[February 10, 2016] |
|
j2 Global Reports Record Q4 and Year End 2015 Results and Provides 2016 Outlook
j2 Global, Inc. (NASDAQGS:JCOM) today reported financial results for the
fourth quarter and year ended December 31, 2015, provided fiscal 2016
financial estimates and announced that its Board of Directors has
declared an increased quarterly cash dividend of $0.3250 per share.
FOURTH QUARTER 2015 RESULTS
Quarterly revenues increased 22.6% to a record $204.8 million compared
to $167.1 million for Q4 2014.
Quarterly EBITDA(3) increased 30.2% to a record $100.1
million compared to $76.9 million for Q4 2014.
GAAP earnings per diluted share for the quarter increased 9.1% to a
fourth quarter record of $0.72 compared to $0.66 for Q4 2014.
Adjusted Non-GAAP earnings per diluted share(1)(2) increased
31.6% to a record $1.29 compared to $0.98 for Q4 2014.
Q4 2015 free cash flow(4) increased 88.7% to $75.1 million
compared to $39.8 million for Q4 2014.
j2 ended 2015 with $414 million in cash and investments after deploying
$67.1 million during the quarter for acquisitions and the payment of
j2's regular quarterly dividend.
Key financial results for the fourth quarter 2015 versus the fourth
quarter 2014 are set forth in the following table (in millions, except
per share). Reconciliations of Adjusted earnings per diluted share,
EBITDA and free cash flow to their nearest comparable GAAP financial
measures are attached to this Press Release.
|
|
Q4 2015
|
|
Q4 2014
|
|
% Change
|
Revenues
|
|
|
|
|
|
|
Cloud Services
|
|
$133.8 million
|
|
$113.0 million
|
|
18.4%
|
Digital Media
|
|
$69.9 million
|
|
$52.9 million
|
|
32.1%
|
IP Licensing
|
|
$1.1 million
|
|
$1.2 million
|
|
(8.3)%
|
Total:
|
|
$204.8 million
|
|
$167.1 million
|
|
22.6%
|
Earnings per Diluted Share(1)
|
|
$0.72
|
|
$0.66
|
|
9.1%
|
Adjusted Non-GAAP Earnings per Diluted Share(1) (2)
|
|
$1.29
|
|
$0.98
|
|
31.6%
|
EBITDA(3)
|
|
$100.1 million
|
|
$76.9 million
|
|
30.2%
|
Free Cash Flow(4)
|
|
$75.1 million
|
|
$39.8 million
|
|
88.7%
|
|
|
|
|
|
|
|
FULL YEAR 2015 RESULTS
Annual revenues increased 20.3% to a record $720.8 million compared to
$599 million for 2014.
Annual EBITDA (3) increased 26.9% to a record $333.3 million
compared to $262.6 million for 2014.
GAAP earnings per diluted share for the year increased 5.8% to a record
$2.73 compared to $2.58 for 2014. 2015 Adjusted Non-GAAP earnings per
diluted share(5)(6) increased 21.9% to a record $4.17
compared to $3.42 for 2014.
Free cash flow(4) for the year increased 30.1% to a record
$223.2 million compared to $171.5 million for 2014.
Key annual financial results for 2015 versus 2014 are set forth in the
following table (in millions, except per share). Reconciliations of
Adjusted earnings per diluted share, EBITDA and free cash flow to their
nearest comparable GAAP financial measures are attached to this Press
Release.
