (1,062) (229) 2,727 1,391 1,436
Change in deferred
revenue (7,752) (1,583) 59 (10,576) (9,276)
Changes in working
capital 1,315 1,550 (1,108) (755) 1,757
Adjustments for
discontinued
operations (5,069) (32) (202) (239) (5,303)
Deferred revenue
adjustment 758 518 248 2,041 1,524
Adjusted EBITDA $11,370 $14,710 $16,737 $24,412 $42,817
DICE HOLDINGS, INC.
QUARTERLY STATEMENTS OF CASH FLOWS AND FREE CASH FLOWS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006
Cash flows provided by
operating activities:
Net income $329 $1,934 $3,152 $1,363 $6,778
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 335 385 454 656 1,830
Amortization 3,026 2,826 2,825 4,415 13,092
Deferred income taxes 74 1,037 1,675 341 3,127
Amortization of deferred
financing costs 78 80 78 116 352
Share based compensation 237 242 245 743 1,467
Changes in operating assets
and liabilities: -
Accounts receivable (51) (19) (1,321) (3,357) (4,748)
Prepaid expenses and other
assets (93) 315 (185) (257) (220)
Accounts payable and
accrued expenses (877) 1,829 48 (483) 517
Deferred revenue 6,665 2,288 1,623 5,693 16,269
Other, net (152) (303) 173 1,002 720
Net cash provided by
operating activities 9,571 10,614 8,767 10,232 39,184
Cash flows used for investing
activities:
Purchases of fixed assets (793) (705) (583) (613) (2,694)
Purchases of marketable
securities (100) - - (100) (200)
Maturities and sales of
marketable securities 99 98 - 399 596
Acquisition of eFinancial
Group Limited - - - (104,738) (104,738)
Proceeds from the sale of
eFinancialNews Limited - - - 41,560 41,560
Amounts paid under Targeted
Job Fairs acquisition
agreement (133) (832) - - (965)
Other, net - - - - -
Net cash used for investing
activities (927) (1,439) (583) (63,492) (66,441)
Cash flows provided by (used
for) financing activities:
Proceeds from long-term
debt - - - 77,000 77,000
Payments on long-term debt (9,000) (9,000) (9,000) (10,000) (37,000)
Dividends paid on
convertible preferred
stock - - - (11,180) (11,180)
Dividends paid on common
stock - - - - -
Payments to holders of
vested stock options in
lieu of dividends - - - - -
Financing costs paid - - - (856) (856)
Proceeds from initial
public offering - - - - -
Payment of costs related to
initial public offering - - - - -
Proceeds from stock option
exercises - - - - -
Other - - - - -
Net cash provided by (used
for) financing activities (9,000) (9,000) (9,000) 54,964 27,964
Net cash provided by (used
for) operating activities of
discontinued operations 173 477 12 1,127 1,789
Net cash used in investing
activities of discontinued
operations (6) (76) (4) (69) (155)
Net cash provided by (used
for) discontinued operations 167 401 8 1,058 1,634
Effect of exchange rate changes - - - 91 91
Net change in cash and cash
equivalents for the period (189) 576 (808) 2,853 2,432
Cash and cash equivalents,
beginning of period 3,363 3,174 3,750 2,942 3,363
Cash and cash equivalents,
end of period $3,174 $3,750 $2,942 $5,795 $5,795
Free cash flow:
Net cash provided by
operating activities $9,571 $10,614 $8,767 $10,232 $39,184
Less: Capital expenditures (793) (705) (583) (613) (2,694)
Free cash flow $8,778 $9,909 $8,184 $9,619 $36,490
Quarters Year to Date
Q1 2007 Q2 2007 Q3 2007 9M 2006 9M 2007
Cash flows provided by
operating activities:
Net income $7,877 $1,613 $4,197 $5,415 $13,687
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 651 723 853 1,174 2,227
