[August 04, 2015] |
|
j2 Reports Record Second Quarter 2015 Results
j2 Global, Inc. (NASDAQGS: JCOM) today reported financial results for
the second quarter ended June 30, 2015 and announced that its Board of
Directors has declared an increased quarterly cash dividend of $0.3075
per share.
j2 achieved several quarterly records, including:
-
Revenues of $176 million
-
EBITDA(1) of $79.6 million
-
Adjusted Non-GAAP EPS(2)(3) of $0.99 per diluted share
-
Reducing the user cancel rate(4) to below 2% (1.94%)
SECOND QUARTER 2015 RESULTS
Quarterly revenues increased 21.6% to a Q2 record $176 million compared
to $144.7 million for Q2 2014.
GAAP earnings per diluted share(2) for the quarter increased
9.6% to $0.80 compared to $0.73 for Q2 2014. Adjusted Non-GAAP earnings
per diluted share(2)(3) for the quarter increased 17.9% to a
Q2 record $0.99 compared to $0.84 for Q2 2014.
Quarterly EBITDA(1) increased 25% to a Q2 record $79.6
million compared to $63.7 million for Q2 2014.
Q2 2015 free cash flow(5) increased 1.5% to $54.9 million
compared to $54.1 million despite an interest payment of $6.5 million
associated with our convertible debt in the current quarter that was not
present in the prior year comparable quarter.
j2 ended the quarter with approximately $567.3 million in cash and
investments after deploying $17.6 million during the quarter for
acquisitions and j2's regular quarterly dividend.
Key financial results for Q2 2015 versus Q2 2014 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of earnings per diluted share, EBITDA and free cash flow to their
nearest comparable GAAP financial measures are attached to this Press
Release.
|
|
Q2 2015
|
|
Q2 2014
|
|
% Change
|
Revenues
|
|
|
|
|
|
|
Cloud Services
|
|
$123.9 million
|
|
$105.3 million
|
|
17.7%
|
Digital Media
|
|
$50.8 million
|
|
$38.2 million
|
|
33%
|
IP Licensing
|
|
$1.3 million
|
|
$1.2 million
|
|
8.3%
|
Total:
|
|
$176 million
|
|
$144.7 million
|
|
21.6%
|
GAAP Net Income
|
|
$38.9 million
|
|
$35 million
|
|
11.1%
|
GAAP Earnings per Diluted Share (2)
|
|
$0.80
|
|
$0.73
|
|
9.6%
|
Adjusted Non-GAAP Earnings per Diluted Share (2) (3)
|
|
$0.99
|
|
$0.84
|
|
17.9%
|
EBITDA (1)
|
|
$79.6 million
|
|
$63.7 million
|
|
25%
|
Free Cash Flow (5)
|
|
$54.9 million
|
|
$54.1 million
|
|
1.5%
|
"With nearly $80 million of EBITDA and numerous other quarterly records,
I am extremely proud of j2," said Hemi Zucker, CEO of j2 Global®. "Our
commitment to success is demonstrated by both our Cloud and Digital
Media teams who are focused on driving revenue growth, optimizing
expenses and successfully integrating our acquisitions. We remain very
well-funded with over $550 million of cash and investments. As current
revenues and earnings are already trending toward the high end of our
2015 financial guidance, any significant acquisition is likely to push
us beyond that range."
BUSINESS OUTLOOK
The Company reaffirms its fiscal 2015 estimates that it will achieve
revenues between $690 and $710 million and Adjusted Non-GAAP earnings
per diluted share of between $3.73 and $3.97.
Adjusted Non-GAAP earnings per diluted share for 2015 excludes
share-based compensation of between $11 and $12 million, amortization of
acquired intangibles and the impact of any currently unanticipated
items, in each case net of tax.
It is anticipated that the normalized tax rate for 2015 (exclusive of
the release of reserves for uncertain tax positions) will be at the
higher end of the provided business outlook range between 27% and 29%.
DIVIDEND
j2's Board of Directors has approved a quarterly cash dividend of
$0.3075 per common share, a 10.8% increase versus the dividend paid in
Q3 2014. This is j2's sixteenth consecutive quarterly dividend increase
since its first quarterly dividend in September 2011. The dividend will
be paid on September 1, 2015 to all shareholders of record as of the
close of business on August 17, 2015. Future dividends will be subject
to Board approval.
