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Dice Holdings, Inc. Reports Fourth Quarter & Full Year 2007 Results-- Revenues increased 49% to $39.5 million
NEW YORK, Feb. 6 /PRNewswire-FirstCall/ -- Dice Holdings, Inc. (NYSE: DHX) , a leading provider of specialized career websites for professional communities, today reported financial results for the quarter and year ended December 31, 2007. Fourth Quarter Operating Results Total revenues for the quarter ended December 31, 2007 increased 49% to $39.5 million versus $26.6 million in the comparable quarter of 2006. The revenue increase was driven by eFinancialCareers performance, including the impact of a full quarter of ownership in 2007, and by increases at Dice.com primarily as a result of a greater number of recruitment package customers. Pro forma total revenues for the fourth quarter of 2006 would have been $28.6 million, and the year over year increase would have been 38%, had Dice Holdings owned the eFinancialCareers businesses during the entire period. Operating income for the quarter ended December 31, 2007 increased $4.0 million to $9.4 million, an increase of 76% from the comparable period in 2006. The increase in operating income was due to higher revenues and greater operating leverage at Dice.com and eFinancialCareers, partially offset by a $2.9 million non-cash impairment charge related to the intangible assets of JobsintheMoney.com, which was acquired as part of the eFinancialCareers transaction in October 2006. See "Recent Developments" for additional detail. Income from continuing operations for the current quarter was $3.7 million, an increase of $1.4 million from $2.3 million generated in the fourth quarter of 2006. Earnings per diluted share from continuing operations were $0.06 for the current quarter, which includes a $0.03 per diluted share negative impact, net of tax, from the non-cash impairment charge. Net cash provided by operating activities for the quarter ended December 31, 2007 was $16.5 million, compared with $10.6 million in the fourth quarter last year. Adjusted EBITDA for the fourth quarter of 2007 was $18.6 million, compared with $12.0 million for the fourth quarter of 2006 an increase of 56%. See "Notes Regarding the Use of Non-GAAP Financial Measures." Operating Segment Results For the fourth quarter of 2007, DCS Online revenues were $27.1 million or 68.5% of Dice Holdings' consolidated revenues, representing a 20% increase over the comparable 2006 quarter. Growth was driven by a greater number of recruitment package customers and an increase in average revenue per recruitment package customer at Dice.com. A strong increase in revenue at ClearanceJobs.com also contributed. Within the segment, Dice.com represented a significant majority of total revenues for the period. Representing the Company's international operations, eFinancialCareers revenues for the fourth quarter of 2007 were $9.7 million or 24.5% of Dice Holdings' consolidated revenues. Pro forma revenues for the fourth quarter of 2006 would have been $4.5 million for this segment had Dice Holdings owned eFinancialCareers during that entire period. The other businesses operated by Dice Holdings, which include the eFinancialCareers operations within the United States, JobsintheMoney.com, and Targeted Job Fairs, are reported in the Other category. Other revenues were $2.8 million in the fourth quarter versus $1.1 million for the comparable period in 2006. Pro forma revenues for the fourth quarter of 2006 would have been $1.6 million for this segment had Dice Holdings owned the eFinancialCareers businesses during that entire period. Full Year Operating Results Total revenues for the year ended December 31, 2007 were $142.4 million, compared to $83.4 million in the previous year. The 71% increase was driven by growth in recruitment package customers and average revenue per recruitment package customer at Dice.com, as well as the addition of the eFinancialCareers businesses. Pro forma total revenues for the year ended December 31, 2006 would have been $101.4 million had Dice Holdings owned the eFinancialCareers businesses during all of 2006. By segment, DCS Online revenues increased 32% to $102.2 million for the year ended December 31, 2007, while eFinancialCareers contributed revenues of $29.7 million. Other revenues for the year increased to $10.5 million from $3.2 million in the comparable period of 2006. Pro forma revenues for the year ended December 31, 2006 would have been $16.5 million for the eFinancialCareers segment and $7.6 million for the Other segment had the company owned the eFinancialCareers businesses during all of 2006. Operating income for the year ended December 31, 2007 increased 79% to $32.0 million from $17.9 million for the previous year. Net income for the full year 2007 was $15.5 million compared with $6.8 million for the full year 2006. For the year ended December 31, 2007, net cash provided by operating activities was $59.6 million, compared with $38.9 million for the same period last year. Adjusted EBITDA for the year ended December 31, 2007 increased 68% to $62.5 