LOS ANGELES–(BUSINESS WIRE)–J2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the second quarter ended June 30, 2021.
“Our organization produced yet another record quarter that was materially ahead of our expectations,” said Vivek Shah, CEO of J2 Global. “We’re raising our full-year outlook for a second time this year, as our company continues to perform impressively.”
SECOND QUARTER 2021 RESULTS
Q2 2021 quarterly revenues increased 29.6% to a Q2 record of $429.0 million as compared to $331.0 million for Q2 2020. On a pro-forma(6) basis, Q2 2021 quarterly revenues increased 33.5% to $417.7 million as compared to $312.8 million for Q2 2020.
Net cash provided by operating activities decreased to $111.3 million as compared to $139.6 million for Q2 2020. Q2 2021 free cash flow(2) decreased 30.6% to $80.5 million as compared to $115.9 million for Q2 2020. Free cash flow decreased primarily due to additional tax payments during Q2 2021 in comparison to the prior comparable period in the amount of $27.6 million. In addition, the Company experienced higher collections of receivables generated in Q4 2020 in Q1 2021 in comparison to collections in Q1 2020. Accordingly, a higher portion of collection activity from the prior year was collected in Q2 2020 related to Q4 receivables in comparison to the current quarter. Also, the Company had additional capital expenditures in comparison to the prior comparable period in the amount of approximately $7.8 million.
GAAP earnings per diluted share(3) decreased to $0.33 in Q2 2021 compared to $0.80 for Q2 2020. Earnings decrease was primarily due to the impairment of the B2B Backup business unit for $24.6 million, net of tax, as well as a loss on investments associated with a pending sale of the Company’s investee in the amount of $12.7 million, net of tax.
Adjusted non-GAAP earnings per diluted share(3)(4) for the quarter increased 40.9% to $2.41 as compared to $1.71 for Q2 2020. On a pro-forma(6) basis, Adjusted non-GAAP earnings per diluted share(3)(4) for the quarter increased 45.0% to $2.32 as compared to $1.60 for Q2 2020.
GAAP net income decreased to $15.7 million as compared to $38.1 million for Q2 2020.
Adjusted non-GAAP net income increased by 33.8% to $107.9 million as compared to $80.6 million for Q2 2020. On a pro-forma(6) basis, Adjusted non-GAAP net income increased by 37.9% to $104.1 million as compared to $75.5 million for Q2 2020.
Adjusted EBITDA(5) for the quarter increased 29.5% to $172.0 million compared to $132.9 million for Q2 2020. On a pro-forma(6) basis, Adjusted EBITDA(5) for the quarter increased 33.0% to $167.2 million compared to $125.7 million for Q2 2020.
J2 ended the quarter with approximately $465 million in cash, cash equivalents, and investments after deploying approximately $94.9 million during the quarter for current and prior year acquisitions.
Key unaudited financial results for Q2 2021 versus Q2 2020 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. The Pro-Forma Results below exclude Voice assets in Australia, New Zealand, and the United Kingdom that have been sold as well as the Company’s B2B Backup business which it expects to sell.
|
|
|
|
|
Pro-Forma Results(6) |
||||||||||||
|
|
Q2 2021 |
Q2 2020 |
% Change |
Q2 2021 |
Q2 2020 |
% Change |
||||||||||
|
Revenues |
|
|
|
|
|
|
||||||||||
|
Cloud Services |
$ |
175.3 |
|
$ |
167.1 |
|
4.9 |
% |
$ |
163.9 |
|
$ |
148.9 |
|
10.1 |
% |
|
Digital Media |
$ |
253.8 |
|
$ |
163.9 |
|
54.8 |
% |
$ |
253.8 |
|
$ |
163.9 |
|
54.8 |
% |
|
Total Revenue: (1) |
$ |
429.0 |
|
$ |
331.0 |
|
29.6 |
% |
$ |
417.7 |
|
$ |
312.8 |
|
33.5 |