Notes:
(1)
|
|
|
EBITDA is defined as earnings before interest and other expense,
net; income tax expense; depreciation and amortization; and the
items used to reconcile EPS to Adjusted Non-GAAP EPS referred to in
Note (3) below. EBITDA amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.
|
|
|
|
|
(2)
|
|
|
The estimated GAAP effective tax rates were approximately 0.5% for
Q2 2015 and 10.9% for Q2 2014. The estimated Adjusted Non-GAAP
effective tax rates were approximately 28.5% for Q2 2015 and 27.1%
for Q2 2014.
|
|
|
|
|
(3)
|
|
|
For Q2 2015, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, certain acquisition-related integration
costs, interest costs in excess of the coupon rate associated with
convertible notes, certain tax consulting fees, amortization of
acquired intangibles and additional tax expense (benefit) from prior
years, in each case net of tax, totaling $0.19 per diluted share.
For Q2 2014, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, certain acquisition-related integration
costs, amortization of acquired intangibles and additional tax
expense (benefit) from prior years, and adds back the impact of the
fair value adjustment to deferred revenues purchased in the
Livedrive acquisition, in each case net of tax, totaling $0.12 per
diluted share.
|
|
|
|
|
(4)
|
|
|
User cancel rate, also called user churn, is defined as cancellation
of service by Cloud Business customers with greater than 4 months of
continuous service (continuous service includes Cloud Business
customers that are administratively cancelled and reactivated within
the same calendar month). User cancel rate is calculated monthly and
expressed here as an average over the three months of the quarter.
|
|
|
|
|
(5)
|
|
|
Free cash flow is defined as net cash provided by operating
activities, less purchases of property, plant and equipment, plus
excess tax benefit from share-based compensation. In addition, the
amount shown for Q2 2015 excludes the effect of payments associated
with taxes for prior periods under audit. Free cash flow amounts are
not meant as a substitute for GAAP, but are solely for informational
purposes.
|
About j2 Global
j2 Global, Inc. (NASDAQ: JCOM) provides Internet services through two
divisions: Business Cloud Services and Digital Media. The Business Cloud
Services Division offers Internet fax, virtual phone, hosted email,
email marketing, online backup, unified communications and CRM
solutions. It markets its services principally under the brand names
eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe®, Livedrive® and
Onebox®, and operates a messaging network spanning 50 countries on six
continents. The Digital Media Division offers technology, gaming and
lifestyle content through its digital properties, which include
PCMag.com, IGN.com, AskMen.com, Toolbox.com and others. The Digital
Media Division also operates NetShelter ® Powered by BuyerBase®, an
advanced digital ad targeting platform, and Ziff Davis B2B, a leading
provider of research to enterprise buyers and leads to IT vendors. As of
December 31, 2014, j2 had achieved 19 consecutive fiscal years of
revenue growth. For more information about j2, please visit www.j2global.com.
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this Press Release are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995, particularly those contained
in Hemi Zucker's quote and the "Business Outlook" portion regarding the
Company's expected fiscal 2015 financial performance. These
forward-looking statements are based on management's current
expectations or beliefs and are subject to numerous assumptions, risks
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These factors
and uncertainties include, among other items: the Company's ability to
grow non-fax revenues, profitability and cash flows; the Company's
ability to identify, close and successfully transition acquisitions;
subscriber growth and retention; variability of the Company's revenue
based on changing conditions in particular industries and the economy
generally; protection of the Company's proprietary technology or
infringement by the Company of intellectual property of others; the risk
of adverse changes in the U.S. or international regulatory environments,
including but not limited to the imposition or increase of taxes or
regulatory-related fees; and the numerous other factors set forth in j2
Global's filings with the Securities and Exchange Commission ("SEC").
For a more detailed description of the risk factors and uncertainties
affecting j2 Global, refer to the 2014 Annual Report on Form 10-K filed
by j2 Global on March 2, 2015, and the other reports filed by j2 Global
from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this press release and
particularly those contained in Hemi Zucker's quote and the "Business
Outlook" portion regarding the Company's expected fiscal 2015 financial
performance are based on limited information available to the Company at
this time, which is subject to change. Although management's
expectations may change after the date of this press release, the
Company undertakes no obligation to revise or update these statements.
About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following Adjusted
Non-GAAP financial measures: Adjusted Non-GAAP earnings per diluted
share, EBITDA and free cash flow. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP.
