BusinessWire

J2 Global Reports Second Quarter 2020 Results

Achieves Record Second Quarter Revenues

Announces Share Repurchase Program of up to 10 Million Shares

LOS ANGELES--(BUSINESS WIRE)--J2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the second quarter ended June 30, 2020.


“J2’s outstanding results in an exceptionally challenging environment demonstrate the strength and quality of our business and the dedication of our employees,” said Vivek Shah, CEO of J2 Global. “Our adaptability and focus led to record-breaking revenues, Adjusted EBITDA, and free cash flow for the quarter.”

SECOND QUARTER 2020 RESULTS

Q2 2020 quarterly revenues increased 2.7% to a second quarter record of $331.0 million compared to $322.4 million for Q2 2019.

Net cash provided by operating activities increased to $139.6 million compared to $95.4 million for Q2 2019. Q2 2020 free cash flow(2) increased 35.1% to $115.9 million compared to $85.8 million for Q2 2019.

GAAP earnings per diluted share(3) increased 21.1% to $0.80 in Q2 2020 compared to $0.66 for Q2 2019.

Adjusted non-GAAP earnings per diluted share(3)(4) for the quarter increased 7.0% to $1.71 as compared to $1.60 for Q2 2019.

GAAP net income increased by 16.9% to $38.1 million as compared to $32.6 million for Q2 2019.

Quarterly Adjusted EBITDA(5) increased 6.1% to $132.9 million compared to $125.2 million for Q2 2019.

J2 ended the quarter with approximately $711 million in cash, cash equivalents, and investments after deploying approximately $1 million during the quarter in connection with contingent consideration payments for acquisitions from previous years. In addition, J2 deployed approximately $24 million in respect of its share repurchase program during the quarter.

Key financial results for Q2 2020 versus Q2 2019 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.

 

Q2 2020

Q2 2019

% Change

Revenues

 

 

 

Cloud Services

$167.1 million

$169.1 million

(1.2)%

Digital Media

$163.9 million

$153.3 million

6.9%

Total Revenue: (1)

$331.0 million

$322.4 million

2.7%

Operating Income

$73.0 million

$56.6 million

29.0%

Net Cash Provided by Operating Activities

$139.6 million

$95.4 million

46.4%

Free Cash Flow (2)

$115.9 million

$85.8 million

35.1%

GAAP Earnings per Diluted Share (3)

$0.80

$0.66

21.1%

Adjusted Non-GAAP Earnings per Diluted Share (3) (4)

$1.71

$1.60

7.0%

GAAP Net Income

$38.1 million

$32.6 million

16.9%

Adjusted Non-GAAP Net Income

$80.6 million

$77.7 million

3.7%

Adjusted EBITDA (5)

$132.9 million

$125.2 million

6.1%

Adjusted EBITDA Margin (5)

40.1%

38.8%

3.4%

BUSINESS OUTLOOK

The Company has reinstated full-year guidance and now estimates that for fiscal year 2020 it will achieve revenues between $1.380 billion and $1.400 billion; Adjusted EBITDA between $556 million and $570 million; and Adjusted non-GAAP earnings per diluted share of between $7.17 and $7.41.

Adjusted non-GAAP earnings per diluted share for 2020 excludes share-based compensation of between $23 million and $27 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 2020 (exclusive of the release of reserves for uncertain tax positions) will be between 20.5% and 22.5%.

The Company has not reconciled the Adjusted non-GAAP earnings per diluted share and any related 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 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.

SHARE REPURCHASE PROGRAM

J2 Global’s Board of Directors has approved a share repurchase program. Under the new program, the Company may purchase in the public market or in off-market transactions up to 10 million shares through August 6, 2025. The timing and amounts of any purchases will be determined by the Company from time to time, depending on market conditions and other factors it deems relevant.

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 26.7% for Q2 2020 and 28.1% for Q2 2019. The estimated Adjusted non-GAAP effective tax rates were approximately 21.8% for Q2 2020 and 21.0% for Q2 2019.

