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04 Aug 2016
Achieves Record Second Quarter Revenues (up 20.3% to $211.8 million vs. Q2 2015), Operating Income (up 17.6% to $58.9 million vs. Q2 2015)
Announces Twentieth Consecutive Quarterly Dividend Increase
LOS ANGELES, CA – August 3, 2016 — /BackupReview.info/ — j2 Global, Inc. (NASDAQGS: JCOM) today reported financial results for the second quarter ended June 30, 2016 and announced that its Board of Directors has declared an increased quarterly cash dividend of $0.3450 per share.
SECOND QUARTER 2016 RESULTS
Net cash provided by operating activities increased by 30.1% to $67.5 million compared to $51.9 million for Q2 2015. Q2 2016 free cash flow(1) increased by 15.7% to $63.5 million compared to $54.9 million for Q2 2015 which included an adjustment to free cash flow of $5.8 million associated with taxes for prior periods under audit. Exclusive of the impact in Q2 2015, free cash flow increased by 29.3% compared to $49.1 million for Q2 2015.
In Q2 2015, the Company released certain income tax reserves in conjunction with a favorable IRS tax settlement of $11.9 million, or $0.25 per diluted share which contributed to a decrease in GAAP earnings per diluted share(2) of (13.8)% to $0.69 in Q2 2016 compared to $0.80 for Q2 2015. Exclusive of the impact of the tax reserves release in Q2 2015, GAAP earnings per diluted share(1) increased by 25.5% compared to $0.55 for Q2 2015. Adjusted Non-GAAP earnings per diluted share(2)(3) for the quarter increased 22.2% to $1.21 compared to $0.99 for Q2 2015.
GAAP net income decreased by (13.1)% to $33.8 million compared to $38.9 million for Q2 2015. As noted above, the decrease was attributed to certain non-recurring income tax reserves in conjunction with a favorable IRS tax settlement.
Quarterly Adjusted EBITDA(4) increased 22.5% to $97.5 million compared to $79.6 million for Q2 2015.
j2 ended the quarter with approximately $407.2 million in cash and investments after deploying $43.0 million during the quarter for acquisitions and j2′s regular quarterly dividend.
Key financial results for Q2 2016 versus Q2 2015 are set forth in the following table (in millions, except per share amounts). Reconciliations of Adjusted Non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.
“Our second quarter results highlight the positive combination of healthy revenue growth and efficient expense management,” said Hemi Zucker, CEO of j2 Global. ”Our employees’ efforts yielded an impressive 23% year-over-year Adjusted EBITDA growth on 20% year-over-year revenue growth. With the excellent results of our first-half in hand, I am both optimistic and confident in the future of j2′s businesses and their prospects.”
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%.
The Company has not reconciled the Adjusted Non-GAAP earnings per diluted share and tax rate guidance included in this release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability with respect to costs related to acquisitions and taxation, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable and significant impact on our future GAAP financial results.
About j2 Global
“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’sfilings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting j2 Global, refer to the 2015 Annual Report on Form 10-K filed by j2 Global on February 29, 2016, 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
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.
For detailed financial reports, click here: http://goo.gl/WmS9No
Source: j2 Global, Inc.
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