Dice Holdings, Inc. Reports Second Quarter 2010 Results

- Revenues increased 11% year-over-year to $29.9 million

- Deferred revenue increased 7% or $2.7 million during the quarter

- Net income grew 33% to $3.7 million resulting in earnings per diluted share of $0.05

- Adjusted EBITDA totaled $11.3 million or 38% of revenues (See "Notes Regarding the Use of Non-GAAP Financial Measures")

- Cash flow from operations totaled $10.6 million, an increase from $4.1 million a year ago

- Dice Talent Network(TM) launched empowering tech professionals and hiring companies to directly connect

PR Newswire -- July 27, 2010





NEW YORK, July 27 /PRNewswire-FirstCall/ -- Dice Holdings, Inc. (NYSE: DHX), a leading provider of specialized career websites for professional communities, today reported financial results for the quarter ended June 30, 2010.



Second Quarter Operating Results

Revenues for the quarter ended June 30, 2010 totaled $29.9 million, an increase of 11% from $27.0 million in the comparable quarter of 2009. Recruitment activity increased at each of our online brands led by Dice.com and eFinancialCareers.com.



Operating expenses totaled $23.5 million for the quarter ended June 30, 2010, an increase of 10% from the comparable quarter in 2009. This increase was driven by higher sales compensation, as well as investments in product development and marketing. The Company's investments in product development have begun to yield visible product enhancements - the launch of the new AllHealthcareJobs and ClearanceJobs sites in the second quarter; and most recently the launch of the Dice Talent Network. This innovation empowers technology professionals to engage directly with hiring companies and recruiters, which will strengthen the relationship between employer and prospect, while continuing to deliver the efficiency and targeting that customers value.



Net income for the quarter ended June 30, 2010 grew 33% to $3.7 million from the $2.8 million earned in the second quarter of 2009. Diluted earnings per share were $0.05 for the second quarter of 2010, as compared to diluted earnings per share of $0.04 in the comparable quarter a year ago.



Net cash provided by operating activities for the quarter ended June 30, 2010 was $10.6 million, an increase of 158% from $4.1 million in the comparable quarter of 2009.



Adjusted EBITDA for the quarter ended June 30, 2010 was $11.3 million, compared with $12.2 million for the second quarter of 2009. See "Notes Regarding the Use of Non-GAAP Financial Measures."



Operating Segment Results

For the quarter ended June 30, 2010, DCS Online revenues were $21.3 million or 71% of Dice Holdings' consolidated revenues, representing a 6% increase from the comparable 2009 quarter. Growth was driven by a greater number of recruitment package customers served, as well as a 26% increase in revenues at ClearanceJobs.



The eFinancialCareers segment, which consists of eFinancialCareers operations outside of North America, accounted for 23% of Dice Holdings' consolidated revenues in the second quarter of 2010. For the quarter ended June 30, 2010, eFinancialCareers revenues increased 23% to $6.7 million. Measured in pound sterling, the eFinancialCareers international business increased 28%, as currency translation from pound sterling to U.S. dollars negatively impacted revenues by $0.2 million from the second quarter 2009.



The remaining businesses operated by Dice Holdings, which include the eFinancialCareers operations in North America, AllHealthcareJobs (since the date of acquisition, June 10, 2009), WorldwideWorker (since the date of acquisition, May 6, 2010) and Targeted Job Fairs, are reported in the Other category. Other revenues increased 28% to $1.8 million for the quarter ended June 30, 2010 from the comparable 2009 period.



Six Month Operating Results

Revenues for the six months ended June 30, 2010 totaled $56.7 million, as compared to $56.6 million in the same period in 2009. Recruitment activity at Dice.com and eFinancialCareers improved as compared to the first half of 2009. Currency translation from pound sterling to U.S. dollars favorably impacted revenues for the six months ended June 30, 2010 by $0.2 million from the comparable 2009 period.



By segment, DCS Online revenues decreased 4% to $40.4 million for the six month period ended June 30, 2010. In the same period, eFinancialCareers contributed revenues of $12.9 million, an increase of 13% (or 10% measured in pound sterling). Other revenues increased 12% to $3.5 million.



Net income for the six months ended June 30, 2010 increased 5% to $7.0 million, as compared to $6.6 million in the six months ended June 30, 2009.



For the six month period ended June 30, 2010, net cash provided by operating activities more than doubled to $22.2 million, as compared with $10.9 million for the same period last year. Adjusted EBITDA for the six months ended June 30, 2010 was $21.3 million, compared with $26.2 million for the same period in 2009. See "Notes Regarding the Use of Non-GAAP Financial Measures."



Balance Sheet

Deferred revenue at June 30, 2010 was $41.1 million compared to $38.4 million at March 31, 2010 and $34.9 million at June 30, 2009. The $2.7 million or 7% sequential increase in deferred revenue is primarily attributed to strong renewal rates on annual contracts, as well as a sequential increase in new business at Dice.com.



Net Cash, defined as cash and cash equivalents and marketable securities less total debt, was $10.7 million at June 30, 2010, consisting of cash and cash equivalents and marketable securities of $40.4 million minus total debt of $29.7 million. This compares to a Net Cash balance of $7.7 million at March 31, 2010, consisting of cash and cash equivalents and marketable securities of $42.7 million minus total debt of $35.0 million.



In addition to making its quarterly amortization payment on the term loan, the Company prepaid $5.0 million on the term loan portion of its Amended and Restated Credit Facility. During the second quarter, the Company terminated its $20.0 million interest rate swap agreement.



Management Comments

Scot Melland, Chairman, President and Chief Executive Officer, said, "In the second quarter, our sales growth at both Dice.com and eFinancialCareers was outstanding. These results underscore our view that the long-term global opportunity for our business is unchanged as customers continue to strongly value our specialized approach." Mr. Melland furthered, "Building on that approach, it's important to offer our customers new ways to reach hard-to-find, highly-skilled professionals. With our talent network initiative, we are shaping our services to meet the needs of the evolving recruitment market. We are quite excited to launch the Dice Talent Network, further extending our leadership in technology recruiting."



Michael Durney, Senior Vice President, Finance and Chief Financial Officer, said, "The drivers of our strong financial results continue to broaden. At Dice.com, we marked the second consecutive quarter of recruitment package customer growth and increases in the monthly revenue those customers generate. In addition, eFinancialCareers posted year-over-year revenue growth in each of its major regions, including an all-time high in Asia." Mr. Durney added, "Given our dynamic business model, you would expect to see strong cash flow generation and that's certainly evident in the first half of the year. Our strong and consistent cash flow allows us both to invest in the business and opportunistically complete acquisitions like WorldwideWorker."



Business Outlook

The Company is providing a current, point-in-time view of estimated financial performance based on what it sees as of July 27, 2010 for both the quarter ending September 30, 2010 and the year ending December 31, 2010. The Company's actual performance will vary based on a number of factors including those that are outlined in our Annual Report on Form 10-K for the year ended December 31, 2009, in the sections entitled "Risk Factors," "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our quarterly reports on Form 10-Q.







Quarter ending Year ending September 30, 2010 December 31, 2010

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