NEWARK, N.J., Sept. 28, 2016 /PRNewswire/ -- IDT
Corporation (NYSE: IDT) reported diluted earnings per share (EPS)
of $0.48 and Non-GAAP diluted EPS* of
$0.50 on revenue of $368.1 million for the fourth quarter of its
fiscal year 2016, the three months ended July 31, 2016.
For FY 2016, IDT reported diluted EPS of $1.03 and Non-GAAP diluted EPS* of $1.63 on revenue of $1,496.3 million.
FOURTH QUARTER AND FULL FISCAL YEAR 2016
HIGHLIGHTS
(Results for 4Q16 are compared to 4Q15, and
results for FY 2016 are compared to FY 2015).
- Revenue in 4Q16 was $368.1
million compared to $405.8
million. FY 2016 revenue was $1,496.3
million compared to $1,596.8
million;
- Income from operations in 4Q16 was $6.2
million compared to $7.2
million. FY 2016 income from operations was $26.2 million compared to $93.1 million;
- Adjusted EBITDA* in 4Q16 was $10.0
million compared to $12.4
million. FY 2016 Adjusted EBITDA* was $45.0 million compared to $44.5 million;
- Diluted EPS in 4Q16 was $0.48
compared to $0.05. FY 2016 diluted
EPS was $1.03 compared to
$3.63;
- Non-GAAP diluted EPS* in 4Q16 was $0.50 compared to $0.25. FY 2016 Non-GAAP diluted EPS* was
$1.63 compared to $1.27;
- IDT has declared a dividend of $0.19 per share for 4Q16 to be paid on or about
October 20, 2016;
- On June 1, 2016, IDT completed
the spin-off of Zedge to its stockholders.
MANAGEMENT REMARKS
Shmuel
Jonas, IDT's Chief Executive Officer, said, "Our financial
results in the fourth quarter were consistent with recent
trends. Our core telecom offerings continued to face revenue
and margin pressure stemming in significant part from deregulation
of the Mexico telecom
market. The impact was mitigated by our continued focus on
reducing SG&A expense."
"Operationally, our BOSS Revolution international money transfer
business, Net2Phone's unified communications as a service offerings
and our National Retail Solutions initiative are all meeting or
beating expectations. As they achieve scale, each of these
initiatives has the potential to become a significant contributor
to IDT's bottom line. In addition, we beta launched two new
products after the quarter close -- PicuP, a telephony solution for
very small businesses and, just two weeks ago, the next generation
of the BOSS Revolution app with free peer-to-peer calling and
messaging. Both are getting rave reviews. Across the
IDT enterprise, we are intensifying our commitment to developing,
deploying, investing and supporting innovative growth initiatives,"
Mr. Jonas added.
*Throughout this release, Adjusted EBITDA, Non-GAAP Net
Income, and Non-GAAP diluted EPS for all periods presented are
non-GAAP measures intended to provide useful information that
supplements IDT's or the relevant segment's core results in
accordance with GAAP. Please refer to the Reconciliation of
Non-GAAP Financial Measures at the end of this release for an
explanation of these terms and their respective reconciliation to
the most directly comparable GAAP measure.
4Q16 AND FULL FISCAL YEAR 2016 CONSOLIDATED
RESULTS
Results
(in millions,
except EPS)
|
4Q16
|
3Q16
|
4Q15
|
4Q16 -
4Q15
Change
(%/$)
|
FY
2016
|
FY
2015
|
Fiscal 2016 -
Fiscal 2015
Change (%/$)
|
Revenue
|
$368.1
|
$355.2
|
$405.8
|
(9.3)%
|
$1,496.3
|
$1,569.8
|
(6.3)%
|
Direct cost of
revenue
|
$309.1
|
$293.2
|
$339.3
|
(8.9)%
|
$1,246.6
|
$1,328.4
|
(6.2)%
|
Direct cost of
revenue as a
percentage of revenue
|
84.0%
|
82.6%
|
83.6%
|
+40 BP
|
83.3%
|
83.2%
|
+10 BP
|
SG&A
expense
|
$48.9
|
$51.6
|
$54.1
|
(9.5)%
|
$204.7
|
$222.2
|
(7.9)%
|
Depreciation and
amortization
|
$5.0
|
$5.5
|
$5.0
|
+0.7%
|
$20.5
|
$18.4
|
+11.5%
|
Severance
expense
|
$6.3
|
$0.2
|
$0.2
|
+$6.1
|
$6.5
|
$8.4
|
-$1.9
|
Other
gains
|
$7.5
|
$1.1
|
-
|
+$7.5
|
$8.2
|
$75.3
|
-$67.1
|
Income from
operations
|
$6.2
|
$5.7
|
$7.2
|
-$1.0
|
$26.2
|
$93.1
|
-$66.9
|
Adjusted
EBITDA*
|
$10.0
|
$10.3
|
$12.4
|
(19.4)%
|
$45.0
|
$44.5
|
+1.1%
|
Net income
attributable to IDT
|
$11.0
|
$4.2
|
$1.3
|
+$9.7
|
$23.5
|
$84.5
|
-$61.0
|
Diluted
EPS
|
$0.48
|
$0.19
|
$0.05
|
+$0.43
|
$1.03
|
$3.63
|
($2.60)
|
Non-GAAP net
income*
|
$11.5
|
$8.6
|
$5.7
|
+$5.8
|
$37.3
|
$29.5
|
+$7.8
|
Non-GAAP diluted
EPS*
|
$0.50
|
$0.38
|
$0.25
|
+$0.25
|
$1.63
|
$1.27
|
+$0.36
|
Net cash provided by
operating activities
|
$13.2
|
$10.7
|
$2.8
|
+$10.4
|
$49.1
|
$30.5
|
+60.7%
|
4Q16 AND FY 2016 OPERATING RESULTS BY
SEGMENT
(Results are for 4Q16 unless otherwise
noted).
