j2 Global Reports Fourth Quarter and Year End 2018 Results and Provides 2019 Outlook

Achieves Record Revenues

Provides Fiscal 2019 Financial Estimates

Announces Thirtieth Consecutive Quarterly Dividend Increase

LOS ANGELES–(BUSINESS WIRE)–j2 Global, Inc. (NASDAQ: JCOM) today reported financial results for the
fourth quarter and year ended December 31, 2018, provided fiscal 2019
financial estimates and announced that its Board of Directors has
declared an increased quarterly cash dividend of $0.4450 per share.

“We accomplished a great deal in 2018 including significant leadership
additions across the company; the addition of great businesses to our
portfolio including Vipre, Line2, Prime, and Ekahau; and another record
year in revenues, full year Adjusted non-GAAP EPS and free cash flows,”
said Vivek Shah, CEO of j2 Global. “We continue to be excited by our
growing portfolio of internet information and services brands and are
pleased to report our first open-market share buyback since 2012.”

FOURTH QUARTER 2018 RESULTS

Q4 2018 quarterly revenues increased 9.4% to a Q4 record of
$346.1 million compared to $316.4 million for Q4 2017.

Net cash provided by operating activities increased 25.5% to $107.2
million compared to $85.4 million for Q4 2017. Q4 2018
free cash flow(1) increased 27.2% to $95.8 million compared
to $75.3 million for Q4 2017.

GAAP earnings per diluted share(2) increased 1.0% to $1.03 in
Q4 2018 compared to $1.02 for Q4 2017.

Adjusted non-GAAP earnings per diluted share(2)(3) for the
quarter increased 17.9% to $2.11 compared to $1.79 for Q4 2017.

GAAP net income increased 1.4% to $50.6 million in Q4 2018 compared to
$49.9 million for Q4 2017.

Quarterly Adjusted EBITDA(4) increased 8.7% to $154.3 million
in the quarter compared to $141.9 million for Q4 2017.

j2 ended the quarter with approximately $293.3 million in cash and
investments after deploying approximately $184 million during the
quarter for acquisitions, j2’s regular quarterly dividend, and share
buyback.

Key financial results for Q4 2018 versus Q4 2017 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and
free cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.

             
    Q4 2018   Q4 2017   % Change
Revenues            
Cloud Services   $148.1 million   $146.9 million   0.8%
Digital Media   $198.0 million   $169.5 million   16.8%

Total Revenue:

  $346.1 million   $316.4 million   9.4%
Operating Income   $86.7 million   $76.2 million   13.8%
Net Cash Provided by Operating Activities   $107.2 million   $85.4 million   25.5%
Free Cash Flow (1)   $95.8 million   $75.3 million   27.2%
GAAP Earnings per Diluted Share (2)   $1.03   $1.02   1.0%
Adjusted Non-GAAP Earnings per Diluted Share (2) (3)   $2.11   $1.79   17.9%
GAAP Net Income   $50.6 million   $49.9 million   1.4%
Adjusted Non-GAAP Net Income   $103.7 million   $87.3 million   18.8%
Adjusted EBITDA (4)   $154.3 million   $141.9 million   8.7%
Adjusted EBITDA Margin (4)   44.6%   44.8%   (0.2)%
     

FULL YEAR 2018 RESULTS

2018 revenues increased 8.0% to a record of $1,207.3 million in 2018
compared to $1,117.8 million for 2017.

Net cash provided by operating activities increased 51.8% to $401.3
million in 2018 compared to $264.4 million for 2017. 2018
free cash flow(1) increased 30.2% to $344.9 million compared
to $264.8 million for 2017.

GAAP earnings per diluted share(5) decreased 8.5% to $2.59 in
2018 compared to $2.83 for 2017. The decrease over the prior comparable
period is primarily attributed to the decrease in income associated with
the 2017 sale of Cambridge BioMarketing Group LLC and Tea Leaves,
increased depreciation and amortization expense associated with
acquisitions such as Humble Bundle, Ekahau and Vipre; partially offset
by a decrease in income tax expense.

