|
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|
|
|
R
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
£
|
TRANSITION PERIOD PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
20-3179218
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1040 Avenue of the Americas, 8
th
Floor
|
|
|
New York, New York
|
|
10018
|
(Address of principal executive offices)
|
|
(Zip Code)
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Page
|
PART I.
|
FINANCIAL INFORMATION
|
|
|
Item 1.
|
Unaudited
Financial Statements
|
|
|
|
Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017
|
|
|
|
Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2018 and 2017
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six month periods ended June 30, 2018 and 2017
|
|
|
|
Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2018 and 2017
|
|
|
|
Notes to Condensed Consolidated Financial Statements
|
|
|
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 3.
|
|
||
|
|
|
|
Item 4.
|
|
||
|
|
|
|
PART II.
|
OTHER INFORMATION
|
|
|
Item 1.
|
|
||
|
|
|
|
Item 1A.
|
|
||
|
|
|
|
Item 2.
|
|
||
|
|
|
|
Item 5.
|
|
||
|
|
|
|
Item 6.
|
|
||
|
|
|
|
SIGNATURES
|
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
June 30,
2018 |
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash
|
$
|
9,549
|
|
|
$
|
12,068
|
|
Accounts receivable, net of allowance for doubtful accounts of $1,206 and $1,688
|
21,980
|
|
|
38,769
|
|
||
Income taxes receivable
|
2,248
|
|
|
2,617
|
|
||
Prepaid and other current assets
|
7,709
|
|
|
5,086
|
|
||
Total current assets
|
41,486
|
|
|
58,540
|
|
||
Fixed assets, net
|
15,259
|
|
|
16,147
|
|
||
Acquired intangible assets, net
|
39,000
|
|
|
45,737
|
|
||
Capitalized contract costs
|
6,806
|
|
|
—
|
|
||
Goodwill
|
156,174
|
|
|
170,791
|
|
||
Deferred income taxes
|
307
|
|
|
469
|
|
||
Other assets
|
2,501
|
|
|
4,034
|
|
||
Total assets
|
$
|
261,533
|
|
|
$
|
295,718
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
18,244
|
|
|
$
|
22,196
|
|
Deferred revenue
|
64,194
|
|
|
83,646
|
|
||
Income taxes payable
|
1,268
|
|
|
1,129
|
|
||
Total current liabilities
|
83,706
|
|
|
106,971
|
|
||
Long-term debt, net
|
18,547
|
|
|
41,450
|
|
||
Deferred income taxes
|
8,434
|
|
|
8,245
|
|
||
Deferred revenue
|
1,737
|
|
|
—
|
|
||
Income taxes payable
|
1,489
|
|
|
1,489
|
|
||
Accrual for unrecognized tax benefits
|
3,179
|
|
|
2,859
|
|
||
Other long-term liabilities
|
1,996
|
|
|
2,063
|
|
||
Total liabilities
|
119,088
|
|
|
163,077
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Convertible preferred stock, $.01 par value, authorized 20,000 shares; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, authorized 240,000; issued 86,718 and 83,125 shares, respectively; outstanding: 53,743 and 50,480 shares, respectively
|
868
|
|
|
831
|
|
||
Additional paid-in capital
|
379,626
|
|
|
375,537
|
|
||
Accumulated other comprehensive loss
|
(28,867
|
)
|
|
(27,330
|
)
|
||
Accumulated earnings
|
67,559
|
|
|
59,776
|
|
||
Treasury stock, 32,974 and 32,645 shares, respectively
|
(276,741
|
)
|
|
(276,173
|
)
|
||
Total stockholders’ equity
|
142,445
|
|
|
132,641
|
|
||
Total liabilities and stockholders’ equity
|
$
|
261,533
|
|
|
$
|
295,718
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
$
|
41,595
|
|
|
$
|
52,400
|
|
|
$
|
84,666
|
|
|
$
|
104,590
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
4,749
|
|
|
7,668
|
|
|
9,906
|
|
|
15,065
|
|
||||
Product development
|
5,129
|
|
|
6,356
|
|
|
10,592
|
|
|
12,807
|
|
||||
Sales and marketing
|
16,387
|
|
|
19,751
|
|
|
32,654
|
|
|
39,650
|
|
||||
General and administrative
|
8,787
|
|
|
10,046
|
|
|
19,169
|
|
|
21,325
|
|
||||
Depreciation
|
2,325
|
|
|
2,819
|
|
|
4,615
|
|
|
5,127
|
|
||||
Amortization of intangible assets
|
191
|
|
|
571
|
|
|
482
|
|
|
1,132
|
|
||||
Disposition related and other costs (Note 11)
|
2,118
|
|
|
1,187
|
|
|
3,129
|
|
|
1,187
|
|
||||
Total operating expenses
|
39,686
|
|
|
48,398
|
|
|
80,547
|
|
|
96,293
|
|
||||
Gain (loss) on sale of businesses (Note 4)
|
(839
|
)
|
|
—
|
|
|
3,800
|
|
|
—
|
|
||||
Operating income
|
1,070
|
|
|
4,002
|
|
