Exhibit 99.1
Dice Holdings, Inc. Reports Third Quarter 2007 Results
• | 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, New York, October 31, 2007—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.”
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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.”
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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 www.diceholdingsinc.com under the investor relations section (www.investor.diceholdingsinc.com).
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Contacts
Investor Relations
Don Tomoff or Tom Ryan, ICR Inc.
212.448.4181 | IR@dice.com
Media Relations
Rich Layne or Stephanie Sampiere, ICR Inc.
203.682.8224 | 203.682.8277
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.
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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.
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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 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.
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DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share amounts)
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
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 | ||||||||
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DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
For the Three Months Ended September 30, | For the Nine Months 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 | ||||||||
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DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
September 30, 2007 | December 31, 2006 | |||||
ASSETS | ||||||
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 | ||
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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
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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.
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DICE HOLDINGS, INC.
HISTORICAL QUARTERLY STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands)
Quarters | Full Year 2006 | Quarters | Year to Date | |||||||||||||||||||||||||||||||||||||
Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | 9M 2006 | 9M 2007 | ||||||||||||||||||||||||||||||||
Revenues | $ | 16,077 | $ | 19,239 | $ | 21,668 | $ | 26,674 | $ | 83,658 | $ | 30,540 | $ | 34,500 | $ | 38,208 | $ | 56,984 | $ | 103,248 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of revenues | 1,110 | 1,049 | 1,162 | 1,503 | 4,824 | 1,897 | 2,018 | 2,503 | 3,321 | 6,418 | ||||||||||||||||||||||||||||||
Product development | 434 | 591 | 511 | 822 | 2,358 | 980 | 981 | 1,179 | 1,536 | 3,140 | ||||||||||||||||||||||||||||||
Sales and marketing | 7,128 | 8,130 | 8,510 | 10,720 | 34,488 | 13,601 | 14,045 | 13,823 | 23,768 | 41,469 | ||||||||||||||||||||||||||||||
General and administrative | 2,058 | 2,255 | 2,399 | 3,755 | 10,467 | 4,024 | 4,472 | 5,352 | 6,712 | 13,848 | ||||||||||||||||||||||||||||||
Depreciation | 335 | 385 | 454 | 656 | 1,830 | 651 | 723 | 853 | 1,174 | 2,227 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 3,026 | 2,826 | 2,825 | 4,415 | 13,092 | 5,228 | 4,774 | 4,661 | 8,677 | 14,663 | ||||||||||||||||||||||||||||||
Total operating expenses | 14,091 | 15,236 | 15,861 | 21,871 | 67,059 | 26,381 | 27,013 | 28,371 | 45,188 | 81,765 | ||||||||||||||||||||||||||||||
Operating income | 1,986 | 4,003 | 5,807 | 4,803 | 16,599 | 4,159 | 7,487 | 9,837 | 11,796 | 21,483 | ||||||||||||||||||||||||||||||
Interest expense | (1,331 | ) | (931 | ) | (751 | ) | (1,775 | ) | (4,788 | ) | (2,347 | ) | (4,293 | ) | (3,387 | ) | (3,013 | ) | (10,027 | ) | ||||||||||||||||||||
Interest income | 27 | 29 | 25 | 153 | 234 | 77 | 81 | 372 | 81 | 530 | ||||||||||||||||||||||||||||||
Income from continuing operations before income taxes and minority interest | 682 | 3,101 | 5,081 | 3,181 | 12,045 | 1,889 | 3,275 | 6,822 | 8,864 | 11,986 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | 262 | 1,215 | 1,975 | 1,190 | 4,642 | (1,070 | ) | 1,509 | 2,625 | 3,452 | 3,064 | |||||||||||||||||||||||||||||
Minority interest in net loss of subsidiary | 53 | 77 | 68 | 98 | 296 | — | 121 | — | 198 | 121 | ||||||||||||||||||||||||||||||
Income from continuing operations | 473 | 1,963 | 3,174 | 2,089 | 7,699 | 2,959 | 1,887 | 4,197 | 5,610 | 9,043 | ||||||||||||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | (232 | ) | (46 | ) | (34 | ) | (1,150 | ) | (1,462 | ) | (537 | ) | 294 | — | (312 | ) | (243 | ) | ||||||||||||||||||||||
Income tax expense (benefit) from discontinued operations | (88 | ) | (17 | ) | (12 | ) | (424 | ) | (541 | ) | (5,455 | ) | 568 | — | (117 | ) | (4,887 | ) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (144 | ) | (29 | ) | (22 | ) | (726 | ) | (921 | ) | 4,918 | (274 | ) | — | (195 | ) | 4,644 | |||||||||||||||||||||||
Net income | $ | 329 | $ | 1,934 | $ | 3,152 | $ | 1,363 | $ | 6,778 | $ | 7,877 | $ | 1,613 | $ | 4,197 | $ | 5,415 | $ | 13,687 | ||||||||||||||||||||
13
DICE HOLDINGS, INC.