million, compared with $37.1 million in 2006. See "Notes Regarding the Use of Non-GAAP Financial Measures." Balance Sheet Deferred revenue at December 31, 2007 was $46.2 million compared to $34.4 million at December 31, 2006. The 34% increase is primarily attributable to serving a greater number of recruitment package customers at Dice together with a higher percentage of those customers under annual contract than at December 31, 2006. Net debt, defined as total debt less cash and cash equivalents and marketable securities, was $66.7 million at December 31, 2007, consisting of total debt of $124.4 million minus cash and cash equivalents and marketable securities of $57.7 million. This compares to a net debt balance of $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. Recent Developments In September 2007, the Company launched a redesigned JobsintheMoney website with an expectation that, together with an increase in marketing, its overall performance for employers, recruiters, and finance and accounting professionals would improve. While the functionality of the website has improved, to date there has been no subsequent measurable improvement in financial performance. Therefore, intangible assets related to JobsintheMoney.com were reduced by $2.9 million to zero. On January 28, 2008, Dice India Holdings transferred its equity stake in the CyberMedia Dice joint venture to an affiliate of Cyber Media. CyberMedia Dice results were previously reported in the Other segment. As of December 31, 2007, CyberMedia Dice was considered held for sale; therefore, results from operations, assets and liabilities from the joint venture are now classified as a discontinued operation and all historical periods have been recast. Management Comments Scot Melland, Chairman, President and Chief Executive Officer, stated "Our fourth quarter provided a solid finish to the year marked by strong revenue and profit growth in each of our key operating segments. eFinancialCareers worldwide delivered its strongest quarter of the year as customers continue to discover the value of recruiting financial services professionals using our service. Overall, despite a challenging market environment, our results underscore our view that the long-term global opportunity for our business is unchanged. In 2008, we plan to continue executing our three-pronged strategic plan to further build professional communities organically, globally and by acquisition." Mike Durney, Senior Vice President, Finance and Chief Financial Officer, added "The breadth of contribution to our fourth quarter results across our key operating segments continues to illustrate how effectively our business model operates for both our users and our Company. At Dice, we had on average 17% more recruitment package customers than a year ago and at year end more than 80% of those customers are under annual contract. During the quarter, we marked the one-year anniversary of the eFinancialCareers acquisition with flat-out excellent results worldwide including some nice growth from our newer markets." Mr. Durney continued, "Company-wide, the fourth quarter is historically our strongest in EBITDA terms and 2007 was no exception, with a 47% adjusted EBITDA margin. Finally, we continue to generate significant amounts of cash, while we invest to grow." Business Outlook As of February 6, 2008, the Company anticipates the following financial performance for the quarter ending March 31, 2008 and full year 2008:
Quarter ending Fiscal Year
March 31, 2008 2008
Total Revenue $39.0 - 40.5 mm $161 - 173 mm
Estimated Contribution by Segment
DCS Online $27.0 - 28.0 mm $110 - 117 mm
eFinancialCareers $9.0 - 9.3 mm $39 - 42 mm
Other $3.0 - 3.2 mm $12 - 14 mm
Sales & Marketing expense $16.0 - 16.5 mm $63 - 65 mm
Adjusted EBITDA $15.5 - 16.5 mm $68 - 76 mm
Depreciation and amortization $5.5 - 5.6 mm $22 - 23 mm
Non-cash stock compensation expense $1.4 - 1.5 mm $6 - 7 mm
Interest expense, net $2.4 - 2.5 mm $9 - 10 mm
Income taxes $2.6 - 3.1 mm $13 - 16 mm
Income from continuing operations $3.7 - 4.5 mm $20 - 25 mm
Adjusted EBITDA Margin 40 - 41% 42 - 44%
Fully diluted share count 66 - 68 mm 67 - 70 mm
Note: Excludes the impact of CyberMedia Dice which has been recast as a discontinued operation. Conference Call Information The Company will host a conference call to discuss fourth quarter results today at 5:00 p.m. 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- 202-4683 or for international callers by dialing 617-213-8846; the participant passcode is 51706339. 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 54053410. The replay will be available until February 20, 2008. The call will also be webcast live from the Company's website at www.diceholdingsinc.com under the Investor Relations section. 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 17 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, non-cash impairment of intangible assets 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 periodic reports and 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" 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.