|
|
2015
|
|
2014
|
|
% Change
|
Revenues
|
|
|
|
|
|
|
Cloud Services
|
|
$498.9 million
|
|
$425.9 million
|
|
17.1%
|
Digital Media
|
|
$216.1 million
|
|
$167.6 million
|
|
28.9%
|
IP Licensing
|
|
$5.8 million
|
|
$5.5 million
|
|
5.5%
|
Total:
|
|
$720.8 million
|
|
$599 million
|
|
20.3%
|
Earnings per Diluted Share(5)
|
|
$2.73
|
|
$2.58
|
|
5.8%
|
Adjusted Non-GAAP Earnings per Diluted Share(5) (6)
|
|
$4.17
|
|
$3.42
|
|
21.9%
|
EBITDA(3)
|
|
$333.3 million
|
|
$262.6 million
|
|
26.9%
|
Free Cash Flow(4)
|
|
$223.2 million
|
|
$171.5 million
|
|
30.1%
|
|
|
|
|
|
|
|
"2015 was an excellent year fueled by strong performance in all
operating lines of business," said Hemi Zucker, CEO of j2. "Our Cloud
Services segment saw its most significant growth in the Backup and Email
Security businesses, growing both organically and through M&A. Most
importantly, we continue to realize improved margins on our activities
as we integrate acquired businesses into the j2 cost structure. The
Media Segment, through a combination of organic growth and strategic
acquisitions, has significantly grown revenue and scaled its margins to
yield impressive returns."
"For the first time in a quarter, j2 delivered more than $200 million in
revenue, $100 million in adjusted EBITDA and more than $75 million in
free cash flow. This strong momentum positions us well for success into
2016," said Scott Turicchi, President and CFO of j2 Global Inc.
BUSINESS OUTLOOK
For fiscal 2016, the Company estimates that it will achieve revenues
between $830 and $860 million and Adjusted Non-GAAP earnings per diluted
share of between $4.70 and $5.00.
Adjusted Non-GAAP earnings per diluted share for 2016 excludes
share-based compensation of between $12 and $14 million, amortization of
acquired intangibles and the impact of any currently unanticipated
items, in each case net of tax.
It is anticipated that the Non-GAAP effective tax rate for 2016
(exclusive of the release of reserves for uncertain tax positions) will
increase from 28.4% to between 29% and 31%.
DIVIDEND
j2's Board of Directors has approved a quarterly cash dividend of
$0.3250 per common share, a $0.01, or 3.2% increase versus last
quarter's dividend and an 11.1% increase versus the dividend paid in Q1
2015. This is j2's eighteenth consecutive quarterly dividend increase
since its first quarterly dividend in September, 2011. The dividend will
be paid on March 10, 2016 to all shareholders of record as of the close
of business on February 23, 2016. Future dividends will be subject to
Board approval.
EXTENSION OF SHARE REPURCHASE PROGRAM
The Company has extended its one-year five million share repurchase
program set to expire February 20, 2016 by an additional year.
Approximately 2.9 million shares remain available for purchase under the
program.
Notes:
|
(1)
|
|
The estimated GAAP effective tax rate was approximately 16.4% for
Q4 2015 and 23.4% for Q4 2014. The estimated Adjusted Non-GAAP
effective tax rate was approximately 27.6% for Q4 2015 and 26.4%
for Q4 2014.
|
|
|
|
|
|
(2)
|
|
For Q4 2015, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, amortization of acquired intangibles,
certain acquisition-related integration costs, in each case net of
tax, totaling $0.60. For Q4 2014, Adjusted Non-GAAP earnings per
diluted share excludes share-based compensation, amortization of
acquired intangibles, certain acquisition-related integration costs
and certain tax consulting fees, in each case net of tax, totaling
$0.33. Adjusted Non-GAAP earnings per diluted share amounts are not
meant as a substitute for GAAP, but are solely for informational
purposes.
|
|
|
|
|
|
(3)
|
|
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 (2) above. EBITDA amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.
|
|
|
|
|
|
(4)
|
|
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. Free cash flow
amounts are not meant as a substitute for GAAP, but are solely for
informational purposes.
|
|
|
|
|
|
(5)
|
|
The GAAP effective tax rate was approximately 14.8% for 2015 and
19.2% for 2014. The Adjusted Non-GAAP effective tax rate was
approximately 28.4% for 2015 and 26.1% for 2014.