TPS
IDT's Telecom Platform Services (TPS) segment
accounted for 99.2% of IDT's revenue in 4Q16 and 98.8% in FY
2016. TPS markets and distributes multiple communications and
payment services across four broad business verticals: Retail
Communications, Wholesale Carrier Services, Payment Services and
Hosted Platform Solutions.
TPS' quarterly minutes of use (MOU) were 7.08 billion, a
decrease from 7.47 billion (-5.1%) in 4Q15 and an increase from
6.97 billion (+1.6%) in 3Q16. The year over year decrease
reflects declines in MOU in Retail Communications including both
BOSS Revolution and traditional calling cards, and in Wholesale
Carrier Services, while the sequential increase was due mostly to
4Q16 having 92 days compared to 90 in the prior quarter. For
FY 2016, TPS's MOU were 28.25 billion, a decrease from 29.31
billion (-3.6%) in FY 2015, primarily due to a decrease in Retail
Communications MOU.
TPS' revenue was $365.1 million, a
decrease from $400.8 million (-8.9%)
in the year ago quarter and an increase from $350.4 million (+4.2%) in the prior quarter. The
sequential quarterly increase was driven by the greater number of
days in the fourth quarter and an increase in Wholesale Carrier
Services' revenue. For FY 2016, TPS' revenue was $1,477.9 million, a decrease from $1,572.7 million (-6.0%) in FY 2015.
TPS Revenue by
Product
Category
(in
millions)
|
4Q16
|
3Q16
|
4Q15
|
4Q16-4Q15
% Change in
Revenue
|
4Q16 Revenue
as
a % of Total
TPS Revenue
|
Retail
Communications
|
$165.3
|
$164.5
|
$185.0
|
(10.6)%
|
45.3%
|
Wholesale Carrier
Services
|
$136.5
|
$123.3
|
$151.5
|
(9.9)%
|
37.4%
|
Payment
Services
|
$55.5
|
$55.0
|
$55.7
|
(0.5)%
|
15.2%
|
Hosted Platform
Solutions
|
$7.8
|
$7.6
|
$8.6
|
(9.9)%
|
2.1%
|
Total TPS
|
$365.1
|
$350.4
|
$400.8
|
(8.9)%
|
100.0%
|
TPS Revenue by
Product
Category
(in
millions)
|
FY
2016
|
FY
2015
|
FY16-FY15
% Change in
Revenue
|
FY16 Revenue
as a % of Total
TPS Revenue
|
Retail
Communications
|
$672.2
|
$735.0
|
(8.6)%
|
45.5%
|
Wholesale Carrier
Services
|
$555.1
|
$590.9
|
(6.1)%
|
37.6%
|
Payment
Services
|
$219.2
|
$208.3
|
+5.2%
|
14.8%
|
Hosted Platform
Solutions
|
$31.4
|
$38.5
|
(18.5)%
|
2.1%
|
Total TPS
|
$1,477.9
|
$1,572.7
|
(6.0)%
|
100.0%
|
Retail Communications revenue was $165.3
million in 4Q16, a decrease from $185.0 million (-10.6%) in the year ago quarter,
due to declines in our BOSS Revolution PIN-less service's sales on
the US - Mexico corridor and in
sales of our legacy traditional card products both in the U.S. and
overseas. For FY 2016, Retail Communications revenue totaled
$672.2 million, a decrease from
$735.0 million (-8.6%) in FY
2015.
Wholesale Carrier Services' revenue decreased to $136.5 million from $151.5
million (-9.9%) in 4Q15. For the full year, Wholesale
Carrier Services' revenue decreased to $555.1 million from $590.9
million (-6.1%) in FY 2015. The quarterly and full year
decreases resulted primarily from the termination of a Latin
American pricing opportunity pertaining to local currency exchange
rate disparities coupled with declining sales of traditional
carrier services.
Payment Services' revenue decreased to $55.5 million from $55.7
million (-0.5%). The decrease reflected declines in
revenue from IDT's Gibraltar-based
bank and in sales of International Mobile Top-Up (IMTU) products,
partially offset by a 52% increase in revenue from the BOSS
Revolution international money transfer business. FY 2016
Payment Services' revenue increased to $219.2 million from $208.3
million (+5.2%) in FY 2015. The full year increase was
driven primarily by continued growth of both IMTU products and
international money transfer sales.
Hosted Platform Solutions' revenue decreased to $7.8 million from $8.6
million (-9.9%) while full year revenue declined to
$31.4 million from $38.5 million (-18.5%) for FY 2015. The
decreases were in-line with expectations as they reflected lower
rates incorporated into contract renewals with key cable telephony
customers.
TPS' direct cost of revenue as a percentage of TPS' revenue was
84.4% in 4Q16, an increase of 10 basis points year over year and an
increase of 100 basis points sequentially. For FY 2016, TPS'
direct cost of revenue was 84.1% of TPS' revenue – unchanged from
the prior year.
TPS' SG&A expense decreased to $44.9
million from $49.4 million
(-8.9%) in 4Q15 and from $46.7
million (-3.8%) in 3Q16. The year over year and
sequential decreases primarily reflect reduced employee
compensation and legal costs. Expressed as a percentage of
TPS' revenue, TPS' 4Q16 SG&A remained at 12.3% compared to the
year ago quarter and dropped 100 basis points compared to the prior
quarter. TPS' SG&A expense in FY 2016 decreased to
$186.6 million from $199.6 million (-6.5%) in FY 2015, reflecting
reduced employee headcount and compensation expense, marketing and
advertising costs, and call center expense. As a percentage
of revenue, SG&A expense in FY 2016 decreased 10 basis points
to 12.6% compared to FY 2015.
TPS' depreciation and amortization expense increased to
$4.5 million from $4.3 million (+4.1%) in 4Q15 and decreased from
$4.9 million (-8.5%) in 3Q16.
Depreciation increased year-over-year due to higher levels of
capital expenditures in recent periods to support investments in
new products, including Net2Phone's 'unified communications as a
service' offerings, National Retail Solutions and the new BOSS
Revolution calling app with messaging. For FY 2016,
depreciation and amortization expense increased to $18.5 million from $16.2
million (+14.7%) in FY 2015 for the same reason.
