Services Stock Review Report: DHI Group, Inc. (NYSE: DHX)

0
101
DHI Group, Inc.,DHX

On 22 Jan 2019, DHI Group, Inc. (NYSE: DHX) negotiated 69,781 shares against it an average volume of 94,078 shares. The stock concluded the recent trade at $2.1000 with upbeat/downbeat trend moved of +1.94%. The company has got a 52-week exceptional price of $3.25 and reached a 52-week lowest of the share price at $1.25.

DHI Group, Inc. (DHX) recently reported the following results for the third quarter ended September 30, 2018:

  • Revenues were $38.9M; tech-focused revenues, not including Dice Europe,1were $37.5M, 1% lower year over year
  • Net income was $0.9M, or $0.02per diluted share, which included $1.9M, or $0.04 per diluted share, from disposition related and other costs and a small book loss on the spinoff of Rigzone
  • Cash flow from operations of $0.4M, reflecting a change in consumer billing terms to bring them in line with market standards; Adjusted EBITDA2was $7.9M and Adjusted EBITDA margin2 was 21%

Quarterly Financial Highlights

  • Dice3revenues were $23.7M, 6% lower year over year
  • eFinancial Careers revenues were $8.4M, up 2% year over year
  • Clearance Jobs revenues were $5.4M, 22% higher than the previous year period, the eleventh consecutive quarter of at least 20% year over year revenue growth
  • Improved metrics for Dice3recruitment package consumers
  • 6,200 consumers, 6% lower year over year, but unchanged sequentially for the third consecutive quarter
  • Quarterly revenue renewal rate of 76%, up 3 percentage points year over year
  • Completed the divestitures of the Company’s non-core businesses with the spinoff of Rigzone, the Company’s oil and gas recruiting platform
  • Completed the closure of Dice Europe1, focusing the Company’s international resources on eFinancial Careers
  • Debt outstanding was $17Mas of September 30, 2018, a 60% decrease year over year.

Revenues

Revenues were $38.9M for the 2018 third quarter, 26% lower year over year. The decrease was primarily attributable to the divestitures of all of the Company’s non-tech businesses, since December 2017.

The decrease was also Because of a 6% year over year decline in Dice1 revenues, resulting from a decrease in recruitment package consumers during the same period. Partially offsetting the year over year revenue decline was a 22% raise in Clearance Jobs revenues and a 2% raise in eFinancial Careers revenues.

Operating Expenses

Operating expenses were $37.1M for the 2018 third quarter, a decrease of $12.8M, or 26%, year over year. This change was primarily attributable to the divestitures of the Company’s non-tech businesses, which reduced operating expenses by 25%, or $12.3M. Operating expenses for the Company’s remaining tech-focused business reduced by $0.6M year over year, mainly driven by lower marketing expenses and a fixed asset impairment in the 2017 third quarter. These decreases were partially offset by raises in disposition related and other costs and legal and professional fees.

Net Income

The Company recorded net income of $0.9M for the 2018 third quarter, or $0.02 per share. Net income includes $1.9M, or $0.04 per diluted share, from disposition related and other costs, and a loss on the spinoff of Rigzone.

Adjusted EBITDA and Adjusted EBITDA Margin2

Adjusted EBITDA2 excludes the effects of the Company’s divested businesses, disposition-related and other costs, and loss on sale of businesses from both the current and previous year periods. This presentation provides for better comparability of results.

Adjusted EBITDA2 was $7.9M for the 2018 third quarter, increasing 5% sequentially but declining 10% year over year. The year-over-year decrease was attributable to lower revenues, partially offset by lower operating expenses, primarily marketing spend, which resulted in an Adjusted EBITDA marginof 21%.

DHX has price-to-cash ratio of 23.06 and price to sale ratio of 0.62. The corporation net profit margin is 9.20% and gross profit margin is 87.60%. A look on the firm performance, its monthly performance is 35.48% and a quarterly performance of 19.32%.

LEAVE A REPLY

Please enter your comment!
Please enter your name here