j2 Reports Second Quarter 2017 Results
Achieves Record Quarterly Revenues (up 29.0% to $273.2 million vs. Q2 2016)
Announces Twenty-Fourth Consecutive Quarterly Dividend Increase
LOS ANGELES -- j2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the second quarter ended June 30, 2017 and announced that its Board of Directors has declared an increased quarterly cash dividend of $0.3850 per share.
SECOND QUARTER 2017 RESULTS
| ● | Q2 2017 quarterly revenues increased 29.0% to an all-time record of $273.2 million compared to $211.8 million for Q2 2016. |
| ● | Net cash provided by operating activities decreased by 10.4% to $60.5 million compared to $67.5 million for Q2 2016. This decrease was driven by a $20.0 million contingent payment for Ookla which was paid during the quarter. |
| ● | Free cash flow(1) for the quarter increased by 12.0% to $71.1 million compared to $63.5 million for Q2 2016 before the effect of the $20.0 million contingent payment for Ookla which was paid during the quarter. |
| ● | GAAP earnings per diluted share(2) decreased 8.7% to $0.63 in Q2 2017 compared to $0.69 for Q2 2016. Adjusted non-GAAP earnings per diluted share(2)(3) for the quarter increased 9.9% to $1.33 compared to $1.21 for Q2 2016. |
| ● | GAAP net income decreased by 7.1% to $31.4 million compared to $33.8 million for Q2 2016. |
| ● | Adjusted EBITDA(4) for the quarter increased 13.0% to $110.2 million compared to $97.5 million for Q2 2016. |
j2 ended the quarter with approximately $330.8 million in cash and investments after deploying approximately $52.0 million during the quarter for acquisitions and j2's regular quarterly dividend.
Key financial results for Q2 2017 versus Q2 2016 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 2017 | Q2 2016 | % Change |
| Revenues | | | |
| Cloud Services | $143.4 million | $141.4 million | 1.4% |
| Digital Media | $128.5 million | $69.3 million | 85.4% |
| IP Licensing | $1.3 million | $1.1 million | 18.2% |
Total Revenue: | $273.2 million | $211.8 million | 29.0% |
| Operating Income | $58.6 million | $58.9 million | (0.5)% |
| Net Cash Provided by Operating Activities | $60.5 million | $67.5 million | (10.4)% |
Free Cash Flow (1) | $71.1 million | $63.5 million | 12.0% |
GAAP Earnings per Diluted Share (2) | $0.63 | $0.69 | (8.7)% |
Adjusted Non-GAAP Earnings per Diluted Share (2) (3) | $1.33 | $1.21 | 9.9% |
| GAAP Net Income | $31.4 million | $33.8 million | (7.1)% |
| Non-GAAP Net Income | $64.8 million | $59.7 million | 8.5% |
Adjusted EBITDA (4) | $110.2 million | $97.5 million | 13.0% |
Adjusted EBITDA Margin (4) | 40.3% | 46.0% | (5.7)% |
"I am very happy to report another quarter of record revenues totaling more than $273 million in the quarter, a 29% increase over the same quarter last year" said Hemi Zucker, CEO of j2. "In addition, our business was further validated by the debt market as our Cloud Services division issued $650 million of 8-year notes in an oversubscribed offering without guarantees from either our Media division or parent company, j2 Global. The debt raise both lowered our overall long-term cost of capital and increased cash on hand as of today to over $380 million."
BUSINESS OUTLOOK
For fiscal 2017, the Company reaffirms estimates that it will achieve revenues between $1.130 billion and $1.170 billion and Adjusted non-GAAP earnings per diluted share of between $5.60 and $6.00.
Adjusted non-GAAP earnings per diluted share for 2017 excludes share-based compensation of between $17 and $19 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 2017 (exclusive of the release of reserves for uncertain tax positions) will be between 28.5% and 30.5%.
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.
DIVIDEND
j2's Board of Directors approved a quarterly cash dividend of $0.3850 per common share, a $0.01, or 2.7% increase versus last quarter's dividend. This is j2's twenty-fourth consecutive quarterly dividend increase since its first quarterly dividend in September 2011. The dividend will be paid on September 1, 2017 to all shareholders of record as of the close of business on August 14, 2017. Future dividends will be subject to Board approval.