% |
|
Operating Income |
$ |
94.3 |
|
$ |
73.0 |
|
29.1 |
% |
|
|
|
|||||
|
Net Cash Provided by Operating Activities |
$ |
111.3 |
|
$ |
139.6 |
|
(20.3 |
)% |
|
|
|
|||||
|
Free Cash Flow (2) |
$ |
80.5 |
|
$ |
115.9 |
|
(30.6 |
)% |
|
|
|
|||||
|
GAAP Earnings per Diluted Share (3) |
$ |
0.33 |
|
$ |
0.80 |
|
(58.7 |
)% |
|
|
|
|||||
|
Adjusted Non-GAAP Earnings per Diluted Share (3) (4) |
$ |
2.41 |
|
$ |
1.71 |
|
40.9 |
% |
$ |
2.32 |
|
$ |
1.60 |
|
45.0 |
% |
|
GAAP Net Income |
$ |
15.7 |
|
$ |
38.1 |
|
(58.7 |
)% |
|
|
|
|||||
|
Adjusted Non-GAAP Net Income |
$ |
107.9 |
|
$ |
80.6 |
|
33.8 |
% |
$ |
104.1 |
|
$ |
75.5 |
|
37.9 |
% |
|
Adjusted EBITDA (5) |
$ |
172.0 |
|
$ |
132.9 |
|
29.5 |
% |
$ |
167.2 |
|
$ |
125.7 |
|
33.0 |
% |
|
Adjusted EBITDA Margin (5) |
|
40.1 |
% |
|
40.1 |
% |
— |
% |
|
40.0 |
% |
|
40.2 |
% |
(0.2 |
)% |
REVISED BUSINESS OUTLOOK
Based on better-than-expected operating performance, the Company is raising its revenue, Adjusted EBITDA, and Adjusted non-GAAP EPS estimates:
|
|
Current Guidance (A) |
|
Revised 2021 Range of Estimates (A)(B) |
||||||||||
|
|
Low |
High |
|
Low |
High |
||||||||
|
Revenue |
$ |
1,676 |
|
$ |
1,700 |
|
|
$ |
1,722 |
|
$ |
1,742 |
|
|
Adjusted EBITDA |
$ |
666 |
|
$ |
680 |
|
|
$ |
695 |
|
$ |
705 |
|
|
Adjusted non-GAAP EPS |
$ |
9.27 |
|
$ |
9.51 |
|
|
$ |
9.57 |
|
$ |
9.73 |
|
|
(A) Balances are in millions, except per share amounts, and exclude the B2B Backup business and Voice assets in the United Kingdom. |
|
(B) Adjusted non-GAAP EPS includes the weighted average impact of an additional 3.0 million shares of J2 Global common stock for the remainder of the year in connection with the settlement of the 3.25% Convertible Notes. |
Adjusted non-GAAP earnings per diluted share for 2021 excludes share-based compensation of between $20 million and $24 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 2021 (exclusive of the release of reserves for uncertain tax positions) will be between 22% and 24%.
The Company has not reconciled the non-GAAP Business Outlook 2021 Adjusted EBITDA, Adjusted non-GAAP earnings per diluted share, and tax rate information 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 forecasted revenues and costs primarily related to acquisitions and taxation, which are potential adjustments to future earnings, and the uncertainty as to when or if the B2B Backup Business will be sold. We expect the variability of forecasted revenues and costs to have a potentially unpredictable and significant impact on our future GAAP financial results.
Notes:
|
(1) |
|
The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
|
(2) |
|
Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment, plus contingent consideration. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|
(3) |
|
The estimated GAAP effective tax rates were approximately 9.1% for Q2 2021 and 26.7% for Q2 2020. The estimated Adjusted non-GAAP effective tax rates were approximately 22.7% for Q2 2021 and 21.8% for Q2 2020. |
|
(4) |
|
Adjusted non-GAAP earnings per diluted share excludes certain non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures, for the three months ended June 30, 2021 and 2020 totaled $2.08 and $0.91 per diluted share, respectively. |
|
(5) |
|
Adjusted EBITDA is defined as earnings before interest; gain on sale of businesses; goodwill impairment of business; loss on investments, net; other income (expense), net; income tax expense; income (loss) from equity method investment, net; depreciation and amortization; and the items used to reconcile EPS to Adjusted non-GAAP EPS, as defined in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