|
7,919
|
|
|
8,297
|
|
||||
Interest expense
|
(489
|
)
|
|
(814
|
)
|
|
(1,035
|
)
|
|
(1,604
|
)
|
||||
Other income (expense)
|
(24
|
)
|
|
9
|
|
|
(33
|
)
|
|
(7
|
)
|
||||
Income before income taxes
|
557
|
|
|
3,197
|
|
|
6,851
|
|
|
6,686
|
|
||||
Income tax expense
|
762
|
|
|
1,375
|
|
|
3,553
|
|
|
3,524
|
|
||||
Net income (loss)
|
$
|
(205
|
)
|
|
$
|
1,822
|
|
|
$
|
3,298
|
|
|
$
|
3,162
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
Diluted earnings per share
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average basic shares outstanding
|
48,722
|
|
|
47,953
|
|
|
48,491
|
|
|
47,775
|
|
||||
Weighted-average diluted shares outstanding
|
48,722
|
|
|
48,268
|
|
|
49,406
|
|
|
48,308
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
(205
|
)
|
|
$
|
1,822
|
|
|
$
|
3,298
|
|
|
$
|
3,162
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(3,859
|
)
|
|
2,266
|
|
|
(1,537
|
)
|
|
2,871
|
|
||||
Total other comprehensive income (loss)
|
(3,859
|
)
|
|
2,266
|
|
|
(1,537
|
)
|
|
2,871
|
|
||||
Comprehensive income (loss)
|
$
|
(4,064
|
)
|
|
$
|
4,088
|
|
|
$
|
1,761
|
|
|
$
|
6,033
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
3,298
|
|
|
$
|
3,162
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation
|
4,615
|
|
|
5,127
|
|
||
Amortization of intangible assets
|
482
|
|
|
1,132
|
|
||
Deferred income taxes
|
540
|
|
|
648
|
|
||
Amortization of deferred financing costs
|
97
|
|
|
162
|
|
||
Stock based compensation
|
4,089
|
|
|
4,588
|
|
||
Impairment of fixed assets
|
168
|
|
|
—
|
|
||
Change in accrual for unrecognized tax benefits
|
320
|
|
|
70
|
|
||
Gain on sale of businesses, net
|
(3,800
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
13,482
|
|
|
11,231
|
|
||
Prepaid expenses and other assets
|
795
|
|
|
(1,082
|
)
|
||
Capitalized contract costs
|
(1,758
|
)
|
|
—
|
|
||
Accounts payable and accrued expenses
|
(3,845
|
)
|
|
(1,007
|
)
|
||
Income taxes receivable/payable
|
567
|
|
|
(1,465
|
)
|
||
Deferred revenue
|
(10,692
|
)
|
|
1,101
|
|
||
Other, net
|
(61
|
)
|
|
45
|
|
||
Net cash flows from operating activities
|
8,297
|
|
|
23,712
|
|
||
Cash flows from (used in) investing activities:
|
|
|
|
||||
Net cash received from sale of businesses
|
17,542
|
|
|
—
|
|
||
Purchases of fixed assets
|
(4,236
|
)
|
|
(7,730
|
)
|
||
Net cash flows from (used in) investing activities
|
13,306
|
|
|
(7,730
|
)
|
||
Cash flows used in financing activities:
|
|
|
|
||||
Payments on long-term debt
|
(28,000
|
)
|
|
(15,000
|
)
|
||
Proceeds from long-term debt
|
5,000
|
|
|
—
|
|
||
Payments under stock repurchase plan
|
(95
|
)
|
|
—
|
|
||
Proceeds from stock option exercises
|
—
|
|
|
403
|
|
||
Purchase of treasury stock related to vested restricted stock
|
(467
|
)
|
|
(1,109
|
)
|
||
Net cash flows used in financing activities
|
(23,562
|
)
|
|
(15,706
|
)
|
||
Effect of exchange rate changes
|
(560
|
)
|
|
193
|
|
||
Net change in cash for the period
|
(2,519
|
)
|
|
469
|
|
||
Cash, beginning of period
|
12,068
|
|
|
22,987
|
|
||
Cash, end of period
|
$
|
9,549
|
|
|
$
|
23,456
|
|
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||
|
Tech-Focused
|
Corporate & Other
|
Total
|
|
Tech-Focused
|
Corporate & Other
|
Total
|
||||||||||||
Dice
|
$
|
23,489
|
|
$
|
—
|
|
$
|
23,489
|
|
|
$
|
46,771
|
|
$
|
—
|
|
$
|
46,771
|
|
ClearanceJobs
|
5,133
|
|
—
|
|
5,133
|
|
|
9,937
|
|
—
|
|
9,937
|
|
||||||
Dice Europe
|
1,255
|
|
—
|
|
1,255
|
|
|
2,547
|
|
—
|
|
2,547
|
|
||||||
eFinancial Careers
|
8,467
|
|
—
|
|
8,467
|
|
|
17,030
|
|
—
|
|
17,030
|
|
||||||
Hcareers (1)
|
—
|
|
1,936
|
|
1,936
|
|
|
—
|
|
5,329
|
|
5,329
|
|
||||||
Rigzone (1)
|
—
|
|
1,315
|
|
1,315
|
|
|
—
|
|
2,840
|
|
2,840
|
|
||||||
BioSpace (1)
|
—
|
|
—
|
|
—
|
|
|
—
|
|
212
|
|
212
|
|
||||||
Total
|
$
|
38,344
|
|
$
|
3,251
|
|
$
|
41,595
|
|
|
$
|
76,285
|
|
$
|
8,381
|
|
$
|
84,666
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) The Company sold the RigLogix portion of the Rigzone business on February 20, 2018 and Hcareers on May 22, 2018. Transferred majority ownership of BioSpace to BioSpace management on January 31, 2018.