Notes:
| (1) | | 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. Free cash flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. |
| | | |
| (2) | | The estimated GAAP effective tax rates were approximately 22.8% for Q2 2017 and 30.9% for Q2 2016. The estimated Adjusted non-GAAP effective tax rates were approximately 28.5% for Q2 2017 and 29.4% for Q2 2016. |
| | | |
| (3) | | For Q2 2017, 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, additional tax expense from prior years and diluted effect of convertible debt, in each case net of tax, totaling $0.70 per diluted share. For Q2 2016, 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 $0.53 per diluted share. |
| | | |
| (4) | | Adjusted 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) above. 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) provides Internet services through two segments: Business Cloud Services and Digital Media. The Business Cloud Services segment offers Internet fax, virtual phone, unified communications, hosted email, email marketing, online backup and CRM solutions. It markets its services principally under the brand names eFax ®, eVoice ®, Onebox ®, FuseMail ®, Campaigner ®, KeepItSafe ®, Livedrive® and LiveVault®, and operates a messaging network spanning 50 countries on six continents. The Digital Media segment offers technology, gaming, lifestyle and healthcare content through its digital properties, which include PCMag, IGN, AskMen, Speedtest, Offers, ExtremeTech, Geek, Toolbox, Techbargains, emedia, Salesify, Everyday Health and others. As of December 31, 2016, j2 had achieved 21 consecutive fiscal years of revenue growth. For more information about j2, please visit www.j2global.com.
Contact:
Laura Hinson
j2 Global, Inc.
800-577-1790
press@j2.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, particularly those contained in Hemi Zucker's quote and the "Business Outlook" portion regarding the Company's expected fiscal 2017 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 2016 Annual Report on Form 10-K filed by j2 Global on March 1, 2017, 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 2017 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, 2017 | | | December 31, 2016 | |
| ASSETS | | | | | | |
| | | | | | | |
| Cash and cash equivalents | | $ | 330,743 | | | $ | 123,950 | |
| Restricted cash | | | 265,000 | | | | — | |
| Short-term investments | | | 65 | | | | 60 | |
| Accounts receivable, net of allowances of $9,027 and $7,988, respectively | | | 181,528 | | | | 199,871 | |
| Prepaid expenses and other current assets | | | 22,354 | | | | 24,118 | |
| Current assets held for sale | | | 5,770 | | | | — | |
| Total current assets | | | 805,460 | | | | 347,999 | |
| | | | | | | | | |
| Property and equipment, net | | | 71,173 | | | | 68,094 | |
| Goodwill | | | 1,139,426 | | | | 1,122,810 | |
| Other purchased intangibles, net | | | 468,085 | | | | 511,691 | |
| Deferred income taxes, non-current | | | 7,228 | | | | 5,289 | |
| Other assets | | | 6,569 | | | | 6,445 | |
| Non-current assets held for sale | | | 29,720 | | | | — | |
| TOTAL ASSETS | | $ | 2,527,661 | | | $ | 2,062,328 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| | | | | | | | | |
| Accounts payable and accrued expenses | | $ | 135,473 | | | $ | 178,071 | |
| Income taxes payable | | | 12,845 | | | | 16,753 | |
| Deferred revenue, current | | | 88,153 | | | | 80,384 | |
| Line of credit | | | — | | | | 178,817 | |
| Current maturities of long-term debt | | | 246,652 | | | | — | |
| Other current liabilities | | | 24 | | | | 64 | |
| Current liabilities held for sale | | | 523 | | | | — | |
| Total current liabilities | | | 483,670 | | | | 454,089 | |
| | | | | | | | | |
| Long-term debt | | | 996,377 | | | | 601,746 | |
| Deferred revenue, non-current | | | 57 | | | | 1,588 | |
| Liability for uncertain tax positions | | | 46,988 | | | | 46,537 | |
| Deferred income taxes, non-current | | | 34,764 | | | | 40,357 | |
| Other long-term liabilities | | | 5,143 | | | | 3,475 | |
| Non-current liabilities held for sale | | | 5,103 | | | | — | |
| TOTAL LIABILITIES | | | 1,572,102 | | | | 1,147,792 | |
| | | | | | | | | |