(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, 2020 and 2019 totaled $0.91 and $0.94 per diluted share, respectively.

(5)

 

Adjusted EBITDA is defined as earnings before interest; loss on investments, net; other (income) expense, net; income tax expense; net loss (income) in earnings of equity method investments; 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.

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, Offers.com, Spiceworks, Everyday Health, BabyCenter and What To Expect in its Digital Media business and eFax, eVoice, iContact, Campaigner, Vipre, IPVanish and KeepItSafe in its Cloud Services business. J2 reaches in excess of 180 million people per month across its brands. As of December 31, 2019, J2 had achieved 24 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 2020 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 2019 Annual Report on Form 10-K filed by J2 Global on March 2, 2020, 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 2020 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, 2020

 

December 31, 2019

ASSETS

 

 

 

Cash and cash equivalents

$

616,820

 

 

$

575,615

 

Accounts receivable, net of allowances of $11,834 and $12,701, respectively

188,383

 

 

261,928

 

Prepaid expenses and other current assets

45,767

 

 

49,347

 

Current assets held for sale

2,175

 

 

 

Total current assets

853,145

 

 

886,890

 

Long-term investments

94,042

 

 

100,079

 

Property and equipment, net

144,494

 

 

127,817

 

Operating lease right-of-use assets

110,031

 

 

125,822

 

Goodwill

1,637,287

 

 

1,633,033

 

Other purchased intangibles, net

490,435

 

 

556,553

 

Deferred income taxes, noncurrent

56,947

 

 

59,976

 

Other assets

16,199

 

 

15,676

 

Noncurrent assets held for sale

16,865

 

 

 

TOTAL ASSETS

$

3,419,445

 

 

$

3,505,846

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Accounts payable and accrued expenses

$

166,289

 

 

$

238,059

 

Income taxes payable, current

24,402

 

 

17,758

 

Deferred revenue, current

159,907

 

 

162,855

 

Operating lease liabilities, current

26,602

 

 

26,927

 

Current portion of long-term debt

391,092

 

 

385,532

 

Other current liabilities

1,501

 

 

1,973

 

Current liabilities held for sale

2,388

 

 

 

Total current liabilities

772,181

 

 

833,104

 

Long-term debt

1,071,364

 

 

1,062,929

 

Deferred revenue, noncurrent

11,501

 

 

12,744

 

Operating lease liabilities, noncurrent

91,279

 

 

104,070

 

Income taxes payable, noncurrent

11,675

 

 

11,675

 

Liability for uncertain tax positions

57,565

 

 

52,451

 

Deferred income taxes, noncurrent

111,746

 

 

107,453

 

Other long-term liabilities

28,810

 

 

10,228

 

Noncurrent liabilities held for sale

156

 

 

 

TOTAL LIABILITIES

2,156,277

 

 

2,194,654

 

Commitments and contingencies

 

 

 

Preferred stock

 

 

 

Common stock

469

 

 

476

 

Additional paid-in capital

467,267

 

 

465,652

 

Retained earnings

850,232

 

 

891,526

 

Accumulated other comprehensive loss

(54,800)

 

 

(46,462)

 

TOTAL STOCKHOLDERS’ EQUITY

1,263,168

 

 

1,311,192

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,419,445

 

 

$

3,505,846

 

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,

 

2020

 

2019

 

2020

 

2019

Total revenues

$

330,984

 

 

$

322,432

 

 

$

663,377

 

 

$

622,325

 

 

 

 

 

 

 

 

 

Cost of revenues (1)

56,802

 

 

60,266

 

 

115,933

 

 

111,279

 

Gross profit

274,182

 

 

262,166

 

 

547,444

 

 

511,046

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing (1)

92,805

 

 

88,446

 

 

192,243

 

 

175,326

 

Research, development and engineering (1)

13,606

 

 

11,938

 

 

29,012

 

 

24,922

 

General and administrative (1)

94,731

 

 

105,168

 

