j2 Global Communications Inc (JCOM, Financial) filed Quarterly Report for the period ended 2009-03-31.
j2 Global Communications Inc. provides enhanced value-added messaging and communications services. The Company offers its patented services and software through three distinct sales channels: Web Corporate and Licensed Services; and markets those services under the eFax? jConnect? Hotsend? Papermaster? Protofax? and Documagix? brands. j2's industry accolades include the Deloitte & Touche Fast 50 and Fast 500 Awards Forbes Best of the Web Award PC Magazine's Top 100 Websites Award British Telecom's Tech Award and many others. j2 Global Communications Inc has a market cap of $1.07 billion; its shares were traded at around $24.28 with a P/E ratio of 15.3 and P/S ratio of 4.5. j2 Global Communications Inc had an annual average earning growth of 28.1% over the past 5 years.
General and Administrative. Our general and administrative costs consist primarily of personnel-related expenses, depreciation and amortization, share-based compensation expense, bad debt expense and insurance costs. General and administrative costs were $10.7 million, or 18% of total revenues, and $11.2 million, or 19% of total revenues, for the three months ended March 31, 2009 and 2008, respectively. The decrease compared to the same period in the prior year was primarily due to reduced legal expenses and a non-recurring reversal of accrued taxes
At March 31, 2009, we had cash and investments of $179.3 million compared to cash and investments of $161.9 million at December 31, 2008. The increase in cash and investments resulted primarily from cash provided by operations offset by cash used in connection with business acquisitions. At March 31, 2009, cash and investments consisted of cash and cash equivalents of $168.2 million, short-term investments of $11,000 and long-term investments of $11.1 million. Our investments are comprised primarily of readily marketable corporate debt securities, auction rate debt and preferred securities and certificates of deposits. For financial statement presentation, we classify our investments primarily as held-to-maturity and, thus, they are reported as short and long-term based upon their maturity dates. Short-term investments mature within one year of the date of the financial statements and long-term investments mature one year or more from the date of the financial statements. We retain a substantial portion of our cash in foreign jurisdictions for future reinvestment. If we were to repatriate funds held overseas, we would incur U.S. income tax on the repatriated amount at an approximate blended federal and state rate of 40%.
Our primary sources of liquidity are cash flows generated from operations, together with cash and cash equivalents and short-term investments. Net cash provided by operating activities was $31.2 million and $27.4 million for the three months ended March 31, 2009 and 2008, respectively. Our operating cash flows resulted primarily from cash received from our subscribers. Our cash and cash equivalents and short-term investments were $168.2 million at March 31, 2009.
As of March 31, 2009, we had investments in debt securities with effective maturities greater than one year of approximately $11.1 million. Such investments had a weighted average yield of approximately 0.54%. Based on our cash and cash equivalents and short and long-term investment holdings as of March 31, 2009, an immediate 100 basis point decline in interest rates would decrease our annual interest income by approximately $1.8 million.
Foreign exchange gains and losses were not material to our earnings for the three months ended March 31, 2009. For the three months ended March 31, 2009, translation adjustments amounted to approximately $(0.9) million. As of March 31, 2009, cumulative translation adjustments included in other comprehensive income amounted to approximately $(4.8) million.
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j2 Global Communications Inc. provides enhanced value-added messaging and communications services. The Company offers its patented services and software through three distinct sales channels: Web Corporate and Licensed Services; and markets those services under the eFax? jConnect? Hotsend? Papermaster? Protofax? and Documagix? brands. j2's industry accolades include the Deloitte & Touche Fast 50 and Fast 500 Awards Forbes Best of the Web Award PC Magazine's Top 100 Websites Award British Telecom's Tech Award and many others. j2 Global Communications Inc has a market cap of $1.07 billion; its shares were traded at around $24.28 with a P/E ratio of 15.3 and P/S ratio of 4.5. j2 Global Communications Inc had an annual average earning growth of 28.1% over the past 5 years.
Highlight of Business Operations:
Cost of revenues is primarily comprised of costs associated with data and voice transmission, telephone numbers, network operations, customer service, on-line processing fees and equipment depreciation. Cost of revenues was $11.4 million, or 19% of total revenues, and $11.6 million, or 20% of total revenues, for the three months ended March 31, 2009 and 2008, respectively. The decrease in cost of revenues was primarily due to a reduction in equipment depreciation, as certain assets have been fully depreciated and sales taxes in connection with the relocation of certain network operations to a more favorable taxing locality. This reduction was partially offset by increased payment processing fees as a result of certain acquisitions.General and Administrative. Our general and administrative costs consist primarily of personnel-related expenses, depreciation and amortization, share-based compensation expense, bad debt expense and insurance costs. General and administrative costs were $10.7 million, or 18% of total revenues, and $11.2 million, or 19% of total revenues, for the three months ended March 31, 2009 and 2008, respectively. The decrease compared to the same period in the prior year was primarily due to reduced legal expenses and a non-recurring reversal of accrued taxes
At March 31, 2009, we had cash and investments of $179.3 million compared to cash and investments of $161.9 million at December 31, 2008. The increase in cash and investments resulted primarily from cash provided by operations offset by cash used in connection with business acquisitions. At March 31, 2009, cash and investments consisted of cash and cash equivalents of $168.2 million, short-term investments of $11,000 and long-term investments of $11.1 million. Our investments are comprised primarily of readily marketable corporate debt securities, auction rate debt and preferred securities and certificates of deposits. For financial statement presentation, we classify our investments primarily as held-to-maturity and, thus, they are reported as short and long-term based upon their maturity dates. Short-term investments mature within one year of the date of the financial statements and long-term investments mature one year or more from the date of the financial statements. We retain a substantial portion of our cash in foreign jurisdictions for future reinvestment. If we were to repatriate funds held overseas, we would incur U.S. income tax on the repatriated amount at an approximate blended federal and state rate of 40%.
Our primary sources of liquidity are cash flows generated from operations, together with cash and cash equivalents and short-term investments. Net cash provided by operating activities was $31.2 million and $27.4 million for the three months ended March 31, 2009 and 2008, respectively. Our operating cash flows resulted primarily from cash received from our subscribers. Our cash and cash equivalents and short-term investments were $168.2 million at March 31, 2009.
As of March 31, 2009, we had investments in debt securities with effective maturities greater than one year of approximately $11.1 million. Such investments had a weighted average yield of approximately 0.54%. Based on our cash and cash equivalents and short and long-term investment holdings as of March 31, 2009, an immediate 100 basis point decline in interest rates would decrease our annual interest income by approximately $1.8 million.
Foreign exchange gains and losses were not material to our earnings for the three months ended March 31, 2009. For the three months ended March 31, 2009, translation adjustments amounted to approximately $(0.9) million. As of March 31, 2009, cumulative translation adjustments included in other comprehensive income amounted to approximately $(4.8) million.
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