| Common stock | | | 476 | | | | 474 | |
| Additional paid-in capital | | | 314,790 | | | | 308,329 | |
| Retained earnings | | | 679,029 | | | | 660,382 | |
| Accumulated other comprehensive loss | | | (38,736 | ) | | | (54,649 | ) |
| TOTAL STOCKHOLDERS' EQUITY | | | 955,559 | | | | 914,536 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 2,527,661 | | | $ | 2,062,328 | |
j2 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| | | Three Months Ended
June 30, | | | Six Months Ended
June 30, | |
| | | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| Total revenues | | $ | 273,174 | | | $ | 211,800 | | | $ | 527,843 | | | $ | 412,302 | |
| | | | | | | | | | | | | | | | | |
Cost of revenues (1) | | | 43,159 | | | | 35,591 | | | | 83,969 | | | | 69,878 | |
| Gross profit | | | 230,015 | | | | 176,209 | | | | 443,874 | | | | 342,424 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
Sales and marketing (1) | | | 80,862 | | | | 48,617 | | | | 158,339 | | | | 96,729 | |
Research, development and engineering (1) | | | 11,555 | | | | 9,213 | | | | 23,307 | | | | 18,201 | |
General and administrative (1) | | | 79,038 | | | | 59,434 | | | | 155,693 | | | | 115,211 | |
| Total operating expenses | | | 171,455 | | | | 117,264 | | | | 337,339 | | | | 230,141 | |
| Income from operations | | | 58,560 | | | | 58,945 | | | | 106,535 | | | | 112,283 | |
| Interest expense, net | | | 13,670 | | | | 10,301 | | | | 26,079 | | | | 20,534 | |
| Other expense (income), net | | | 4,227 | | | | (213 | ) | | | 4,551 | | | | (87 | ) |
| Income before income taxes | | | 40,663 | | | | 48,857 | | | | 75,905 | | | | 91,836 | |
| Income tax expense | | | 9,287 | | | | 15,087 | | | | 18,709 | | | | 28,123 | |
| Net income | | $ | 31,376 | | | $ | 33,770 | | | $ | 57,196 | | | $ | 63,713 | |
| | | | | | | | | | | | | | | | | |
| Basic net income per common share: | | | | | | | | | | | | | | | | |
| Net income attributable to j2 Global, Inc. common shareholders | | $ | 0.65 | | | $ | 0.69 | | | $ | 1.19 | | | $ | 1.31 | |
| | | | | | | | | | | | | | | | | |
| Diluted net income per common share: | | | | | | | | | | | | | | | | |
| Net income attributable to j2 Global, Inc. common shareholders | | $ | 0.63 | | | $ | 0.69 | | | $ | 1.16 | | | $ | 1.30 | |
| | | | | | | | | | | | | | | | | |
| Basic weighted average shares outstanding | | | 47,547,118 | | | | 48,055,783 | | | | 47,505,406 | | | | 48,011,250 | |
| Diluted weighted average shares outstanding | | | 48,948,315 | | | | 48,265,298 | | | | 48,857,405 | | | | 48,251,698 | |
| | | | | | | | | | | | | | | | | |
(1) Includes share-based compensation expense as follows: | | | | | | | | | | | | | | | | |
| Cost of revenues | | $ | 121 | | | $ | 103 | | | $ | 238 | | | $ | 198 | |
| Sales and marketing | | | 521 | | | | 434 | | | | 899 | | | | 965 | |
| Research, development and engineering | | | 281 | | | | 221 | | | | 518 | | | | 428 | |
| General and administrative | | | 4,639 | | | | 2,681 | | | | 7,522 | | | | 4,657 | |
| Total | | $ | 5,562 | | | $ | 3,439 | | | $ | 9,177 | | | $ | 6,248 | |
j2 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
| | | Six Months Ended June 30, | |
| | | 2017 | | | 2016 | |
| Cash flows from operating activities: | | | | | | |
| Net income | | $ | 57,196 | | | $ | 63,713 | |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 79,225 | | | | 58,233 | |
| Accretion and amortization of discount and premium of investments | | | — | | | | 646 | |
| Amortization of financing costs and discounts | | | 6,307 | | | | 4,777 | |
| Share-based compensation | | | 9,177 | | | | 6,248 | |
| Provision for doubtful accounts | | | 5,623 | | | | 5,009 | |
| Deferred income taxes, net | | | (3,679 | ) | | | (2,064 | ) |
| Decrease (increase) in: | | | | | | | | |
| Accounts receivable | | | 11,195 | | | | 3,763 | |
| Prepaid expenses and other current assets | | | 2,527 | | | | 1,534 | |
| Other assets | | | (105 | ) | | | (1,894 | ) |
| Increase (decrease) in: | | | | | | | | |
| Accounts payable and accrued expenses | | | (55,047 | ) | | | (15,480 | ) |
| Income taxes payable | | | (4,464 | ) | | | 2,034 | |
| Deferred revenue | | | 1,817 | | | | (2,699 | ) |