 

197,902

 

 

203,322

 

Total operating expenses

201,142

 

 

205,552

 

 

419,157

 

 

403,570

 

Income from operations

73,040

 

 

56,614

 

 

128,287

 

 

107,476

 

Interest expense, net

22,196

 

 

17,335

 

 

43,167

 

 

33,354

 

Loss on investments, net

3

 

 

24

 

 

20,835

 

 

38

 

Other (income) expense, net

(9,059)

 

 

(401)

 

 

(2,183)

 

 

1,800

 

Income before income taxes and net loss (income) in earnings of equity method investment

59,900

 

 

39,656

 

 

66,468

 

 

72,284

 

Income tax expense

15,978

 

 

11,148

 

 

24,681

 

 

10,853

 

Net loss (income) in earnings of equity method investment

5,821

 

 

(4,081)

 

 

10,090

 

 

(3,607)

 

Net income

$

38,101

 

 

$

32,589

 

 

$

31,697

 

 

$

65,038

 

 

 

 

 

 

 

 

 

Basic net income per common share:

 

 

 

 

 

 

 

Net income attributable to J2 Global, Inc. common shareholders

$

0.81

 

 

$

0.67

 

 

$

0.67

 

 

$

1.35

 

 

 

 

 

 

 

 

 

Diluted net income per common share:

 

 

 

 

 

 

 

Net income attributable to J2 Global, Inc. common shareholders

$

0.80

 

 

$

0.66

 

 

$

0.65

 

 

$

1.32

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

46,850,944

 

 

47,727,786

 

 

47,235,859

 

 

47,644,729

 

Diluted weighted average shares outstanding

47,437,555

 

 

49,102,879

 

 

48,279,417

 

 

48,806,492

 

 

 

 

 

 

 

 

 

(1) Includes share-based compensation expense as follows:

 

 

 

 

 

 

 

Cost of revenues

$

143

 

 

$

131

 

 

$

277

 

 

$

263

 

Sales and marketing

416

 

 

389

 

 

814

 

 

793

 

Research, development and engineering

484

 

 

361

 

 

915

 

 

719

 

General and administrative

5,487

 

 

5,981

 

 

10,837

 

 

10,173

 

Total

$

6,530

 

 

$

6,862

 

 

$

12,843

 

 

$

11,948

 

J2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

 

Six Months Ended
June 30,

Cash flows from operating activities:

2020

 

2019

Net income

$

31,697

 

 

$

65,038

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

104,068

 

 

106,212

 

Amortization of financing costs and discounts

14,102

 

 

5,995

 

Non-cash operating lease costs

11,453

 

 

9,038

 

Share-based compensation

12,843

 

 

11,948

 

Provision for doubtful accounts

6,793

 

 

5,686

 

Deferred income taxes, net

2,752

 

 

3,908

 

Changes in fair value of contingent consideration

(232)

 

 

8,475

 

Foreign currency remeasurement gain

(704)

 

 

 

Loss (income) on equity method investments

10,090

 

 

(4,765)

 

Loss on equity and debt investments

20,826

 

 

 

Decrease (increase) in:

 

 

 

Accounts receivable

63,675

 

 

42,930

 

Prepaid expenses and other current assets

(4,185)

 

 

(3,277)

 

Other assets

(300)

 

 

(1,233)

 

Increase (decrease) in:

 

 

 

Accounts payable and accrued expenses

(34,682)

 

 

(12,452)

 

Income taxes payable

7,376

 

 

(3,810)

 

Deferred revenue

(2,698)

 

 

(3,292)

 

Operating lease liabilities

(8,780)

 

 

(8,833)

 

Liability for uncertain tax positions

5,114

 

 

(10,811)

 

Other long-term liabilities

2,419

 

 

1,454

 

Net cash provided by operating activities

241,627

 

 

212,211

 

Cash flows from investing activities:

 

 

 

Purchases of equity method investment

(26,523)

 

 

(14,668)

 

Purchases of equity investments

(843)

