Revenues increased 42% year-over-year to $37.9 million; excluding acquisitions, revenues grew 32% year-over-year in the fourth quarter
Dice Holdings, Inc. (NYSE: DHX), a leading provider of specialized career websites for professional communities, today reported financial results for the quarter and year ended December 31, 2010.
Fourth Quarter Results
Revenues for the quarter ended December 31, 2010 totaled $37.9 million, an increase of 42% from $26.7 million in the comparable quarter of 2009. Strong recruitment activity and the ongoing shift of recruitment spend to specialty career sites are benefiting each of our specialized brands. In addition, the acquisitions of Rigzone and WorldwideWorker contributed revenues of $2.7 million in the fourth quarter of 2010. Excluding the impact of the two acquisitions, revenues increased 32% year-over-year. Currency translation from pound sterling to U.S. dollars negatively impacted revenues by $0.3 million from fourth quarter of 2009.
Operating income increased 50% to $10.9 million versus $7.2 million in the comparable quarter of 2009. The increase in operating income was a function of higher revenues partially offset by higher operating expenses. The increase in operating expenses was driven by higher sales compensation costs as a result of increased customer activity, increased investments in marketing and product development, as well as increased performance related compensation costs. In addition, General and administrative expenses included $0.8 million of costs related to the secondary offering the Company completed in December. The net increase in acquisition related contingencies of $0.5 million was driven primarily by an increase in Rigzone's estimated revenue performance for the earn-out period ending June 30, 2011.
Net income for the quarter ended December 31, 2010 increased 49% to $5.7 million from $3.9 million earned in the fourth quarter of 2009. Diluted earnings per share were $0.08 for the fourth quarter of 2010, as compared to diluted earnings per share of $0.06 in the comparable quarter a year ago. The impact of the increase in acquisition related contingencies and the costs related to the secondary offering the Company completed in December was $0.02 diluted earnings per share for the fourth quarter of 2010.
Net cash provided by operating activities for the quarter ended December 31, 2010 was $12.4 million, an increase of 93% from $6.4 million in the comparable quarter of 2009.
Adjusted EBITDA for the quarter ended December 31, 2010 was $17.0 million, an increase of 49% as compared with $11.4 million for the fourth quarter of 2009. See Notes Regarding the Use of Non-GAAP Financial Measures.
Operating Segment Results
As disclosed on September 30, 2010, the Company's reportable segments have been recast to reflect the current operating structure. Tech & Clearance (formerly DCS Online) had no change in the components, which are Dice.com and ClearanceJobs. The Finance segment now includes eFinancialCareers worldwide operations. The previous eFinancialCareers segment did not include results from eFinancialCareers North America. Energy is a new segment composed of WorldwideWorker and Rigzone. The Other segment contains AllHealthcareJobs and Targeted Job Fairs. Previous Other segment components WorldwideWorker and eFinancialCareers North America have moved as previously noted. Through June 30, 2010, the Other reportable segment also included JobsintheMoney. All comparative periods have been recast to reflect the changes in reporting segments.
For the quarter ended December 31, 2010, Tech & Clearance segment revenues increased 28% year-over-year to $24.8 million or 65% of Dice Holdings' consolidated revenues. Growth was driven by a greater number of recruitment package customers served at Dice.com, as well as a 7% increase in the average monthly revenue those customers generated. In addition, ClearanceJobs revenues increased 34% year-over-year.
The Finance segment accounted for 26% of Dice Holdings' consolidated revenues in the fourth quarter of 2010. For the quarter ended December 31, 2010, eFinancialCareers revenues increased year-over-year 43% to $9.7 million. Currency translation from pound sterling to U.S. dollars negatively impacted revenues by $0.3 million from the fourth quarter 2009. Excluding the currency impact, Finance segment revenues grew 47% from the comparable quarter a year ago.
The Energy segment contributed $2.7 million in revenues in the quarter ended December 31, 2010. This segment consists of Rigzone (since the date of acquisition, August 11, 2010) and WorldwideWorker (since the date of acquisition, May 6, 2010).