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share amounts)
For the For the
three months ended year ended
December 31, December 31,
2007 2006 2007 2006
Revenues $39,514 $26,562 $142,350 $83,400
Operating expenses:
Cost of revenues 2,431 1,405 8,647 4,628
Product development 1,047 887 4,188 2,359
Sales and marketing 12,947 10,263 53,427 33,456
General and administrative 5,621 3,724 19,193 10,263
Depreciation 823 535 2,971 1,699
Amortization of intangible
assets 4,389 4,415 19,051 13,092
Impairment of intangible
assets 2,879 - 2,879 -
Total operating expenses 30,138 21,229 110,357 65,497
Operating income 9,376 5,333 31,993 17,903
Interest expense (3,077) (1,775) (13,104) (4,788)
Interest income 520 153 1,047 234
Income from continuing operations
before income taxes and
minority interest 6,819 3,711 19,935 13,349
Income tax expense 3,131 1,402 6,692 5,110
Income from continuing operations 3,688 2,309 13,243 8,239
Discontinued operations:
Income (loss) from
discontinued operations (284) (1,680) (1,584) (2,767)
Income tax benefit (expense)
from discontinued operations (1,329) 636 3,981 1,010
Minority interest (255) 98 (134) 296
Income (loss) from discontinued
operations, net of tax (1,868) (946) 2,263 (1,461)
Net income 1,820 1,363 15,507 6,778
Convertible preferred stock
dividends - (11,180) (107,718) (11,180)
Income (loss) attributable to
common stockholders $1,820 $(9,817) $(92,211) $(4,402)
Basic earnings (loss) per share:
From continuing operations $0.06 $(96.21) $(3.34) $(31.89)
From discontinued operations (0.03) (10.26) 0.08 (15.86)
$0.03 $(106.47) $(3.26) $(47.75)
Diluted earnings (loss) per share:
From continuing operations $0.06 $(96.21) $(3.34) $(31.89)
From discontinued operations (0.03) (10.26) 0.08 (15.86)
$0.03 $(106.47) $(3.26) $(47.75)
Weighted average diluted shares
outstanding 65,769 55,601 61,416 59,873
Note: Results for 2007 and 2006 have been recast to reflect discontinued
operations.
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
For the For the
three months ended year ended
December 31, December 31,
2007 2006 2007 2006
Cash flows provided by operating
activities:
Net income $1,820 $1,363 $15,507 $6,778
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation 823 535 2,971 1,699
Amortization 4,389 4,415 19,051 13,092
Deferred income taxes 3,895 341 7,273 3,127
Amortization of deferred
financing costs 257 116 795 352
Share based compensation 1,180 743 4,100 1,467
Impairment of intangible
assets 2,879 - 2,879 -
Changes in operating assets and
liabilities:
Accounts receivable (2,707) (3,330) (4,127) (4,717)
Prepaid expenses and other
assets 36 (82) (1,266) (45)
Accounts payable and accrued
expenses (223) (270) (906) 154
Deferred revenue 2,543 5,743 11,831 16,168
Other, net 1,621 1,058 1,448 775
Net cash provided by operating
activities 16,513 10,632 59,556 38,850
Cash flows used for investing
activities:
Purchases of fixed assets (949) (588) (3,521) (2,649)
Purchases of marketable
securities - (100) (200) (200)
Maturities and sales of
marketable securities 599 399 999 596
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 - - - (965)
Other, net - - (32) -
Net cash used for investing
activities (350) (63,467) (2,754) (66,396)
Cash flows provided by (used for)
financing activities:
Proceeds from long-term debt - 77,000 113,000 77,000
Payments on long-term debt (300) (10,000) (77,600) (37,000)
Dividends paid on
convertible preferred stock - (11,180) (107,718) (11,180)
Dividends paid on common stock - - (180) -
Payments to holders of
vested stock options - - (4,602) -
Financing costs paid (118) (856) (2,364) (856)
Proceeds from initial public
offering - - 81,003 -
Payment of costs related to
initial public offering (1,447) - (2,884) -
