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Dice Holdings Inc. Reports Operating Results (10-K)

February 03, 2012 | About:
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10qk

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Dice Holdings Inc. (DHX) filed Annual Report for the period ended 2011-12-31.

Dice Holdings Inc has a market cap of $549.7 million; its shares were traded at around $8.27 with a P/E ratio of 19.3 and P/S ratio of 4.2.

Highlight of Business Operations:

Our cost of revenues for the year ended December 31, 2011 were $13.0 million compared to $9.6 million for the same period in 2010, an increase of $3.5 million, or 36.0%. The increase in cost of revenues was primarily the result of increases in the Tech & Clearance segment of $2.1 million and the Energy segment of $1.6 million. The increase in the Tech & Clearance segment was due to an increase in software subscription and maintenance costs needed to maintain our websites, as well as an increase in costs related to network services personnel we employ and consulting services used, due to higher levels of activity on our websites during 2011. A provision for sales and use tax also contributed to the increase. Of the $1.6 million increase in the Energy segment, $798,000 is a result of Rigzone and WorldwideWorker being included for the full year, with the remainder primarily due to the cost of recruitment events we operate at energy industry conferences and the costs associated with the hosting of our Energy segment websites.

The change in acquisition related contingencies for the year ended December 31, 2011 was an expense of $3.1 million. The contingent consideration for the Rigzone and WorldwideWorker acquisitions increased by $2.8 million and $398,000, respectively, due to increased sales performance related to the respective businesses. Payments of $12.7 million and $230,000 were made in the current period for the Rigzone and WorldwideWorker acquisitions, respectively. A final payment of $1.6 million for the WorldwideWorker acquisition is expected to be made in February 2012.

Our cost of revenues for the year ended December 31, 2010 were $9.6 million compared to $7.5 million for the same period in 2009, an increase of $2.1 million, or 27.6%. The increase in cost of revenues was the result of increases at all of our segments. The increase at the Tech & Clearance segment was $1.5 million, primarily due to an increase in software subscription and maintenance costs needed to maintain our websites. Additionally, there was an increase in costs as a result of increasing the number of network services personnel we employ and consulting services used, due to higher levels of activity on our websites during the current year. The addition of the Energy businesses increased cost of revenues by $945,000, which includes the cost of participation in energy industry events and the costs to deliver our data services. Partially offsetting these increases is a decrease at the Other segment primarily due to few job fairs conducted in 2010.

Net cash from operating activities primarily consists of net income adjusted for certain non-cash items, including depreciation, amortization, changes in deferred tax assets and liabilities, share based compensation, and for the effect of changes in working capital. Net cash provided by operating activities was $64.5 million and $47.1 million for the years ended December 31, 2011 and 2010, respectively. The cash provided by operating activities during these periods increased primarily due to higher sales and the resulting increase in cash inflows during the period. Cash inflow from operations is dependent on the amount and timing of billings and cash collection from our customers. During 2011, billings increased 35% as compared to the same period in 2010. Deferred revenue increased by $11.7 million in 2011, compared to an increase of $12.6 million in 2010. Included in the 2011 period was a $4.7 million use of cash for a portion of the Rigzone acquisition contingency payment that exceeded our initial estimate of deferred purchase price at the time of acquisition.

Cash used by investing activities during the years ended December 31, 2011 and 2010 was $10.6 million and $46.4 million, respectively. The cash used during the year ended December 31, 2011 was primarily attributable to $5.0 million for purchases of investments and $7.8 million of cash used to purchase fixed assets, partially offset by $2.2 million for sales of investments. The 2010 period included $43.8 million of cash used to purchase WorldwideWorker and Rigzone.

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