Adjusted non-GAAP earnings per diluted share(5)(6) for the
year increased 12.6% to $6.35 compared to $5.64 for 2017.

GAAP net income decreased by 7.7% to $128.7 million in 2018 compared to
$139.4 million for 2017. The decrease over the prior comparable period
is primarily attributed to the decrease in income associated with the
2017 sale of Cambridge BioMarketing Group LLC and Tea Leaves, increased
depreciation and amortization expense associated with acquisitions such
as Humble Bundle, Ekahau and Vipre; partially offset by a decrease in
income tax expense.

Annual Adjusted EBITDA(4) increased 5.7% to $489.5 million in
2018 compared to $463.0 million for 2017.

The impact of a change in accounting principle associated with revenue
recognition (ASC 606) resulted in a decrease of approximately $7.1
million for both the revenues and Adjusted EBITDA for the year. Without
this impact, 2018 revenues would have been $1,214.4 million and Adjusted
EBITDA would have been $496.6 million.

j2 ended the year with approximately $293.3 million in cash and
investments after deploying approximately $440 million during the year
for acquisitions, j2’s regular quarterly dividends, and share buyback.

Key financial results for 2018 versus 2017 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and
free cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.

             
    2018   2017   % Change
Revenues            
Cloud Services   $598.0 million   $578.9 million   3.3%

Digital Media

  $609.3 million   $538.9 million   13.1%

Total Revenue:

  $1,207.3 million   $1,117.8 million   8.0%
Operating Income   $244.3 million   $245.7 million   (0.6)%
Net Cash Provided by Operating Activities   $401.3 million   $264.4 million   51.8%
Free Cash Flow (1)   $344.9 million   $264.8 million   30.2%
GAAP Earnings per Diluted Share (5)   $2.59   $2.83   (8.5)%
Adjusted Non-GAAP Earnings per Diluted Share (5) (6)   $6.35   $5.64   12.6%
GAAP Net Income   $128.7 million   $139.4 million   (7.7)%
Adjusted Non-GAAP Net Income   $312.3 million   $275.1 million   13.5%
Adjusted EBITDA (4)   $489.5 million   $463.0 million   5.7%
Adjusted EBITDA Margin (4)   40.5%   41.4%   (0.9)%
     

BUSINESS OUTLOOK

For fiscal 2019, the Company estimates that it will achieve revenues
between $1.29 billion and $1.33 billion, Adjusted EBITDA between $520
million and $540 million and Adjusted non-GAAP earnings per diluted
share of between $6.65 and $6.95.

Adjusted non-GAAP earnings per diluted share for 2019 excludes
share-based compensation of between $23 million and $27 million,
amortization of acquired intangibles and the impact of any currently
unanticipated items, in each case net of tax.

It is anticipated that the non-GAAP effective tax rate for 2019
(exclusive of the release of reserves for uncertain tax positions) will
be between 20.5% and 22.5%.

The Company has not reconciled the Adjusted non-GAAP earnings per
diluted share and tax rate guidance included in this release to the most
directly comparable GAAP measure because this cannot be done without
unreasonable effort due to the variability with respect to costs related
to acquisitions and taxation, which are potential adjustments to future
earnings. We expect the variability of these items to have a potentially
unpredictable and significant impact on our future GAAP financial
results.

DIVIDEND

j2’s Board of Directors approved a quarterly cash dividend of $0.4450
per common share, a $0.01, or 2.3% increase versus last quarter’s
dividend. This is j2’s thirtieth consecutive quarterly dividend increase
since its first quarterly dividend in September 2011. The dividend will
be paid on March 12, 2019 to all shareholders of record as of the close
of business on February 25, 2019. Future dividends will be subject to
Board approval.

EXTENSION OF SHARE REPURCHASE PROGRAM

The Company has extended its one-year five million share repurchase
program set to expire February 19, 2019 by an additional year.
Approximately 1.3 million shares remain available for purchase under the
program.

