FULL YEAR AND FOURTH QUARTER 2021 PRELIMINARY UNAUDITED SUPPLEMENTAL MATERIALS
FEBRUARY 14, 2022
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Q4 and FY 2021 Reconciliation of GAAP to Adjusted non-GAAP Earnings & EPS
Figures in Thousands | Three Months Ended December 31, | Twelve Months Ended December 31 | |||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||
Cost of revenues | $ | 46,159 | $ | 45,718 | $ | 178,403 | $ | 188,053 | |||||
Plus: | (77) | (86) | (332) | (306) | |||||||||
Share based compensation (1) | |||||||||||||
Acquisition related integration costs (2) | (57) | (96) | (227) | (382) | |||||||||
Amortization (4) | (143) | (251) | (1,694) | (1,548) | |||||||||
Adjusted non-GAAP cost of revenues | $ | 45,882 | $ | 45,285 | $ | 176,150 | $ | 185,817 | |||||
Sales and marketing | $ | 114,610 | $ | 138,100 | $ | 366,359 | $ | 493,049 | |||||
Plus: | (218) | (409) | (1,011) | (1,288) | |||||||||
Share based compensation (1) | |||||||||||||
Acquisition related integration costs (2) | (1,117) | (178) | (1,803) | (1,824) | |||||||||
Lease asset impairments and other charges (9) | (76) | - | (76) | - | |||||||||
Leasehold improvement impairments (10) | (3) | - | (3) | - | |||||||||
Adjusted non-GAAP sales and marketing | $ | 113,196 | $ | 137,513 | $ | 363,466 | $ | 489,937 | |||||
Research, development and engineering | $ | 19,038 | $ | 21,875 | $ | 57,148 | $ | 78,874 | |||||
Plus: | |||||||||||||
Share based compensation (1) | (364) | (593) | (1,396) | (1,984) | |||||||||
Acquisition related integration costs (2) | (627) | (357) | (606) | (1,457) | |||||||||
Lease asset impairments and other charges (9) | (35) | - | (35) | - | |||||||||
Adjusted non-GAAP research, development and engineering | $ | 18,012 | $ | 20,925 | $ | 55,111 | $ | 75,433 | |||||
General and administrative | $ | 126,398 | $ | 117,541 | $ | 420,295 | $ | 457,691 | |||||
Plus: | |||||||||||||
Share based compensation (1) | (4,629) | (5,039) | (19,781) | (20,551) | |||||||||
Acquisition related integration costs (2) | (7,990) | (2,903) | (10,752) | (7,469) | |||||||||
Amortization (4) | (46,875) | (45,053) | (156,377) | (185,855) | |||||||||
Tax (benefit) expense from prior years (6) | - | (1,500) | - | - | |||||||||
Sale of assets (7) | - | - | - | (1,500) | |||||||||
Lease asset impairments and other charges (9) | (2,610) | (3,134) | (14,830) | - | |||||||||
Leasehold improvement impairments (10) | (23) | - | (3,628) | (12,988) | |||||||||
Disposal related costs (10) | (1) | (135) | (1) | (607) | |||||||||
Adjusted non-GAAP general and administrative | $ | 64,270 | $ | 59,777 | $ | 214,926 | $ | 228,721 | |||||
Goodwill impairment on business | $ | - | $ | - | $ | - | $ | (32,630) | |||||
Plus: | $ | - | $ | - | |||||||||
Goodwill impairment on business (12) | $ | - | - | $ | - | $ | 32,630 | ||||||
Adjusted non-GAAP goodwill impairment on business | $ | - | $ | - | $ | - | $ | - | |||||
Interest expense, net | $ | (20,836) | $ | (16,810) | $ | (56,188) | $ | (79,031) | |||||
Plus: | 6,292 | 1,979 | 24,384 | 18,482 | |||||||||
Interest costs (3) | |||||||||||||
Tax expense from prior years (6) | - | - | - | - | |||||||||
Adjusted non-GAAP interest expense, net | $ | (14,544) | $ | (14,831) | $ | (31,804) | $ | (60,549) | |||||
Loss on debt extinguishment | $ | - | $ | (4,527) | $ | - | $ | (4,527) | |||||
Plus: | |||||||||||||
Interest costs (3) | - | 7,323 | - | 7,323 | |||||||||
Adjusted non-GAAP loss on debt extinguishment | $ | - | $ | 2,796 | $ | - | $ | 2,796 | |||||
(Loss) gain on sale of businesses | $ | - | $ | - | $ | 17,122 | $ | (21,798) | |||||
Plus: | |||||||||||||
Sale of assets (7) | $ | - | - | $ | (16,654) | $ | 22,088 | ||||||
Adjusted non-GAAP gain on sale of businesses | $ | - | $ | - | $ | 468 | $ | 290 | |||||
Loss on investments, net | $ | - | $ | - | $ | (20,991) | $ | (16,677) | |||||
Plus: | - | - | 20,826 | 16,677 | |||||||||
Investments (5) | |||||||||||||
Sale of assets (7) | - | - | - | - | |||||||||
Adjusted non-GAAP loss on investments, net | $ | - | $ | - | $ | (165) | $ | - | |||||
Unrealized gain on short-term investment | $ | - | $ | 290,073 | $ | - | $ | 290,073 | |||||
Plus: | - | (289,512) | - | (289,512) | |||||||||
Investments (5) | |||||||||||||
Adjusted non-GAAP loss on investments, net | $ | - | $ | 561 | $ | - | $ | 561 | |||||
Other (income) expense, net | $ | 4,034 | $ | 1,759 | $ | 65 | $ | 1,293 | |||||
Plus: | (208) | - | (209) | - | |||||||||