Proceeds from stock option
exercises 203 - 292 -
Other - - (175) -
Net cash provided by (used for)
financing activities (1,662) 54,964 (1,228) 27,964
Net cash provided by (used for)
operating activities of
discontinued operations 353 932 (3,844) 2,002
Net cash used for investing
activities of discontinued
operations - (65) (6) (151)
Net cash provided by (used for)
discontinued operations 353 867 (3,850) 1,851
Effect of exchange rate changes (39) 91 115 91
Net change in cash and cash
equivalents for the period 14,815 3,087 51,839 2,360
Cash and cash equivalents,
beginning of period 42,708 2,597 5,684 3,324
Cash and cash equivalents, end of
period $57,523 $5,684 $57,523 $5,684
Note: Results for 2007 and 2006 have been recast to reflect discontinued
operations.
DICE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
ASSETS December 31, 2007 December 31, 2006
Current assets
Cash and cash equivalents $57,525 $5,684
Marketable securities 150 944
Accounts receivable, net of
allowance for doubtful
accounts of $1,312 and $795 19,112 14,962
Deferred income taxes - current 9,864 14,000
Prepaid and other current assets 2,582 1,162
Current assets of discontinued
operations 195 1,098
Total current assets 89,428 37,850
Fixed assets, net 5,768 5,160
Acquired intangible assets, net 78,572 100,186
Goodwill 159,773 156,440
Deferred financing costs, net
of accumulated amortization of
$1,252 and $457 3,541 1,972
Other assets 673 122
Non-current assets of
discontinued operations 135 597
Total assets $337,890 $302,327
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
expenses $11,971 $11,534
Deferred revenue 46,230 34,383
Current portion of long-term debt 750 -
Other current liabilities - 426
Current liabilities of
discontinued operations 1,404 1,772
Total current liabilities 60,355 48,115
Long-term debt 123,650 89,000
Deferred income taxes - non- current 26,079 29,582
Other long-term liabilities 7,468 1,295
Total liabilities 217,552 167,992
Total stockholders' equity 120,338 134,335
Total liabilities and
stockholders' equity $337,890 $302,327
Note: Results for 2006 have been recast to reflect discontinued
operations.
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. Results for each quarter of 2006 and the first three quarters of 2007 have been recast to reflect discontinued operations. 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 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 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 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. 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 $16,056 $19,205 $21,577 $26,562 $83,400
Operating expenses:
Cost of revenues 1,089 1,016 1,118 1,405 4,628
Product development 425 561 486 887 2,359
Sales and marketing 7,055 7,960 8,178 10,263 33,456
General and
administrative 2,014 2,175 2,350 3,724 10,263
Depreciation 325 385 454 535 1,699
Amortization of
intangible assets 3,026 2,826 2,825 4,415 13,092
Impairment of intangible
assets - - - - -
Total operating
expenses 13,934 14,923 15,411 21,229 65,497
Operating income 2,122 4,282 6,166 5,333 17,903
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 818 3,380 5,440 3,711 13,349
Income tax expense (benefit) 262 1,327 2,119 1,402 5,110
Income from continuing
operations 556 2,053 3,321 2,309 8,239
Discontinued operations:
Income (loss) from
discontinued operations (368) (326) (393) (1,680) (2,767)
Income tax benefit
(expense) from
discontinued operations 88 130 156 636 1,010
Minority interest in net
loss of subsidiary 53 77 68 98 296
Income (loss) from
discontinued operations,
net of tax (227) (119) (169) (946) (1,461)
Net income $329 $1,934 $3,152 $1,363 $6,778
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
DICE HOLDINGS, INC.