Amortization 5,228 4,774 4,661 8,677 14,663
Deferred income taxes (7,386) 4,169 1,721 2,786 (1,496)
Amortization of
deferred financing costs 151 185 202 236 538
Share based compensation 574 1,208 1,138 724 2,920
Changes in operating
assets and liabilities: -
Accounts receivable 1,062 229 (2,727) (1,391) (1,436)
Prepaid expenses and
other assets (724) (673) 165 37 (1,232)
Accounts payable and
accrued expenses (1,732) (160) 1,566 1,000 (326)
Deferred revenue 7,752 1,583 (59) 10,576 9,276
Other, net 1,141 (717) (623) (282) (199)
Net cash provided by
operating activities 14,594 12,934 11,094 28,952 38,622
Cash flows used for
investing activities:
Purchases of fixed assets (631) (919) (974) (2,081) (2,524)
Purchases of marketable
securities - (200) - (100) (200)
Maturities and sales of
marketable securities - 200 200 197 400
Acquisition of eFinancial
Group Limited - - - - -
Proceeds from the sale
of eFinancialNews Limited - - - - -
Amounts paid under
Targeted Job Fairs
acquisition agreement - - - (965) -
Other, net (15) (17) - - (32)
Net cash used for
investing activities (646) (936) (774) (2,949) (2,356)
Cash flows provided by
(used for) financing
activities:
Proceeds from long-term
debt 113,000 - - - 113,000
Payments on long-term
debt (11,000) (11,000) (55,300) (27,000) (77,300)
Dividends paid on
convertible preferred
stock (107,718) - - - (107,718)
Dividends paid on
common stock (180) - - - (180)
Payments to holders of
vested stock options
in lieu of dividends (4,602) - - - (4,602)
Financing costs paid (2,239) - (7) - (2,246)
Proceeds from initial
public offering - - 81,003 - 81,003
Payment of costs
related to initial
public offering - (456) (981) - (1,437)
Proceeds from stock
option exercises - - 89 - 89
Other - (175) - - (175)
Net cash provided by
(used for) financing
activities (12,739) (11,631) 24,804 (27,000) 434
Net cash provided by
(used for) operating
activities of discontinued
operations 352 (162) (102) 662 88
Net cash used in investing
activities of discontinued
operations (6) - - (86) (6)
Net cash provided by
(used for) discontinued
operations 346 (162) (102) 576 82
Effect of exchange rate
changes 20 105 29 - 154
Net change in cash and
cash equivalents for the
period 1,575 310 35,051 (421) 36,936
Cash and cash equivalents,
beginning of period 5,795 7,370 7,680 3,363 5,795
Cash and cash equivalents,
end of period $7,370 $7,680 $42,731 $2,942 $42,731
Free cash flow:
Net cash provided by
operating activities $14,594 $12,934 $11,094 $28,952 $38,622
Less: Capital
expenditures (631) (919) (974) (2,081) (2,524)
Free cash flow $13,963 $12,015 $10,120 $26,871 $36,098
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA
(Unaudited)
(dollars in thousands except per customer data)
Quarters Full Year
Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006
Reconciliation of GAAP
Reported Revenue by Segment
to Adjusted Pro Forma
Revenue by Segment
DCS Online:
Reported Actual $15,441 $18,513 $20,818 $22,513 $77,285
Deferred Revenue
Adjustment (1) 1,202 650 189 8 2,049
Dice Online 16,643 19,163 21,007 22,521 79,334
eFinancialCareers:
Reported Actual - - - 2,924 2,924
eFinancialCareers Pro
Forma Adjustment 3,307 4,008 4,687 1,583 13,585
Deferred Revenue
Adjustment (1) - - - 412 412
eFinancialCareers 3,307 4,008 4,687 4,919 16,921
Other:
Reported Actual 636 726 850 1,237 3,449
eFinancialCareers Pro