|
|
|
As of June 30, 2018
|
|
As of January 1, 2018
|
||||
|
|
|
|
|
||||
Receivables
|
|
$
|
21,980
|
|
|
$
|
38,769
|
|
Short-term contract liabilities (deferred revenue)
|
|
64,194
|
|
|
83,810
|
|
||
Long-term contract liabilities (deferred revenue)
|
|
1,737
|
|
|
—
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||
Revenue recognized in the period from:
|
|
|
|
||||
Amounts included in the contract liability at the beginning of the period
|
$
|
31,774
|
|
|
$
|
56,120
|
|
|
|
|
|
|
|
|
|
||||||||
|
Remainder of 2018
|
|
2019
|
|
2020
|
|
Total
|
||||||||
Tech-focused
|
$
|
48,718
|
|
|
$
|
15,161
|
|
|
$
|
379
|
|
|
$
|
64,258
|
|
Corporate & Other
|
1,409
|
|
|
264
|
|
|
—
|
|
|
1,673
|
|
||||
Total
|
$
|
50,127
|
|
|
$
|
15,425
|
|
|
$
|
379
|
|
|
$
|
65,931
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||
(in thousands, except per share amounts)
|
As Reported
|
|
Balance Without Adoption of Topic 606
|
|
Effect of Change- Higher (Lower)
|
|||||||
|
|
|
|
|
|
|
||||||
Revenues
|
$
|
41,595
|
|
|
$
|
41,595
|
|
|
$
|
—
|
|
|
Operating expenses
|
$
|
39,686
|
|
|
$
|
40,046
|
|
|
$
|
(360
|
)
|
|
Operating income
|
$
|
1,070
|
|
|
$
|
710
|
|
|
$
|
360
|
|
|
Net income
|
$
|
(205
|
)
|
|
$
|
(475
|
)
|
|
$
|
270
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
Diluted earnings per share
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
(in thousands, except per share amounts)
|
As Reported
|
|
Balance Without Adoption of Topic 606
|
|
Effect of Change- Higher (Lower)
|
|||||||
|
|
|
|
|
|
|
||||||
Revenues
|
$
|
84,666
|
|
|
$
|
84,519
|
|
|
$
|
147
|
|
|
Operating expenses
|
$
|
80,547
|
|
|
$
|
82,175
|
|
|
$
|
(1,628
|
)
|
|
Operating income
|
$
|
7,919
|
|
|
$
|
6,144
|
|
|
$
|
1,775
|
|
|
Net income
|
$
|
3,298
|
|
|
$
|
1,967
|
|
|
$
|
1,331
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
Diluted earnings per share
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2018
|
||||||||||
(in thousands)
|
As Reported
|
|
Balance Without Adoption of Topic 606
|
|
Effect of Change-Higher (Lower)
|
||||||
|
|
|
|
|
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Capitalized contract costs
|
$
|
6,806
|
|
|
$
|
—
|
|
|
$
|
6,806
|
|
Total assets
|
$
|
261,533
|
|
|
$
|
254,727
|
|
|
$
|
6,806
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||||||
Deferred income taxes
|
$
|
8,434
|
|
|
$
|
7,444
|
|
|
$
|
990
|
|
Total liabilities
|
$
|
119,088
|
|
|
$
|
118,098
|
|
|
$
|
990
|
|
Stockholders equity
|
|
|
|
|
|
||||||
Accumulated earnings
|
$
|
67,559
|
|
|
$
|
61,743
|
|
|
$
|
5,816
|
|
Total stockholders' equity
|
$
|
142,445
|
|
|
$
|
136,629
|
|
|
$
|
5,816
|
|
Total liabilities & stockholders' equity
|
$
|
261,533
|
|
|
$
|
254,727
|
|
|
$
|
6,806
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
As Reported
|
|
Balance Without Adoption of Topic 606
|
|
Effect of Change-Higher (Lower)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
3,298
|
|
|
$
|
1,967
|
|
|
$
|
1,331
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
|
|
||||||
Deferred income taxes
|
$
|
540
|
|
|
$
|
113
|
|
|
$
|
427
|
|
Capitalized contract costs
|
$
|
(1,758
|
)
|
|
$
|
—
|
|
|
$
|
(1,758
|
)
|
Net cash flows from operating activities
|
$
|
8,297
|
|
|
$
|
8,297
|
|
|
$
|
—
|
|
•
|
Level 1 – Quoted prices for identical instruments in active markets.
|
•
|
Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.
|
•
|
Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
|
|
Total Cost
|
|
Accumulated
Amortization
|
|
Foreign
Currency
Translation
Adjustment
|
|
Acquired
Intangible
Assets, Net
|
||||||||
Technology
|
$
|
4,561
|
|
|
$
|
(3,930
|
)
|
|
$
|
(631
|
)
|
|
$
|
—
|
|
Trademarks and brand names—Dice
|
39,000
|
|
|
—
|
|
|
—
|
|
|
39,000
|
|
||||
Trademarks and brand names—Other
|
11,103
|
|
|
(7,260
|
)
|
|
(2,185
|
)
|
|
1,658
|
|
||||
Customer lists
|
12,887
|
|
|
(5,696
|
)
|
|
(2,112
|
)
|
|
5,079
|
|
||||
Candidate and content database
|
8,857
|
|
|
(8,354
|
)
|
|
(503
|
)
|
|
—
|
|
||||
Acquired intangible assets, net
|
$
|
76,408
|
|
|
$
|
(25,240
|
)
|
|
$
|
(5,431
|
)
|
|
$
|
45,737
|
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Amounts borrowed:
|
|
|
|
||||
Revolving credit facility
|
$
|
19,000
|
|
|
$
|
42,000
|
|
Less: deferred financing costs, net of accumulated amortization of $1,626 and $1,529
|
(453
|
)
|
|
(550
|
)
|
||
Total borrowed
|
$
|
18,547
|
|
|
$
|
41,450
|
|
|
|
|
|
||||
Available to be borrowed under revolving facility, subject to certain limitations
|
$
|
131,000
|
|
|
$
|
108,000
|
|
|