Notes:

    (1)   Free cash flow is defined as net cash provided by operating
activities, less purchases of property, plant and equipment, plus
contingent consideration. Free cash flow amounts are not meant as a
substitute for GAAP, but are solely for informational purposes.
(2) The estimated GAAP effective tax rates were approximately 29.5% for
Q4 2018 and 39.6% for Q4 2017. The estimated Adjusted non-GAAP
effective tax rates were approximately 21.3% for Q4 2018 and 27.1%
for Q4 2017.
(3) Adjusted non-GAAP earnings per diluted share excludes certain
non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted
non-GAAP Financial Measures, for the three months ended December 31,
2018 and 2017 totaled $1.08 and $0.77 per diluted share,
respectively.
(4) Adjusted EBITDA is defined as earnings before interest and other
expense, net; income tax expense; depreciation and amortization; and
the items used to reconcile EPS to Adjusted non-GAAP EPS, as defined
in the Reconciliation of GAAP to Adjusted non-GAAP Financial
Measures. Adjusted EBITDA amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.
(5) The estimated GAAP effective tax rates were approximately 25.2% for
2018 and 30.3% for 2017. The estimated Adjusted non-GAAP effective
tax rates were approximately 21.0% for 2018 and 27.9% for 2017.
(6) Adjusted non-GAAP earnings per diluted share excludes certain
non-GAAP items, as defined in the Reconciliation of GAAP to Adjusted
non-GAAP Financial Measures, for the twelve months ended December
31, 2018 and 2017 totaled $3.76 and $2.81 per diluted share,
respectively.
 

About j2 Global

j2 Global, Inc. (NASDAQ: JCOM) is a leading internet information and
services company consisting of a portfolio of brands including IGN,
Mashable, Humble Bundle, Speedtest, PCMag, Offers.com, Everyday Health
and What To Expect in its Digital Media business and eFax, eVoice,
Campaigner, Vipre, KeepItSafe and Livedrive in its Cloud Services
business. j2 reaches over 180 million people per month across its
brands. As of December 31, 2018, j2 had achieved 23 consecutive fiscal
years of revenue growth. For more information about j2, please visit www.j2global.com.

“Safe Harbor” Statement Under the Private Securities Litigation
Reform Act of 1995:
Certain statements in this Press Release are
“forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995, including those contained in
Vivek Shah’s quote and the “Business Outlook” portion regarding the
Company’s expected fiscal 2019 financial performance. These
forward-looking statements are based on management’s current
expectations or beliefs and are subject to numerous assumptions, risks
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These factors
and uncertainties include, among other items: the Company’s ability to
grow non-fax revenues, profitability and cash flows; the Company’s
ability to identify, close and successfully transition acquisitions;
subscriber growth and retention; variability of the Company’s revenue
based on changing conditions in particular industries and the economy
generally; protection of the Company’s proprietary technology or
infringement by the Company of intellectual property of others; the risk
of adverse changes in the U.S. or international regulatory environments,
including but not limited to the imposition or increase of taxes or
regulatory-related fees; and the numerous other factors set forth in j2
Global’s filings with the Securities and Exchange Commission (“SEC”).
For a more detailed description of the risk factors and uncertainties
affecting j2 Global, refer to the 2017 Annual Report on Form 10-K filed
by j2 Global on March 1, 2018, and the other reports filed by j2 Global
from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this Press Release, including
those contained in Vivek Shah’s quote and in the “Business Outlook”
portion regarding the Company’s expected fiscal 2019 financial
performance are based on limited information available to the Company at
this time, which is subject to change. Although management’s
expectations may change after the date of this Press Release, the
Company undertakes no obligation to revise or update these statements.

About non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following Adjusted
non-GAAP financial measures: Adjusted non-GAAP net income, Adjusted
non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.

We use these Adjusted non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Our management believes that these Adjusted non-GAAP
financial measures provide meaningful supplemental information regarding
our performance and liquidity by excluding certain expenses and
expenditures that may not be indicative of our recurring core business
operating results. We believe that both management and investors benefit
from referring to these Adjusted non-GAAP financial measures in
assessing our performance and when planning, forecasting, and analyzing
future periods. These Adjusted non-GAAP financial measures also
facilitate management’s internal comparisons to our historical
performance and liquidity. We believe these Adjusted non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze
the health of our business.