|
|
|
|
|
|
(6)
|
|
For 2015, Adjusted Non-GAAP earnings per diluted share excludes
share-based compensation, amortization of acquired intangibles,
certain acquisition-related integration costs, certain tax
consulting fees and additional tax expense (benefit) from prior
years, in each case net of tax, totaling $1.46. For 2014, Adjusted
Non-GAAP earnings per diluted share excludes share-based
compensation, amortization of acquired intangibles, certain
acquisition-related integration costs, certain tax consulting fees
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 $0.86. Adjusted Non-GAAP earnings per diluted share
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®, Onebox ®, and LiveVault®, 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, 2015, j2
had achieved 20 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 2016 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 2016 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
DECEMBER 31,
|
|
DECEMBER 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
$
|
255,530
|
|
|
$
|
433,663
|
|
|
Short-term investments
|
|
79,655
|
|
|
|
96,206
|
|
|
Accounts receivable,
|
|
|
|
|
net of allowances of $4,261 and $3,685, respectively
|
|
114,680
|
|
|
|
91,699
|
|
|
Prepaid expenses and other current assets
|
|
25,722
|
|
|
|
22,602
|
|
|
Deferred income taxes, current
|
|
7,218
|
|
|
|
2,013
|
|
|
Total current assets
|
|
482,805
|
|
|
|
646,183
|
|
|
|
|
|
|
|
Long-term investments
|
|
78,563
|
|
|
|
60,508
|
|
|
Property and equipment, net
|
|
57,442
|
|
|
|
38,217
|
|
|
Goodwill
|
|
807,661
|
|
|
|
635,675
|
|
|
Other purchased intangibles, net
|
|
352,641
|
|
|
|
311,800
|
|
|
Other assets
|
|
13,756
|
|
|
|
12,819
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$
|
1,792,868
|
|
|
$
|
1,705,202
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Accounts payable and accrued expenses
|
$
|
114,385
|
|
|
$
|
95,310
|
|
|
Income taxes payable
|
|
5,589
|
|
|
|
-
|
|
|
Deferred revenue, current
|
|
76,104
|
|
|
|
63,457
|
|
|
Capital lease, current
|
|
214
|
|
|
|
258
|
|
|
Deferred income taxes, current
|
|
363
|
|
|
|
342
|
|
|
Total current liabilities
|
|
196,655
|
|
|
|
159,367
|
|
|
|
|
|
|
|
Long-term debt
|
|
601,186
|
|
|
|
593,350
|
|
|
Deferred revenue, non-current
|
|
6,538
|
|
|
|
10,182
|
|
|
Capital lease, non-current
|
|
148
|
|
|
|
141
|
|
|
Liability for uncertain tax positions
|
|
35,917
|
|
|
|
37,551
|
|
|
Deferred income taxes, non-current
|
|
43,989
|
|
|
|
61,960
|
|
|
Other long-term liabilities
|
|
18,227
|
|
|
|
22,416
|
|
|
Total liabilities
|
|
902,660
|
|
|
|
884,967
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
479
|
|
|
|
474
|
|
|
Additional paid-in capital
|
|
292,064
|
|
|
|
273,304
|
|
|
Retained earnings
|
|
626,789
|
|
|
|
553,584
|
|
|
Accumulated other comprehensive loss
|
|
(29,124
|
)
|
|
|
(7,127
|
)
|
|
Total stockholders' equity
|
|
890,208
|
|
|
|
820,235
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,792,868