|
|
|
||||
Interest rates:
|
|
|
|
||||
LIBOR rate loans:
|
|
|
|
||||
Interest margin
|
1.75
|
%
|
|
2.25
|
%
|
||
Actual interest rates
|
3.88
|
%
|
|
3.88
|
%
|
July 1, 2018 through December 31, 2018
|
$
|
2,301
|
|
2019
|
4,111
|
|
|
2020
|
3,530
|
|
|
2021
|
2,826
|
|
|
2022
|
2,476
|
|
|
2023 and thereafter
|
6,182
|
|
|
Total minimum payments
|
$
|
21,426
|
|
Total Number of Shares Purchases
|
|
Average Price Paid per Share
|
|
Approximate Dollar Value of Shares Purchased
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
|
55,017
|
|
|
$1.72
|
|
$94,892
|
|
$6,905,000
|
Three Months Ended June 30, 2018
|
Accrual at March 31, 2018
|
|
Expense
|
|
Cash Payments
|
|
Non-cash Impairment
|
|
Accrual at June 30, 2018
|
||||||||||
Severance and retention
|
$
|
852
|
|
|
$
|
1,168
|
|
|
$
|
(498
|
)
|
|
$
|
—
|
|
|
$
|
1,522
|
|
Professional fees
|
653
|
|
|
523
|
|
|
(725
|
)
|
|
—
|
|
|
451
|
|
|||||
Lease exit and related asset impairment
|
—
|
|
|
427
|
|
|
—
|
|
|
(168
|
)
|
|
259
|
|
|||||
Total disposition related and other costs
|
$
|
1,505
|
|
|
$
|
2,118
|
|
|
$
|
(1,223
|
)
|
|
$
|
(168
|
)
|
|
$
|
2,232
|
|
Six Months Ended June 30, 2018
|
Accrual at December 31, 2017
|
|
Expense
|
|
Cash Payments
|
|
Non-cash Impairment
|
|
Accrual at June 30, 2018
|
||||||||||
Severance and retention
|
$
|
1,237
|
|
|
$
|
1,770
|
|
|
$
|
(1,485
|
)
|
|
$
|
—
|
|
|
$
|
1,522
|
|
Professional fees
|
825
|
|
|
932
|
|
|
(1,306
|
)
|
|
—
|
|
|
451
|
|
|||||
Lease exit and related asset impairment
|
—
|
|
|
427
|
|
|
—
|
|
|
(168
|
)
|
|
259
|
|
|||||
Total disposition related and other costs
|
$
|
2,062
|
|
|
$
|
3,129
|
|
|
$
|
(2,791
|
)
|
|
$
|
(168
|
)
|
|
$
|
2,232
|
|
Three and Six Months Ended June 30, 2017
|
Accrual at December 31, 2016
|
|
Expense
|
|
Cash Payments
|
|
Accrual at June 30, 2017
|
||||||||
Severance and retention
|
$
|
—
|
|
|
$
|
1,117
|
|
|
$
|
(264
|
)
|
|
$
|
853
|
|
Professional fees
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
||||
Total disposition related and other costs
|
$
|
—
|
|
|
$
|
1,187
|
|
|
$
|
(264
|
)
|
|
$
|
923
|
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||
|
Shares
|
|
Weighted- Average Fair Value at Grant Date
|
|
Shares
|
|
Weighted- Average Fair Value at Grant Date
|
||||||
Non-vested at beginning of the period
|
3,203,507
|
|
|
$
|
3.40
|
|
|
2,548,625
|
|
|
$
|
6.68
|
|
Granted
|
2,256,500
|
|
|
$
|
1.71
|
|
|
238,500
|
|
|
$
|
3.85
|
|
Forfeited
|
(79,750
|
)
|
|
$
|
4.30
|
|
|
(213,500
|
)
|
|
$
|
6.82
|
|
Vested
|
(483,810
|
)
|
|
$
|
4.69
|
|
|
(156,325
|
)
|
|
$
|
6.91
|
|
Non-vested at end of period
|
4,896,447
|
|
|
$
|
2.48
|
|
|
2,417,300
|
|
|
$
|
6.38
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||
|
Shares
|
|
Weighted- Average Fair Value at Grant Date
|
|
Shares
|
|
Weighted- Average Fair Value at Grant Date
|
||||||
Non-vested at beginning of the period
|
2,393,257
|
|
|
$
|
5.48
|
|
|
2,226,375
|
|
|
$
|
7.87
|
|
Granted
|
3,763,000
|
|
|
$
|
1.68
|
|
|
1,224,500
|
|
|
$
|
4.78
|
|
Forfeited
|
(170,375
|
)
|
|
$
|
4.84
|
|
|
(254,625
|
)
|
|
$
|
6.99
|
|
Vested
|
(1,089,435
|
)
|
|
$
|
5.97
|
|
|
(778,950
|
)
|
|
$
|
7.94
|
|
Non-vested at end of period
|
4,896,447
|
|
|
$
|
2.48
|
|
|
2,417,300
|
|
|
$
|
6.38
|
|
|
Six Months Ended June 30,
|
|
||
|
2017
|
|
||
Weighted average fair value of PSUs granted
|
$
|
5.38
|
|
|
Dividend yield of DHI Group, Inc. stock
|
—
|
%
|
|
|
Dividend yield of Russell 2000 Index
|
1.4
|
%
|
|
|
Risk free interest rate
|
1.5
|
%
|
|
|
Volatility of DHI Group, Inc. stock
|
41.0
|
%
|
|
|
Volatility of Russell 2000 Index
|
16.7
|
%
|
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||
|
Shares
|
|
Weighted- Average Fair Value at
Grant Date
|
|
Shares
|
|
Weighted- Average Fair Value at
Grant Date
|
||||||
Non-vested at beginning of the period
|
505,000
|
|
|
$
|
6.24
|
|
|
977,504
|
|
|
$
|
6.95
|
|
Forfeited
|
—
|
|
|
$
|
—
|
|
|
(86,666
|
)
|
|
$
|
7.21
|
|
Non-vested at end of period
|
505,000
|
|
|
$
|
6.24
|
|
|
890,838
|
|
|
$
|
6.92
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||
|
Shares
|
|
Weighted- Average Fair Value at
Grant Date
|
|
Shares
|
|
Weighted- Average Fair Value at
Grant Date
|
||||||
Non-vested at beginning of the period
|
760,003
|
|
|
$
|
6.92
|
|
|
580,004
|
|
|
$
|
8.02
|
|
Granted
|
—
|
|
|
$
|
—
|
|
|
397,500
|
|
|
$
|
5.38
|
|
Forfeited
|
(255,003
|
)
|
|
$
|
8.27
|
|
|
(86,666
|
)
|
|
$
|
7.21
|
|
Non-vested at end of period
|
505,000
|
|
|
$
|
6.24
|
|
|
890,838
|
|
|
$
|
6.92
|
|
|