TPS' income from operations increased to $8.9 million from $8.8
million (+0.7%) in 4Q15 and from $6.3
million (+40.3%) in 3Q16. For FY 2016, TPS' income
from operations totaled $31.2 million
compared to $27.0 million (+15.8%) in
FY 2015. Income from operations in 4Q16 and FY 2016 include
severance expense of $6.0 million
(compared to $0.2 million in both
4Q15 and 3Q16) and a gain of $7.5
million on the sale of IDT's Gibraltar based bank's member interest in Visa
Europe. In FY 2015, TPS' income from operations also included
$7.7 million in severance
expense.
TPS' Adjusted EBITDA decreased to $11.9
million from $13.4 million
(-11.3%) in 4Q15 and increased from $11.5
million (+3.4%) in 3Q16. For FY 2016, Adjusted EBITDA
decreased to $48.8 million from
$50.8 million (-3.9%) in FY 2015.
CPS
Consumer Phone Services (CPS) sells local and long
distance services domestically in 11 states, marketed under the
brand name IDT America. CPS has been in harvest mode since
fiscal 2006 - maximizing revenue from current customers while
maintaining SG&A and other expenses at the minimum levels
essential to operate the business. Results this quarter and
fiscal year conformed to expectations.
CPS' revenue decreased to $1.6
million from $2.0 million
(-19.2%) in 4Q15 and from $1.7
million (-5.0%) in the prior quarter. FY 2016 revenue
decreased to $6.9 million from
$8.6 million (-20.3%) in FY
2015. CPS' income from operations decreased to $0.2 million from $0.3
million (-12.3%) in 4Q15 and $0.4
million (-31.7%) in 3Q16. Income from operations in FY
2016 was $1.2 million compared to
$1.3 million (-3.2%) in FY
2015.
ALL OTHER
All Other includes IDT's real estate
holdings comprised of its public garage in Newark and commercial properties in
Newark, Piscataway and Jerusalem, as well as other small businesses
and investments.
All Other previously included Zedge, a platform and mobile app
centered on self-expression, and Fabrix, a software development
company specializing in cloud-based video storage and
processing. Zedge was spun off from IDT to IDT's shareholders
on June 1, 2016. Because the
disposition of Zedge did not meet the criteria to be reported as a
discontinued operation, Zedge's assets, liabilities, results of
operations and cash flows were not reclassified. Accordingly, 4Q16
and FY 2016 results of operations for All Other include only one
month and ten months of Zedge activity, respectively.
Fabrix was included in All Other until it was sold and
deconsolidated in October 2014.
In FY 2015, All Other includes two months of Fabrix' results
of operations compared to none in FY 2016 and none in the fourth
quarter of either fiscal year.
All Other's revenue was $1.4
million, a decrease from $3.0
million (-54.5%) in 4Q15. Zedge contributed revenue of
$0.8 million in 4Q16 and $2.4 million in 4Q15. All Other's FY 2016
revenue was $11.5 million compared to
$15.4 million (-25.5%) in FY 2015.
Zedge contributed $9.5 million
and $9.1 million of All Other's
revenue in FY 2016 and FY 2015, respectively. In FY
2015, Fabrix contributed revenue of $4.2
million.
All Other's income from operations in 4Q16 was $86 thousand compared to $449 thousand in 4Q15. Zedge generated a loss
from operations of $32 thousand in
4Q16 and income from operations of $270
thousand in the year ago quarter. All Other's income
from operations was $4.2 million in
FY 2016 compared $78.0 million in FY
2015. Zedge contributed $2.3
million to income from operations in FY 2016 and
$100 thousand in FY 2015.
Fabrix's income from operations in FY 2015 was $948 thousand. All Other's results also included
a gain of $1.1 million in FY 2016 and
$76.9 million in FY 2015 on the sale
of IDT's interest in Fabrix.
OTHER CONSOLIDATED RESULTS
Consolidated results for
all periods presented include corporate overhead. In 4Q16,
corporate G&A expense increased to $2.7
million from $2.3 million
(+15.9%) in the year ago quarter and decreased from $2.8 million (-5.0%) in the prior quarter.
Corporate G&A expense was $10.1
million in FY 2016 compared to $10.9
million (-7.8%) in FY 2015.
4Q16 net income attributable to IDT increased to $11.0 million from $1.3
million in the year ago quarter and from $4.2 million in 3Q16. Net income
attributable to IDT in 4Q16 included a $2.7
million gain on foreign currency transactions and a benefit
from income taxes of $2.1 million.
For 4Q15, net income attributable to IDT was $1.3 million including a foreign currency
transaction loss of $0.9 million and
a provision for income taxes of $3.8
million. Net income attributable to IDT in 3Q16
included a foreign currency transaction gain of $0.6 million and a provision for income taxes of
$1.3 million. FY 2016 net
income attributable to IDT was $23.5
million including a $1.0
million gain on foreign currency transactions and a
provision for income taxes of $4.1
million. In FY 2015, net income attributable to IDT
was $84.5 million including a
$1.7 million loss on foreign currency
transactions and a provision for income taxes of $6.1 million. The full year decrease primarily
reflects the $76.9 million gain on
the sale of IDT's interest in Fabrix in FY 2015.
At July 31, 2016, IDT had
$162.5 million in unrestricted cash,
cash equivalents and marketable securities. Additionally, at that
date, IDT reported $98.8 million in
current restricted cash and cash equivalents, which included
$98.5 million of customer deposits
held by IDT's Gibraltar-based
bank. Current assets and liabilities were $339.1 million and $343.8
million, respectively.
Net cash provided by operating activities during 4Q16 was
$13.2 million, compared to
$2.8 million during 4Q15 and
$10.7 million in 3Q16. For the
same periods, capital expenditures were $4.4
million compared to $5.7
million and $4.7 million,
respectively. For FY 2016, cash provided by operating
activities was $49.1 million compared
to $30.5 million in FY 2015.
