Achieves Record Third Quarter Revenues of $178.7 million (up 16.8% vs. Q3 2014), EBITDA of $84.3 million (up 30.3% vs. Q3 2014), 47.2% EBITDA margins and Adjusted Non-GAAP EPS of $1.04 (up 25.3% vs. Q3 2014)

Announces Seventeenth Consecutive Quarterly Dividend Increase

LOS ANGELES, CA – November 3, 2015 — /BackupReview.info/ — j2 Global, Inc. (NASDAQGS: JCOM) today reported financial results for the third quarter ended September 30, 2015 and announced that its Board of Directors has declared an increased quarterly cash dividend of$0.3150 per share.

j2 achieved several all-time quarterly records, notably:

  • Revenues of $178.7 million
  • EBITDA(1) of $84.3 million
  • Adjusted Non-GAAP EPS(2)(3) of $1.04 per diluted share

THIRD QUARTER 2015 RESULTS
Q3 2015 quarterly revenues increased 16.8% to a quarterly record of $178.7 million compared to $153.0 million for Q3 2014.

GAAP earnings per diluted share(2) for the quarter increased 28.3% to $0.77 compared to $0.60 for Q3 2014. Adjusted Non-GAAP earnings per diluted share(2)(3) for the quarter increased 25.3% to a Q3 record $1.04 compared to $0.83 for Q3 2014.

Quarterly EBITDA(1) increased 30.3% to a Q3 record $84.3 million compared to $64.7 million for Q3 2014.

Q3 2015 free cash flow(5) increased 26.9% to $49.6 million compared to $39.1 million for Q3 2014.

j2 ended the quarter with approximately $410.7 million in cash and investments after deploying $202 million during the quarter for acquisitions and j2’s regular quarterly dividend.

Key financial results for Q3 2015 versus Q3 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.

Q3 2015 Q3 2014 % Change
Revenues
Cloud Services $125.3 million $108.7 million 15.3%
Digital Media $52.3 million $43.2 million 21.1%
IP Licensing $1.1 million $1.2 million (8.3)%
Total: $178.7 million $153.0 million 16.8%
GAAP Net Income $37.4 million $28.8 million 29.9%
GAAP Earnings per Diluted Share (2) $0.77 $0.60 28.3%
Adjusted Non-GAAP Earnings per Diluted Share (2) (3) $1.04 $0.83 25.3%
EBITDA (1) $84.3 million $64.7 million 30.3%
Free Cash Flow (5) $49.6 million $39.1 million 26.9%

“I am extremely pleased with another record quarter,” said Hemi Zucker, CEO of j2 Global®. “Our Q3 Revenue increased 17% year over year while Adjusted Non-GAAP EPS and EBITDA increased 25% and 30% respectively, validating our integration capabilities and growth strategy of disciplined, accretive M&A, expense optimization and organic growth initiatives. We are also proud to report that we crossed the 3,000,000 paying subscriber mark while maintaining record low monthly churn just under 2%. Our 47% EBITDA margins this quarter reflect impressive EBITDA margin improvement in both our Cloud Services and Digital Media segments as we scale our businesses and integrate acquisitions.”

BUSINESS OUTLOOK
The Company reaffirms its recently increased fiscal 2015 estimates: that it will achieve revenues between $690 and $724 million(an increase to the upper end of the range of $14 million or 1.97%) and Adjusted Non-GAAP earnings per diluted share of between $3.73 and $4.13 (an increase in the upper end of the range of $0.16 or 4.03%).

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 (excluding certain expenses that may not be indicative of our recurring core business operating results) 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 $0.3150 per common share, a 10.5% increase versus the dividend paid in Q4 2014. This is j2’s seventeenth consecutive quarterly dividend increase since its first quarterly dividend inSeptember 2011. The dividend will be paid on December 3, 2015 to all shareholders of record as of the close of business onNovember 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 15.8% for Q3 2015 and 20.3% for Q3 2014. The estimated Adjusted Non-GAAP effective tax rates were approximately 28.7% for Q3 2015 and 23.6% for Q3 2014.
(3) For Q3 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, amortization of acquired intangibles and additional tax expense (benefit) from prior years, in each case net of tax, totaling $0.28 per diluted share. For Q3 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 $0.24 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 Q3 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.

For detailed Financial reports, visit:
http://investor.j2global.com/releasedetail.cfm?ReleaseID=940277

SEC Filing:
http://investor.j2global.com/secfiling.cfm?FilingID=1084048-15-13

Contact:
j2 Global, Inc.
Laura Hinson
800-577-1790
Laura.hinson@j2.com
www.j2.com

Source: j2 Global, Inc.

 

 

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