For more information on these Adjusted non-GAAP financial measures,
please see the appropriate GAAP to Adjusted non-GAAP reconciliation
tables included within the attached Exhibit to this Release.

   
j2 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
 
December 31,
2018
December 31,
2017
ASSETS
Cash and cash equivalents $ 209,474 $ 350,945
Accounts receivable, net of allowances of $10,422 and $8,701,
respectively
221,615 234,195
Prepaid expenses and other current assets 29,242   35,287  
Total current assets 460,331 620,427
Long-term investments 83,828 57,722
Property and equipment, net 98,813 79,773
Goodwill 1,380,376 1,196,611
Other purchased intangibles, net 526,468 485,751
Other assets 11,014   12,809  
TOTAL ASSETS $ 2,560,830   $ 2,453,093  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses $ 166,521 $ 169,837
Income taxes payable, current 12,915
Deferred revenue, current 127,568 95,255
Other current liabilities 318   10  
Total current liabilities 307,322 265,102
Long-term debt 1,013,129 1,001,944
Deferred revenue, noncurrent 13,200 47
Income taxes payable, noncurrent 11,675 43,781
Liability for uncertain tax positions 59,644 52,216
Deferred income taxes, noncurrent 69,048 38,264
Other long-term liabilities 51,068   31,434  
TOTAL LIABILITIES 1,525,086   1,432,788  
Commitments and contingencies
Preferred stock
Common stock 481 479
Additional paid-in capital 354,210 325,854
Treasury stock (42,543 )
Retained earnings 769,575 723,062
Accumulated other comprehensive loss (45,979 ) (29,090 )
TOTAL STOCKHOLDERS’ EQUITY 1,035,744   1,020,305  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,560,830   $ 2,453,093  
 
 
j2 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN THOUSANDS)
   

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2018   2017 2018   2017
Total revenues $ 346,059 $ 316,380 $ 1,207,295 $ 1,117,838
 
Cost of revenues (1) 55,962   45,974   201,074   172,313  
Gross profit 290,097   270,406   1,006,221   945,525  
 
Operating expenses:
Sales and marketing (1) 88,113 92,525 338,304 330,296
Research, development and engineering (1) 12,958 10,267 48,370 46,004
General and administrative (1) 102,342   91,398   375,267   323,517  
Total operating expenses 203,413   194,190   761,941   699,817  
Income from operations 86,684 76,216 244,280 245,708
Interest expense, net 15,559 16,372 61,987 67,777
Other (income) expense, net (1,443 ) (22,696 ) 4,706   (22,035 )
Income before income taxes and net loss in earnings of equity method
investment
72,568 82,540 177,587 199,966
Income tax expense 21,395 32,669 44,760 60,541
Net loss in earnings of equity method investment 559     4,140    
Net income $ 50,614   $ 49,871   $ 128,687   $ 139,425  
 
Basic net income per common share:
Net income attributable to j2 Global, Inc. common shareholders $ 1.04   $ 1.03   $ 2.64   $ 2.89  
 
Diluted net income per common share:
Net income attributable to j2 Global, Inc. common shareholders $ 1.03   $ 1.02   $ 2.59   $ 2.83  
 
Basic weighted average shares outstanding 47,967,014 47,721,700 47,950,746 47,586,242
Diluted weighted average shares outstanding 48,505,023 48,437,580 48,927,791 48,669,027
 
(1) Includes share-based compensation expense as follows:
Cost of revenues $ 132 $ 143 $ 510 $ 500
Sales and marketing 418 458 1,798 1,723
Research, development and engineering 366 367 1,553 1,182
General and administrative 5,784   8,029   24,232   19,332  
Total $ 6,700   $ 8,997   $ 28,093   $ 22,737  
 