HISTORICAL QUARTERLY STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007
Revenues $30,389 $34,358 $38,089 $39,514 $142,350
Operating expenses:
Cost of revenues 1,826 1,946 2,443 2,431 8,647
Product development 980 982 1,178 1,047 4,188
Sales and marketing 13,214 13,797 13,469 12,947 53,427
General and
administrative 3,949 4,410 5,213 5,621 19,193
Depreciation 619 702 827 823 2,971
Amortization of
intangible assets 5,228 4,773 4,661 4,389 19,051
Impairment of intangible
assets - - - 2,879 2,879
Total operating
expenses 25,816 26,610 27,791 30,138 110,357
Operating income 4,573 7,748 10,298 9,376 31,993
Interest expense (2,347) (4,293) (3,387) (3,077) (13,104)
Interest income 74 82 371 520 1,047
Income from continuing
operations before
income taxes and minority
interest 2,300 3,536 7,282 6,819 19,935
Income tax expense (benefit) (907) 1,689 2,779 3,131 6,692
Income from continuing
operations 3,207 1,847 4,503 3,688 13,243
Discontinued operations:
Income (loss) from
discontinued operations (949) 109 (460) (284) (1,584)
Income tax benefit
(expense) from
discontinued operations 5,619 (463) 154 (1,329) 3,981
Minority interest in net
loss of subsidiary - 121 - (255) (134)
Income (loss) from
discontinued operations,
net of tax 4,670 (233) (306) (1,868) 2,263
Net income $7,877 $1,613 $4,197 $1,820 $15,507
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
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 227 119 169 946 1,461
Interest income (27) (29) (25) (153) (234)
Interest expense 1,331 931 751 1,775 4,788
Income tax expense
(benefit) 262 1,327 2,119 1,402 5,110
Depreciation 325 385 454 535 1,699
Amortization of
intangible assets 3,026 2,826 2,825 4,415 13,092
Impairment of
intangible assets - - - - -
Non-cash stock
compensation
expense 237 242 245 743 1,467
Deferred revenue
adjustment 1,202 650 189 926 2,967
Adjusted EBITDA $6,912 $8,385 $9,879 $11,952 $37,128
Reconciliation of
Operating Cash Flows
to Adjusted EBITDA:
Net cash provided by
operating activities $9,425 $10,394 $8,399 $10,632 $38,850
Interest expense 1,331 931 751 1,775 4,788
Interest income (27) (29) (25) (153) (234)
Income tax expense
(benefit) 262 1,327 2,119 1,402 5,110
Deferred income
taxes (74) (1,037) (1,675) (341) (3,127)
Change in accounts
receivable 31 26 1,330 3,330 4,717
Change in deferred
revenue (6,665) (2,353) (1,407) (5,743) (16,168)
Changes in working
capital 1,278 (1,563) 107 (706) (884)
Adjustments for
discontinued
operations 149 39 91 830 1,109
Deferred revenue
adjustment 1,202 650 189 926 2,967
Adjusted EBITDA $6,912 $8,385 $9,879 $11,952 $37,128
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
DICE HOLDINGS, INC.