| Liability for uncertain tax positions | | | (4 | ) | | | 4,440 | |
| Other long-term liabilities | | | 1,887 | | | | 3,792 | |
| Net cash provided by operating activities | | | 111,655 | | | | 132,052 | |
| Cash flows from investing activities: | | | | | | | | |
| Maturity of available-for-sale investments | | | — | | | | 112,631 | |
| Purchase of available-for-sale investments | | | (5 | ) | | | (47,207 | ) |
| Purchases of property and equipment | | | (18,945 | ) | | | (9,186 | ) |
| Acquisition of businesses, net of cash received | | | (36,430 | ) | | | (76,725 | ) |
| Purchases of intangible assets | | | (768 | ) | | | (1,815 | ) |
| Net cash used in investing activities | | | (56,148 | ) | | | (22,302 | ) |
| Cash flows from financing activities: | | | | | | | | |
| Issuance of long-term debt, net | | | 636,178 | | | | — | |
| Proceeds from line of credit, net | | | 44,981 | | | | — | |
| Repayment of line of credit | | | (225,000 | ) | | | — | |
| Repurchases of common and restricted stock | | | (6,738 | ) | | | (3,356 | ) |
| Issuance of stock, net of costs | | | 1,184 | | | | 2,034 | |
| Dividends paid | | | (35,707 | ) | | | (32,202 | ) |
| Deferred payments for acquisitions | | | (3,339 | ) | | | (16,550 | ) |
| Other | | | (36 | ) | | | 843 | |
| Net cash provided by (used) in financing activities | | | 411,523 | | | | (49,231 | ) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | | | 5,576 | | | | (2,295 | ) |
| Net change in cash, cash equivalents and restricted cash | | | 472,606 | | | | 58,224 | |
| Net change in cash balance included in assets held for sale | | | (813 | ) | | | — | |
| Cash, cash equivalents and restricted cash at beginning of period | | | 123,950 | | | | 255,530 | |
| Cash, cash equivalents and restricted cash at end of period | | $ | 595,743 | | | $ | 313,754 | |
j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Non-GAAP net income is GAAP net income with the following modifications, net of tax: (1) elimination of share-based compensation and the associated payroll tax expense; (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 additional tax or indirect tax related (expense) benefit from prior years; and (6) dilutive effect of the convertible debt.
| | | Three Months Ended June 30, | |
| | | 2017 | | | Per Diluted Share * | | | 2016 | | | Per Diluted Share * | |
| Net income | | $ | 31,376 | | | $ | 0.63 | | | $ | 33,770 | | | $ | 0.69 | |
| Plus: | | | | | | | | | | | | | | | | |
Share based compensation (1) | | | 3,329 | | | | 0.07 | | | | 2,520 | | | | 0.05 | |
Acquisition related integration costs (2) | | | 4,966 | | | | 0.10 | | | | 2,583 | | | | 0.05 | |
Interest costs (3) | | | 2,030 | | | | 0.04 | | | | 1,361 | | | | 0.03 | |
Amortization (4) | | | 21,031 | | | | 0.44 | | | | 19,322 | | | | 0.40 | |
Tax expense from prior years (5) | | | 2,058 | | | | 0.04 | | | | 99 | | | | (0.00 | ) |
Convertible debt dilution (6) | | | — | | | | 0.02 | | | | — | | | | — | |
| Adjusted non-GAAP net income | | $ | 64,790 | | | $ | 1.33 | | | $ | 59,655 | | | $ | 1.21 | |
| | | Six Months Ended June 30, | |
| | | 2017 | | | Per Diluted Share * | | | 2016 | | | Per Diluted Share * | |
| Net income | | $ | 57,196 | | | $ | 1.16 | | | $ | 63,713 | | | $ | 1.30 | |
| Plus: | | | | | | | | | | | | | | | | |
Share based compensation (1) | | | 5,753 | | | | 0.12 | | | | 4,572 | | | | 0.09 | |
Acquisition related integration costs (2) | | | 10,891 | | | | 0.23 | | | | 4,365 | | | | 0.09 | |
Interest costs (3) | | | 3,295 | | | | 0.07 | | | | 2,694 | | | | 0.06 | |
Amortization (4) | | | 43,365 | | | | 0.91 | | | | 35,640 | | | | 0.74 | |
Tax expense from prior years (5) | | | 2,058 | | | | 0.04 | | | | 52 | | | | 0.00 | |
Convertible debt dilution (6) | | | — | | | | 0.03 | | | | — | | | | — | |
| Adjusted non-GAAP net income | | $ | 122,558 | | | $ | 2.52 | | | $ | 111,036 | | | $ | 2.25 | |
* 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, 2017 AND 2016
(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 and the associated payroll tax expense; (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 additional tax or indirect tax related (expense) benefit from prior years; and (6) dilutive effect of the convertible debt.