 
j2 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
 

Twelve Months Ended
December 31,

2018   2017
Cash flows from operating activities:
Net income $ 128,687 $ 139,425
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization 187,174 162,041
Amortization of financing costs and discounts 11,385 11,952
Share-based compensation 28,093 22,737
Provision for doubtful accounts 17,338 13,159
Deferred income taxes, net 25,050 (21,432 )
Loss on extinguishment of debt and related interest expense 7,962
Gain on sale of businesses (27,681 )
Changes in fair value of contingent consideration 18,944 2,300
Loss on equity investments 10,506
Decrease (increase) in:
Accounts receivable 4,034 (37,546 )
Prepaid expenses and other current assets 2,211 4,001
Other assets 2,391 (2,712 )
Increase (decrease) in:
Accounts payable and accrued expenses (35,220 ) (34,116 )
Income taxes payable (29,042 ) 14,888
Deferred revenue 11,991 941
Liability for uncertain tax positions 7,694 4,936
Other long-term liabilities 10,089   3,564  
Net cash provided by operating activities 401,325   264,419  
Cash flows from investing activities:
Purchases of equity method investment (36,635 )
Purchases of available-for-sale investments (500 ) (4 )
Purchases of property and equipment (56,379 ) (39,595 )
Acquisition of businesses, net of cash received (312,430 ) (174,951 )
Proceeds from sale of businesses, net of cash divested 58,300
Purchases of intangible assets (669 ) (2,240 )
Net cash used in investing activities (406,613 ) (158,490 )
Cash flows from financing activities:
Issuance of long-term debt, net 636,485
Payment of debt (2,204 ) (255,000 )
Proceeds from line of credit, net 44,981
Repayment of line of credit (225,000 )
Repurchase of common stock (47,102 ) (9,850 )
Issuance of common stock under employee stock purchase plan 2,084 259
Exercise of stock options 1,540 1,108
Dividends paid (81,679 ) (73,469 )
Deferred payments for acquisitions (3,558 ) (7,637 )
Other (443 ) (54 )
Net cash (used in) provided by financing activities (131,362 ) 111,823  
Effect of exchange rate changes on cash and cash equivalents (4,821 ) 9,243  
Net change in cash and cash equivalents (141,471 ) 226,995
Cash and cash equivalents at beginning of year 350,945   123,950  
Cash and cash equivalents at end of year $ 209,474   $ 350,945  
 
 

j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP
TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE AND TWELVE
MONTHS ENDED DECEMBER 31, 2018 AND 2017

(UNAUDITED, IN
THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following modifications:
(1) elimination of share-based compensation and the associated payroll
tax expense; (2) elimination of certain acquisition-related integration
costs; (3) elimination of interest costs in excess of the coupon rate
associated with the convertible notes; (4) elimination of amortization
of patents and intangible assets that we acquired; (5) elimination of
change in value on investment; (6) elimination of additional tax or
indirect tax related expense/benefit from prior years; (7) elimination
of gain on sale of businesses; (8) elimination of additional tax expense
due to the Tax Cuts and Jobs Act; (9) elimination of certain
restructuring costs; and (10) elimination of dilutive effect of the
convertible debt.

  Three Months Ended December 31,
2018  

Per Diluted
Share *

  2017  

Per Diluted
Share *

Net income $ 50,614   $ 1.03 $ 49,871   $ 1.02
Plus:

Share based compensation (1)

5,806 0.12 8,056 0.17
Acquisition related integration costs (2) 6,396 0.13 8,205 0.17

Interest costs (3)

1,915 0.04 1,807 0.04

Amortization (4)

38,113 0.79 21,077 0.44

Investments (5)

671 0.01
Tax expense from prior years (6) (2 ) 2,475 0.05
Sale of businesses (7) (15,685 ) (0.33 )
Tax Cuts and Jobs Act (8) 11,539 0.24
Restructuring costs (9) 161
Convertible debt dilution (10)   0.02   0.01
Adjusted non-GAAP net income $ 103,674   $ 2.11 $ 87,345   $ 1.79
 
 
Twelve Months Ended December 31,
2018  

Per Diluted
Share *

2017  

Per Diluted
Share *

Net income $ 128,687 $ 2.59 $ 139,425 $ 2.83
Plus:
Share based compensation (1) 21,062 0.44 17,297 0.36
Acquisition related integration costs (2) 25,535 0.53 20,669 0.43
Interest costs (3) 6,079 0.13 13,704 0.29
Amortization (4) 123,789 2.57 86,969 1.82