Three Months Ended June 30, 2018
|
|||||||||
|
Options
|
|
Weighted-Average Exercise Price
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding at beginning of the period
|
984,375
|
|
|
$
|
8.67
|
|
|
$
|
—
|
|
Forfeited
|
(176,813
|
)
|
|
$
|
8.68
|
|
|
$
|
—
|
|
Options outstanding at end of period
|
807,562
|
|
|
$
|
8.67
|
|
|
$
|
—
|
|
Exercisable at end of period
|
805,030
|
|
|
$
|
8.67
|
|
|
$
|
—
|
|
|
Three Months Ended June 30, 2017
|
|||||||||
|
Options
|
|
Weighted-Average Exercise Price
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding at beginning of the period
|
1,350,182
|
|
|
$
|
9.18
|
|
|
$
|
—
|
|
Forfeited
|
(77,094
|
)
|
|
$
|
7.35
|
|
|
$
|
—
|
|
Options outstanding at end of period
|
1,273,088
|
|
|
$
|
9.29
|
|
|
$
|
—
|
|
|
Six Months Ended June 30, 2018
|
|||||||||
|
Options
|
|
Weighted-Average Exercise Price
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding at beginning of the period
|
1,101,875
|
|
|
$
|
9.28
|
|
|
$
|
—
|
|
Forfeited
|
(294,313
|
)
|
|
$
|
10.94
|
|
|
$
|
—
|
|
Options outstanding at end of period
|
807,562
|
|
|
$
|
8.67
|
|
|
$
|
—
|
|
Exercisable at end of period
|
805,030
|
|
|
$
|
8.67
|
|
|
$
|
—
|
|
|
Six Months Ended June 30, 2017
|
|||||||||
|
Options
|
|
Weighted-Average Exercise Price
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding at beginning of the period
|
1,779,613
|
|
|
$
|
8.46
|
|
|
$
|
50,869
|
|
Exercised
|
(66,188
|
)
|
|
$
|
6.08
|
|
|
$
|
12,821
|
|
Forfeited
|
(440,337
|
)
|
|
$
|
6.43
|
|
|
$
|
—
|
|
Options outstanding at end of period
|
1,273,088
|
|
|
$
|
9.29
|
|
|
$
|
—
|
|
Exercisable at end of period
|
1,177,054
|
|
|
$
|
9.41
|
|
|
$
|
—
|
|
|
Options Outstanding
|
|
Options
Exercisable
|
||||
Exercise Price
|
Number
Outstanding
|
|
Weighted-
Average
Remaining
Contractual
Life
|
|
Number
Exercisable
|
||
|
|
|
(in years)
|
|
|
||
$ 7.00 - $ 7.99
|
257,375
|
|
|
2.6
|
|
257,343
|
|
$ 8.00 - $ 8.99
|
145,187
|
|
|
1.1
|
|
142,687
|
|
$ 9.00 - $ 9.99
|
405,000
|
|
|
1.9
|
|
405,000
|
|
|
807,562
|
|
|
|
|
805,030
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
By Segment:
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Tech-focused
|
$
|
38,344
|
|
|
$
|
39,276
|
|
|
$
|
76,285
|
|
|
$
|
78,825
|
|
Healthcare
|
—
|
|
|
6,565
|
|
|
—
|
|
|
13,279
|
|
||||
Corporate & Other
|
3,251
|
|
|
6,559
|
|
|
8,381
|
|
|
12,486
|
|
||||
Total revenues
|
$
|
41,595
|
|
|
$
|
52,400
|
|
|
$
|
84,666
|
|
|
$
|
104,590
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation:
|
|
|
|
|
|
|
|
||||||||
Tech-focused
|
$
|
2,210
|
|
|
$
|
1,792
|
|
|
$
|
4,351
|
|
|
$
|
3,355
|
|
Healthcare
|
—
|
|
|
537
|
|
|
—
|
|
|
1,045
|
|
||||
Corporate & Other
|
115
|
|
|
490
|
|
|
264
|
|
|
727
|
|
||||
Total depreciation
|
$
|
2,325
|
|
|
$
|
2,819
|
|
|
$
|
4,615
|
|
|
$
|
5,127
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization:
|
|
|
|
|
|
|
|
||||||||
Tech-focused
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
80
|
|
Healthcare
|
—
|
|
|
163
|
|
|
—
|
|
|
325
|
|
||||
Corporate & Other
|
191
|
|
|
363
|
|
|
482
|
|
|
727
|
|
||||
Total amortization
|
$
|
191
|
|
|
$
|
571
|
|
|
$
|
482
|
|
|
$
|
1,132
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
||||||||
Tech-focused
|
$
|
6,330
|
|
|
$
|
10,117
|
|
|
$
|
13,413
|
|
|
$
|
21,215
|
|
Healthcare
|
—
|
|
|
(642
|
)
|
|
—
|
|
|
(1,092
|
)
|
||||
Corporate & Other
|
(5,260
|
)
|
|
(5,473
|
)
|
|
(5,494
|
)
|
|
(11,826
|
)
|
||||
Operating income
|
1,070
|
|
|
4,002
|
|
|
7,919
|
|
|
8,297
|
|
||||
Interest expense
|
(489
|
)
|
|
(814
|
)
|
|
(1,035
|
)
|
|
(1,604
|
)
|
||||
Other income (expense)
|
(24
|
)
|
|
9
|
|
|
(33
|
)
|
|
(7
|
)
|
||||
Income before income taxes
|
$
|
557
|
|
|
$
|
3,197
|
|
|
$
|
6,851
|
|
|
$
|
6,686
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
Tech-focused
|
$
|
2,395
|
|
|
$
|
2,636
|
|
|
$
|
4,176
|
|
|
$
|
5,612
|
|
Healthcare
|
—
|
|
|
288
|
|
|
—
|
|
|
630
|
|
||||
Corporate & Other
|
47
|
|
|
742
|
|
|
180
|
|
|
1,566
|
|
||||
Total capital expenditures
|
$
|
2,442
|
|
|
$
|
3,666
|
|
|
$
|
4,356
|
|
|
$
|
7,808
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
By Geography:
|
|
|
|
|
|
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
30,200
|
|
|
$
|
39,106
|
|
|
$
|
60,205
|
|
|
$
|
78,157
|
|
United Kingdom
|
4,269
|
|
|
4,610
|
|
|
8,891
|
|
|
9,345
|
|
||||
EMEA, APAC and Canada (1)
|
7,126
|
|
|
8,684
|
|
|
15,570
|
|
|
17,088
|
|
||||
Non-United States
|
11,395
|
|
|
13,294
|
|
|
24,461
|
|
|
26,433
|
|
||||
Total revenues
|
$
|
41,595
|
|
|
$
|