We use these Adjusted Non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Our management believes that these Adjusted Non-GAAP
financial measures provide meaningful supplemental information regarding
our performance and liquidity by excluding certain expenses and
expenditures that may not be indicative of our recurring core business
operating results. We believe that both management and investors benefit
from referring to these Adjusted Non-GAAP financial measures in
assessing our performance and when planning, forecasting, and analyzing
future periods. These Adjusted Non-GAAP financial measures also
facilitate management's internal comparisons to our historical
performance and liquidity. We believe these Adjusted Non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze
the health of our business.
For more information on these Adjusted Non-GAAP financial measures,
please see the appropriate GAAP to Adjusted Non-GAAP reconciliation
tables included within the attached Exhibit to this release.
|
j2 GLOBAL, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED, IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JUNE 30,
|
|
DECEMBER 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
415,930
|
|
|
$
|
433,663
|
|
|
Short-term investments
|
|
|
97,188
|
|
|
|
96,206
|
|
|
Accounts receivable, net of allowances of $4,160 and $3,685,
respectively
|
|
|
87,319
|
|
|
|
91,699
|
|
|
Prepaid expenses and other current assets
|
|
|
27,140
|
|
|
|
22,602
|
|
|
Deferred income taxes
|
|
|
4,514
|
|
|
|
2,013
|
|
|
Total current assets
|
|
|
632,091
|
|
|
|
646,183
|
|
|
|
|
|
|
|
|
Long-term investments
|
|
|
54,177
|
|
|
|
60,508
|
|
|
Property and equipment, net
|
|
|
36,778
|
|
|
|
38,217
|
|
|
Goodwill
|
|
|
674,084
|
|
|
|
635,675
|
|
|
Other purchased intangibles, net
|
|
|
316,168
|
|
|
|
311,800
|
|
|
Other assets
|
|
|
13,511
|
|
|
|
12,819
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
1,726,809
|
|
|
$
|
1,705,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
87,081
|
|
|
$
|
95,310
|
|
|
Income taxes payable
|
|
|
1,215
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
75,353
|
|
|
|
63,457
|
|
|
Capital lease
|
|
|
324
|
|
|
|
258
|
|
|
Deferred income taxes
|
|
|
362
|
|
|
|
342
|
|
|
Total current liabilities
|
|
|
164,335
|
|
|
|
159,367
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
597,209
|
|
|
|
593,350
|
|
|
Deferred revenue
|
|
|
8,222
|
|
|
|
10,182
|
|
|
Capital lease
|
|
|
195
|
|
|
|
141
|
|
|
Liability for uncertain tax positions
|
|
|
25,136
|
|
|
|
37,551
|
|
|
Deferred income taxes
|
|
|
63,267
|
|
|
|
61,960
|
|
|
Other long-term liabilities
|
|
|
19,242
|
|
|
|
22,416
|
|
|
Total liabilities
|
|
|
877,606
|
|
|
|
884,967
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
476
|
|
|
|
474
|
|
|
Additional paid-in capital
|
|
|
282,702
|
|
|
|
273,304
|
|
|
Retained earnings
|
|
|
584,831
|
|
|
|
553,584
|
|
|
Accumulated other comprehensive loss
|
|
|
(18,806
|
)
|
|
|
(7,127
|
)
|
|
Total stockholders' equity
|
|
|
849,203
|
|
|
|
820,235
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
1,726,809
|
|
|
$
|
1,705,202
|
|
|
j2 GLOBAL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE 30,
|
|
SIX MONTHS ENDED JUNE 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
176,038
|
|
$
|
144,744
|
|
|
$
|
337,291
|
|
|
$
|
278,868
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (1)
|
|
|
29,494
|
|
|
25,558
|
|
|
|
57,681
|
|
|
|
48,947
|
|
|
Gross profit
|
|
|
146,544
|
|
|
119,186
|
|
|
|
279,610
|
|
|
|
229,921
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)
|
|
|
40,421
|
|
|
35,329
|
|
|
|
78,011
|
|
|
|
68,288
|
|
|
Research, development and engineering (1)
|
|
|
8,969
|
|
|
7,600
|
|
|
|
17,415
|
|
|
|
14,814
|
|
|
General and administrative (1)
|
|
|
47,088
|
|
|
31,419
|
|
|
|
93,588
|
|
|
|
60,397
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
96,478
|
|
|
74,348
|
|
|
|
189,014
|
|
|
|
143,499
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
50,066
|
|
|
44,838
|
|
|
|
90,596
|
|
|
|
86,422
|
|
Interest expense (income), net
|
|
|
10,881
|
|
|
5,682
|
|
|
|
21,194
|
|
|
|
10,630
|
|
Other expense (income), net
|
|
|
88
|
|
|
(185
|
)
|
|
|
(696
|
)
|
|
|
(505
|
)
|
Income before income taxes
|
|
|
39,097
|
|
|
39,341
|
|
|
|
70,098
|
|
|
|
76,297
|
|
Income tax expense
|
|
|