|
(6) |
|
Pro-forma figures are provided taking into consideration the sale of certain Voice assets in Australia, New Zealand, and the United Kingdom as well as the expected sale of the Company’s B2B Backup business as if they had occurred January 1, 2020. |
About J2 Global
J2 Global, Inc. (NASDAQ: JCOM) is a leading internet information and services company consisting of a portfolio of brands including IGN, Mashable, Humble Bundle, Speedtest, PCMag, RetailMeNot, Offers.com, Spiceworks, Ekahau, Everyday Health, BabyCenter and What To Expect in its Digital Media business and eFax, eVoice, Moz, iContact, Campaigner, Vipre and IPVanish in its Cloud Services business. J2 reaches in excess of 240 million people per month across its brands. As of December 31, 2020, J2 had achieved 25 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, including those contained in Vivek Shah’s quote and the “Business Outlook” portion regarding the Company’s expected fiscal 2021 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 2020 Annual Report on Form 10-K filed by J2 Global on March 1, 2021, 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, including those contained in Vivek Shah’s quote and in the “Business Outlook” portion regarding the Company’s expected fiscal 2021 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 net income, Adjusted non-GAAP earnings per diluted share, Adjusted 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. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
|||||||
|
|
June 30, 2021 |
|
December 31, 2020 |
||||
|
ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
347,857 |
|
|
$ |
242,652 |
|
|
Short-term investments |
— |
|
|
663 |
|
||
|
Accounts receivable, net of allowances of $16,255 and $16,018, respectively |
249,005 |
|
|
325,619 |
|
||
|
Prepaid expenses and other current assets |
56,177 |
|
|
53,909 |
|
||
|
Current assets held for sale |
8,939 |
|
|
— |
|
||
|
Total current assets |
661,978 |
|
|
622,843 |
|
||
|
Long-term investments |
117,396 |
|
|
97,495 |
|
||
|
Property and equipment, net |
171,645 |
|
|
156,577 |
|
||
|
Operating lease right-of-use assets |
82,961 |
|
|
105,845 |
|
||
|
Goodwill |
1,837,539 |
|
|
1,867,430 |
|
||
|
Other purchased intangibles, net |
676,146 |
|
|
741,569 |
|
||
|
Deferred income taxes, noncurrent |
40,755 |
|
|
56,545 |
|
||
|
Other assets |
16,759 |
|
|
17,027 |
|
||
|
Noncurrent assets held for sale |
98,187 |
|
|
— |
|
||
|
TOTAL ASSETS |
$ |
3,703,366 |
|
|
$ |
3,665,331 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Accounts payable and accrued expenses |
$ |
198,220 |
|
|
$ |
230,651 |
|
|
Income taxes payable, current |
11,471 |
|
|
31,753 |
|
||
|
Deferred revenue, current |
193,531 |
|
|
190,644 |
|
||
|
Operating lease liabilities, current |
30,818 |
|
|
32,211 |
|
||
|
Current portion of long-term debt |
402,134 |
|
|
396,801 |
|
||
|
Other current liabilities |
52 |
|
|
497 |
|
||
|
Current liabilities held for sale |
8,793 |
|
|
— |
|
||
|
Total current liabilities |
845,019 |
|
|
882,557 |
|
||
|
Long-term debt |
1,189,727 |
|
|
1,182,220 |
|
||
|
Deferred revenue, noncurrent |
16,635 |
|
|
14,440 |
|
||
|
Operating lease liabilities, noncurrent |
81,752 |
|
|
99,177 |
|
||
|
Income taxes payable, noncurrent |
11,675 |
|
|
11,675 |
|
||
|
Liability for uncertain tax positions |
53,515 |
|
|
57,081 |
|
||
|
Deferred income taxes, noncurrent |
158,173 |
|
|
162,700 |
|
||
|
Other long-term liabilities |
39,718 |
|
|
44,463 |
|
||
|
Noncurrent liabilities held for sale |
12,652 |
|
|
— |
|
||
|
TOTAL LIABILITIES |