HISTORICAL QUARTERLY ADJUSTED EBITDA RECONCILIATIONS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007
Reconciliation of
Net Income to
Adjusted EBITDA:
Net income $7,877 $1,613 $4,197 $1,820 $15,507
Discontinued
operations (4,670) 233 306 1,868 (2,263)
Interest income (74) (82) (371) (520) (1,047)
Interest expense 2,347 4,293 3,387 3,077 13,104
Income tax expense
(benefit) (907) 1,689 2,779 3,131 6,692
Depreciation 619 702 827 823 2,971
Amortization of
intangible assets 5,228 4,773 4,661 4,389 19,051
Impairment of
intangible assets - - - 2,879 2,879
Non-cash stock
compensation
expense 574 1,208 1,138 1,180 4,100
Deferred revenue
adjustment 758 518 248 - 1,525
Adjusted EBITDA $11,752 $14,950 $17,171 $18,647 $62,521
Reconciliation of
Operating Cash Flows
to Adjusted EBITDA:
Net cash provided by
operating activities $20,625 $11,662 $10,756 $16,513 $59,556
Interest expense 2,347 4,293 3,387 3,077 13,104
Interest income (74) (82) (371) (520) (1,047)
Income tax expense
(benefit) (907) 1,689 2,779 3,131 6,692
Deferred income
taxes 1,006 (2,673) (1,711) (3,895) (7,273)
Change in accounts
receivable (1,072) (347) 2,839 2,707 4,127
Change in deferred
revenue (7,706) (1,648) 66 (2,543) (11,831)
Changes in working
capital 1,596 1,487 (925) (1,434) 724
Adjustments for
discontinued
operations (4,821) 48 104 1,611 (3,057)
Deferred revenue
adjustment 758 518 248 - 1,525
Adjusted EBITDA $11,752 $14,950 $17,171 $18,647 $62,521
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
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 of
continuing operations:
Net income $329 $1,934 $3,152 $1,363 $6,778
Adjustments to reconcile
net income to net cash
provided by operating
activities of continuing
operations:
Depreciation 325 385 454 535 1,699
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
Impairment of
intangible assets - - - - -
Changes in operating
assets and liabilities:
Accounts receivable (31) (26) (1,330) (3,330) (4,717)
Prepaid expenses and
other assets (91) 313 (185) (82) (45)
Accounts payable and
accrued expenses (1,032) 1,550 (94) (270) 154
Deferred revenue 6,665 2,353 1,407 5,743 16,168
Other, net (155) (300) 172 1,058 775
Net cash provided by
operating activities of
continuing operations 9,425 10,394 8,399 10,632 38,850
Cash flows used for
investing activities:
Purchases of fixed
assets (782) (706) (573) (588) (2,649)
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 of
continuing operations (916) (1,440) (573) (63,467) (66,396)
Cash flows provided by
(used for) financing
activities of continuing
operations:
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 of continuing
operations (9,000) (9,000) (9,000) 54,964 27,964
Net cash provided by
(used for) operating
activities of
discontinued
operations 53 698 319 932 2,002
Net cash used for
investing activities of
discontinued operations (6) (76) (4) (65) (151)
Net cash provided by
(used for) discontinued
operations 47 622 315 867 1,851
Effect of exchange rate
changes - - - 91 91
Net change in cash and
cash equivalents for the
period (444) 576 (859) 3,087 2,360
Cash and cash
equivalents, beginning
of period 3,324 2,880 3,456 2,597 3,324
Cash and cash
equivalents, end of
period $2,880 $3,456 $2,597 $5,684 $5,684
Free cash flow:
Net cash provided by
operating
activities $9,425 $10,394 $8,399 $10,632 $38,850
Less: Capital
expenditures (782) (706) (573) (588) (2,649)
Free cash flow $8,643 $9,688 $7,826 $10,044 $36,201
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
DICE HOLDINGS, INC.
QUARTERLY STATEMENTS OF CASH FLOWS AND FREE CASH FLOWS
(Unaudited)
(in thousands)
Quarters Full Year
Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007
Cash flows provided by
operating activities of
continuing operations:
Net income $7,877 $1,613 $4,197 $1,820 $15,507
Adjustments to reconcile
net income to net cash
provided by operating
activities of continuing
operations:
Depreciation 619 702 827 823 2,971
Amortization 5,228 4,773 4,661 4,389 19,051
Deferred income taxes (1,006) 2,673 1,711 3,895 7,273
Amortization of
deferred financing
costs 151 185 202 257 795
Share based
compensation 574 1,208 1,138 1,180 4,100
Impairment of
intangible assets - - - 2,879 2,879
Changes in operating
assets and liabilities:
Accounts receivable 1,072 347 (2,839) (2,707) (4,127)
Prepaid expenses and
other assets (840) (661) 199 36 (1,266)
Accounts payable and
accrued expenses (1,882) (198) 1,397 (223) (906)
Deferred revenue 7,706 1,648 (66) 2,543 11,831