Forma Adjustment 1,234 1,358 1,347 492 4,431
Deferred Revenue
Adjustment (1) - - - 506 506
Other 1,870 2,084 2,197 2,235 8,386
Consolidated:
Reported Actual $16,077 $19,239 $21,668 $26,674 $83,658
eFinancialCareers Pro
Forma Adjustment 4,541 5,366 6,034 2,075 18,016
Total Pro Forma Revenue 20,618 24,605 27,702 28,749 101,674
Deferred Revenue
Adjustment (1) 1,202 650 189 926 2,967
Total Pro Forma Adjusted
Revenue $21,820 $25,255 $27,891 $29,675 $104,641
Percentage of Pro Forma
Adjusted Revenue by Segment
DCS Online 76.3% 75.9% 75.3% 75.9% 75.8%
eFinancialCareers 15.2% 15.9% 16.8% 16.6% 16.2%
Other 8.5% 8.2% 7.9% 7.5% 8.0%
100.0% 100.0% 100.0% 100.0% 100.0%
Quarters Year to Date
Q1 2007 Q2 2007 Q3 2007 9M 2006 9M 2007
Reconciliation of GAAP
Reported Revenue by Segment
to Adjusted Pro Forma
Revenue by Segment
DCS Online:
Reported Actual $23,351 $25,233 $26,557 $54,772 $75,141
Deferred Revenue
Adjustment (1) - - - 2,041 -
Dice Online 23,351 25,233 26,557 56,813 75,141
eFinancialCareers:
Reported Actual 5,145 6,497 8,349 - 19,991
eFinancialCareers Pro
Forma Adjustment - - - 12,002 -
Deferred Revenue
Adjustment (1) 379 301 147 - 827
eFinancialCareers 5,524 6,798 8,496 12,002 20,818
Other:
Reported Actual 2,044 2,770 3,302 2,212 8,116
eFinancialCareers Pro
Forma Adjustment - - - 3,939 -
Deferred Revenue
Adjustment (1) 379 217 101 - 697
Other 2,423 2,987 3,403 6,151 8,813
Consolidated:
Reported Actual $30,540 $34,500 $38,208 $56,984 $103,248
eFinancialCareers Pro
Forma Adjustment - - - 15,941 -
Total Pro Forma Revenue 30,540 34,500 38,208 72,925 103,248
Deferred Revenue
Adjustment (1) 758 518 248 2,041 1,524
Total Pro Forma Adjusted
Revenue $31,298 $35,018 $38,456 $74,966 $104,772
Percentage of Pro Forma
Adjusted Revenue by Segment
DCS Online 74.6% 72.1% 69.1% 75.8% 71.7%
eFinancialCareers 17.6% 19.4% 22.1% 16.0% 19.9%
Other 7.8% 8.5% 8.8% 8.2% 8.4%
100.0% 100.0% 100.0% 100.0% 100.0%
Segment Definitions:
DCS Online: Dice.com and ClearanceJobs.com
eFinancialCareers: eFinancialCareers worldwide, excluding the US
Other: Targeted Job Fairs, eFinancialCareers (US), JobsintheMoney.com,
Dice India
(1) Deferred revenue adjustments are related to deferred revenue written
off in application of purchase accounting. See discussion at
"Supplemental Information and Non-GAAP Reconciliations".
(2) Reflects simple average of three months in each quarterly period.
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA (continued)
(Unaudited)
(dollars in thousands except per customer data)
Quarters Full Year
Q1 2006 Q2 2006 Q3 2006 Q4 2006 2006
Sales and Marketing Expense
Reported Actual $7,128 $8,130 $8,510 $10,720 $34,488
eFinancialCareers Pro Forma
Adjustment 1,933 2,352 2,885 949 8,119
Total Pro Forma Sales and
Marketing Expense $9,061 $10,482 $11,395 $11,669 $42,607
Actual Sales and Marketing
Expense as a Percentage of
Actual Revenue 44.3% 42.3% 39.3% 40.2% 41.2%
Pro Forma Sales and Marketing
Expense as a Percentage
of Pro Forma Adjusted Revenue 41.5% 41.5% 40.9% 39.3% 40.7%
Reconciliation of Adjusted
EBITDA to Pro Forma
Adjusted EBITDA
Adjusted EBITDA $6,786 $8,106 $9,520 $11,543 $35,955
eFinancialCareers Pro Forma
Adjustment 844 401 584 (1,210) 619
Pro Forma Adjusted EBITDA $7,630 $8,507 $10,104 $10,333 $36,574
Pro Forma Adjusted EBITDA
Margin 35.0% 33.7% 36.2% 34.8% 35.0%
Dice.com Recruitment Package
Customers (end of period) 6,800 7,300 7,600 7,600 n.a.