2,408,866 |
|
|
2,454,313 |
|
||
|
Commitments and contingencies |
— |
|
|
— |
|
||
|
Preferred stock |
— |
|
|
— |
|
||
|
Common stock |
447 |
|
|
443 |
|
||
|
Additional paid-in capital |
461,422 |
|
|
456,274 |
|
||
|
Retained earnings |
892,605 |
|
|
809,107 |
|
||
|
Accumulated other comprehensive loss |
(59,974 |
) |
|
(54,806 |
) |
||
|
TOTAL STOCKHOLDERS’ EQUITY |
1,294,500 |
|
|
1,211,018 |
|
||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,703,366 |
|
|
$ |
3,665,331 |
|
|
J2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) |
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Total revenues |
429,044 |
|
|
$ |
330,984 |
|
|
827,228 |
|
|
663,377 |
|
|||
|
|
|
|
|
|
|
|
|
||||||||
|
Cost of revenues (1) |
63,337 |
|
|
56,802 |
|
|
121,160 |
|
|
115,933 |
|
||||
|
Gross profit |
365,707 |
|
|
274,182 |
|
|
706,068 |
|
|
547,444 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Sales and marketing (1) |
134,103 |
|
|
92,805 |
|
|
255,288 |
|
|
192,243 |
|
||||
|
Research, development and engineering (1) |
19,644 |
|
|
13,606 |
|
|
40,995 |
|
|
29,012 |
|
||||
|
General and administrative (1) |
117,676 |
|
|
94,731 |
|
|
237,021 |
|
|
197,902 |
|
||||
|
Total operating expenses |
271,423 |
|
|
201,142 |
|
|
533,304 |
|
|
419,157 |
|
||||
|
Income from operations |
94,284 |
|
|
73,040 |
|
|
172,764 |
|
|
128,287 |
|
||||
|
Interest expense, net |
(21,403 |
) |
|
(22,196 |
) |
|
(42,970 |
) |
|
(43,167 |
) |
||||
|
Gain on sale of businesses |
823 |
|
|
— |
|
|
2,802 |
|
|
— |
|
||||
|
Goodwill impairment on business |
(32,629 |
) |
|
— |
|
|
(32,629 |
) |
|
— |
|
||||
|
Loss on investments, net |
(16,677 |
) |
|
(3 |
) |
|
(16,677 |
) |
|
(20,835 |
) |
||||
|
Other income (expense), net |
(777 |
) |
|
9,059 |
|
|
(293 |
) |
|
2,183 |
|
||||
|
Income before income taxes and income (loss) from equity method investment, net |
23,621 |
|
|
59,900 |
|
|
82,997 |
|
|
66,468 |
|
||||
|
Income tax expense |
2,152 |
|
|
15,978 |
|
|
7,876 |
|
|
24,681 |
|
||||
|
Income (loss) from equity method investment, net |
(5,752 |
) |
|
(5,821 |
) |
|
18,519 |
|
|
(10,090 |
) |
||||
|
Net income |
$ |
15,717 |
|
|
$ |
38,101 |
|
|
$ |
93,640 |
|
|
$ |
31,697 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic net income per common share: |
|
|
|
|
|
|
|
||||||||
|
Net income attributable to J2 Global, Inc. common shareholders |
$ |
0.35 |
|
|
$ |
0.81 |
|
|
$ |
2.10 |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted net income per common share: |
|
|
|
|
|
|
|
||||||||
|
Net income attributable to J2 Global, Inc. common shareholders |
$ |
0.33 |
|
|
$ |
0.80 |
|
|
$ |
1.98 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic weighted average shares outstanding |
44,613,533 |
|
|
46,850,944 |
|
|
44,506,933 |
|
|
47,235,859 |
|
||||
|
Diluted weighted average shares outstanding |
47,528,902 |
|
|
47,437,555 |
|
|
47,130,979 |
|
|
48,279,417 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
||||||||
|
Cost of revenues |
$ |
117 |
|
|
$ |
143 |
|
|
$ |
249 |
|
|
$ |
277 |
|
|
Sales and marketing |
371 |
|
|
416 |
|
|
732 |
|
|
814 |
|
||||
|
Research, development and engineering |
557 |
|
|
484 |
|
|
1,077 |
|
|
915 |
|
||||
|
General and administrative |
5,206 |
|
|
5,487 |
|
|
10,305 |
|
|
10,837 |
|
||||
|
Total |
$ |
6,251 |
|
|
$ |
6,530 |
|
|
$ |
12,363 |
|
|
$ |
12,843 |
|
|
J2 GLOBAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) |
|
||||||||
|
|
Six Months Ended |
||||||||
|
Cash flows from operating activities: |
2021 |
|
|
2020 |
|
||||
|
Net income |
$ |
93,640 |
|
|
|
$ |
31,697 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||||