Investments (5)

6,636 0.14

Tax expense from prior years (6)

335 0.01 4,349 0.09
Sale of businesses (7) (18,839 ) (0.39 )

Tax Cuts and Jobs Act (8)

11,539 0.24
Restructuring costs (9) 161

Convertible debt dilution (10)

  0.05   0.05
Adjusted non-GAAP net income $ 312,284   $ 6.35 $ 275,113   $ 5.64

* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.

j2 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP
TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED
DECEMBER 31, 2018 AND 2017

(UNAUDITED, IN THOUSANDS, EXCEPT
SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following modifications:
(1) elimination of share-based compensation and the associated payroll
tax expense; (2) elimination of certain acquisition-related integration
costs; (3) elimination of interest costs in excess of the coupon rate
associated with the convertible notes; (4) elimination of amortization
of patents and intangible assets that we acquired; (5) elimination of
change in value on investment; (6) elimination of additional tax or
indirect tax related expense/benefit from prior years; (7) elimination
of gain on sale of businesses; (8) elimination of additional tax expense
due to the Tax Cuts and Jobs Act; (9) elimination of certain
restructuring costs; and (10) elimination of dilutive effect of the
convertible debt.

  Three Months Ended December 31,
2018   2017
Cost of revenues $ 55,962 $ 45,974
Plus:

Share based compensation (1)

(132 ) (143 )
Acquisition related integration costs (2) 50

Amortization (4)

(544 ) (568 )
Adjusted non-GAAP cost of revenues $ 55,336   $ 45,263  
Sales and marketing $ 88,113 $ 92,525
Plus:

Share based compensation (1)

(418 ) (458 )

Acquisition related integration costs (2)

53 (4,471 )

Restructuring costs (9)

(184 )  
Adjusted non-GAAP sales and marketing $ 87,564   $ 87,596  
Research, development and engineering $ 12,958 $ 10,267
Plus:

Share based compensation (1)

(366 ) (367 )

Acquisition related integration costs (2)

(38 ) (35 )
Adjusted non-GAAP research, development and engineering $ 12,554   $ 9,865  
General and administrative $ 102,342 $ 91,398
Plus:

Share based compensation (1)

(5,784 ) (8,029 )

Acquisition related integration costs (2)

(6,448 ) (6,747 )

Amortization (4)

(43,186 ) (34,706 )

Tax expense from prior years (6)

  (1,970 )
Adjusted non-GAAP general and administrative $ 46,924   $ 39,946  
Interest expense, net $ 15,559 $ 16,372
Plus:

Acquisition related integration costs (2)

(15 ) (90 )
Interest costs (3) (2,211 ) (1,897 )

Tax expense from prior years (6)

  (830 )
Adjusted non-GAAP interest expense, net $ 13,333   $ 13,555  
 
Other income, net $ (1,443 ) $ (22,696 )
Plus:
Sale of businesses (7)   22,981  
Adjusted non-GAAP other income, net $ (1,443 ) $ 285  
Income Tax Provision $ 21,395 $ 32,669
Plus:

Share based compensation (1)

894 941

Acquisition related integration costs (2)

2 3,138
Interest costs (3) 296 90

Amortization (4)

5,617 14,197
Investments (5) (112 )
Tax expense from prior years (6) 2 325
Sale of businesses (7) (7,296 )
Tax Cuts and Jobs Act (8) (11,539 )

Restructuring costs (9)

23    
Adjusted non-GAAP income tax provision $ 28,117   $ 32,525  
Net loss in earnings of equity method investment $ 559 $
Plus:
Investments (5) (559 )  
Adjusted non-GAAP net loss in earnings of equity method investment $   $  
 
Total adjustments $ (53,060 ) $ (37,474 )
 
GAAP earnings per diluted share $ 1.03 $ 1.02
Adjustments * $ 1.08 $ 0.77
Adjusted non-GAAP earnings per diluted share $ 2.11 $ 1.79

Contacts

Scott Turicchi
j2 Global, Inc.
800-577-1790
press@j2.com

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