52,400
|
|
|
$
|
84,666
|
|
|
$
|
104,590
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Europe (excluding United Kingdom), the Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”)
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
Total assets:
|
|
|
|
||||
Tech-focused
|
$
|
247,791
|
|
|
$
|
266,390
|
|
Corporate & Other
|
13,742
|
|
|
29,328
|
|
||
Total assets
|
$
|
261,533
|
|
|
$
|
295,718
|
|
|
Tech-focused
|
|
Corporate & Other
|
|
Total
|
||||||
Goodwill at December 31, 2017
|
$
|
157,477
|
|
|
$
|
13,314
|
|
|
$
|
170,791
|
|
Foreign currency translation adjustment
|
(1,303
|
)
|
|
—
|
|
|
(1,303
|
)
|
|||
Sale of business
|
—
|
|
|
(13,314
|
)
|
|
(13,314
|
)
|
|||
Goodwill at June 30, 2018
|
$
|
156,174
|
|
|
$
|
—
|
|
|
$
|
156,174
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
(205
|
)
|
|
$
|
1,822
|
|
|
$
|
3,298
|
|
|
$
|
3,162
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding—basic
|
48,722
|
|
|
47,953
|
|
|
48,491
|
|
|
47,775
|
|
||||
Add shares issuable from stock-based awards
|
—
|
|
|
315
|
|
|
915
|
|
|
533
|
|
||||
Weighted-average shares outstanding—diluted
|
48,722
|
|
|
48,268
|
|
|
49,406
|
|
|
48,308
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
Diluted earnings per share
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
•
|
Tax deficiency of $0.4 million and $1.7 million during the three and six months ended June 30, 2018, respectively, related to the vesting or settlement of share-based compensation awards.
|
•
|
Tax expense of $0.3 million during the three and six months ended June 30, 2018 related to the sale of businesses.
|
•
|
Tax deficiency of $0.2 million and $0.8 million during the three and six months ended June 30, 2017, respectively, related to the vesting or settlement of share-based compensation awards.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Tech-focused— Dice, Dice Europe (closing in the third quarter of 2018), ClearanceJobs, eFinancialCareers, Brightmatter excluding getTalent (absorbed into Tech-focused in the third quarter of 2017 and formerly in Corporate & Other) services, as well as the Company's Open Web Technology.
|
|
Three Months Ended June 30,
|
|
Increase (Decrease)
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Tech-focused
|
|
|
|
|
|
|
|
|||||||
Dice
(1)
|
$
|
24,744
|
|
|
$
|
27,113
|
|
|
$
|
(2,369
|
)
|
|
(9
|
)%
|
eFinancialCareers
|
8,467
|
|
|
7,978
|
|
|
489
|
|
|
6
|
%
|
|||
ClearanceJobs
|
5,133
|
|
|
4,185
|
|
|
948
|
|
|
23
|
%
|
|||
Tech-focused
|
38,344
|
|
|
39,276
|
|
|
(932
|
)
|
|
(2
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Healthcare
|
—
|
|
|
6,565
|
|
|
(6,565
|
)
|
|
n.m.
|
|
|||
Corporate & Other
|
|
|
|
|
|
|
|
|||||||
Hcareers
|
1,936
|
|
|
3,791
|
|
|
(1,855
|
)
|
|
(49
|
)%
|
|||
Rigzone
|
1,315
|
|
|
1,785
|
|
|
(470
|
)
|
|
(26
|
)%
|
|||
BioSpace
|
—
|
|
|
950
|
|
|
(950
|
)
|
|
n.m.
|
|
|||
getTalent
|
—
|
|
|
33
|
|
|
(33
|
)
|
|
n.m.
|
|
|||
Corporate and Other
|
3,251
|
|
|
6,559
|
|
|
(3,308
|
)
|
|
(50
|
)%
|
|||
Total revenues
|
$
|
41,595
|
|
|
$
|
52,400
|
|
|
$
|
(10,805
|
)
|
|
(21
|
)%
|
(1) Includes Dice US, Dice Europe, and Targeted Job Fairs
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Cost of revenues
|
$
|
4,749
|
|
|
$
|
7,668
|
|
|
$
|
(2,919
|
)
|
|
(38
|
)%
|
Percentage of revenues
|
11.4
|
%
|
|
14.6
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Product development
|
$
|
5,129
|
|
|
$
|
6,356
|
|
|
$
|
(1,227
|
)
|
|
(19
|
)%
|
Percentage of revenues
|
12.3
|
%
|
|
12.1
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Sales and marketing
|
$
|
16,387
|
|
|
$
|
19,751
|
|
|
$
|
(3,364
|
)
|
|
(17
|
)%
|
Percentage of revenues
|
39.4
|
%
|
|
37.7
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
General and administrative
|
$
|
8,787
|
|
|
$
|
10,046
|
|
|
$
|
(1,259
|
)
|
|
(13
|
)%
|
Percentage of revenues
|
21.1
|
%
|
|
19.2
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
(in thousands, except percentages)
|
||||||||||||||
Depreciation
|
$
|
2,325
|
|
|
$
|
2,819
|
|
|
$
|
(494
|
)
|
|
(18
|
)%
|
Percentage of revenues
|
5.6
|
%
|
|
5.4
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Amortization
|
$
|
191
|
|
|
$
|
571
|
|
|
$
|
(380
|
)
|
|
(67
|
)%
|
Percentage of revenues
|
0.5
|
%
|
|
1.1
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Increase
|
|
Percent
Change
|
||||||||
2018
|
|
2017
|
|
||||||||||
(in thousands, except percentages)
|
|||||||||||||
Disposition related and other costs
|
$
|
2,118
|
|
|
$
|
1,187
|
|
|
$
|
931
|
|
|
n.m.