 

 

 

Purchases of property and equipment

(50,537)

 

 

(30,791)

 

Acquisition of businesses, net of cash received

(19,349)

 

 

(266,000)

 

Proceeds from sale of assets

407

 

 

 

Purchases of intangible assets

(23)

 

 

 

Net cash used in investing activities

(96,868)

 

 

(311,459)

 

Cash flows from financing activities:

 

 

 

Proceeds from line of credit

 

 

100,000

 

Repurchase of common stock

(88,469)

 

 

(3,807)

 

Issuance of common stock under employee stock purchase plan

3,303

 

 

1,995

 

Exercise of stock options

952

 

 

5,274

 

Dividends paid

 

 

(43,965)

 

Deferred payments for acquisitions

(16,296)

 

 

(14,269)

 

Other

(1,032)

 

 

(429)

 

Net cash (used in) provided by financing activities

(101,542)

 

 

44,799

 

Effect of exchange rate changes on cash and cash equivalents

(2,012)

 

 

451

 

Net change in cash and cash equivalents

41,205

 

 

(53,998)

 

Cash and cash equivalents at beginning of period

575,615

 

 

209,474

 

Cash and cash equivalents at end of period

$

616,820

 

 

$

155,476

 

 

J2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE AND SIX MONTHS ENDED JUNE 30, 2020 AND 2019
(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 the convertible notes; (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; and (10) elimination of dilutive effect of the convertible debt.

 

Three Months Ended June 30,

 

2020

Per Diluted Share *

 

2019

Per Diluted Share *

Net income

$

38,101

 

$

0.80

 

 

$

32,589

 

$

0.66

 

Plus:

 

 

 

 

 

Share based compensation (1)

4,990

 

0.11

 

 

6,266

 

0.13

 

Acquisition related integration costs (2)

498

 

0.01

 

 

3,245

 

0.07

 

Interest costs (3)

4,831

 

0.10

 

 

2,438

 

0.05

 

Amortization (4)

25,225

 

0.54

 

 

35,938

 

0.75

 

Investments (5)

9,714

 

0.21

 

 

(4,081)

 

(0.08)

 

Tax expense from prior years (6)

1,977

 

0.04

 

 

1,335

 

0.03

 

Sale of assets (7)

(137)

 

 

 

 

 

Intra-entity transfers (8)

(6,432)

 

(0.14)

 

 

 

 

Lease asset impairments and other charges (9)

1,826

 

0.04

 

 

 

 

Convertible debt dilution (10)

 

0.01

 

 

 

0.02

 

Adjusted non-GAAP net income

$

80,593

 

$

1.71

 

 

$

77,730

 

$

1.60

 

* The reconciliation of net income per share from GAAP to Adjusted non-GAAP may not foot since each is calculated independently.

 

Six Months Ended June 30,

 

2020

Per Diluted Share *

 

2019

Per Diluted Share *

Net income

$

31,697

 

$

0.65

 

 

$

65,038

 

$

1.32

 

Plus:

 

 

 

 

 

Share based compensation (1)

9,798

 

0.21

 

 

9,553

 

0.20

 

Acquisition related integration costs (2)

1,593

 

0.03

 

 

7,620

 

0.16

 

Interest costs (3)

9,146

 

0.19

 

 

3,735

 

0.08

 

Amortization (4)

57,083

 

1.21

 

 

61,441

 

1.29

 

Investments (5)

34,808

 

0.73

 

 

(3,607)

 

(0.07)

 

Tax expense from prior years (6)

2,365

 

0.05

 

 

2,345

 

0.05

 

Sale of assets (7)

(334)

 

(0.01)

 

 

 

 

Intra-entity transfers (8)

131

 

 

 

 

 

Lease asset impairments and other charges (9)

1,826

 

0.04

 

 

 

 

Convertible debt dilution (10)

 

0.01

 

 

 

0.03

 

Adjusted non-GAAP net income

$

148,113

 

$

3.11

 

 

$

146,125

 

$

3.00

 

* 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, 2020 AND 2019
(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 the convertible notes; (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; and (10) elimination of dilutive effect of the convertible debt.