| | | Three Months Ended June 30, | |
| | | 2017 | | | 2016 | |
| Cost of revenues | | $ | 43,159 | | | $ | 35,591 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (121 | ) | | | (103 | ) |
Amortization (4) | | | (639 | ) | | | (1,311 | ) |
| Adjusted non-GAAP cost of revenues | | $ | 42,399 | | | $ | 34,177 | |
| | | | | | | | | |
| Sales and marketing | | $ | 80,862 | | | $ | 48,617 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (521 | ) | | | (434 | ) |
Acquisition related integration costs (2) | | | (1,033 | ) | | | (581 | ) |
| Adjusted non-GAAP sales and marketing | | $ | 79,308 | | | $ | 47,602 | |
| | | | | | | | | |
| Research, development and engineering | | $ | 11,555 | | | $ | 9,213 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (281 | ) | | | (221 | ) |
Acquisition related integration costs (2) | | | (248 | ) | | | — | |
| Adjusted non-GAAP research, development and engineering | | $ | 11,026 | | | $ | 8,992 | |
| | | | | | | | | |
| General and administrative | | $ | 79,038 | | | $ | 59,434 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (4,639 | ) | | | (2,681 | ) |
Acquisition related integration costs (2) | | | (1,884 | ) | | | (3,371 | ) |
Amortization (4) | | | (32,077 | ) | | | (24,868 | ) |
Tax expense from prior years (5) | | | (3,007 | ) | | | (150 | ) |
| Adjusted non-GAAP general and administrative | | $ | 37,431 | | | $ | 28,364 | |
| | | | | | | | | |
| Interest expense, net | | $ | 13,670 | | | $ | 10,301 | |
| Plus: | | | | | | | | |
Interest costs (3) | | | (2,859 | ) | | | (1,913 | ) |
| Adjusted non-GAAP interest expense, net | | $ | 10,811 | | | $ | 8,388 | |
| | | | | | | | | |
| Other expense (income), net | | $ | 4,227 | | | $ | (213 | ) |
| Plus: | | | | | | | | |
Acquisition related integration costs (2) | | | (2,635 | ) | | | — | |
| Adjusted non-GAAP other expense (income), net | | $ | 1,592 | | | $ | (213 | ) |
| | | | | | | | | |
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| Income tax provision | | $ | 9,287 | | | $ | 15,087 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | 2,233 | | | | 919 | |
Acquisition related integration costs (2) | | | 834 | | | | 1,369 | |
Interest costs (3) | | | 829 | | | | 552 | |
Amortization (4) | | | 11,685 | | | | 6,857 | |
Tax expense from prior years (5) | | | 949 | | | | 51 | |
| Adjusted non-GAAP income tax provision | | $ | 25,817 | | | $ | 24,835 | |
| | | | | | | | | |
| Total adjustments | | $ | (33,414 | ) | | $ | (25,885 | ) |
| | | | | | | | | |
| GAAP earnings per diluted share | | $ | 0.63 | | | $ | 0.69 | |
| Adjustments * | | $ | 0.70 | | | $ | 0.53 | |
| Adjusted non-GAAP earnings per diluted share | | $ | 1.33 | | | $ | 1.21 | |
* 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. Accordingly, the Company believes that the presentation of this Adjusted non-GAAP financial measure provides useful information to investors.
Adjusted non-GAAP EPS is not in accordance with, or an alternative to, net income per share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this Adjusted non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(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 and the associated payroll tax expense; (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 additional tax or indirect tax related (expense) benefit from prior years; and (6) dilutive effect of the convertible debt.
| | | Six Months Ended June 30, | |
| | | 2017 | | | 2016 | |
| Cost of revenues | | $ | 83,969 | | | $ | 69,878 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (238 | ) | | | (198 | ) |
Acquisition related integration costs (2) | | | (195 | ) | | | — | |
Amortization (4) | | | (1,758 | ) | | | (2,555 | ) |
| Adjusted non-GAAP cost of revenues | | $ | 81,778 | | | $ | 67,125 | |
| | | | | | | | | |
| Sales and marketing | | $ | 158,339 | | | $ | 96,729 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (899 | ) | | | (965 | ) |
Acquisition related integration costs (2) | | | (2,471 | ) | | | (1,124 | ) |
| Adjusted non-GAAP sales and marketing | | $ | 154,969 | | | $ | 94,640 | |
| | | | | | | | | |
| Research, development and engineering | | $ | 23,307 | | | $ | 18,201 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (518 | ) | | | (428 | ) |
Acquisition related integration costs (2) | | | (825 | ) | | | — | |
| Adjusted non-GAAP research, development and engineering | | $ | 21,964 | | | $ | 17,773 | |
| | | | | | | | | |
| General and administrative | | $ | 155,693 | | | $ | 115,211 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | (7,522 | ) | | | (4,657 | ) |
Acquisition related integration costs (2) | | | (8,287 | ) | | | (5,422 | ) |
Amortization (4) | | | (62,934 | ) | | | (45,925 | ) |
Tax expense from prior years (5) | | | (3,007 | ) | | | (900 | ) |