|
Depreciation and amortization |
130,226 |
|
|
|
104,068 |
|
|
||
|
Amortization of financing costs and discounts |
14,058 |
|
|
|
14,102 |
|
|
||
|
Non-cash operating lease costs |
6,714 |
|
|
|
11,453 |
|
|
||
|
Share-based compensation |
12,363 |
|
|
|
12,843 |
|
|
||
|
Provision for doubtful accounts |
4,329 |
|
|
|
6,793 |
|
|
||
|
Deferred income taxes, net |
(11,853 |
) |
|
|
2,752 |
|
|
||
|
Gain on sale of businesses |
(2,802 |
) |
|
|
— |
|
|
||
|
Lease asset impairments |
7,829 |
|
|
|
— |
|
|
||
|
Goodwill impairment on business |
32,629 |
|
|
|
— |
|
|
||
|
Changes in fair value of contingent consideration |
562 |
|
|
|
(232 |
) |
|
||
|
Foreign currency remeasurement gain |
415 |
|
|
|
(704 |
) |
|
||
|
(Income) loss from equity method investments |
(18,519 |
) |
|
|
10,090 |
|
|
||
|
Loss on equity and debt investments |
16,677 |
|
|
|
20,826 |
|
|
||
|
Decrease (increase) in: |
|
|
|
||||||
|
Accounts receivable |
65,312 |
|
|
|
63,675 |
|
|
||
|
Prepaid expenses and other current assets |
(7,720 |
) |
|
|
(4,185 |
) |
|
||
|
Other assets |
(701 |
) |
|
|
(300 |
) |
|
||
|
Increase (decrease) in: |
|
|
|
||||||
|
Accounts payable and accrued expenses |
(23,438 |
) |
|
|
(34,682 |
) |
|
||
|
Income taxes payable |
(15,123 |
) |
|
|
7,376 |
|
|
||
|
Deferred revenue |
2,499 |
|
|
|
(2,698 |
) |
|
||
|
Operating lease liabilities |
(13,529 |
) |
|
|
(8,780 |
) |
|
||
|
Liability for uncertain tax positions |
(3,567 |
) |
|
|
5,114 |
|
|
||
|
Other long-term liabilities |
21 |
|
|
|
2,419 |
|
|
||
|
Net cash provided by operating activities |
290,022 |
|
|
|
241,627 |
|
|
||
|
Cash flows from investing activities: |
|
|
|
||||||
|
Proceeds on sale of available-for-sale investments |
663 |
|
|
|
— |
|
|
||
|
Purchases of equity method investment |
(11,053 |
) |
|
|
(26,523 |
) |
|
||
|
Purchases of equity investments |
(999 |
) |
|
|
(843 |
) |
|
||
|
Purchases of property and equipment |
(57,766 |
) |
|
|
(50,537 |
) |
|
||
|
Acquisition of businesses, net of cash received |
(89,489 |
) |
|
|
(19,349 |
) |
|
||
|
Proceeds from sale of assets |
6,033 |
|
|
|
407 |
|
|
||
|
Purchases of intangible assets |
— |
|
|
|
(23 |
) |
|
||
|
Net cash used in investing activities |
(152,611 |
) |
|
|
(96,868 |
) |
|
||
|
Cash flows from financing activities: |
|
|
|
||||||
|
Payment of debt |
(3,092 |
) |
|
|
— |
|
|
||
|
Proceeds from line of credit |
2,811 |
|
|
|
— |
|
|
||
|
Repurchase of common stock |
(22,934 |
) |
|
|
(88,469 |
) |
|
||
|
Issuance of common stock under employee stock purchase plan |
4,232 |
|
|
|
3,303 |
|
|
||
|
Exercise of stock options |
1,331 |
|
|
|
952 |
|
|
||
|
Dividends paid |
(672 |
) |
|
|
— |
|
|
||
|
Deferred payments for acquisitions |
(12,934 |
) |
|
|
(16,296 |
) |
|
||
|
Other |
(332 |
) |
|
|
(1,032 |
) |
|
||
|
Net cash used in financing activities |
(31,590 |
) |
|
|
(101,542 |
) |
|
||
|
Effect of exchange rate changes on cash and cash equivalents |
(616 |
) |
|
|
(2,012 |
) |
|
||
|
Net change in cash and cash equivalents |
105,205 |
|
|
|
41,205 |
|
|
||
|
Cash and cash equivalents at beginning of period |
242,652 |
|
|
|
575,615 |
|
|
||
|
Cash and cash equivalents at end of period |
$ |
347,857 |
|
|
|
$ |
616,820 |
|
|
J2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE MONTHS ENDED JUNE 30, 2021 AND 2020
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with outstanding debt; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of disposal related costs; (11) elimination of goodwill impairment on business and (12) elimination of dilutive effect of the convertible debt.