HISTORICAL QUARTERLY ADJUSTED EBITDA RECONCILIATIONS
(Unaudited)
(in thousands)
Quarters | Full Year 2006 | Quarters | Year to Date | |||||||||||||||||||||||||||||||||||||
Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | 9M 2006 | 9M 2007 | ||||||||||||||||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 329 | $ | 1,934 | $ | 3,152 | $ | 1,363 | $ | 6,778 | $ | 7,877 | $ | 1,613 | $ | 4,197 | $ | 5,415 | $ | 13,687 | ||||||||||||||||||||
Discontinued operations | 144 | 29 | 22 | 726 | 921 | (4,918 | ) | 274 | — | 195 | (4,644 | ) | ||||||||||||||||||||||||||||
Minority interest in net loss of subsidiary | (53 | ) | (77 | ) | (68 | ) | (98 | ) | (296 | ) | — | (121 | ) | — | (198 | ) | (121 | ) | ||||||||||||||||||||||
Interest income | (27 | ) | (29 | ) | (25 | ) | (153 | ) | (234 | ) | (77 | ) | (81 | ) | (372 | ) | (81 | ) | (530 | ) | ||||||||||||||||||||
Interest expense | 1,331 | 931 | 751 | 1,775 | 4,788 | 2,347 | 4,293 | 3,387 | 3,013 | 10,027 | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | 262 | 1,215 | 1,975 | 1,190 | 4,642 | (1,070 | ) | 1,509 | 2,625 | 3,452 | 3,064 | |||||||||||||||||||||||||||||
Depreciation | 335 | 385 | 454 | 656 | 1,830 | 651 | 723 | 853 | 1,174 | 2,227 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 3,026 | 2,826 | 2,825 | 4,415 | 13,092 | 5,228 | 4,774 | 4,661 | 8,677 | 14,663 | ||||||||||||||||||||||||||||||
Non-cash stock compensation expense | 237 | 242 | 245 | 743 | 1,467 | 574 | 1,208 | 1,138 | 724 | 2,920 | ||||||||||||||||||||||||||||||
Deferred revenue adjustment | 1,202 | 650 | 189 | 926 | 2,967 | 758 | 518 | 248 | 2,041 | 1,524 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 6,786 | $ | 8,106 | $ | 9,520 | $ | 11,543 | $ | 35,955 | $ | 11,370 | $ | 14,710 | $ | 16,737 | $ | 24,412 | $ | 42,817 | ||||||||||||||||||||
Reconciliation of Operating Cash Flows to Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 9,571 | $ | 10,614 | $ | 8,767 | $ | 10,232 | $ | 39,184 | $ | 14,594 | $ | 12,934 | $ | 11,094 | $ | 28,952 | $ | 38,622 | ||||||||||||||||||||
Interest expense | 1,331 | 931 | 751 | 1,775 | 4,788 | 2,347 | 4,293 | 3,387 | 3,013 | 10,027 | ||||||||||||||||||||||||||||||
Interest income | (27 | ) | (29 | ) | (25 | ) | (153 | ) | (234 | ) | (77 | ) | (81 | ) | (372 | ) | (81 | ) | (530 | ) | ||||||||||||||||||||
Income tax expense (benefit) | 262 | 1,215 | 1,975 | 1,190 | 4,642 | (1,070 | ) | 1,509 | 2,625 | 3,452 | 3,064 | |||||||||||||||||||||||||||||
Deferred income taxes | (74 | ) | (1,037 | ) | (1,675 | ) | (341 | ) | (3,127 | ) | 7,386 | (4,169 | ) | (1,721 | ) | (2,786 | ) | 1,496 | ||||||||||||||||||||||
Change in accounts receivable | 51 | 19 | 1,321 | 3,357 | 4,748 | (1,062 | ) | (229 | ) | 2,727 | 1,391 | 1,436 | ||||||||||||||||||||||||||||
Change in deferred revenue | (6,665 | ) | (2,288 | ) | (1,623 | ) | (5,693 | ) | (16,269 | ) | (7,752 | ) | (1,583 | ) | 59 | (10,576 | ) | (9,276 | ) | |||||||||||||||||||||
Changes in working capital | 1,122 | (1,841 | ) | (36 | ) | (262 | ) | (1,017 | ) | 1,315 | 1,550 | (1,108 | ) | (755 | ) | 1,757 | ||||||||||||||||||||||||