Acquistion related integration costs (2) | |||||||||||||
Sale of assets (7) | - | 290 | (386) | - | |||||||||
Intra-entity transfers (8) | (2,121) | - | (619) | - | |||||||||
Lease asset impairments and other charges (9) | (385) | - | (5,385) | - | |||||||||
Adjusted non-GAAP other (income) expense, net | $ | 1,320 | $ | 2,049 | $ | (6,534) | $ | 1,293 | |||||
Income tax (benefit) expense | $ | 18,781 | $ | 5,156 | $ | 37,929 | $ | (15,944) | |||||
Plus: | 1,055 | 1,825 | 2,954 | 8,619 | |||||||||
Share based compensation (1) | |||||||||||||
Acquisition related integration costs (2) | 1,857 | 1,610 | 2,649 | 4,460 | |||||||||
Interest costs (3) | 1,527 | 2,993 | 5,887 | 7,036 | |||||||||
Amortization (4) | 8,633 | 16,723 | 33,824 | 60,145 | |||||||||
Investments (5) | (1,174) | 478 | (1,174) | 5,567 | |||||||||
Tax (benefit) expense from prior years (6) | (533) | - | (5,448) | - | |||||||||
Sale of assets (7) | (650) | 1,798 | (7,678) | 7,192 | |||||||||
Intra-entity transfers (8) | (265) | - | (673) | - | |||||||||
Lease asset impairments and other charges (9) | 363 | 792 | 3,164 | - | |||||||||
Leasehold improvement impairments (10) | - | - | 791 | 3,195 | |||||||||
Disposal related costs (10) | (36) | - | - | 200 | |||||||||
Goodwill impairment on business (12) | - | 33 | - | 8,028 | |||||||||
Adjusted non-GAAP income tax provision | $ | 29,558 | $ | 31,408 | $ | 72,225 | $ | 88,498 | |||||
Income (loss) from equity method investment, net | $ | (539) | $ | 19,249 | $ | (11,338) | $ | 35,845 | |||||
Plus: | 539 | (19,249) | 11,338 | (35,845) | |||||||||
Investments (5) | |||||||||||||
Adjusted non-GAAP income (loss) from equity method investment, net | $ | - | $ | - | $ | - | $ | - | |||||
Total adjustments | $ | (58,185) | $ | 265,687 | $ | (211,551) | $ | 94,840 | |||||
GAAP earnings per diluted share | $0.91 | $7.62 | $0.58 | $8.09 | |||||||||
Adjustments * | $1.33 | ($5.45) | $4.55 | ($1.76) | |||||||||
Adjusted non-GAAP earnings per diluted share | $2.24 | $2.17 | $5.13 | $6.33 |
Non-GAAP net income is GAAP net income with the following modifications: (1) elimination of share-based compensation; (2) elimination of certain acquisition related integration costs; (3) elimination of interest costs in excess of the coupon rate associated with the convertible notes and overlapping interest of senior notes prior to extinguishment; (4) elimination of amortization of patents and intangible assets that we acquired; (5) elimination of change in value on investment; (6) elimination of additional tax expense/benefit from prior years; (7) elimination of gain on sale of assets; (8) elimination of intra-entity transfers; (9) elimination of lease asset impairments and other charges; (10) elimination of leasehold improvement impairments and disposal related costs; and (11) elimination of goodwill impairment on business
2
GAAP Reconciliation - Free Cash Flow (1)(2)
$MM
Ziff Davis
Net cash provided by operating activities from continuing and discontinued operations
Less:
Three Months Ended December 31st,
20202021
$ | 124,070 | $ | 85,319 |
Twelve Months Ended December 31st,
20202021
$ | 480,079 | $ | 515,571 |
Purchase of property and equipment Add:
Contingent consideration
Free cash flow from continuing and discontinued operations (2)
(21,286) | (26,245) | (92,552) | (113,740) | |||||
99 | - | 20,202 | 685 | |||||
$ | 102,883 | $ | 59,074 | $ | 407,729 | $ | 402,516 | |
1. Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus contingent consideration. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes.
2. Figures are adjusted non-GAAP; includes Consensus and the divested assets | 3 |
GAAP Reconciliation - Adjusted EBITDA (1)(2)
- Adjusted EBITDA is defined as net income plus interest and other expense, net; income tax expense; depreciation and amortization and the items used to reconcile GAAP to Adjusted Non-GAAP EPS. Adjusted EBITDA amounts are not meant as a substitute for GAAP, but are solely for informational purposes
- Figures are adjusted non-GAAP; includes Consensus and the divested assets
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Q4 2021 Reconciliation of GAAP to Adjusted EBITDA (1)
NOTE 1: Table above excludes certain intercompany allocations
1. Figures are adjusted non-GAAP
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Ziff Davis Inc. published this content on 15 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2022 01:16:06 UTC.