Capital expenditures for FY 2016 totaled $18.4 million compared to $28.6 million in the prior year. The full
year decrease in capital expenditures pertains primarily to
investments made in FY 2015 to refurbish IDT's headquarters
building at 520 Broad Street in Newark,
New Jersey.
DIVIDEND
IDT's Board of Directors has declared a
quarterly dividend of $0.19 per share
of Class A and Class B common stock for the fourth quarter of FY
2016 to be paid on or about October
20, 2016. The dividend will be paid to stockholders of
record as of the close of business on October 11, 2016. The ex-dividend date will be
October 6, 2016. This
distribution will be treated as an ordinary dividend for tax
purposes.
IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL
INFORMATION
IDT will host an earnings conference call today
beginning at 5:30 PM ET with
management's discussion of results, outlook and strategy followed
by Q&A with investors.
To listen to the call and participate in the Q&A, dial
toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243
(international) and request the IDT Corporation call.
A recording of the conference call can be accessed one hour
after the call concludes through October 5,
2016 by dialing 1-877-870-5176 (toll free from the US) or
1-858-384-5517 (international) and providing this conference code:
10091025. The recording will also be available via streaming
audio at the IDT investor relations website (www.idt.net/ir)
following the call.
Copies of this release - including the reconciliation of the
non-GAAP financial measures that are both used herein and
referenced during management's discussion of results - are also
available in the Investor Relations portion of IDT's website.
About IDT:
IDT Corporation (NYSE: IDT), through its
IDT Telecom division, provides telecommunications and payment
services to individuals and businesses primarily through its
flagship BOSS Revolution® and Net2Phone®
brands. IDT Telecom's wholesale business is a leading global
carrier of international long distance calls. For more
information on IDT, visit www.idt.net.
All statements above that are not purely about historical
facts, including, but not limited to, those in which we use the
words "believe," "anticipate," "expect," "plan," "intend,"
"estimate," "target" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important
factors. Our filings with the SEC provide detailed
information on such statements and risks, and should be consulted
along with this release. To the extent permitted under applicable
law, IDT assumes no obligation to update any forward-looking
statements.
IDT
CORPORATION
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
July 31
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
109,537
|
|
$
|
110,361
|
|
Restricted cash and
cash equivalents
|
|
|
98,822
|
|
|
91,035
|
|
Marketable
securities
|
|
|
52,949
|
|
|
40,287
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of $4,818 and
$5,645 at July 31, 2016 and 2015, respectively
|
|
|
49,283
|
|
|
58,543
|
|
Receivable from sale
of interest in Fabrix Systems, Ltd
|
|
|
—
|
|
|
8,471
|
|
Prepaid
expenses
|
|
|
15,189
|
|
|
17,304
|
|
Other current
assets
|
|
|
13,273
|
|
|
14,344
|
|
TOTAL CURRENT
ASSETS
|
|
|
339,053
|
|
|
340,345
|
|
Property, plant and
equipment, net
|
|
|
87,374
|
|
|
91,316
|
|
Goodwill
|
|
|
11,218
|
|
|
14,388
|
|
Other intangibles,
net
|
|
|
843
|
|
|
1,277
|
|
Investments
|
|
|
14,024
|
|
|
12,344
|
|
Deferred income tax
assets, net
|
|
|
9,554
|
|
|
13,324
|
|
Other
assets
|
|
|
7,592
|
|
|
12,688
|
|
TOTAL
ASSETS
|
|
$
|
469,658
|
|
$
|
485,682
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
30,253
|
|
$
|
29,140
|
|
Accrued
expenses
|
|
|
117,434
|
|
|
139,272
|
|
Deferred
revenue
|
|
|
86,178
|
|
|
86,302
|
|
Customer
deposits
|
|
|
95,843
|
|
|
84,454
|
|
Income taxes
payable
|
|
|
578
|
|
|
391
|
|
Note payable—current
portion
|
|
|
—
|
|
|
6,353
|
|
Other current
liabilities
|
|
|
13,534
|
|
|
3,000
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
343,820
|
|
|
348,912
|
|
Other
liabilities
|
|
|
1,635
|
|
|
1,830
|
|
TOTAL
LIABILITIES
|
|
|
345,455
|
|
|
350,742
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
IDT Corporation
stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock, $.01
par value; authorized shares—10,000; no shares issued
|
|
|
—
|
|
|
—
|
|
Class A common stock,
$.01 par value; authorized shares—35,000; 3,272 shares issued and
1,574 shares outstanding at July 31, 2016 and 2015
|
|
|
33
|
|
|
33
|
|
Class B common stock,
$.01 par value; authorized shares—200,000; 25,383 and 25,276 shares
issued and 21,452 and 21,755 shares outstanding at July 31, 2016
and 2015, respectively
|
|
|
254
|
|
|
253
|
|
Additional paid-in
capital
|
|
|
396,243
|
|
|
403,146
|
|
Treasury stock, at
cost, consisting of 1,698 and 1,698 shares of Class A common stock
and 3,931 and 3,521 shares of Class B common stock at July 31, 2016
and 2015, respectively
|
|
|
(115,316)
|
|
|
(110,543)
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(3,744)
|
|
|
771
|
|
Accumulated
deficit
|
|
|
(153,673)
|
|
|
(159,829)
|
|
Total IDT Corporation
stockholders' equity
|
|
|
123,797
|
|
|
133,831
|
|
Noncontrolling
interests
|
|
|
406
|
|
|
1,109
|
|
TOTAL
EQUITY
|
|
|
124,203
|
|
|
134,940
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
469,658
|
|
$
|
485,682
|
|
IDT
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