| Adjusted non-GAAP general and administrative | | $ | 73,943 | | | $ | 58,307 | |
| | | | | | | | | |
| Interest expense, net | | $ | 26,079 | | | $ | 20,534 | |
| Plus: | | | | | | | | |
Interest costs (3) | | | (4,889 | ) | | | (3,798 | ) |
| Adjusted non-GAAP interest expense, net | | $ | 21,190 | | | $ | 16,736 | |
| | | | | | | | | |
| Other expense (income), net | | $ | 4,551 | | | $ | (87 | ) |
| Plus: | | | | | | | | |
Acquisition related integration costs (2) | | | (2,635 | ) | | | — | |
Tax benefit from prior years (5) | | | — | | | | 811 | |
| Adjusted non-GAAP other expense (income), net | | $ | 1,916 | | | $ | 724 | |
Continued on next page
Continued from previous page
| Income tax provision | | $ | 18,709 | | | $ | 28,123 | |
| Plus: | | | | | | | | |
Share based compensation (1) | | | 3,424 | | | | 1,676 | |
Acquisition related integration costs (2) | | | 3,522 | | | | 2,181 | |
Interest costs (3) | | | 1,594 | | | | 1,104 | |
Amortization (4) | | | 21,327 | | | | 12,840 | |
Tax expense from prior years (5) | | | 949 | | | | 37 | |
| Adjusted non-GAAP income tax provision | | $ | 49,525 | | | $ | 45,961 | |
| | | | | | | | | |
| Total adjustments | | $ | (65,362 | ) | | $ | (47,323 | ) |
| | | | | | | | | |
| GAAP earnings per diluted share | | $ | 1.16 | | | $ | 1.30 | |
| Adjustments * | | $ | 1.36 | | | $ | 0.95 | |
| Adjusted non-GAAP earnings per diluted share | | $ | 2.52 | | | $ | 2.25 | |
* 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. Accordingly, the Company believes that the presentation of this Adjusted non-GAAP financial measure provides useful information to investors.
Adjusted non-GAAP EPS is not in accordance with, or an alternative to, net income per share and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, this Adjusted non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP, the Company uses the following Non-GAAP financial measures: Adjusted EBITDA, Adjusted non-GAAP net income, and Adjusted non-GAAP diluted EPS (collectively the "Non-GAAP financial measures"). 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 U.S. GAAP. The Company uses these Non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about core operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
(1) Share Based Compensation. The Company excludes stock-based compensation because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. The Company further believes this measure is useful to investors in that it allows for greater transparency to certain line items in its financial statements. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.
(2) Acquisition Related Integration Costs. The Company excludes certain acquisition and related integration costs such as severance, lease terminations, retention bonuses and other acquisition-specific items. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.
(3) Interest Costs. In June 2014, the Company issued $402.5 million aggregate principal amount of 3.25% convertible senior notes. In accordance with GAAP, the Company separately accounts for the value of the liability and equity features of its outstanding convertible senior notes in a manner that reflects the Company's non-convertible debt borrowing rate. The value of the conversion feature, reflected as a debt discount, is amortized to interest expense over time. Accordingly, the Company recognizes imputed interest expense on its convertible senior notes of approximately 5.8% in its income statement. The Company excludes the difference between the imputed interest expense and the coupon interest expense of 3.25% because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding core operational performance. In addition, the Company has excluded 3 days of overlapping interest expense in connection with the 8.0% senior unsecured notes and deferred issuance costs associated with the repayment of the line of credit. The Company has determined excluding these items from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.
(4) Amortization. The Company excludes amortization of patents and acquired intangible assets because it is non-cash in nature and because the Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.
(5) Tax (Expense) Benefit from Prior Years. The Company excludes certain income tax-related items in respect of income tax audit settlements and their related FIN 48 accrual reversals. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.
(6) Convertible Debt Dilution. The Company excludes convertible debt dilution from diluted EPS. The Company believes that the Non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In addition, excluding this item from the Non-GAAP measures facilitates comparisons to historical operating results.