|
|
|
$
|
1,705,202
|
|
|
|
|
|
|
|
|
|
|
j2 GLOBAL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED DECEMBER 31,
|
|
TWELVE MONTHS ENDED DECEMBER 31,
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
204,823
|
|
|
$
|
167,145
|
|
|
$
|
720,815
|
|
$
|
599,030
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (1)
|
|
|
|
34,608
|
|
|
|
28,999
|
|
|
|
122,958
|
|
|
105,989
|
|
|
Gross profit
|
|
|
|
170,215
|
|
|
|
138,146
|
|
|
|
597,857
|
|
|
493,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing (1)
|
|
|
|
42,189
|
|
|
|
36,633
|
|
|
|
159,009
|
|
|
141,967
|
|
|
Research, development and engineering (1)
|
|
|
|
8,625
|
|
|
|
8,228
|
|
|
|
34,329
|
|
|
30,680
|
|
|
General and administrative (1)
|
|
|
|
66,347
|
|
|
|
39,979
|
|
|
|
205,137
|
|
|
134,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
117,161
|
|
|
|
84,840
|
|
|
|
398,475
|
|
|
306,835
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
53,054
|
|
|
|
53,306
|
|
|
|
199,382
|
|
|
186,206
|
|
Interest expense, net
|
|
|
|
11,005
|
|
|
|
10,451
|
|
|
|
42,458
|
|
|
31,204
|
|
Other expense (income), net
|
|
|
|
(384
|
)
|
|
|
89
|
|
|
|
5
|
|
|
(165
|
)
|
Income before income taxes
|
|
|
|
42,433
|
|
|
|
42,766
|
|
|
|
156,919
|
|
|
155,167
|
|
Income tax expense
|
|
|
|
6,966
|
|
|
|
10,012
|
|
|
|
23,283
|
|
|
29,840
|
|
Net income
|
|
|
$
|
35,467
|
|
|
$
|
32,754
|
|
|
$
|
133,636
|
|
$
|
125,327
|
|
Less extinguishment of Series A Preferred Stock
|
|
|
-
|
|
|
|
(991
|
)
|
|
|
-
|
|
|
(991
|
)
|
Net income attributable to j2 Global, Inc. common stockholders
|
|
$
|
35,467
|
|
|
$
|
31,763
|
|
|
$
|
133,636
|
|
$
|
124,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc. common shareholders
|
|
$
|
0.73
|
|
|
$
|
0.66
|
|
|
$
|
2.76
|
|
$
|
2.60
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share:
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc. common shareholders
|
|
$
|
0.72
|
|
|
$
|
0.66
|
|
|
$
|
2.73
|
|
$
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
47,849,748
|
|
|
|
47,146,503
|
|
|
|
47,627,853
|
|
|
46,778,015
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
48,772,061
|
|
|
|
47,468,841
|
|
|
|
48,087,760
|
|
|
47,106,538
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expense as follows:
|
|
|
|
|
|
|
Cost of revenues
|
|
|
$
|
100
|
|
|
$
|
82
|
|
|
$
|
373
|
|
$
|
345
|
|
Sales and marketing
|
|
|
|
624
|
|
|
|
584
|
|
|
|
2,435
|
|
|
1,944
|
|
Research, development and engineering
|
|
|
|
229
|
|
|
|
184
|
|
|
|
863
|
|
|
721
|
|
General and administrative
|
|
|
|
1,898
|
|
|
|
1,520
|
|
|
|
8,122
|
|
|
5,898
|
|
Total
|
|
|
$
|
2,851
|
|
|
$
|
2,370
|
|
|
$
|
11,793
|
|
$
|
8,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j2 GLOBAL, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED, IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED DECEMBER 31,
|
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
133,636
|
|
|
$
|
125,327
|
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
