IDT (IDT) Q4 2011 Earnings Call October 06, 2011 5:15 pm ET Executives Bill S. Pereira - Chief Financial Officer Howard S. Jonas - Founder, Chairman, Chief Executive Officer and Chairman of Nominating Committee Bill Ulrey - Vice President of Investor Relations & External Affairs Presentation Bill Ulrey
In this presentation and in our written responses to questions thereafter, we make reference to adjusted EBITDA and free cash flow. Adjusted EBITDA for all periods discussed during our remarks is a non-GAAP measure representing income from operations or loss from operations, exclusive of depreciation and amortization, severance and other charges and other operating gains or losses net.Free cash flow for all periods presented during our remarks is derived from the statement of cash flows and is computed as net cash provided by operating activities less capital expenditure. Adjusted EBITDA and free cash flow are among the key financial metrics management uses to evaluate the operating performances of the company and its segments. A schedule provided in the earnings release reconciles adjusted EBITDA to the nearest corresponding GAAP measure, income from operations for each of our segments and to both income from operations and net income for the company as a whole. A separate schedule reconciles IDT's free cash flow to the nearest corresponding GAAP measure, net cash provided by operating activities. Now, to begin the discussion of our financial and the operating results, here is IDT Corporation's Chairman and CEO, Howard Jonas. Howard S. Jonas Thank you, Bill. Good afternoon to everyone. Welcome to our discussion of IDT's fourth quarter and full year 2011 results. Today's call represents a bittersweet milestone. I fully expect that this is the final earnings announcement we'll make while Genie Energy is still a part of the IDT family. If all goes according to plan, Genie will ring the opening bell on the New York Stock Exchange on October 31 as a publicly listed independent company trading under the symbol GNE. That's an amazing feat given that 8 years ago, none of the 3 principal companies that comprise Genie Energy even existed. We founded IDT Energy in 2004. And in 2008, we acquired AMSO's predecessor, E.G.L. Oil Shale, and we started up IEI. Since then, IDT Energy has generated over $100 million in income from operations, and between them, AMSO and IEI are on their way to accessing billions of barrels of shale oil. That's the magic of the America's entrepreneurial spirit combined with the dedication of our talented employees.
That we are here today is also a tribute to the turnaround effort we undertook in the second half of fiscal 2008. Since then, we have completely reshaped the company. We turned it to profitability, repurchased shares and began paying a regular dividend. I always believed we would get to this point eventually, but even I didn't dare to imagine we would achieve it so quickly.In the macro sense, the table is now set for the spin-off. At the nuts and bolts level, most of the spin-off related legwork has been done. The Internal Revenue Service has provided the private letter ruling we requested opening positively on the tax-free nature of the spin-off. We have filed a preliminary information statement with the Securities and Exchange Commission. If you have not done so, please take time to review it. It's available on the SEC's website listed under Genie Energy. And in fact, we will likely file an updated Form-10 and information statement very soon, possibly even later today. In the information statement, we announced some of Genie's key leadership. I will proudly serve as Genie's chairman. Board members, we'll have Wes Perry, a highly regarded Oil and Gas entrepreneur with deep roots in Midland, Texas; Jim Courter, my predecessor as IDT's COO and a former member of Congress; Dr. Allan Sass, a true oil shale pioneer who served as President and CEO of Occidental Oil Shale Corporation; and Alan Rosenthal, a former IDT Director who was the managing partner of ABR Capital and Assistant Professor of oil pathology at NYU. Wes Perry and Jim Courter are giving up their IDT board seats in order to join the Genie board. Read the rest of this transcript for free on seekingalpha.com