The Company presents Adjusted non-GAAP Cost of Revenues, Adjusted non-GAAP Research, Development and Engineering, Adjusted non-GAAP Sales and Marketing, Adjusted non-GAAP General and Administrative, Adjusted non-GAAP Interest Expense, Adjusted non-GAAP Other Expense (Income), Adjusted non-GAAP Income Tax Provision and Adjusted non-GAAP Net Income because the Company believes that these provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects.
j2 GLOBAL, INC. AND SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA RECONCILIATION
THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016
(UNAUDITED, IN THOUSANDS)
The following table sets forth a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2017 | | | 2016 | | | 2017 | | | 2016 | |
| | | | | | | | | | | | | |
| Net income | | $ | 31,376 | | | $ | 33,770 | | | $ | 57,196 | | | $ | 63,713 | |
| Plus: | | | | | | | | | | | | | | | | |
| Interest expense, net | | | 13,670 | | | | 10,301 | | | | 26,079 | | | | 20,534 | |
| Other expense (income), net | | | 1,592 | | | | (213 | ) | | | 1,916 | | | | (87 | ) |
| Income tax expense | | | 9,287 | | | | 15,087 | | | | 18,709 | | | | 28,123 | |
| Depreciation and amortization | | | 39,902 | | | | 31,058 | | | | 79,225 | | | | 58,233 | |
| Reconciliation of GAAP to Adjusted non-GAAP financial measures: | | | | | | | | | | | | | | | | |
| Share-based compensation and the associated payroll tax expense | | | 5,562 | | | | 3,439 | | | | 9,177 | | | | 6,248 | |
| Acquisition-related integration costs | | | 5,800 | | | | 3,952 | | | | 14,413 | | | | 6,546 | |
| Additional indirect tax expense from prior years | | | 3,007 | | | | 150 | | | | 3,007 | | | | 900 | |
| | | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | $ | 110,196 | | | $ | 97,544 | | | $ | 209,722 | | | $ | 184,210 | |
Adjusted EBITDA as calculated above represents earnings before interest and other expense, net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to Adjusted non-GAAP financial measures, including (1) share-based compensation, (2) certain acquisition-related integration costs, and (3) additional indirect tax expense from prior years. We disclose Adjusted EBITDA as a supplemental non-GAAP financial performance measure as we believe it is a useful metric by which to compare the performance of our business from period to period. We understand that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, we believe that the presentation of Adjusted EBITDA provides useful information to investors.
Adjusted EBITDA is not in accordance with, or an alternative to, net income, and may be different from non-GAAP measures used by other companies. In addition, Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
j2 GLOBAL, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
| | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | YTD | |
2017 | | | | | | | | | | | | | | | | | | | |
| Net cash provided by operating activities | | $ | 51,191 | | | $ | 60,464 | | | $ | — | | | $ | — | | | $ | 111,655 | |
| Less: Purchases of property and equipment | | | (9,660 | ) | | | (9,285 | ) | | | — | | | | — | | | | (18,945 | ) |
| Add: Contingent consideration* | | | 20,000 | | | | 19,950 | | | | — | | | | — | | | | 39,950 | |
| Free cash flows | | $ | 61,531 | | | $ | 71,129 | | | $ | — | | | $ | — | | | $ | 132,660 | |
* Free cash flows of $61.5 million for Q1 2017 and $71.1 million for Q2 2017 is before the effect of payments associated with certain contingent consideration associated with recent acquisitions.
| | | Q1 | | | Q2 | | | Q3 | | | Q4 | | | YTD | |
2016 | | | | | | | | | | | | | | | | | | | |
| Net cash provided by operating activities | | $ | 64,524 | | | $ | 67,528 | | | $ | 60,488 | | | $ | 89,847 | | | $ | 282,387 | |
| Less: Purchases of property and equipment | | | (4,321 | ) | | | (4,865 | ) | | | (8,261 | ) | | | (7,299 | ) | | | (24,746 | ) |
| Add: Contingent consideration* | | | 8,000 | | | | — | | | | — | | | | — | | | | 8,000 | |
| Add: Excess tax benefit share-based compensation | | | 264 | | | | 833 | | | | 974 | | | | 200 | | | | 2,271 | |
| Free cash flows | | $ | 68,467 | | | $ | 63,496 | | | $ | 53,201 | | | $ | 82,748 | | | $ | 267,912 | |
* Free cash flows of $68.5 million for Q1 2016 is before the effect of payments associated with certain contingent consideration associated with recent acquisitions. Amounts reflected were adjusted from previously disclosed periods in order to be comparable to the current period.
The Company discloses Free Cash Flows as 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 Non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this Non-GAAP financial measure provides useful information to investors.