181
|
|
|
4,292
|
|
|
|
9,304
|
|
|
|
12,483
|
|
Net income
|
|
$
|
38,916
|
|
$
|
35,049
|
|
|
$
|
60,794
|
|
|
$
|
63,814
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share:
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc. common shareholders
|
|
$
|
0.81
|
|
$
|
0.73
|
|
|
$
|
1.26
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share:
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc. common shareholders
|
|
$
|
0.80
|
|
$
|
0.73
|
|
|
$
|
1.25
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
47,537,597
|
|
|
46,745,596
|
|
|
|
47,480,315
|
|
|
|
46,556,428
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
47,853,574
|
|
|
47,067,767
|
|
|
|
47,737,006
|
|
|
|
46,911,574
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows:
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
91
|
|
$
|
27
|
|
|
$
|
174
|
|
|
$
|
181
|
|
Sales and marketing
|
|
|
603
|
|
|
426
|
|
|
|
1,187
|
|
|
|
917
|
|
Research, development and engineering
|
|
|
213
|
|
|
222
|
|
|
|
408
|
|
|
|
362
|
|
General and administrative
|
|
|
2,261
|
|
|
1,288
|
|
|
|
4,404
|
|
|
|
2,887
|
|
Total
|
|
$
|
3,168
|
|
$
|
1,963
|
|
|
$
|
6,173
|
|
|
$
|
4,347
|
|
|
j2 GLOBAL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED, IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED JUNE 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
60,794
|
|
|
$
|
63,814
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
43,181
|
|
|
|
28,455
|
|
|
|
Accretion and amortization of discount and premium of investments
|
|
|
551
|
|
|
|
654
|
|
|
|
Amortization of financing costs and discounts
|
|
|
|
4,480
|
|
|
|
641
|
|
|
|
Share-based compensation
|
|
|
|
6,173
|
|
|
|
4,347
|
|
|
|
Excess tax benefit from share-based compensation
|
|
|
|
(2,104
|
)
|
|
|
(4,803
|
)
|
|
|
Provision for doubtful accounts
|
|
|
|
3,544
|
|
|
|
1,810
|
|
|
|
Deferred income taxes, net
|
|
|
|
(73
|
)
|
|
|
(780
|
)
|
|
|
Gain on sale of available-for-sale investment
|
|
|
|
(42
|
)
|
|
|
(40
|
)
|
|
Decrease (increase) in:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
2,199
|
|
|
|
5,691
|
|
|
|
Prepaid expenses and other current assets
|
|
|
|
2,163
|
|
|
|
(3,151
|
)
|
|
|
Other assets
|
|
|
|
354
|
|
|
|
37
|
|
|
(Decrease) increase in:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
(5,814
|
)
|
|
|
(3,616
|
)
|
|
|
Income taxes payable
|
|
|
|
(5,069
|
)
|
|
|
(320
|
)
|
|
|
Deferred revenue
|
|
|
|
(1,546
|
)
|
|
|
364
|
|
|
|
Liability for uncertain tax positions
|
|
|
|
(12,414
|
)
|
|
|
(1,213
|
)
|
|
|
Other long-term liabilities
|
|
|
|
1,233
|
|
|
|
(84
|
)
|
Net cash provided by operating activities
|
|
|
|
97,610
|
|
|
|
91,806
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Maturity of certificate of deposit
|
|
|
|
65
|
|
|
|
14,520
|
|
|
|
Purchase of certificates of deposit
|
|
|
|
(62
|
)
|
|
|
-
|
|
|
|
Maturity of available-for-sale investments
|
|
|
|
56,095
|
|
|
|
51,929
|
|
|
|
Purchases of available-for-sale investments
|
|
|
|
(57,465
|
)
|
|
|
(45,043
|
)
|
|
|
Purchases of property and equipment
|
|
|
|
(6,955
|
)
|
|
|
(4,631
|
)
|
|
|
Purchases of intangible assets
|
|
|
|
(866
|
)
|
|
|
(79,546
|
)
|
|
|
Acquisition of business
|
|
|
|
(74,308
|
)
|
|
|
(3,899
|
)
|
|
|
Proceeds from sale of assets
|
|
|
|
-
|
|
|
|
608
|
|
Net cash used in investing activities
|
|
|
|
(83,496
|
)
|
|
|
(66,062
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
|
-
|
|
|
|
402,500
|
|
|
|
Debt issuance costs
|
|
|
|
-
|
|
|
|
(11,069
|
)
|
|
|
Repurchases of stock
|
|
|
|
(2,302
|
)
|
|
|
(4,733
|
)
|
|
|
Issuance of stock, net of costs
|
|
|
|
3,135
|
|
|
|
5,316
|
|
|
|
Excess tax benefit from share-based compensation
|
|
|
|
2,104
|
|
|
|
4,803
|
|
|
|
Dividends paid
|
|
|
|
(28,610
|
)
|
|
|
(25,302
|
)
|
|
|
Acquisition of business
|
|
|
|
(3,883
|
)
|
|
|
(13,473
|
)
|
|
|
Other
|
|
|
|
(180
|
)
|
|
|
(163
|
)
|
Net cash (used in) provided by financing activities
|
|
|
|
(29,736
|
)
|
|
|
357,879
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(2,111
|
)
|
|
|
457
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(17,733
|
)
|
|
|
384,080
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
433,663
|
|
|
|
207,801
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
415,930
|
|
|
$
|
591,881
|
|
|
|
|
|
|
|
|
|
|
|
j2 GLOBAL, INC.