Adjustments for discontinued operations | 13 | (128 | ) | (124 | ) | 512 | 273 | (5,069 | ) | (32 | ) | (202 | ) | (239 | ) | (5,303 | ) | |||||||||||||||||||||||
Deferred revenue adjustment | 1,202 | 650 | 189 | 926 | 2,967 | 758 | 518 | 248 | 2,041 | 1,524 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 6,786 | $ | 8,106 | $ | 9,520 | $ | 11,543 | $ | 35,955 | $ | 11,370 | $ | 14,710 | $ | 16,737 | $ | 24,412 | $ | 42,817 | ||||||||||||||||||||
14
DICE HOLDINGS, INC.
QUARTERLY STATEMENTS OF CASH FLOWS AND FREE CASH FLOWS
(Unaudited)
(in thousands)
Quarters | Full Year 2006 | Quarters | Year to Date | |||||||||||||||||||||||||||||||||||||
Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | 9M 2006 | 9M 2007 | ||||||||||||||||||||||||||||||||
Cash flows provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 329 | $ | 1,934 | $ | 3,152 | $ | 1,363 | $ | 6,778 | $ | 7,877 | $ | 1,613 | $ | 4,197 | $ | 5,415 | $ | 13,687 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||
Depreciation | 335 | 385 | 454 | 656 | 1,830 | 651 | 723 | 853 | 1,174 | 2,227 | ||||||||||||||||||||||||||||||
Amortization | 3,026 | 2,826 | 2,825 | 4,415 | 13,092 | 5,228 | 4,774 | 4,661 | 8,677 | 14,663 | ||||||||||||||||||||||||||||||
Deferred income taxes | 74 | 1,037 | 1,675 | 341 | 3,127 | (7,386 | ) | 4,169 | 1,721 | 2,786 | (1,496 | ) | ||||||||||||||||||||||||||||
Amortization of deferred financing costs | 78 | 80 | 78 | 116 | 352 | 151 | 185 | 202 | 236 | 538 | ||||||||||||||||||||||||||||||
Share based compensation | 237 | 242 | 245 | 743 | 1,467 | 574 | 1,208 | 1,138 | 724 | 2,920 | ||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | — | — | ||||||||||||||||||||||||||||||||||||||
Accounts receivable | (51 | ) | (19 | ) | (1,321 | ) | (3,357 | ) | (4,748 | ) | 1,062 | 229 | (2,727 | ) | (1,391 | ) | (1,436 | ) | ||||||||||||||||||||||
Prepaid expenses and other assets | (93 | ) | 315 | (185 | ) | (257 | ) | (220 | ) | (724 | ) | (673 | ) | 165 | 37 | (1,232 | ) | |||||||||||||||||||||||
Accounts payable and accrued expenses | (877 | ) | 1,829 | 48 | (483 | ) | 517 | (1,732 | ) | (160 | ) | 1,566 | 1,000 | (326 | ) | |||||||||||||||||||||||||
Deferred revenue | 6,665 | 2,288 | 1,623 | 5,693 | 16,269 | 7,752 | 1,583 | (59 | ) | 10,576 | 9,276 | |||||||||||||||||||||||||||||
Other, net | (152 | ) | (303 | ) | 173 | 1,002 | 720 | 1,141 | (717 | ) | (623 | ) | (282 | ) | (199 | ) | ||||||||||||||||||||||||
Net cash provided by operating activities | 9,571 | 10,614 | 8,767 | 10,232 | 39,184 | 14,594 | 12,934 | 11,094 | 28,952 | 38,622 | ||||||||||||||||||||||||||||||
Cash flows used for investing activities: | ||||||||||||||||||||||||||||||||||||||||
Purchases of fixed assets | (793 | ) | (705 | ) | (583 | ) | (613 | ) | (2,694 | ) | (631 | ) | (919 | ) | (974 | ) | (2,081 | ) | (2,524 | ) | ||||||||||||||||||||
Purchases of marketable securities | (100 | ) | — | — | (100 | ) | (200 | ) | — | (200 | ) | — | (100 | ) | (200 | ) | ||||||||||||||||||||||||
Maturities and sales of marketable securities | 99 | 98 | — | 399 | 596 | — | 200 | 200 | 197 | 400 | ||||||||||||||||||||||||||||||