|
Percentage of revenues
|
5.1
|
%
|
|
2.3
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Interest expense
|
$
|
489
|
|
|
$
|
814
|
|
|
$
|
(325
|
)
|
|
(40
|
)%
|
Percentage of revenues
|
1.2
|
%
|
|
1.6
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||
2018
|
|
2017
|
|||||
(in thousands, except
percentages)
|
|||||||
Income before income taxes
|
$
|
557
|
|
|
$
|
3,197
|
|
Income tax expense
|
762
|
|
|
1,375
|
|
||
Effective tax rate
|
136.8
|
%
|
|
43.0
|
%
|
|
Six Months Ended June 30,
|
|
Increase (Decrease)
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Tech-focused
|
|
|
|
|
|
|
|
|||||||
Dice
(1)
|
$
|
49,318
|
|
|
$
|
54,811
|
|
|
$
|
(5,493
|
)
|
|
(10
|
)%
|
eFinancialCareers
|
17,030
|
|
|
15,836
|
|
|
1,194
|
|
|
8
|
%
|
|||
ClearanceJobs
|
9,937
|
|
|
8,178
|
|
|
1,759
|
|
|
22
|
%
|
|||
Tech-focused
|
76,285
|
|
|
78,825
|
|
|
(2,540
|
)
|
|
(3
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Healthcare
|
—
|
|
|
13,279
|
|
|
(13,279
|
)
|
|
n.m.
|
|
|||
Corporate & Other
|
|
|
|
|
|
|
|
|
||||||
Hcareers
|
5,329
|
|
|
7,361
|
|
|
(2,032
|
)
|
|
(28
|
)%
|
|||
Rigzone
|
2,839
|
|
|
3,446
|
|
|
(607
|
)
|
|
(18
|
)%
|
|||
BioSpace
|
213
|
|
|
1,619
|
|
|
(1,406
|
)
|
|
(87
|
)%
|
|||
getTalent
|
—
|
|
|
60
|
|
|
(60
|
)
|
|
n.m.
|
|
|||
Corporate & Other
|
8,381
|
|
|
12,486
|
|
|
(4,105
|
)
|
|
(33
|
)%
|
|||
Total revenues
|
$
|
84,666
|
|
|
$
|
104,590
|
|
|
$
|
(19,924
|
)
|
|
(19
|
)%
|
(1) Includes Dice US, Dice Europe, and Targeted Job Fairs
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Cost of revenues
|
$
|
9,906
|
|
|
$
|
15,065
|
|
|
$
|
(5,159
|
)
|
|
(34
|
)%
|
Percentage of revenues
|
11.7
|
%
|
|
14.4
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Product development
|
$
|
10,592
|
|
|
$
|
12,807
|
|
|
$
|
(2,215
|
)
|
|
(17
|
)%
|
Percentage of revenues
|
12.5
|
%
|
|
12.2
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Sales and marketing
|
$
|
32,654
|
|
|
$
|
39,650
|
|
|
$
|
(6,996
|
)
|
|
(18
|
)%
|
Percentage of revenues
|
38.6
|
%
|
|
37.9
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
General and administrative
|
$
|
19,169
|
|
|
$
|
21,325
|
|
|
$
|
(2,156
|
)
|
|
(10
|
)%
|
Percentage of revenues
|
22.6
|
%
|
|
20.4
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
(in thousands, except percentages)
|
||||||||||||||
Depreciation
|
$
|
4,615
|
|
|
$
|
5,127
|
|
|
$
|
(512
|
)
|
|
(10
|
)%
|
Percentage of revenues
|
5.5
|
%
|
|
4.9
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Amortization
|
$
|
482
|
|
|
$
|
1,132
|
|
|
$
|
(650
|
)
|
|
(57
|
)%
|
Percentage of revenues
|
0.6
|
%
|
|
1.1
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Increase
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
(in thousands, except percentages)
|
||||||||||||||
Disposition related and other costs
|
$
|
3,129
|
|
|
$
|
1,187
|
|
|
$
|
1,942
|
|
|
164
|
%
|
Percentage of revenues
|
3.7
|
%
|
|
1.1
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Decrease
|
|
Percent
Change
|
|||||||||
2018
|
|
2017
|
|
|||||||||||
|
(in thousands, except percentages)
|
|||||||||||||
Interest expense
|
$
|
1,035
|
|
|
$
|
1,604
|
|
|
$
|
(569
|
)
|
|
(35
|
)%
|
Percentage of revenues
|
1.2
|
%
|
|
1.5
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
2018
|
|
2017
|
|||||
(in thousands, except
percentages)
|
|||||||
Income before income taxes
|
$
|
6,851
|
|
|
$
|
6,686
|
|
Income tax expense
|
3,553
|
|
|
3,524
|
|
||
Effective tax rate
|
51.9
|
%
|
|
52.7
|
%
|
•
|
Adjusted EBITDA does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
|
•
|
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
|
•
|
Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
|
•
|
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
|
•
|
Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
|
|
Six Months Ended June 30,
|
||||||
2018
|
|
2017
|
|||||
Reconciliation of Net Income to Adjusted EBITDA:
|
|
|
|
||||
Net income
|
$
|
3,298
|
|
|
$
|
3,162
|
|
Interest expense
|
1,035
|
|
|
1,604
|
|
||
Income tax expense
|
3,553
|
|
|
3,524
|
|
||
Depreciation
|
4,615
|
|
|
5,127
|
|
||
Amortization of intangible assets
|
482
|
|
|
1,132
|
|
||
Non-cash stock based compensation
|
4,089
|
|
|
4,588
|
|
||
Gain on sale of businesses, net
|
(3,800
|
)
|
|
—
|
|
||