93,213
|
|
|
|
62,953
|
|
|
|
Accretion and amortization of discount and premium of investments
|
|
1,207
|
|
|
|
1,334
|
|
|
|
Amortization of financing costs and discounts
|
|
|
|
9,105
|
|
|
|
5,045
|
|
|
|
Share-based compensation
|
|
|
|
11,793
|
|
|
|
8,908
|
|
|
|
Excess tax benefit from share-based compensation
|
|
|
|
(4,486
|
)
|
|
|
(5,512
|
)
|
|
|
Provision for doubtful accounts
|
|
|
|
6,872
|
|
|
|
4,702
|
|
|
|
Deferred income taxes, net
|
|
|
|
(17,083
|
)
|
|
|
(10,033
|
)
|
|
|
Gain on sale of available-for-sale investment
|
|
|
|
(549
|
)
|
|
|
(90
|
)
|
|
Decrease (increase) in:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(18,508
|
)
|
|
|
(11,078
|
)
|
|
|
Prepaid expenses and other current assets
|
|
|
|
1,461
|
|
|
|
(3,212
|
)
|
|
|
Other assets
|
|
|
|
(602
|
)
|
|
|
(42
|
)
|
|
(Decrease) increase in:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
8,757
|
|
|
|
(5,447
|
)
|
|
|
Income taxes payable
|
|
|
|
3,578
|
|
|
|
10,797
|
|
|
|
Deferred revenue
|
|
|
|
(3,480
|
)
|
|
|
(711
|
)
|
|
|
Liability for uncertain tax positions
|
|
|
|
(5,718
|
)
|
|
|
(6,313
|
)
|
|
|
Other long-term liabilities
|
|
|
|
9,865
|
|
|
|
603
|
|
Net cash provided by operating activities
|
|
|
|
229,061
|
|
|
|
177,231
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Maturity of certificate of deposit
|
|
|
|
65
|
|
|
|
14,520
|
|
|
|
Purchase of certificates of deposit
|
|
|
|
(62
|
)
|
|
|
(65
|
)
|
|
|
Sales of available-for-sale investments
|
|
|
|
121,687
|
|
|
|
110,363
|
|
|
|
Purchases of available-for-sale investments
|
|
|
|
(135,832
|
)
|
|
|
(138,452
|
)
|
|
|
Purchases of property and equipment
|
|
|
|
(17,297
|
)
|
|
|
(11,829
|
)
|
|
|
Purchases of intangible assets
|
|
|
|
(1,455
|
)
|
|
|
(5,336
|
)
|
|
|
Acquisition of businesses, net of cash received
|
|
|
|
(302,809
|
)
|
|
|
(245,278
|
)
|
|
|
Proceeds from sale of assets
|
|
|
|
-
|
|
|
|
608
|
|
Net cash used in investing activities
|
|
|
|
(335,703
|
)
|
|
|
(275,469
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
|
-
|
|
|
|
402,500
|
|
|
|
Debt issuance costs
|
|
|
|
-
|
|
|
|
(11,991
|
)
|
|
|
Repurchases of common and restricted stock
|
|
|
|
(3,674
|
)
|
|
|
(5,663
|
)
|
|
|
Issuance of stock, net of costs
|
|
|
|
5,218
|
|
|
|
6,886
|
|
|
|
Excess tax benefits from share-based compensation
|
|
|
4,486
|
|
|
|
5,512
|
|
|
|
Dividends paid
|
|
|
|
(58,827
|
)
|
|
|
(52,269
|
)
|
|
|
Acquisition of business
|
|
|
|
(14,271
|
)
|
|
|
(16,512
|
)
|
|
|
Other
|
|
|
|
(296
|
)
|
|
|
(933
|
)
|
Net cash (used in) provided by financing activities
|
|
|
|
(67,364
|
)
|
|
|
327,530
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(4,127
|
)
|
|
|
(3,430
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(178,133
|
)
|
|
|
225,862
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
433,663
|
|
|
|
207,801
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
255,530
|
|
|
$
|
433,663
|
|
|
|
|
|
|
|
|
|
|
|
|
j2 GLOBAL, INC.