|
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
|
THREE MONTHS ENDED JUNE 30, 2015 AND 2014
|
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income is GAAP net income with the following
modifications: (1) elimination of share-based compensation and the
associated payroll tax expense; (2) elimination of certain
acquisition-related integration costs and the impact of fair value
adjustments to deferred revenue purchased in the Livedrive
acquisition; (3) elimination of interest costs in excess of the
coupon rate associated with the convertible notes; (4) IRS
consulting fee; (5) elimination of amortization of patents and
intangible assets that we acquired; (6) elimination of additional
income tax (expense) benefit from prior years; and (7) elimination
of income tax provision associated with the noted modifications.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE 30, 2015
|
|
|
THREE MONTHS ENDED JUNE 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
(4)
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
related
|
|
(3)
|
|
IRS
|
|
|
|
Tax Expense
|
|
|
|
|
|
|
(1)
|
|
related
|
|
|
|
Tax Expense
|
|
|
|
|
|
|
|
|
|
|
Share-based
|
|
Integration
|
|
Interest
|
|
Consulting
|
|
(5)
|
|
(Benefit) from
|
|
Adjusted
|
|
|
|
|
Share-based
|
|
Integration
|
|
(5)
|
|
(Benefit) from
|
|
Adjusted
|
|
|
|
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Costs
|
|
Fee
|
|
Amortization
|
|
Prior Years
|
|
Non-GAAP
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Amortization
|
|
Prior Years
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
176,038
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
176,038
|
|
|
$
|
144,744
|
|
|
-
|
|
|
985
|
|
|
-
|
|
|
-
|
|
|
$
|
145,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
29,494
|
|
(91
|
)
|
|
27
|
|
|
-
|
|
|
-
|
|
|
(666
|
)
|
|
-
|
|
|
|
28,764
|
|
|
|
25,558
|
|
|
(27
|
)
|
|
-
|
|
|
(855
|
)
|
|
-
|
|
|
$
|
24,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
40,421
|
|
(603
|
)
|
|
(230
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
39,588
|
|
|
|
35,329
|
|
|
(426
|
)
|
|
(41
|
)
|
|
-
|
|
|
-
|
|
|
$
|
34,862
|
|
|
Research, development and engineering
|
|
|
8,969
|
|
(213
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
8,756
|
|
|
|
7,600
|
|
|
(222
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
7,378
|
|
|
General and administrative
|
|
|
47,088
|
|
(2,261
|
)
|
|
(1,692
|
)
|
|
-
|
|
|
-
|
|
|
(17,568
|
)
|
|
(2,533
|
)
|
|
|
23,034
|
|
|
|
31,419
|
|
|
(1,288
|
)
|
|
(589
|
)
|
|
(11,435
|
)
|
|
-
|
|
|
$
|
18,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
10,881
|
|
-
|
|
|
-
|
|
|
(1,805
|
)
|
|
-
|
|
|
-
|
|
|
(472
|
)
|
|
|
8,604
|
|
|
|
5,682
|
|
|
-
|
|
|
(439
|
)
|
|
-
|
|
|
-
|
|
|
$
|
5,243
|
|
Other expense (income), net
|
|
|
88
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
88
|
|
|
|
(185
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
(185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (7)
|
|
|
181
|
|
945
|
|
|
717
|
|
|
497
|
|
|
5
|
|
|
4,935
|
|
|
11,887
|
|
|
|
19,167
|
|
|
|
4,292
|
|
|
696
|
|
|
649
|
|
|
3,982
|
|
|
5,487
|
|
|
$
|
15,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
38,916
|
|
2,223
|
|
|
1,178
|
|
|
1,308
|
|
|
(5
|
)
|
|
13,299
|
|
|
(8,882
|
)
|
|
$
|
48,037
|
|
|
$
|
35,049
|
|
|
1,267
|
|
|
1,405
|
|
|
8,308
|
|
|
(5,487
|
)
|
|
$
|