Costs related to strategic alternatives process
|
—
|
|
|
807
|
|
||
Disposition related and other costs
|
3,129
|
|
|
1,187
|
|
||
Legal contingencies and fees
|
1,620
|
|
|
475
|
|
||
Divested businesses
|
(2,609
|
)
|
|
(2,857
|
)
|
||
Other
|
34
|
|
|
7
|
|
||
Adjusted EBITDA
|
$
|
15,446
|
|
|
$
|
18,756
|
|
|
|
|
|
||||
Reconciliation of Operating Cash Flows to Adjusted EBITDA:
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
8,297
|
|
|
$
|
23,712
|
|
Interest expense
|
1,035
|
|
|
1,604
|
|
||
Amortization of deferred financing costs
|
(97
|
)
|
|
(162
|
)
|
||
Income tax expense
|
3,553
|
|
|
3,524
|
|
||
Deferred income taxes
|
(540
|
)
|
|
(648
|
)
|
||
Change in accrual for unrecognized tax benefits
|
(320
|
)
|
|
(70
|
)
|
||
Change in accounts receivable
|
(13,482
|
)
|
|
(11,231
|
)
|
||
Change in deferred revenue
|
10,692
|
|
|
(1,101
|
)
|
||
Costs related to strategic alternatives process
|
—
|
|
|
807
|
|
||
Disposition related and other costs
|
3,129
|
|
|
1,187
|
|
||
Legal contingencies and fees
|
1,620
|
|
|
475
|
|
||
Divested businesses
|
(2,609
|
)
|
|
(2,857
|
)
|
||
Changes in working capital and other
|
4,168
|
|
|
3,516
|
|
||
Adjusted EBITDA
|
$
|
15,446
|
|
|
$
|
18,756
|
|
|
Six Months Ended March 31,
|
||||||
2018
|
|
2017
|
|||||
Cash from operating activities
|
$
|
8,297
|
|
|
$
|
23,712
|
|
Cash from (used in) investing activities
|
13,306
|
|
|
(7,730
|
)
|
||
Cash used in financing activities
|
(23,562
|
)
|
|
(15,706
|
)
|
|
Payments Due By Period
|
||||||||||||||||||
Total
|
|
Less Than 1 Year
|
|
2-3 Years
|
|
4-5 Years
|
|
More Than 5 Years
|
|||||||||||
|
(in thousands)
|
||||||||||||||||||
Credit Agreement
|
$
|
19,000
|
|
|
$
|
—
|
|
|
$
|
19,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating lease obligations
|
21,426
|
|
|
2,301
|
|
|
7,641
|
|
|
5,302
|
|
|
6,182
|
|
|||||
Total contractual obligations
|
$
|
40,426
|
|
|
$
|
2,301
|
|
|
$
|
26,641
|
|
|
$
|
5,302
|
|
|
$
|
6,182
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
(a) Total Number of Shares Purchased [1]
|
|
(b) Average Price Paid per Share
|
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
April 1 through April 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
May 1 through May 31, 2018
|
|
55,017
|
|
|
1.72
|
|
|
55,017
|
|
|
6,905,000
|
|
||
June 1 through June 30, 2018
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
55,017
|
|
|
$
|
1.72
|
|
|
55,017
|
|
|
|
2.1
|
|
Share Purchase Agreement, dates as of May 22, 2018, by and among DHI Group, Inc., OnTargetJobs Canada, Inc. and Virgil AcquisitionCo Inc. (incorporated herein by reference to Exhibit 2.1 to the Company's Current Report on Form 8-k, filed on May 29, 2018).
|
10.1*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1*
|
|
|
32.2*
|
|
|
101.INS
|
|
XBRL Instance Document.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
|
Filed herewith.
|
Date:
|
August 2, 2018
|
|
DHI Group, Inc.
|
|
|
|
|
Registrant
|
|
|
|
|
|
|
|
|
|
By:
|
/S/ Art Zeile
|
|
|
|
|
Art Zeile
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
/S/ Luc Grégoire
|
|
|
|
|
Luc Grégoire
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
2.1
|
|
Share Purchase Agreement, dates as of May 22, 2018, by and among DHI Group, Inc., OnTargetJobs Canada, Inc. and Virgil AcquisitionCo Inc. (incorporated herein by reference to Exhibit 2.1 to the Company's Current Report on Form 8-k, filed on May 29, 2018).
|
10.1*
|
|
Employment Agreement and Addendum to Employment Agreement dated as of April 9, 2018 between DHI Group, Inc., Dice Inc. and Art Zeile.
|
31.1*
|
|
Certifications of Art Zeile, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2*
|
|
Certifications of Luc Grégoire, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1*
|
|
Certifications of Art Zeile, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2*
|
|
Certifications of Luc Grégoire, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
XBRL Instance Document.
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
|
Filed herewith.
|
August 2, 2018
|
|
/s/ Art Zeile
|
|
|
|
|
Art Zeile
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
DHI Group, Inc.
|
|
|
August 2, 2018
|
|
/s/ Luc Grégoire
|
|
|
|
|
Luc Grégoire
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
DHI Group, Inc.
|
|
|