|
|
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
|
|
THREE MONTHS ENDED DECEMBER 31, 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; (7) dilutive effect
of the convertible debt; and (8) elimination of income tax provision
associated with the noted modifications.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED DECEMBER 31, 2015
|
|
|
THREE MONTHS ENDED DECEMBER 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
|
|
Additional
|
|
(7)
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
related
|
|
(3)
|
|
|
|
Tax Expense
|
|
Convertible
|
|
|
|
|
|
|
(1)
|
|
related
|
|
IRS
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
|
|
Integration
|
|
Interest
|
|
(5)
|
|
(Benefit) from
|
|
Debt
|
|
Adjusted
|
|
|
|
|
Share-based
|
|
Integration
|
|
Consulting
|
|
(5)
|
|
Adjusted
|
|
|
|
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Costs
|
|
Amortization
|
|
Prior Years
|
|
Dilution
|
|
Non-GAAP
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Fee
|
|
Amortization
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
204,823
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
204,823
|
|
|
|
$
|
167,145
|
|
|
-
|
|
|
336
|
|
|
-
|
|
|
-
|
|
|
$
|
167,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
34,608
|
|
|
(100
|
)
|
|
(327
|
)
|
|
-
|
|
|
(1,314
|
)
|
|
-
|
|
|
-
|
|
|
|
32,867
|
|
|
|
|
28,999
|
|
|
(82
|
)
|
|
-
|
|
|
-
|
|
|
(668
|
)
|
|
|
28,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
42,189
|
|
|
(624
|
)
|
|
(395
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
41,170
|
|
|
|
|
36,633
|
|
|
(584
|
)
|
|
(25
|
)
|
|
-
|
|
|
-
|
|
|
|
36,024
|
|
|
Research, development and engineering
|
|
8,625
|
|
|
(229
|
)
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
8,395
|
|
|
|
|
8,228
|
|
|
(184
|
)
|
|
(2
|
)
|
|
-
|
|
|
-
|
|
|
|
8,042
|
|
|
General and administrative
|
|
66,347
|
|
|
(1,898
|
)
|
|
(13,940
|
)
|
|
-
|
|
|
(23,322
|
)
|
|
-
|
|
|
-
|
|
|
|
27,187
|
|
|
|
|
39,979
|
|
|
(1,520
|
)
|
|
(589
|
)
|
|
(650
|
)
|
|
(15,134
|
)
|
|
|
22,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
11,005
|
|
|
-
|
|
|
-
|
|
|
(2,567
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
8,438
|
|
|
|
|
10,451
|
|
|
-
|
|
|
(2,124
|
)
|
|
-
|
|
|
-
|
|
|
|
8,327
|
|
Other expense (income), net
|
|
(384
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(384
|
)
|
|
|
|
89
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (8)
|
|
6,966
|
|
|
1,009
|
|
|
5,085
|
|
|
1,168
|
|
|
6,055
|
|
|
3,770
|
|
|
-
|
|
|
|
24,053
|
|
|
|
|
10,012
|
|
|
789
|
|
|
1,123
|
|
|
176
|
|
|
4,959
|
|
|
|
17,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
35,467
|
|
|
1,842
|
|
|
9,578
|
|
|
1,399
|
|
|
18,581
|
|
|
(3,770
|
)
|
|
-
|
|
|
$
|
63,097
|
|
|
|
$
|
32,754
|
|
|
1,581
|
|
|
1,953
|
|
|
474
|
|
|
10,843
|
|
|
$
|
47,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extinguishment of Series A Preferred Stock
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(991
|
)
|
|
-
|
|
|
991
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stockholders
|
$
|
35,467
|
|
|
1,842
|
|
|
9,578
|
|
|
1,399
|
|
|
18,581
|
|
|
(3,770
|
)
|
|
-
|
|
|
$
|
63,097
|
|
|
|
$
|
31,763
|
|
|
1,581
|
|
|
2,944
|
|
|
474
|
|
|
10,843
|
|
|
$
|
47,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j2 Global, Inc. common stockholders*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.73