40,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to j2 Global, Inc. common
stockholders*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.81
|
|
0.05
|
|
|
0.02
|
|
|
0.03
|
|
|
(0.00
|
)
|
|
0.28
|
|
|
(0.19
|
)
|
|
$
|
0.99
|
|
|
$
|
0.73
|
|
|
0.03
|
|
|
0.03
|
|
|
0.18
|
|
|
(0.12
|
)
|
|
$
|
0.85
|
|
|
Diluted
|
|
|
|
$
|
0.80
|
|
0.05
|
|
|
0.02
|
|
|
0.03
|
|
|
(0.00
|
)
|
|
0.28
|
|
|
(0.19
|
)
|
|
$
|
0.99
|
|
|
$
|
0.73
|
|
|
0.03
|
|
|
0.03
|
|
|
0.18
|
|
|
(0.12
|
)
|
|
$
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The reconciliation of net income per share from GAAP to adjusted
non-GAAP may not foot since each is calculated independently.
|
|
|
The Company discloses adjusted non-GAAP Earnings Per Share ("EPS")
as supplemental non-GAAP financial performance measure, as it
believes it is a useful metric by which to compare the performance
of its business from period to period. The Company also
understands that this adjusted non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the
presentation of this adjusted non-GAAP financial measure provides
useful information to investors.
|
|
|
Adjusted non-GAAP EPS is not in accordance with, or an alternative
to, net income per share and may be different from non-GAAP
measures with similar or even identical names used by other
companies. In addition, this adjusted non-GAAP measure is not
based on any comprehensive set of accounting rules or principles.
This adjusted non-GAAP measure has limitations in that it does not
reflect all of the amounts associated with the Company's results
of operations determined in accordance with GAAP.
|
|
j2 GLOBAL, INC.
|
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
|
SIX MONTHS ENDED JUNE 30, 2015 AND 2014
|
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income is GAAP net income with the following
modifications: (1) elimination of share-based compensation and the
associated payroll tax expense; (2) elimination of certain
acquisition-related integration costs and the impact of fair value
adjustments to deferred revenue purchased in the Livedrive
acquisition; (3) elimination of interest costs in excess of the
coupon rate associated with the convertible notes; (4) IRS
consulting fee; (5) elimination of amortization of patents and
intangible assets that we acquired; (6) elimination of additional
income tax (expense) benefit from prior years; and (7) elimination
of income tax provision associated with the noted modifications.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED JUNE 30, 2015
|
|
|
SIX MONTHS ENDED JUNE 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
(4)
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
related
|
|
(3)
|
|
IRS
|
|
|
|
Income Tax
|
|
|
|
|
|
|
(1)
|
|
related
|
|
|
|
Income Tax
|
|
|
|
|
|
|
|
|
|
|
Share-based
|
|
Integration
|
|
Interest
|
|
Consulting
|
|
(5)
|
|
Benefit from
|
|
Adjusted
|
|
|
|
|
Share-based
|
|
Integration
|
|
(5)
|
|
Benefit from
|
|
Adjusted
|
|
|
|
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Costs
|
|
Fee
|
|
Amortization
|
|
Prior Years
|
|
Non-GAAP
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Amortization
|
|
Prior Years
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
$
|
337,291
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
337,291
|
|
|
|
$
|
278,868
|
|
|
-
|
|
|
1,526
|
|
|
-
|
|
|
-
|
|
|
$
|