Year ended July
31
(in thousands, except per share data)
|
|
2016
|
|
2015
|
|
2014
|
|
REVENUES
|
|
$
|
1,496,261
|
|
$
|
1,596,777
|
|
$
|
1,651,541
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Direct cost of
revenues (exclusive of depreciation and amortization)
|
|
|
1,246,594
|
|
|
1,328,363
|
|
|
1,367,266
|
|
Selling, general and
administrative (I)
|
|
|
204,655
|
|
|
222,239
|
|
|
228,934
|
|
Depreciation and
amortization
|
|
|
20,535
|
|
|
18,418
|
|
|
16,318
|
|
Research and
development
|
|
|
—
|
|
|
1,656
|
|
|
10,018
|
|
Severance
|
|
|
6,510
|
|
|
8,363
|
|
|
—
|
|
TOTAL COSTS AND
EXPENSES
|
|
|
1,478,294
|
|
|
1,579,039
|
|
|
1,622,536
|
|
Gain on sale of
member interest in Visa Europe Ltd
|
|
|
7,476
|
|
|
—
|
|
|
—
|
|
Gain on sale of
interest in Fabrix Systems, Ltd
|
|
|
1,086
|
|
|
76,864
|
|
|
—
|
|
Other operating
(losses) gains, net
|
|
|
(326)
|
|
|
(1,552)
|
|
|
835
|
|
Income from
operations
|
|
|
26,203
|
|
|
93,050
|
|
|
29,840
|
|
Interest income
(expense), net
|
|
|
1,216
|
|
|
(159)
|
|
|
(148)
|
|
Other income
(expense), net
|
|
|
2,049
|
|
|
(688)
|
|
|
(4,700)
|
|
Income before income
taxes
|
|
|
29,468
|
|
|
92,203
|
|
|
24,992
|
|
Provision for income
taxes
|
|
|
(4,110)
|
|
|
(6,088)
|
|
|
(3,982)
|
|
NET
INCOME
|
|
|
25,358
|
|
|
86,115
|
|
|
21,010
|
|
Net income
attributable to noncontrolling interests
|
|
|
(1,844)
|
|
|
(1,625)
|
|
|
(2,226)
|
|
NET INCOME
ATTRIBUTABLE TO IDT CORPORATION
|
|
$
|
23,514
|
|
$
|
84,490
|
|
$
|
18,784
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to IDT Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.03
|
|
$
|
3.69
|
|
$
|
0.85
|
|
Diluted
|
|
$
|
1.03
|
|
$
|
3.63
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
22,765
|
|
|
22,903
|
|
|
22,009
|
|
Diluted
|
|
|
22,815
|
|
|
23,247
|
|
|
22,937
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Stock-based
compensation included in selling, general and administrative
expenses
|
|
$
|
2,680
|
|
$
|
5,185
|
|
$
|
5,382
|
|
IDT
CORPORATION
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Year ended July
31
(in thousands)
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
25,358
|
|
$
|
86,115
|
|
$
|
21,010
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
20,535
|
|
|
18,418
|
|
|
16,318
|
|
Deferred income
taxes
|
|
|
3,809
|
|
|
5,877
|
|
|
2,487
|
|
Provision for
doubtful accounts receivable
|
|
|
1,519
|
|
|
97
|
|
|
500
|
|
Gain on sale of
interest in Fabrix Systems Ltd
|
|
|
(1,086)
|
|
|
(76,864)
|
|
|
—
|
|
Gain on sale of
member interest in Visa Europe Ltd
|
|
|
(7,476)
|
|
|
—
|
|
|
—
|
|
Net realized (gain)
loss from marketable securities
|
|
|
(543)
|
|
|
54
|
|
|
—
|
|
Gain on proceeds from
insurance
|
|
|
—
|
|
|
—
|
|
|
(571)
|
|
Interest in the
equity of investments
|
|
|
362
|
|
|
(1,699)
|
|
|
(1,282)
|
|
Stock-based
compensation
|
|
|
2,680
|
|
|
5,185
|
|
|
5,382
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Restricted cash and
cash equivalents
|
|
|
(22,548)
|
|
|
(28,286)
|
|
|
(25,292)
|
|
Trade accounts
receivable
|
|
|
616
|
|
|
640
|
|
|
(1,363)
|
|
Prepaid expenses,
other current assets and other assets
|
|
|
8,372
|
|
|
2,122
|
|
|
(4,628)
|
|
Trade accounts
payable, accrued expenses, other current liabilities and other
liabilities
|
|
|
(10,337)
|
|
|
(3,824)
|
|
|
(5,914)
|
|
Customer
deposits
|
|
|
25,344
|
|
|
25,939
|
|
|
30,186
|
|
Income taxes
payable
|
|
|
238
|
|
|
(301)
|
|
|
(29)
|
|
Deferred
revenue
|
|
|
2,211
|
|
|
(2,939)
|
|
|
8,917
|
|
Net cash provided by
operating activities
|
|
|
49,054
|
|
|
30,534
|
|
|
45,721
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(18,370)
|
|
|
(28,556)
|
|
|
(17,021)
|
|
Proceeds from sale of
interest in Fabrix Systems Ltd., net of cash and cash equivalents
sold
|
|
|
9,557
|
|
|
59,678
|
|
|
—
|
|
Proceeds from sale of
member interest in Visa Europe Ltd
|
|
|
5,597
|
|
|
—
|
|
|
—
|
|
Cash used for
acquisition and purchase of investments
|
|
|
(2,002)
|
|
|
(125)
|
|
|
(175)
|
|
Proceeds from sales
and redemptions of investments
|
|
|
634
|
|
|
119
|
|
|
1,038
|
|
Purchases of other
intangibles
|
|
|
—
|
|
|
—
|
|
|
(250)
|
|
Proceeds from sale of
building
|
|
|
—
|
|
|
—
|
|
|
250
|
|
Proceeds from
insurance
|
|
|
—
|
|
|
—
|
|
|
571
|
|
Purchases of
marketable securities
|
|
|
(46,909)
|
|
|
(52,360)
|
|
|
(20,658)
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
35,011
|
|
|
24,126
|
|
|
17,323
|
|
Net cash (used in)
provided by investing activities
|
|
|
(16,482)
|
|
|
2,882
|
|
|
(18,922)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
|
(17,358)
|
|
|
(47,594)
|
|
|
(13,635)
|
|
Distributions to
noncontrolling interests
|
|
|
(1,834)
|
|
|
(2,050)
|
|
|
(1,888)
|
|
Cash of Zedge
deconsolidated as a result of spin-off
|
|
|
(6,381)
|
|
|
—
|
|
|
—
|
|
Proceeds from sale of
Zedge equity prior to the spin-off
|
|
|
374
|
|
|
—
|
|
|
—
|
|
Proceeds from capital
raised by subsidiary
|
|
|
8,750
|
|
|
—
|
|
|
—
|
|
Purchases of stock of
subsidiary
|
|
|
—
|
|
|
—
|
|
|
(1,133)
|
|
Proceeds from
exercise of stock options
|
|
|
—
|
|
|
3,424
|
|
|
609
|
|
Proceeds from
revolving credit loan payable
|
|
|
—
|
|
|
—
|
|
|
56,000
|
|
Repayments of
borrowings including revolving credit loan payable
|
|
|
(6,353)
|
|
|
(13,271)
|
|
|
(64,318)
|
|
Purchase of Class B
common stock from Howard S. Jonas
|
|
|
—
|
|
|
(7,500)
|
|
|
—
|
|
Repurchases of Class
B common stock
|
|
|
(4,773)
