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J2 Global Reports Second Quarter 2012 Results

j2 Global, Inc. (NASDAQGS:JCOM) today reported financial results for the second quarter ended June 30, 2012 and announced that its Board of Directors has declared a quarterly cash dividend of $0.22 per share.

j2 achieved several quarterly records, including the following:

  • Revenues of $89.5 million
  • Earnings Per Diluted Share of $0.67
  • Non-GAAP Earnings Per Diluted Share (1) (2) of $0.70
  • Free Cash Flow (3) of $45.6 million
  • Churn (5) of 2.3%

j2 added approximately 33,000 net DIDs in the quarter.

SECOND QUARTER 2012 RESULTS

Revenues increased 4.4% to a quarterly record $89.5 million compared to $85.7 million for Q2 2011.

Earnings per diluted share increased 9.8% to a quarterly record $0.67 compared to $0.61 for Q2 2011.

Non-GAAP earnings per diluted share (1) (2) increased 7.7% to a quarterly record $0.70 compared to $0.65 for Q2 2011.

Free cash flow (3) increased 8.6% to a quarterly record $45.6 million compared to $42.0 million for Q2 2011.

j2 ended the quarter with $206.8 million in cash and investments after deploying, during the quarter, approximately $9.9 million for j2’s regular quarterly dividend and approximately $19.8 million to repurchase 826,000 shares of j2 common stock.

Key financial results for second quarter 2012 versus second quarter 2011 are set forth in the following table (in millions, except per share). Reconciliations of Non-GAAP earnings per diluted share and free cash flow to their nearest comparable GAAP financial measures are attached to this Press Release.

                       
        Q2 2012       Q2 2011       % Change
Revenues       $ 89.5       $ 85.7       4.4 %
Earnings per Diluted Share (4)       $ 0.67       $ 0.61       9.8 %
Non-GAAP Earnings per Diluted Share (1) (2)       $ 0.70       $ 0.65       7.7 %
Free Cash Flow (3)       $ 45.6       $ 42.0       8.6 %
           
   
(1) For Q2 2012, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, and gain on sale of an investment, in each case net of tax. For Q2 2011, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes and certain acquisition-related integration costs, in each case net of tax.
 
(2) The estimated Non-GAAP effective tax rate was approximately 24.1% for Q2 2012 and approximately 25.7% for Q2 2011.
 
(3) Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment, plus excess tax benefit (deficiency) from share-based compensation.
 
(4) The estimated effective tax rate was approximately 23.6% for Q2 2012 and approximately 25.4% for Q2 2011.
 
(5)

For a definition of churn, please refer to page 17 of our Q2 2012 Investor Presentation available at http://investor.j2global.com and filed with the SEC as Exhibit 99.2 to a Current Report on Form 8-K.

 

“Based on this quarter’s strong DID growth and record low churn we are reaffirming our earnings guidance for the year even with the added 11 to 13 cents per share interest impact from our recent $250 million bond issuance,” said Hemi Zucker, chief executive officer of j2. “With these additional funds, we now have more than $450 million in cash and investments, expanding the array of opportunities we can pursue to grow our company.”

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