280,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
57,681
|
|
|
(174
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,329
|
)
|
|
-
|
|
|
|
56,178
|
|
|
|
|
48,947
|
|
|
(181
|
)
|
|
-
|
|
|
(1,279
|
)
|
|
-
|
|
|
$
|
47,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
78,011
|
|
|
(1,187
|
)
|
|
(715
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
76,109
|
|
|
|
|
68,288
|
|
|
(917
|
)
|
|
(60
|
)
|
|
-
|
|
|
-
|
|
|
$
|
67,311
|
|
|
Research, development and engineering
|
|
|
17,415
|
|
|
(407
|
)
|
|
(80
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
16,928
|
|
|
|
|
14,814
|
|
|
(362
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
14,452
|
|
|
General and administrative
|
|
|
93,588
|
|
|
(4,404
|
)
|
|
(4,634
|
)
|
|
-
|
|
|
204
|
|
|
(34,543
|
)
|
|
(3,651
|
)
|
|
|
46,560
|
|
|
|
|
60,397
|
|
|
(2,887
|
)
|
|
472
|
|
|
(21,395
|
)
|
|
(713
|
)
|
|
$
|
35,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
21,194
|
|
|
-
|
|
|
-
|
|
|
(3,584
|
)
|
|
-
|
|
|
-
|
|
|
(472
|
)
|
|
|
17,138
|
|
|
|
|
10,630
|
|
|
-
|
|
|
(439
|
)
|
|
-
|
|
|
-
|
|
|
$
|
10,191
|
|
Other expense (income), net
|
|
|
(696
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(696
|
)
|
|
|
|
(505
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
(505
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (7)
|
|
|
|
9,304
|
|
|
1,713
|
|
|
1,837
|
|
|
1,028
|
|
|
(45
|
)
|
|
10,260
|
|
|
11,769
|
|
|
|
35,866
|
|
|
|
|
12,483
|
|
|
1,520
|
|
|
365
|
|
|
7,413
|
|
|
6,849
|
|
|
$
|
28,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
60,794
|
|
|
4,459
|
|
|
3,592
|
|
|
2,556
|
|
|
(159
|
)
|
|
25,612
|
|
|
(7,646
|
)
|
|
$
|
89,208
|
|
|
|
$
|
63,814
|
|
|
2,827
|
|
|
1,188
|
|
|
15,261
|
|
|
(6,136
|
)
|
|
$
|
76,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to j2 Global, Inc. common
stockholders*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
1.26
|
|
|
0.09
|
|
|
0.08
|
|
|
0.05
|
|
|
(0.00
|
)
|
|
0.54
|
|
|
(0.16
|
)
|
|
$
|
1.85
|
|
|
|
$
|
1.34
|
|
|
0.06
|
|
|
0.03
|
|
|
0.33
|
|
|
(0.12
|
)
|
|
$
|
1.62
|
|
|
Diluted
|
|
|
|
|
$
|
1.25
|
|
|
0.09
|
|
|
0.08
|
|
|
0.05
|
|
|
(0.00
|
)
|
|
0.54
|
|
|
(0.16
|
)
|
|
$
|
1.84
|
|
|
|
$
|
1.33
|
|
|
0.06
|
|
|
0.03
|
|
|
0.33
|
|
|
(0.12
|
)
|
|
$
|
1.60
|
|
|
|
* The reconciliation of net income per share from GAAP to adjusted
non-GAAP may not foot since each is calculated independently.
|
|
|
The Company discloses adjusted non-GAAP Earnings Per Share ("EPS")
as supplemental non-GAAP financial performance measure, as it
believes it is a useful metric by which to compare the performance
of its business from period to period. The Company also
understands that this adjusted non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the
presentation of this adjusted non-GAAP financial measure provides
useful information to investors.
|
|
|
Adjusted non-GAAP EPS is not in accordance with, or an alternative
to, net income per share and may be different from non-GAAP
measures with similar or even identical names used by other
companies. In addition, this adjusted non-GAAP measure is not
based on any comprehensive set of accounting rules or principles.
This adjusted non-GAAP measure has limitations in that it does not
reflect all of the amounts associated with the Company's results
of operations determined in accordance with GAAP.
|
|
j2 GLOBAL, INC.