|
|
|
(3,202)
|
|
|
(1,005)
|
|
Net cash used in
financing activities
|
|
|
(27,575)
|
|
|
(70,193)
|
|
|
(25,370)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(5,821)
|
|
|
(6,685)
|
|
|
794
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(824)
|
|
|
(43,462)
|
|
|
2,223
|
|
Cash and cash
equivalents at beginning of year
|
|
|
110,361
|
|
|
153,823
|
|
|
151,600
|
|
Cash and cash
equivalents at end of year
|
|
$
|
109,537
|
|
$
|
110,361
|
|
$
|
153,823
|
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Cash payments made
for interest
|
|
$
|
1,205
|
|
$
|
745
|
|
$
|
743
|
|
Cash payments made
for income taxes
|
|
$
|
779
|
|
$
|
320
|
|
$
|
1,115
|
|
SUPPLEMENTAL
SCHEDULE OF NON-CASH FINANCING AND INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net assets excluding
cash and cash equivalents of Zedge deconsolidated as a result of
spin-off
|
|
$
|
(4,681)
|
|
$
|
—
|
|
$
|
—
|
|
Shares of Visa Inc.
Series C preferred stock received from sale of member interest in
Visa Europe Ltd
|
|
$
|
1,580
|
|
$
|
—
|
|
$
|
—
|
|
Net liabilities
excluding cash and cash equivalents of Fabrix Systems Ltd.
sold
|
|
$
|
—
|
|
$
|
14,333
|
|
$
|
—
|
|
Adjustment to
liabilities in connection with the Straight Path Communications,
Inc. spin-off
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,624
|
|
Reconciliation of Non-GAAP Financial Measures for
the Fourth Quarter Fiscal 2016 and 2015
In addition to disclosing financial results that are determined
in accordance with generally accepted accounting principles in
the United States of America
(GAAP), IDT also disclosed, for the fourth quarters of fiscal 2016
and 2015, Adjusted EBITDA, non-GAAP net income and non-GAAP diluted
earnings per share, or EPS, which are non-GAAP measures. Generally,
a non-GAAP financial measure is a numerical measure of a company's
performance, financial position, or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP.
IDT's measure of Adjusted EBITDA consists of revenues less
direct cost of revenues, selling, general and administrative
expense and research and development expense. Another way of
calculating Adjusted EBITDA is to start with income from
operations, add depreciation and amortization, severance expense,
and other operating losses, and subtract the gain on the sale of
member interest in Visa Europe Ltd. and the gain on the sale of
interest in Fabrix Systems Ltd.
IDT's measure of non-GAAP net income starts with net income in
accordance with GAAP and adds depreciation and amortization,
severance expense, stock-based compensation, and other operating
losses, and subtracts the gain on the sale of member interest in
Visa Europe Ltd., the gain on the sale of interest in Fabrix
Systems Ltd. and the tax benefit from group relief in the
United Kingdom.
IDT's measure of non-GAAP diluted EPS is calculated by dividing
non-GAAP net income by the diluted weighted-average shares.
These additions and subtractions are non-cash and/or non-routine
items in the relevant fiscal 2016 and fiscal 2015 periods.
Management believes that IDT's Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS measures provide useful information to both
management and investors by excluding certain expenses and
non-routine gains that may not be indicative of IDT's or the
relevant segment's core operating results. Management uses Adjusted
EBITDA, among other measures, as a relevant indicator of core
operational strengths in its financial and operational decision
making. In addition, management uses Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS to evaluate operating performance in
relation to IDT's competitors. Disclosure of these financial
measures may be useful to investors in evaluating performance and
allows for greater transparency to the underlying supplemental
information used by management in its financial and operational
decision-making. In addition, IDT has historically reported similar
financial measures and believes such measures are commonly used by
readers of financial information in assessing performance,
therefore the inclusion of comparative numbers provides consistency
in financial reporting at this time.
Management refers to Adjusted EBITDA, as well as the GAAP
measures income (loss) from operations and net income, on a segment
and/or consolidated level to facilitate internal and external
comparisons to the segments' and IDT's historical operating
results, in making operating decisions, for budget and planning
purposes, and to form the basis upon which management is
compensated.
While depreciation and amortization are considered operating
costs under GAAP, these expenses primarily represent the non-cash
current period allocation of costs associated with long-lived
assets acquired or constructed in prior periods. IDT's operating
results exclusive of depreciation and amortization charges are
useful indicators of its current performance.
Severance expense is also excluded from the calculation of
Adjusted EBITDA, non-GAAP net income and non-GAAP EPS. Severance
expense is reflective of decisions made by management in each
period regarding the aspects of IDT's and its segments' businesses
to be focused on in light of changing market realities and other
factors. While there may be similar charges in other periods, the
nature and magnitude of these charges can fluctuate markedly and do
not reflect the performance of IDT's core and continuing
operations.