The remaining businesses operated by Dice Holdings include AllHealthcareJobs (since the date of acquisition, June 10, 2009) and Targeted Job Fairs and are reported in the Other category. Other revenues increased 36% to $0.7 million for the quarter ended December 31, 2010 from the comparable 2009 period.
Full Year 2010 Operating Results
Revenues for the year ended December 31, 2010 totaled $129.0 million, as compared to $110.0 million in 2009, an increase of 17%. Strong results at eFinancialCareers and continued improvements in recruitment activity at Dice are the primary drivers of the increase. Currency translation from pound sterling to U.S. dollars negatively impacted revenues by $0.5 million in 2010, as compared to the previous year.
By segment, Tech & Clearance revenues increased 9% to $88.2 million for the year ended December 31, 2010. In the same period, Finance revenues grew 26% year-over-year to $33.7 million. Energy contributed revenues of $4.4 million since the acquisitions of WorldwideWorker and Rigzone. Other revenues increased 12% to $2.6 million.
Net income for the year ended December 31, 2010 increased 40% to $18.9 million, as compared to $13.5 million in the year ended December 31, 2009. Diluted earnings per share were $0.28 for the year ended December 31, 2010, a 40% increase from $0.20 diluted earnings per share earned in 2009.
For the year ended December 31, 2010, net cash provided by operating activities more than doubled to $47.1 million, as compared with $22.8 million in 2009. Adjusted EBITDA for the year ended December 31, 2010 was $52.1 million, a 5% increase from $49.6 million of Adjusted EBITDA in 2009. Notes Regarding the Use of Non-GAAP Financial Measures.
Balance Sheet
Deferred revenue at December 31, 2010 was $49.2 million compared to $44.7 million at September 30, 2010 and $33.9 million at December 31, 2009. The $15.3 million or 45% increase from December 31, 2009 is attributed to strong renewal rates on annual contracts and overall strong billings due to increased recruitment activity.
Net Cash, defined as cash and cash equivalents and marketable securities less total debt, was $4.2 million at December 31, 2010, consisting of cash and cash equivalents and marketable securities of $45.2 million minus total debt of $41.0 million. This compares to a Net Debt balance of $14.8 million at September 30, 2010, consisting of total debt of $57.0 million minus cash and cash equivalents and marketable securities of $42.2 million. In the fourth quarter of 2010, the Company repaid $16.0 million of outstanding debt.
Recent Developments
During January 2011, the Company repaid an additional $6.0 million of outstanding debt under the revolving credit facility.
Management Comments
Scot Melland, Chairman, President and Chief Executive Officer, said, The Company's strategy of building a portfolio of specialist job boards is proving to be successful. The fourth quarter was our strongest sales performance since early 2008; that momentum is encouraging as we head into 2011. Mr. Melland continued, Looking ahead, we expect to see moderate economic growth combined with improving job growth and higher employee turnover. These market conditions provide us with a meaningful opportunity to generate value for companies and recruiters. As such, we will be focusing our efforts on reaching out to new customers, increasing our presence in new regions around the world and expanding our global oil and gas recruiting service.
Michael Durney, Senior Vice President, Finance and Chief Financial Officer, said, Our financial performance clearly demonstrates the success of our strategic direction. We are benefiting from both strong organic growth - highlighted by a 43% increase at eFinancialCareers - and great initial results in our energy business. This consistent performance is highlighted by our fifth straight quarter of deferred revenue growth and our continued strong cash flow. Mr. Durney added, Our goal for 2011 is to deliver even higher revenues with a more diverse portfolio of online recruiting brands, while driving higher profitability.
Business Outlook
The Company is providing a current, point-in-time view of estimated financial performance based on what it sees as of February 1, 2011 for the quarter ending March 31, 2011 and the year ending December 31, 2011. 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.
SOURCE Dice Holdings, Inc.
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