|
NET INCOME TO EBITDA RECONCILIATION
|
THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014
|
(UNAUDITED, IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth a reconciliation of EBITDA to net
income, the most directly comparable GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE 30,
|
|
|
SIX MONTHS ENDED JUNE 30,
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
38,916
|
|
$
|
35,049
|
|
|
|
$
|
60,794
|
|
|
$
|
63,814
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
88
|
|
|
(185
|
)
|
|
|
|
(696
|
)
|
|
|
(505
|
)
|
Interest expense (income), net
|
|
|
10,881
|
|
|
5,682
|
|
|
|
|
21,194
|
|
|
|
10,630
|
|
Income tax expense
|
|
|
181
|
|
|
4,292
|
|
|
|
|
9,304
|
|
|
|
12,483
|
|
Depreciation and amortization
|
|
|
21,893
|
|
|
15,317
|
|
|
|
|
43,181
|
|
|
|
28,455
|
|
Reconciliation of GAAP to adjusted non-GAAP financial measures:
|
|
|
|
|
|
|
|
|
|
Share-based compensation and the associated payroll tax expense
|
|
|
3,168
|
|
|
1,963
|
|
|
|
|
6,173
|
|
|
|
4,347
|
|
Acquisition-related integration costs
|
|
|
1,895
|
|
|
1,615
|
|
|
|
|
5,429
|
|
|
|
1,114
|
|
Additional indirect tax expense from prior years
|
|
|
2,533
|
|
|
-
|
|
|
|
|
3,651
|
|
|
|
713
|
|
Fees associated with prior year audits
|
|
|
-
|
|
|
-
|
|
|
|
|
(204
|
)
|
|
|
-
|
|
EBITDA
|
|
$
|
79,555
|
|
$
|
63,733
|
|
|
|
$
|
148,826
|
|
|
$
|
121,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA as calculated above represents earnings before interest and
other expense, net, income tax expense, depreciation and
amortization and the items used to reconcile GAAP to adjusted
non-GAAP financial measures, including (1) share-based compensation,
(2) certain acquisition-related integration costs and (3) additional
indirect tax expense from prior years. We disclose EBITDA as a
supplemental non-GAAP financial performance measure as we believe it
is a useful metric by which to compare the performance of our
business from period to period. We understand that measures similar
to EBITDA are broadly used by analysts, rating agencies and
investors in assessing our performance. Accordingly, we believe that
the presentation of EBITDA provides useful information to investors.
|
|
|
EBITDA is not in accordance with, or an alternative to, net income,
and may be different from non-GAAP measures used by other companies.
In addition, EBITDA is not based on any comprehensive set of
accounting rules or principles. This adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts
associated with the Company's results of operations determined in
accordance with GAAP.
|
|
j2 GLOBAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
(UNAUDITED, IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
45,716
|
|
|
$
|
51,894
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
97,610
|
|
Less: Purchases of property and equipment
|
|
|
(2,401
|
)
|
|
|
(4,554
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,955
|
)
|
Add: Excess tax benefit from share-based compensation
|
|
|
334
|
|
|
|
1,770
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,104
|
|
Add: IRS settlement*
|
|
|
|
|
5,753
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,753
|
|
Free cash flows
|
|
$
|
43,649
|
|
|
$
|
54,863
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
98,512
|
|
|
|
|
|
|
|
|
|
|
|
|
* Free cash flows of $54.9 million for Q2 2015 were before the
effect of payments associated with taxes for prior periods under
audit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YTD
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
37,294
|
|
|
$
|
54,512
|
|
|
$
|
40,315
|
|
|
$
|
45,110
|
|
|
$
|
177,231
|
|
Less: Purchases of property and equipment
|
|
|
(2,936
|
)
|
|
|
(1,087
|
)
|
|
|
(3,124
|
)
|
|
|
(4,074
|
)
|
|
|
(11,221
|
)
|
Add: Excess tax benefit from share-based compensation
|
|
|
4,082
|
|
|
|
721
|
|
|
|
1,925
|
|
|
|
(1,216
|
)
|
|
|
5,512
|
|
Free cash flows
|
|
$
|
38,440
|
|
|
$
|
54,146
|
|
|
$
|
39,116
|
|
|
$
|
39,820
|
|
|
$
|
171,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company discloses Free Cash Flows as supplemental non-GAAP
financial performance measure, as it believes it is a useful
metrics by which to compare the performance of its business from
period to period. The Company also understands that this non-GAAP
measure is broadly used by analysts, rating agencies and investors
in assessing the Company's performance. Accordingly, the Company
believes that the presentation of this non-GAAP financial measure
provides useful information to investors.
|
|
|
Free Cash Flows is not in accordance with, or an alternative to,
Cash Flows from Operating Activities, and may be different from
non-GAAP measures with similar or even identical names used by
other companies. In addition, the non-GAAP measure is not based on
any comprehensive set of accounting rules or principles. This
non-GAAP measure has limitations in that it does not reflect all
of the amounts associated with the Company's results of operations
determined in accordance with GAAP.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804006786/en/
[ Back To Homepage ]
|