Dice.com Average Monthly
Revenue per Recruitment
Package Customer (2) $753 $772 $795 $813 n.a.
Summary of Deferred Revenue
Written Off by Segment by
Period of Impact
DCS Online $1,202 $650 $189 $8 $2,049
eFinancialCareers - - - 412 412
Other - - - 506 506
Total Deferred Revenue Written
Off by Period of Impact $1,202 $650 $189 $926 $2,967
Quarters Year to Date
Q1 2007 Q2 2007 Q3 2007 9M 2006 9M 2007
Sales and Marketing Expense
Reported Actual $13,601 $14,045 $13,823 $23,768 $41,469
eFinancialCareers Pro
Forma Adjustment - - - 7,170 -
Total Pro Forma Sales and
Marketing Expense $13,601 $14,045 $13,823 $30,938 $41,469
Actual Sales and Marketing
Expense as a Percentage
of Actual Revenue 44.5% 40.7% 36.2% 41.7% 40.2%
Pro Forma Sales and Marketing
Expense as a Percentage
of Pro Forma Adjusted Revenue 43.5% 40.1% 35.9% 41.3% 39.6%
Reconciliation of Adjusted
EBITDA to Pro Forma
Adjusted EBITDA
Adjusted EBITDA $11,370 $14,710 $16,737 $24,412 $42,817
eFinancialCareers Pro
Forma Adjustment - - - 1,829 -
Pro Forma Adjusted EBITDA $11,370 $14,710 $16,737 $26,241 $42,817
Pro Forma Adjusted EBITDA
Margin 36.3% 42.0% 43.5% 35.0% 40.9%
Dice.com Recruitment Package
Customers (end of period) 8,500 8,800 9,000 n.a. n.a.
Dice.com Average Monthly
Revenue per Recruitment
Package Customer (2) $826 $830 $839 n.a. n.a.
Summary of Deferred Revenue
Written Off by Segment
by Period of Impact
DCS Online $ - $ - $ - $2,041 $ -
eFinancialCareers 379 301 147 - 827
Other 379 217 101 - 697
Total Deferred Revenue
Written Off by Period
of Impact $758 $518 $248 $2,041 $1,524
Segment Definitions:
DCS Online: Dice.com and ClearanceJobs.com
eFinancialCareers: eFinancialCareers worldwide, excluding the US
Other: Targeted Job Fairs, eFinancialCareers (US), JobsintheMoney.com,
Dice India
(1) Deferred revenue adjustments are related to deferred revenue written
off in application of purchase accounting. See discussion at
"Supplemental Information and Non-GAAP Reconciliations".
(2) Reflects simple average of three months in each quarterly period.
See below for reconciliation of most comparable GAAP measurement to
Adjusted EBITDA:
Guidance - Reconciliation of Net Income to Adjusted EBITDA
Quarter Ended
December 31, 2007
Net income $4.3 - $4.8
Depreciation & amortization 5.4 - 5.5
Non-cash stock compensation 1.1 - 1.2
Interest expense, net 2.7 - 2.8
Income taxes 2.7 - 3.1
Adjusted EBITDA $16.4 - $17.2
Net Income Margin 11-12%
Adjusted EBITDA Margin 42-43%
SOURCE Dice Holdings, Inc.
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Related links:
http://www.diceholdingsinc.com/
CONTACT:
Investor Relations: Don Tomoff or Tom Ryan,
+1-212-448-4181, IR@dice.com; or Media Relations: Rich Layne,
+1-203-682-8224, or Stephanie Sampiere, +1-203-682-8277, all of
ICR Inc.
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