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 | ) | — | — | — | (965 | ) | — | ||||||||||||||||||||||||||
Other, net | — | — | — | — | — | (15 | ) | (17 | ) | — | — | (32 | ) | |||||||||||||||||||||||||||
Net cash used for investing activities | (927 | ) | (1,439 | ) | (583 | ) | (63,492 | ) | (66,441 | ) | (646 | ) | (936 | ) | (774 | ) | (2,949 | ) | (2,356 | ) | ||||||||||||||||||||
Cash flows provided by (used for) financing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from long-term debt | — | — | — | 77,000 | 77,000 | 113,000 | — | — | — | 113,000 | ||||||||||||||||||||||||||||||
Payments on long-term debt | (9,000 | ) | (9,000 | ) | (9,000 | ) | (10,000 | ) | (37,000 | ) | (11,000 | ) | (11,000 | ) | (55,300 | ) | (27,000 | ) | (77,300 | ) | ||||||||||||||||||||
Dividends paid on convertible preferred stock | — | — | — | (11,180 | ) | (11,180 | ) | (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 | — | — | — | (856 | ) | (856 | ) | (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 | (9,000 | ) | (9,000 | ) | (9,000 | ) | 54,964 | 27,964 | (12,739 | ) | (11,631 | ) | 24,804 | (27,000 | ) | 434 | ||||||||||||||||||||||||
Net cash provided by (used for) operating activities of discontinued operations | 173 | 477 | 12 | 1,127 | 1,789 | 352 | (162 | ) | (102 | ) | 662 | 88 | ||||||||||||||||||||||||||||
Net cash used in investing activities of discontinued operations | (6 | ) | (76 | ) | (4 | ) | (69 | ) | (155 | ) | (6 | ) | — | — | (86 | ) | (6 | ) | ||||||||||||||||||||||
Net cash provided by (used for) discontinued operations | 167 | 401 | 8 | 1,058 | 1,634 | 346 | (162 | ) | (102 | ) | 576 | 82 | ||||||||||||||||||||||||||||
Effect of exchange rate changes | — | — | — | 91 | 91 | 20 | 105 | 29 | — | 154 | ||||||||||||||||||||||||||||||
Net change in cash and cash equivalents for the period | (189 | ) | 576 | (808 | ) | 2,853 | 2,432 | 1,575 | 310 | 35,051 | (421 | ) | 36,936 | |||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 3,363 | 3,174 | 3,750 | 2,942 | 3,363 | 5,795 | 7,370 | 7,680 | 3,363 | 5,795 | ||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 3,174 | $ | 3,750 | $ | 2,942 | $ | 5,795 | $ | 5,795 | $ | 7,370 | $ | 7,680 | $ | 42,731 | $ | 2,942 | $ | 42,731 | ||||||||||||||||||||
Free cash flow: | ||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 9,571 | $ | 10,614 | $ | 8,767 | $ | 10,232 | $ | 39,184 | $ | 14,594 | $ | 12,934 | $ | 11,094 | $ | 28,952 | $ | 38,622 | ||||||||||||||||||||
Less: Capital expenditures | (793 | ) | (705 | ) | (583 | ) | (613 | ) | (2,694 | ) | (631 | ) | (919 | ) | (974 | ) | (2,081 | ) | (2,524 | ) | ||||||||||||||||||||
Free cash flow | $ | 8,778 | $ | 9,909 | $ | 8,184 | $ | 9,619 | $ | 36,490 | $ | 13,963 | $ | 12,015 | $ | 10,120 | $ | 26,871 | $ | 36,098 | ||||||||||||||||||||
15
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA
(Unaudited)
(dollars in thousands except per customer data)
Quarters | Full Year 2006 | Quarters | Year to Date | |||||||||||||||||||||||||||||||||||||
Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | 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 | $ | 15,441 | $ | 18,513 | $ | 20,818 | $ | 22,513 | $ | 77,285 | $ | 23,351 | $ | 25,233 | $ | 26,557 | $ | 54,772 | $ | 75,141 | ||||||||||||||||||||
Deferred Revenue Adjustment (1) | 1,202 | 650 | 189 | 8 | 2,049 | — | — | — | 2,041 | — | ||||||||||||||||||||||||||||||
Dice Online | 16,643 | 19,163 | 21,007 | 22,521 | 79,334 | 23,351 | 25,233 | 26,557 | 56,813 | 75,141 | ||||||||||||||||||||||||||||||
eFinancialCareers: | ||||||||||||||||||||||||||||||||||||||||
Reported Actual | — | — | — | 2,924 | 2,924 | 5,145 | 6,497 | 8,349 | — | 19,991 | ||||||||||||||||||||||||||||||
eFinancialCareers Pro Forma Adjustment | 3,307 | 4,008 | 4,687 | 1,583 | 13,585 | — | — | — | 12,002 | — | ||||||||||||||||||||||||||||||
Deferred Revenue Adjustment (1) | — | — | — | 412 | 412 | 379 | 301 | 147 | — | 827 | ||||||||||||||||||||||||||||||
eFinancialCareers | 3,307 | 4,008 | 4,687 | 4,919 | 16,921 | 5,524 | 6,798 | 8,496 | 12,002 | 20,818 | ||||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||||
Reported Actual | 636 | 726 | 850 | 1,237 | 3,449 | 2,044 | 2,770 | 3,302 | 2,212 | 8,116 | ||||||||||||||||||||||||||||||
eFinancialCareers Pro Forma Adjustment | 1,234 | 1,358 | 1,347 | 492 | 4,431 | — | — | — | 3,939 | — | ||||||||||||||||||||||||||||||
Deferred Revenue Adjustment (1) | — | — | — | 506 | 506 | 379 | 217 | 101 | — | 697 | ||||||||||||||||||||||||||||||
Other | 1,870 | 2,084 | 2,197 | 2,235 | 8,386 | 2,423 | 2,987 | 3,403 | 6,151 | 8,813 | ||||||||||||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||||||||||||||||
Reported Actual | $ | 16,077 | $ | 19,239 | $ | 21,668 | $ | 26,674 | $ | 83,658 | $ | 30,540 | $ | 34,500 | $ | 38,208 | $ | 56,984 | $ | 103,248 | ||||||||||||||||||||
eFinancialCareers Pro Forma Adjustment | 4,541 | 5,366 | 6,034 | 2,075 | 18,016 | — | — | — | 15,941 | — | ||||||||||||||||||||||||||||||
Total Pro Forma Revenue | 20,618 | 24,605 | 27,702 | 28,749 | 101,674 | 30,540 | 34,500 | 38,208 | 72,925 | 103,248 | ||||||||||||||||||||||||||||||
Deferred Revenue Adjustment (1) | 1,202 | 650 | 189 | 926 | 2,967 | 758 | 518 | 248 | 2,041 | 1,524 | ||||||||||||||||||||||||||||||
Total Pro Forma Adjusted Revenue | $ | 21,820 | $ | 25,255 | $ | 27,891 | $ | 29,675 | $ | 104,641 | $ | 31,298 | $ | 35,018 | $ | 38,456 | $ | 74,966 | $ | 104,772 | ||||||||||||||||||||
Percentage of Pro Forma Adjusted Revenue by Segment | ||||||||||||||||||||||||||||||||||||||||
DCS Online | 76.3 | % | 75.9 | % | 75.3 | % | 75.9 | % | 75.8 | % | 74.6 | % | 72.1 | % | 69.1 | % | 75.8 | % | 71.7 | % | ||||||||||||||||||||
eFinancialCareers | 15.2 | % | 15.9 | % | 16.8 | % | 16.6 | % | 16.2 | % | 17.6 | % | 19.4 | % | 22.1 | % | 16.0 | % | 19.9 | % | ||||||||||||||||||||
Other | 8.5 | % | 8.2 | % | 7.9 | % | 7.5 | % | 8.0 | % | 7.8 | % | 8.5 | % | 8.8 | % | 8.2 | % | 8.4 | % | ||||||||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 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. |
16
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA (continued)
(Unaudited)
(dollars in thousands except per customer data)