Other, net 1,126 (628) (671) 1,621 1,448
Net cash provided by
operating activities of
continuing operations 20,625 11,662 10,756 16,513 59,556
Cash flows used for
investing activities:
Purchases of fixed
assets (631) (893) (1,048) (949) (3,521)
Purchases of
marketable
securities - (200) - - (200)
Maturities and sales
of marketable
securities - 200 200 599 999
Acquisition of
eFinancial Group
Limited - - - - -
Proceeds from the
sale of
eFinancialNews
Limited - - - - -
Amounts paid under
Targeted Job Fairs
acquisition
agreement - - - - -
Other, net (15) (17) - - (32)
Net cash used for
investing activities of
continuing operations (646) (910) (848) (350) (2,754)
Cash flows provided by
(used for) financing
activities of continuing
operations:
Proceeds from long-
term debt 113,000 - - - 113,000
Payments on long-
term debt (11,000) (11,000) (55,300) (300) (77,600)
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) (118) (2,364)
Proceeds from
initial public
offering - - 81,003 - 81,003
Payment of costs
related to initial
public offering - (456) (981) (1,447) (2,884)
Proceeds from stock
option exercises - - 89 203 292
Other - (175) - - (175)
Net cash provided by
(used for) financing
activities of continuing
operations (12,739) (11,631) 24,804 (1,662) (1,228)
Net cash provided by
(used for) operating
activities of
discontinued
operations (5,661) 1,158 306 353 (3,844)
Net cash used for
investing activities of
discontinued operations (6) - - - (6)
Net cash provided by
(used for) discontinued
operations (5,667) 1,158 306 353 (3,850)
Effect of exchange rate
changes 20 105 29 (39) 115
Net change in cash and
cash equivalents for the
period 1,593 384 35,047 14,815 51,839
Cash and cash
equivalents, beginning
of period 5,684 7,277 7,661 42,708 5,684
Cash and cash
equivalents, end of
period $7,277 $7,661 $42,708 $57,523 $57,523
Free cash flow:
Net cash provided by
operating
activities $20,625 $11,662 $10,756 $16,513 $59,556
Less: Capital
expenditures (631) (893) (1,048) (949) (3,521)
Free cash flow $19,994 $10,769 $9,708 $15,564 $56,035
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
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
DCS 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 616 692 759 1,125 3,191
eFinancialCareers Pro
Forma Adjustment 1,234 1,358 1,347 492 4,431
Deferred Revenue
Adjustment (1) - - - 506 506
Other 1,850 2,050 2,106 2,123 8,128
Consolidated:
Reported Actual $16,057 $19,205 $21,577 $26,562 $83,400
eFinancialCareers Pro
Forma Adjustment 4,541 5,366 6,034 2,075 18,016
Total Pro Forma Revenue 20,598 24,571 27,611 28,637 101,416
Deferred Revenue
Adjustment (1) 1,202 650 189 926 2,967
Total Pro Forma Adjusted
Revenue $21,800 $25,221 $27,800 $29,563 $104,383
Percentage of Pro Forma
Adjusted Revenue by Segment
DCS Online 76.3% 76.0% 75.6% 76.2% 76.0%
eFinancialCareers 15.2% 15.9% 16.9% 16.6% 16.2%
Other 8.5% 8.1% 7.5% 7.2% 7.8%
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
(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.
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA
(Unaudited)
(dollars in thousands except per customer data)
Quarters Full Year
Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007
Reconciliation of GAAP
Reported Revenue by Segment
to Adjusted Pro Forma
Revenue by Segment
DCS Online:
Reported Actual $23,350 $25,234 $26,557 $27,074 $102,215
Deferred Revenue
Adjustment (1) - - - - -
DCS Online 23,350 25,234 26,557 27,074 102,215
eFinancialCareers:
Reported Actual 5,145 6,497 8,349 9,667 29,658
eFinancialCareers Pro
Forma Adjustment - - - - -
Deferred Revenue
Adjustment (1) 379 301 147 - 827
eFinancialCareers 5,524 6,798 8,496 9,667 30,485
Other:
Reported Actual 1,894 2,628 3,183 2,773 10,478
eFinancialCareers Pro
Forma Adjustment - - - - -
Deferred Revenue
Adjustment (1) 379 217 101 - 697
Other 2,273 2,845 3,284 2,773 11,175
Consolidated:
Reported Actual $30,389 $34,358 $38,089 $39,514 $142,350
eFinancialCareers Pro
Forma Adjustment - - - - -
Total Pro Forma Revenue 30,389 34,358 38,089 39,514 142,350
Deferred Revenue
Adjustment (1) 758 518 248 - 1,524
Total Pro Forma Adjusted
Revenue $31,147 $34,876 $38,337 $39,514 $143,874
Percentage of Pro Forma
Adjusted Revenue by Segment
DCS Online 75.0% 72.4% 69.3% 68.5% 71.0%
eFinancialCareers 17.7% 19.5% 22.2% 24.5% 21.2%
Other 7.3% 8.1% 8.5% 7.0% 7.8%
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
(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.