The gains on the sale of member interest in Visa Europe Ltd. and
the sale of the interest in Fabrix Systems Ltd., and the other
operating losses, which are components of income from operations,
are excluded from the calculation of Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS. From time-to-time, IDT may select and
incubate promising early stage businesses outside of its core
business for eventual sale or spin-off to its stockholders. In
addition, IDT will dispose of certain assets or incur costs related
to legal matters. However, such gains or losses do not occur each
quarter nor are they part of IDT's or the relevant segment's core
operating results.
The other calculation of Adjusted EBITDA consists of revenues
less direct cost of revenues, selling, general and administrative
expense and research and development expense. As the other excluded
items are not reflected in this calculation, they are excluded
automatically and there is no need to make additional adjustments.
This calculation results in the same Adjusted EBITDA amount and its
utility and significance is as explained above.
Stock-based compensation recognized by IDT and other companies
may not be comparable because of the variety of types of awards as
well as the various valuation methodologies and subjective
assumptions that are permitted under GAAP. Stock-based compensation
is excluded from IDT's calculation of non-GAAP net income and
non-GAAP EPS because management believes this allows investors to
make more meaningful comparisons of the operating results per share
of IDT's core business with the results of other companies.
However, stock-based compensation will continue to be a significant
expense for IDT for the foreseeable future and an important part of
employees' compensation that impacts their performance.
The tax benefit from group relief in the United Kingdom is excluded from IDT's
calculation of non-GAAP net income and non-GAAP EPS because it only
indirectly related to the current results of IDT's core
operations. Group relief is only available after all prior net
operating losses are utilized by one entity and that entity is able
to utilize the current period losses of a related
entity. Group relief is not anticipated to be ongoing and the
related entities are expected to have a valuation allowance in
future periods.
Adjusted EBITDA, non-GAAP net income and non-GAAP EPS should be
considered in addition to, not as a substitute for, or superior to,
income (loss) from operations, cash flow from operating activities,
net income, basic and diluted earnings per share or other measures
of liquidity and financial performance prepared in accordance with
GAAP. In addition, IDT's measurements of Adjusted EBITDA, non-GAAP
net income and non-GAAP EPS may not be comparable to similarly
titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA, non-GAAP net
income and non-GAAP EPS to the most directly comparable GAAP
measure, which are, (a) for Adjusted EBITDA, income (loss) from
operations for IDT's reportable segments and net income for IDT on
a consolidated basis, (b) for non-GAAP net income, net income and,
(c) for non-GAAP EPS, basic and diluted earnings per share.
IDT
Corporation
Reconciliation of
Adjusted EBITDA to Net Income
(unaudited)
in
millions
Figures may not foot
or cross-foot due to rounding to millions.
|
|
|
Total IDT
Corporation
|
|
Telecom
Platform
Services
|
Consumer
Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
July 31, 2016
(4Q16)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
10.0
|
|
$
11.9
|
$
0.2
|
$
0.6
|
$
(2.7)
|
Subtract
(Add):
|
|
|
|
|
|
|
Depreciation and
amortization
|
5.0
|
|
4.5
|
-
|
0.5
|
-
|
Severance
expense
|
6.3
|
|
6.0
|
-
|
-
|
0.3
|
Gain on sale
of member interest in Visa Europe Ltd.
|
(7.5)
|
|
(7.5)
|
-
|
-
|
-
|
Income (loss) from
operations
|
6.2
|
|
$
8.9
|
$
0.2
|
$
0.1
|
$
(3.0)
|
Interest
income, net
|
0.3
|
|
|
|
|
|
Other
income, net
|
2.8
|
|
|
|
|
|
Income before income
taxes
|
9.3
|
|
|
|
|
|
Benefit
from income taxes
|
2.1
|
|
|
|
|
|
Net income
|
11.4
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
(0.4)
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom
Platform
Services
|
Consumer
Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
April 30, 2016
(3Q16)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
10.3
|
|
$
11.5
|
$
0.4
|
$
1.3
|
$
(2.8)
|
Subtract
(Add):
|
|
|
|
|
|
|
Depreciation and
amortization
|
5.5
|
|
4.9
|
-
|
0.6
|
-
|
Severance
expense
|
0.2
|
|
0.2
|
-
|
-
|
-
|
Gain on sale of
interest in Fabrix Systems Ltd.
|
(1.1)
|
|
-
|
-
|
(1.1)
|
-
|
Income (loss) from
operations
|
5.7
|
|
$
6.3
|
$
0.4
|
$
1.8
|
$
(2.8)
|
Interest
income, net
|
0.2
|
|
|
|
|
|
Other
income, net
|
0.1
|
|
|
|
|
|
Income before income
taxes
|
6.0
|
|
|
|
|
|
Provision for income taxes
|
(1.3)
|
|
|
|
|
|
Net income
|
4.7
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
(0.5)
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT
Corporation Reconciliation of Adjusted EBITDA to Net
Income (unaudited)
in millions
Figures may not foot or cross-foot due to rounding to
millions.