Quarters | Full Year 2006 | Quarters | Year to Date | |||||||||||||||||||||||||||||||||||||
Q1 2006 | Q2 2006 | Q3 2006 | Q4 2006 | Q1 2007 | Q2 2007 | Q3 2007 | 9M 2006 | 9M 2007 | ||||||||||||||||||||||||||||||||
Sales and Marketing Expense | ||||||||||||||||||||||||||||||||||||||||
Reported Actual | $ | 7,128 | $ | 8,130 | $ | 8,510 | $ | 10,720 | $ | 34,488 | $ | 13,601 | $ | 14,045 | $ | 13,823 | $ | 23,768 | $ | 41,469 | ||||||||||||||||||||
eFinancialCareers Pro Forma Adjustment | 1,933 | 2,352 | 2,885 | 949 | 8,119 | — | — | — | 7,170 | — | ||||||||||||||||||||||||||||||
Total Pro Forma Sales and Marketing Expense | $ | 9,061 | $ | 10,482 | $ | 11,395 | $ | 11,669 | $ | 42,607 | $ | 13,601 | $ | 14,045 | $ | 13,823 | $ | 30,938 | $ | 41,469 | ||||||||||||||||||||
Actual Sales and Marketing Expense as a Percentage of Actual Revenue | 44.3 | % | 42.3 | % | 39.3 | % | 40.2 | % | 41.2 | % | 44.5 | % | 40.7 | % | 36.2 | % | 41.7 | % | 40.2 | % | ||||||||||||||||||||
Pro Forma Sales and Marketing Expense as a Percentage of Pro Forma Adjusted Revenue | 41.5 | % | 41.5 | % | 40.9 | % | 39.3 | % | 40.7 | % | 43.5 | % | 40.1 | % | 35.9 | % | 41.3 | % | 39.6 | % | ||||||||||||||||||||
Reconciliation of Adjusted EBITDA to Pro Forma Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 6,786 | $ | 8,106 | $ | 9,520 | $ | 11,543 | $ | 35,955 | $ | 11,370 | $ | 14,710 | $ | 16,737 | $ | 24,412 | $ | 42,817 | ||||||||||||||||||||
eFinancialCareers Pro Forma Adjustment | 844 | 401 | 584 | (1,210 | ) | 619 | — | — | — | 1,829 | — | |||||||||||||||||||||||||||||
Pro Forma Adjusted EBITDA | $ | 7,630 | $ | 8,507 | $ | 10,104 | $ | 10,333 | $ | 36,574 | $ | 11,370 | $ | 14,710 | $ | 16,737 | $ | 26,241 | $ | 42,817 | ||||||||||||||||||||
Pro Forma Adjusted EBITDA Margin | 35.0 | % | 33.7 | % | 36.2 | % | 34.8 | % | 35.0 | % | 36.3 | % | 42.0 | % | 43.5 | % | 35.0 | % | 40.9 | % | ||||||||||||||||||||
Dice.com Recruitment Package Customers (end of period) | 6,800 | 7,300 | 7,600 | 7,600 | n.a. | 8,500 | 8,800 | 9,000 | n.a. | n.a. | ||||||||||||||||||||||||||||||
Dice.com Average Monthly Revenue per Recruitment Package Customer (2) | $ | 753 | $ | 772 | $ | 795 | $ | 813 | n.a. | $ | 826 | $ | 830 | $ | 839 | n.a. | n.a. | |||||||||||||||||||||||
Summary of Deferred Revenue Written Off by Segment by Period of Impact | ||||||||||||||||||||||||||||||||||||||||
DCS Online | $ | 1,202 | $ | 650 | $ | 189 | $ | 8 | $ | 2,049 | $ | — | $ | — | $ | — | $ | 2,041 | $ | — | ||||||||||||||||||||
eFinancialCareers | — | — | — | 412 | 412 | 379 | 301 | 147 | — | 827 | ||||||||||||||||||||||||||||||
Other | — | — | — | 506 | 506 | 379 | 217 | 101 | — | 697 | ||||||||||||||||||||||||||||||
Total Deferred Revenue Written Off by Period of Impact | $ | 1,202 | $ | 650 | $ | 189 | $ | 926 | $ | 2,967 | $ | 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. |
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See below for reconciliation of most comparable GAAP measurement to Adjusted EBITDA:
Guidance - Reconcilation 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 | % |
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