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
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 $7,055 $7,960 $8,178 $10,263 $33,456
eFinancialCareers Pro
Forma Adjustment 1,933 2,352 2,885 949 8,119
Total Pro Forma Sales and
Marketing Expense $8,988 $10,312 $11,063 $11,212 $41,575
Actual Sales and Marketing
Expense as a Percentage
of Actual Revenue 43.9% 41.4% 37.9% 38.6% 40.1%
Pro Forma Sales and Marketing
Expense as a Percentage
of Pro Forma Adjusted Revenue 41.2% 40.9% 39.8% 37.9% 39.8%
Reconciliation of Adjusted
EBITDA to Pro Forma
Adjusted EBITDA
Adjusted EBITDA $6,912 $8,385 $9,879 $11,952 $37,128
eFinancialCareers Pro
Forma Adjustment 844 401 584 (1,210) 619
Pro Forma Adjusted EBITDA $7,756 $8,786 $10,463 $10,742 $37,747
Pro Forma Adjusted EBITDA
Margin 35.6% 34.8% 37.6% 36.3% 36.2%
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.
Deferred Revenue $23,559 $25,899 $27,298 $34,383 n.a.
Segment Definitions:
DCS Online: Dice.com and ClearanceJobs.com
eFinancialCareers: eFinancialCareers worldwide, excluding the US
Other: Targeted Job Fairs, eFinancialCareers (US), JobsintheMoney.com
(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.
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
DICE HOLDINGS, INC.
NON-GAAP RECONCILIATIONS AND QUARTERLY SUPPLEMENTAL DATA (continued)
(Unaudited)
(dollars in thousands except per customer data)
Quarters Full Year
Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007
Sales and Marketing Expense
Reported Actual $13,214 $13,797 $13,469 $12,947 $53,427
eFinancialCareers Pro
Forma Adjustment - - - - -
Total Pro Forma Sales and
Marketing Expense $13,214 $13,797 $13,469 $12,947 $53,427
Actual Sales and Marketing
Expense as a Percentage
of Actual Revenue 43.5% 40.2% 35.4% 32.8% 37.5%
Pro Forma Sales and Marketing
Expense as a Percentage
of Pro Forma Adjusted Revenue 42.4% 39.6% 35.1% 32.8% 37.1%
Reconciliation of Adjusted
EBITDA to Pro Forma
Adjusted EBITDA
Adjusted EBITDA $11,752 $14,950 $17,171 $18,647 $62,521
eFinancialCareers Pro
Forma Adjustment - - - - -
Pro Forma Adjusted EBITDA $11,752 $14,950 $17,171 $18,647 $62,521
Pro Forma Adjusted EBITDA
Margin 37.7% 42.9% 44.8% 47.2% 43.5%
Dice.com Recruitment Package
Customers (end of period) 8,500 8,800 9,000 8,700 n.a.
Dice.com Average Monthly
Revenue per Recruitment
Package Customer (2) $826 $830 $839 $852 n.a.
Deferred Revenue $42,114 $43,854 $43,871 $46,230 n.a.
Segment Definitions:
DCS Online: Dice.com and ClearanceJobs.com
eFinancialCareers: eFinancialCareers worldwide, excluding the US
Other: Targeted Job Fairs, eFinancialCareers (US), JobsintheMoney.com
(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.
Note: Results for 2006 and the first three quarters of 2007 have been
recast to reflect discontinued operations.
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