 

Three Months Ended June 30,

 

2020

 

2019

Cost of revenues

$

56,802

 

 

$

60,266

 

Plus:

 

 

 

Share based compensation (1)

(143)

 

 

(131)

 

Acquisition related integration costs (2)

(55)

 

 

(55)

 

Amortization (4)

(448)

 

 

(461)

 

Adjusted non-GAAP cost of revenues

$

56,156

 

 

$

59,619

 

 

 

 

 

Sales and marketing

$

92,805

 

 

$

88,446

 

Plus:

 

 

 

Share based compensation (1)

(416)

 

 

(389)

 

Acquisition related integration costs (2)

(167)

 

 

154

 

Adjusted non-GAAP sales and marketing

$

92,222

 

 

$

88,211

 

 

 

 

 

Research, development and engineering

$

13,606

 

 

$

11,938

 

Plus:

 

 

 

Share based compensation (1)

(484)

 

 

(361)

 

Acquisition related integration costs (2)

26

 

 

 

Adjusted non-GAAP research, development and engineering

$

13,148

 

 

$

11,577

 

 

 

 

 

General and administrative

$

94,731

 

 

$

105,168

 

Plus:

 

 

 

Share based compensation (1)

(5,487)

 

 

(5,981)

 

Acquisition related integration costs (2)

(605)

 

 

(4,794)

 

Amortization (4)

(35,439)

 

 

(44,493)

 

Lease asset impairments and other charges (9)

(2,406)

 

 

 

Adjusted non-GAAP general and administrative

$

50,794

 

 

$

49,900

 

 

 

 

 

Interest expense, net

$

22,196

 

 

$

17,335

 

Plus:

 

 

 

Interest costs (3)

(6,018)

 

 

(2,276)

 

Adjusted non-GAAP interest expense, net

$

16,178

 

 

$

15,059

 

 

 

 

 

Loss on investments, net

$

3

 

 

$

24

 

Adjusted non-GAAP loss on investments, net

$

3

 

 

$

24

 

 

 

 

 

Other income, net

$

(9,059)

 

 

$

(401)

 

Plus:

 

 

 

Sale of assets (7)

181

 

 

 

Intra-entity transfers (8)

8,267

 

 

 

Adjusted non-GAAP other income, net

$

(611)

 

 

$

(401)

 

 

 

 

 

Continued from previous page

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

$

15,978

 

 

$

11,148

 

Plus:

 

 

 

Share based compensation (1)

1,540

 

 

596

 

Acquisition related integration costs (2)

303

 

 

1,450

 

Interest costs (3)

1,187

 

 

(162)

 

Amortization (4)

10,662

 

 

9,016

 

Investments (5)

(3,893)

 

 

 

Tax benefit from prior years (6)

(1,977)

 

 

(1,335)

 

Sale of assets (7)

(44)

 

 

 

Intra-entity transfers (8)

(1,835)

 

 

 

Lease asset impairments and other charges (9)

580

 

 

 

Adjusted non-GAAP income tax provision

$

22,501

 

 

$

20,713

 

 

 

 

 

Net loss (income) in earnings of equity method investment

$

5,821

 

 

$

(4,081)

 

Plus:

 

 

 

Investments (5)

(5,821)

 

 

4,081

 

Adjusted non-GAAP net loss (income) in earnings of equity method investment

$

 

 

$

 

 

 

 

 

Total adjustments

$

(42,492)

 

 

$

(45,141)

 

 

 

 

 

GAAP earnings per diluted share

$

0.80

 

 

$

0.66

 

Adjustments *

$

0.91

 

 

$

0.94

 

Adjusted non-GAAP earnings per diluted share

$

1.71

 

 

$

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 a 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.


Contacts

Rebecca Wright
J2 Global, Inc.
800-577-1790
press@J2.com


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