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom
Platform
Services
|
Consumer
Phone
Services
|
All
Other
|
Corporate
|
Three Months Ended
July 31, 2015
(4Q15)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
12.4
|
|
$
13.4
|
$
0.3
|
$
1.1
|
$
(2.3)
|
Subtract:
|
|
|
|
|
|
|
Depreciation
and amortization
|
5.0
|
|
4.3
|
-
|
0.6
|
-
|
Severance
expense
|
0.2
|
|
0.2
|
-
|
-
|
-
|
Income (loss) from
operations
|
7.2
|
|
$
8.8
|
$
0.3
|
$
0.4
|
$
(2.3)
|
Other
expense, net
|
(1.6)
|
|
Income before income
taxes
|
5.6
|
|
Provision for income
taxes
|
(3.7)
|
|
Net income
|
1.9
|
|
Net income
attributable to noncontrolling interests
|
(0.6)
|
|
Net income
attributable to IDT Corporation
|
$
1.3
|
|
IDT
Corporation Reconciliation of Adjusted EBITDA to Net
Income (unaudited)
in millions
Figures may not foot or cross-foot due to rounding to
millions.
|
|
|
Total IDT
Corporation
|
|
Telecom
Platform
Services
|
Consumer
Phone
Services
|
All
Other
|
Corporate
|
Year Ended July
31, 2016 (FY 2016)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
45.0
|
|
$
48.8
|
$
1.2
|
$
5.1
|
$
(10.1)
|
Subtract
(Add):
|
|
|
|
|
|
|
Depreciation and
amortization
|
20.5
|
|
18.5
|
-
|
2.0
|
-
|
Severance
expense
|
6.5
|
|
6.2
|
-
|
-
|
0.3
|
Gain on sale of member
interest in Visa Europe Ltd.
|
(7.5)
|
|
(7.5)
|
-
|
-
|
-
|
Gain on sale of
interest in Fabrix Systems Ltd.
|
(1.1)
|
|
-
|
-
|
(1.1)
|
-
|
Other operating
losses
|
0.3
|
|
0.3
|
-
|
-
|
-
|
Income (loss) from
operations
|
26.2
|
|
$
31.2
|
$
1.2
|
$
4.2
|
$
(10.4)
|
Interest
income, net
|
1.2
|
|
|
|
|
|
Other
income, net
|
2.0
|
|
|
|
|
|
Income before income
taxes
|
29.5
|
|
|
|
|
|
Provision for income taxes
|
(4.1)
|
|
|
|
|
|
Net income
|
25.4
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
(1.8)
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
23.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total IDT
Corporation
|
|
Telecom
Platform
Services
|
Consumer
Phone
Services
|
All
Other
|
Corporate
|
Year Ended July
31, 2015 (FY 2015)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
44.5
|
|
$
50.8
|
$
1.3
|
$
3.4
|
$
(10.9)
|
Subtract
(Add):
|
|
|
|
|
|
|
Depreciation and
amortization
|
18.4
|
|
16.2
|
-
|
2.2
|
-
|
Severance
expense
|
8.4
|
|
7.7
|
-
|
-
|
0.6
|
Gain on sale of
interest in Fabrix Systems
Ltd.
|
(76.9)
|
|
-
|
-
|
(76.9)
|
-
|
Other operating
losses
|
1.5
|
|
-
|
-
|
-
|
1.5
|
Income (loss) from
operations
|
93.1
|
|
$
27.0
|
$
1.3
|
$
78.0
|
$
(13.1)
|
Interest
expense, net
|
(0.2)
|
|
|
|
|
|
Other
expense, net
|
(0.7)
|
|
|
|
|
|
Income before income
taxes
|
92.2
|
|
|
|
|
|
Provision for income taxes
|
(6.1)
|
|
|
|
|
|
Net income
|
86.1
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
(1.6)
|
|
|
|
|
|
Net income
attributable to IDT Corporation
|
$
84.5
|
|
|
|
|
|
|
|
|
|
|
|
|
IDT
Corporation
Reconciliations of
Net Income to Non-GAAP Net Income and Diluted EPS to
Non-GAAP Diluted EPS
(unaudited)
in millions, except
per share data
Figures may not foot
due to rounding to millions.
|
|
|
4Q16
|
3Q16
|
4Q15
|
Year
Ended
July 31,
2016
|
Year
Ended
July 31,
2015
|
|
|
|
|
|
|
Net income
|
$
11.4
|
$
4.7
|
$
1.9
|
$
25.4
|
$
86.1
|
Adjustments (add)
subtract:
|
|
|
|
|
|
Stock-based
compensation
|
(0.4)
|
(0.7)
|
(1.2)
|
(2.7)
|
(5.2)
|
Depreciation and
amortization
|
(5.0)
|
(5.5)
|
(5.0)
|
(20.5)
|
(18.4)
|
Gain on sale of member
interest in Visa Europe Ltd.
|
7.5
|
-
|
-
|
7.5
|
-
|
Gain on sale of
interest in Fabrix Systems
Ltd.
|
-
|
1.1
|
-
|
1.1
|
76.9
|
Tax benefit from UK
group relief
|
0.9
|
-
|
-
|
0.9
|
-
|
Other operating
losses
|
-
|
-
|
-
|
(0.3)
|
(1.5)
|
Severance
expense
|
(6.3)
|
(0.2)
|
(0.2)
|
(6.5)
|
(8.4)
|
Total
adjustments
|
(3.3)
|
(5.3)
|
(6.4)
|
(20.5)
|
43.4
|
Income tax effect of
total adjustments
|
3.2
|
1.4
|
2.6
|
8.6
|
13.2
|
|
0.1
|
3.9
|
3.8
|
11.9
|
(56.6)
|
Non-GAAP net
income
|
$
11.5
|
$
8.6
|
$
5.7
|
$
37.3
|
$
29.5
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
$
0.49
|
$
0.19
|
$
0.05
|
$
1.03
|
$
3.69
|
Total
adjustments
|
0.02
|
0.19
|
0.20
|
0.61
|
(2.40)
|
Non-GAAP EPS -
basic
|
$
0.51
|
$
0.38
|
$
0.25
|
$
1.64
|
$
1.29
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of basic earnings per
share
|
22.7
|
22.6
|
23.0
|
22.8
|
22.9
|
|
|
|
|
|
|
Diluted
|
$
0.48
|
$
0.19
|
$
0.05
|
$
1.03
|
$
3.63
|
Total
adjustments
|
0.02
|
0.19
|
0.20
|
0.60
|
(2.36)
|
Non-GAAP EPS -
diluted
|
$
0.50
|
$
0.38
|
$
0.25
|
$
1.63
|
$
1.27
|
|
|
|
|
|
|
Weighted-average
number of shares used in calculation of diluted earnings per
share
|
22.8
|
22.7
|
23.2
|
22.8
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE IDT Corporation