|
|
|
0.04
|
|
|
0.20
|
|
|
0.03
|
|
|
0.39
|
|
|
(0.08
|
)
|
|
0.00
|
|
|
$
|
1.30
|
|
|
|
$
|
0.66
|
|
|
0.03
|
|
|
0.06
|
|
|
0.01
|
|
|
0.23
|
|
|
$
|
0.99
|
|
|
Diluted
|
|
|
$
|
0.72
|
|
|
0.04
|
|
|
0.20
|
|
|
0.03
|
|
|
0.39
|
|
|
(0.08
|
)
|
|
0.01
|
|
|
$
|
1.29
|
|
|
|
$
|
0.66
|
|
|
0.03
|
|
|
0.06
|
|
|
0.01
|
|
|
0.23
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
|
TWELVE MONTHS ENDED DECEMBER 31, 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; (7) dilutive effect
of the convertible debt; and (8) elimination of income tax provision
associated with the noted modifications.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED DECEMBER 31, 2015
|
|
|
TWELVE MONTHS ENDED DECEMBER 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
|
|
(4)
|
|
|
|
Additional
|
|
(7)
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
(4)
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
|
(1)
|
|
related
|
|
(3)
|
|
IRS
|
|
|
|
Income Tax
|
|
Convertible
|
|
|
|
|
|
|
(1)
|
|
related
|
|
IRS
|
|
|
|
Income Tax
|
|
|
|
|
|
|
|
|
|
Share-based
|
|
Integration
|
|
Interest
|
|
Consulting
|
|
(5)
|
|
Benefit from
|
|
Debt
|
|
Adjusted
|
|
|
|
|
Share-based
|
|
Integration
|
|
Consulting
|
|
(5)
|
|
Benefit from
|
|
Adjusted
|
|
|
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Costs
|
|
Fee
|
|
Amortization
|
|
Prior Years
|
|
Dilution
|
|
Non-GAAP
|
|
|
GAAP
|
|
Compensation
|
|
Costs
|
|
Fee
|
|
Amortization
|
|
Prior Years
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
720,815
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
720,815
|
|
|
$
|
599,030
|
|
|
-
|
|
|
2,075
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
$
|
601,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
122,958
|
|
(373
|
)
|
|
(327
|
)
|
|
-
|
|
|
-
|
|
|
(3,376
|
)
|
|
-
|
|
|
-
|
|
|
|
118,882
|
|
|
|
105,989
|
|
|
(345
|
)
|
|
(57
|
)
|
|
-
|
|
|
(2,462
|
)
|
|
-
|
|
|
|
103,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
159,009
|
|
(2,435
|
)
|
|
(1,110
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
155,464
|
|
|
|
141,967
|
|
|
(1,944
|
)
|
|
(125
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
139,898
|
|
|
Research, development and engineering
|
|
34,329
|
|
(863
|
)
|
|
(81
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
33,385
|
|
|
|
30,680
|
|
|
(721
|
)
|
|
(34
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
29,925
|
|
|
General and administrative
|
|
205,137
|
|
(8,122
|
)
|
|
(23,930
|
)
|
|
-
|
|
|
204
|
|
|
(73,902
|
)
|
|
(3,651
|
)
|
|
-
|
|
|
|
95,736
|
|
|
|
134,188
|
|
|
(5,898
|
)
|
|
(144
|
)
|
|
(1,423
|
)
|
|
(47,247
|
)
|
|
(713
|
)
|
|
|
78,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
42,458
|
|
-
|
|
|
-
|
|
|
(7,982
|
)
|
|
-
|
|
|
-
|
|
|
(472
|
)
|
|
-
|
|
|
|
34,004
|
|
|
|
31,204
|
|
|
-
|
|
|
(4,082
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
27,122
|
|
Other expense (income), net
|
|
5
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
5
|
|
|
|
(165
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(165
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (8)
|
|
23,283
|
|
3,380
|
|
|
8,880
|
|
|
2,471
|
|
|
(47
|
)
|
|
21,672
|
|
|
20,681
|
|
|
-
|
|
|
|
80,320
|
|
|
|
29,840
|
|
|
3,115
|
|
|
2,148
|
|
|
369
|
|
|