|
|
Three Months Ended June 30, |
||||||||||||||
|
|
2021 |
Per Diluted |
2020 |
Per Diluted |
|||||||||||
|
Net income |
$ |
15,717 |
|
$ |
0.33 |
|
$ |
38,101 |
|
$ |
0.80 |
|
|||
|
Plus: |
|
|
|
|
|||||||||||
|
Share based compensation (1) |
2,576 |
|
0.06 |
|
4,990 |
|
0.11 |
|
|||||||
|
Acquisition related integration costs (2) |
988 |
|
0.02 |
|
498 |
|
0.01 |
|
|||||||
|
Interest costs (3) |
4,840 |
|
0.11 |
|
4,831 |
|
0.10 |
|
|||||||
|
Amortization (4) |
37,156 |
|
0.83 |
|
25,225 |
|
0.54 |
|
|||||||
|
Investments (5) |
18,490 |
|
0.41 |
|
9,714 |
|
0.21 |
|
|||||||
|
Tax expense from prior years (6) |
— |
|
— |
|
1,977 |
|
0.04 |
|
|||||||
|
Sale of assets (7) |
(823 |
) |
(0.02 |
) |
(137 |
) |
— |
|
|||||||
|
Intra-entity transfers (8) |
— |
|
— |
|
(6,432 |
) |
(0.14 |
) |
|||||||
|
Lease asset impairments and other charges (9) |
4,896 |
|
0.11 |
|
1,826 |
|
0.04 |
|
|||||||
|
Disposal related costs (10) |
(619 |
) |
(0.01 |
) |
— |
|
— |
|
|||||||
|
Goodwill impairment on business (11) |
24,635 |
|
0.55 |
|
— |
|
— |
|
|||||||
|
Convertible debt dilution (12) |
— |
|
0.02 |
|
— |
|
0.01 |
|
|||||||
|
Adjusted non-GAAP net income |
$ |
107,856 |
|
$ |
2.41 |
|
$ |
80,593 |
|
$ |
1.71 |
|
|||
|
* The reconciliation of net income per share from GAAP to Adjusted non-GAAP may not foot since each is calculated independently. |
|||||||||||||||
J2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
SIX MONTHS ENDED JUNE 30, 2021 AND 2020
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with outstanding debt; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of disposal related costs; (11) elimination of goodwill impairment on business and (12) elimination of dilutive effect of the convertible debt.
|
|
Six Months Ended June 30, |
||||||||||||||
|
|
2021 |
|
Per Diluted |
|
2020 |
|
Per Diluted |
||||||||
|
Net income |
$ |
93,640 |
|
|
$ |
1.98 |
|
|
$ |
31,697 |
|
|
$ |
0.65 |
|
|
Plus: |
|
|
|
|
|
||||||||||
|
Share based compensation (1) |
6,624 |
|
|
0.15 |
|
|
9,798 |
|
|
0.21 |
|
||||
|
Acquisition related integration costs (2) |
2,994 |
|
|
0.07 |
|
|
1,593 |
|
|
0.03 |
|
||||
|
Interest costs (3) |
9,685 |
|
|
0.22 |
|
|
9,146 |
|
|
0.19 |
|
||||
|
Amortization (4) |
70,499 |
|
|
1.58 |
|
|
57,083 |
|
|
1.21 |
|
||||
|
Investments (5) |
(6,954 |
) |
|
(0.16 |
) |
|
34,808 |
|
|
0.73 |
|
||||
|
Tax expense from prior years (6) |
— |
|
|
— |
|
|
2,365 |
|
|
0.05 |
|
||||
|
Sale of assets (7) |
(2,697 |
) |
|
(0.06 |
) |
|
(334 |
) |
|
(0.01 |
) |
||||
|
Intra-entity transfers (8) |
— |
|
|
— |
|
|
131 |
|
|
— |
|
||||
|
Lease asset impairments and other charges (9) |
6,545 |
|
|
0.15 |
|
|
1,826 |
|
|
0.04 |
|
||||
|
Disposal related costs (10) |
44 |
|
|
— |
|
|
— |
|
|
— |
|
||||
|
Goodwill impairment on business (11) |
24,635 |
|
|
0.55 |
|
|
— |
|
|
— |
|
||||
|
Convertible debt dilution (12) |
— |
|
|
0.02 |
|
|
— |
|
|
0.01 |
|
||||
|
Adjusted non-GAAP net income |
$ |
205,015 |
|
|
$ |
4.50 |
|
|
$ |
148,113 |
|
|
$ |
3.11 |
|
|
* The reconciliation of net income per share from GAAP to Adjusted non-GAAP may not foot since each is calculated independently. |
|||||||||||||||
J2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE MONTHS ENDED JUNE 30, 2021 AND 2020
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with outstanding debt; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of disposal related costs; (11) elimination of goodwill impairment on business and (12) elimination of dilutive effect of the convertible debt.
Contacts
Rebecca Wright
J2 Global, Inc.
800-577-1790
press@J2.com