Free Cash Flows is not in accordance with, or an alternative to, Cash Flows from Operating Activities, and may be different from Non-GAAP measures with similar or even identical names used by other companies. In addition, the Non-GAAP measure is not based on any comprehensive set of accounting rules or principles. This Non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.
j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE MONTHS ENDED JUNE 30, 2017
(UNAUDITED, IN THOUSANDS)
| | | Cloud Connect | | | Cloud Services | | | IP Licensing | | | Digital Media | | | j2 Global, Inc. | | | Total | |
| | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
| GAAP revenues | | $ | 95,667 | | | $ | 47,763 | | | $ | 1,279 | | | $ | 128,465 | | | $ | — | | | $ | 273,174 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross profit | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP gross profit | | $ | 78,485 | | | $ | 35,017 | | | $ | 1,272 | | | $ | 115,241 | | | $ | — | | | $ | 230,015 | |
| Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| Share-based compensation | | | 106 | | | | 15 | | | | — | | | | — | | | | — | | | | 121 | |
| Amortization | | | 119 | | | | 520 | | | | — | | | | — | | | | — | | | | 639 | |
| Adjusted non-GAAP gross profit | | $ | 78,710 | | | $ | 35,552 | | | $ | 1,272 | | | $ | 115,241 | | | $ | — | | | $ | 230,775 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating profit | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP operating profit | | $ | 45,435 | | | $ | 12,892 | | | $ | (218 | ) | | $ | 10,129 | | | $ | (9,678 | ) | | $ | 58,560 | |
| Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| Share-based compensation | | | 1,167 | | | | 348 | | | | — | | | | 1,091 | | | | 2,956 | | | | 5,562 | |
| Acquisition related integration costs | | | 119 | | | | 31 | | | | — | | | | 3,015 | | | | — | | | | 3,165 | |
| Amortization | | | 4,866 | | | | 8,749 | | | | 1,261 | | | | 17,840 | | | | — | | | | 32,716 | |
| Additional indirect tax expense from prior years | | | — | | | | — | | | | — | | | | — | | | | 3,007 | | | | 3,007 | |
| Adjusted non-GAAP operating profit | | $ | 51,587 | | | $ | 22,020 | | | $ | 1,043 | | | $ | 32,075 | | | $ | (3,715 | ) | | $ | 103,010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Depreciation | | | 1,214 | | | | 1,098 | | | | — | | | | 4,874 | | | | — | | | | 7,186 | |
| Adjusted EBITDA | | $ | 52,801 | | | $ | 23,118 | | | $ | 1,043 | | | $ | 36,949 | | | $ | (3,715 | ) | | $ | 110,196 | |
NOTE: Table above excludes certain intercompany allocations
j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES
THREE MONTHS ENDED JUNE 30, 2016
(UNAUDITED, IN THOUSANDS)
| | | | | | | | | | | | | | | j2 Global, Inc. | | | Total | |
| | | | | | | | | | | | | | | | | | | |
| Revenues | | | | | | | | | | | | | | | | | | |
| GAAP revenues | | $ | 92,858 | | | $ | 48,509 | | | $ | 1,093 | | | $ | 69,340 | | | $ | — | | | $ | 211,800 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross profit | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP gross profit | | $ | 76,851 | | | $ | 34,485 | | | $ | 1,093 | | | $ | 63,780 | | | $ | — | | | $ | 176,209 | |
| Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| Share-based compensation | | | 103 | | | | — | | | | — | | | | — | | | | — | | | | 103 | |
| Amortization | | | 127 | | | | 1,184 | | | | — | | | | — | | | | — | | | | 1,311 | |
| Adjusted non-GAAP gross profit | | $ | 77,081 | | | $ | 35,669 | | | $ | 1,093 | | | $ | 63,780 | | | $ | — | | | $ | 177,623 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating profit | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP operating profit | | $ | 42,548 | | | $ | 10,721 | | | $ | (751 | ) | | $ | 11,505 | | | $ | (5,078 | ) | | $ | 58,945 | |
| Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| Share-based compensation | | | 1,465 | | | | — | | | | — | | | | 592 | | | | 1,382 | | | | 3,439 | |
| Acquisition related integration costs | | | 88 | | | | — | | | | — | | | | 3,864 | | | | — | | | | 3,952 | |
| Amortization | | | 6,345 | | | | 11,140 | | | | 1,492 | | | | 7,202 | | | | — | | | | 26,179 | |
| Additional indirect tax expense from prior years | | | — | | | | — | | | | — | | | | 150 | | | | — | | | | 150 | |
| Adjusted non-GAAP operating profit | | $ | 50,446 | | | $ | 21,861 | | | $ | 741 | | | $ | 23,313 | | | $ | (3,696 | ) | | $ | 92,665 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Depreciation | | | 1,230 | | | | 1,044 | | | | — | | | | 2,605 | | | | — | | | | 4,879 | |
| Adjusted EBITDA | | $ | 51,676 | | | $ | 22,905 | | | $ | 741 | | | $ | 25,918 | | | $ | (3,696 | ) | | $ | 97,544 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