16,092
|
|
|
6,435
|
|
|
|
57,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
133,636
|
|
8,413
|
|
|
16,568
|
|
|
5,511
|
|
|
(157
|
)
|
|
55,606
|
|
|
(16,558
|
)
|
|
-
|
|
|
$
|
203,019
|
|
|
$
|
125,327
|
|
|
5,793
|
|
|
4,369
|
|
|
1,054
|
|
|
33,617
|
|
|
(5,722
|
)
|
|
$
|
164,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extinguishment of Series A Preferred Stock
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(991
|
)
|
|
-
|
|
|
991
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to j2 Global, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stockholders
|
$
|
133,636
|
|
8,413
|
|
|
16,568
|
|
|
5,511
|
|
|
(157
|
)
|
|
55,606
|
|
|
(16,558
|
)
|
|
-
|
|
|
$
|
203,019
|
|
|
$
|
124,336
|
|
|
5,793
|
|
|
5,360
|
|
|
1,054
|
|
|
33,617
|
|
|
(5,722
|
)
|
|
$
|
164,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j2 Global, Inc. common stockholders*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
2.76
|
|
0.18
|
|
|
0.35
|
|
|
0.12
|
|
|
(0.00
|
)
|
|
1.17
|
|
|
(0.35
|
)
|
|
0.00
|
|
|
$
|
4.19
|
|
|
$
|
2.60
|
|
|
0.13
|
|
|
0.12
|
|
|
0.02
|
|
|
0.72
|
|
|
(0.12
|
)
|
|
$
|
3.44
|
|
|
Diluted
|
|
|
$
|
2.73
|
|
0.18
|
|
|
0.35
|
|
|
0.12
|
|
|
(0.00
|
)
|
|
1.16
|
|
|
(0.35
|
)
|
|
0.01
|
|
|
$
|
4.17
|
|
|
$
|
2.58
|
|
|
0.13
|
|
|
0.12
|
|
|
0.02
|
|
|
0.71
|
|
|
(0.12
|
)
|
|
$
|
3.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 TWELVE MONTHS ENDED DECEMBER 31, 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 DECEMBER 31,
|
|
TWELVE MONTHS ENDED DECEMBER 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
35,467
|
|
|
$
|
32,754
|
|
$
|
133,636
|
|
|
$
|
125,327
|
|
Plus:
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
(384
|
)
|
|
|
89
|
|
|
5
|
|
|
|
(165
|
)
|
Interest expense, net
|
|
|
11,005
|
|
|
|
10,451
|
|
|
42,458
|
|
|
|
31,204
|
|
Income tax expense
|
|
|
6,966
|
|
|
|
10,012
|
|
|
23,283
|
|
|
|
29,840
|
|
Depreciation and amortization
|
|
|
29,578
|
|
|
|
19,646
|
|
|
93,213
|
|
|
|
62,953
|
|
Reconciliation of GAAP to adjusted non-GAAP financial measures:
|
|
|
|
|
|
Share-based compensation and the associated payroll tax expense
|
|
2,851
|
|
|
|
2,370
|
|
|
11,793
|
|
|
|
8,908
|
|
Acquisition-related integration costs
|
|
|
14,663
|
|
|
|
952
|
|
|
25,448
|
|
|
|
2,435
|
|
Additional indirect tax expense from prior years
|
|
|
-
|
|
|
|
-
|
|
|
3,651
|
|
|
|
713
|
|
Fees associated with prior year audits
|
|
|
-
|
|
|
|
650
|
|
|
(204
|
)
|
|
|
1,423
|
|
EBITDA
|
|
$
|
100,146
|
|
|
$
|
76,924
|
|
$
|
333,283
|
|
|
$
|
262,638
|
|
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
|
|
|
$
|
50,963
|
|
|
$
|
80,488
|
|
|
$
|
229,061
|
|
Less: Purchases of property and equipment
|
|
(2,401
|
)
|
|
|
(4,554
|
)
|
|
|
(4,972
|
)
|
|
|
(5,370
|
)
|
|
|
(17,297
|
)
|
Add: Excess tax benefit from share-based compensation
|
|
334
|
|
|
|
1,770
|
|
|
|
2,437
|
|
|
|
(55
|
)
|
|
|
4,486
|
|
Add: IRS settlement*
|
|
-
|
|
|
|
5,753
|
|
|
|
1,164
|
|
|
|
-
|
|
|
|
6,917
|
|
Free cash flows
|
$
|
43,649
|
|
|
$
|
54,863
|
|
|
$
|
49,592
|
|
|
$
|
75,063
|
|
|
$
|
223,167
|
|
|
|
|
|
|
|
|
|
|
|
* Free cash flows of $54.9 million and $49.6 million for Q2 2015 and
Q3 2015, respectively, 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/20160210006552/en/
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