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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): March 6, 2024
IDT
CORPORATION
(Exact
name of registrant as specified in its charter)
Delaware |
|
1-16371 |
|
22-3415036 |
(State
or other jurisdiction of incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
520
Broad Street Newark, New Jersey |
|
07102 |
(Address
of principal executive offices) |
|
(Zip
Code) |
Registrant’s
telephone number, including area code: (973) 438-1000
Not
Applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of Each Class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Class
B common stock, par value $0.01 per share |
|
IDT |
|
New
York Stock Exchange. |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405)
or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02. Results of Operations and Financial Condition
On
March 6, 2024, IDT Corporation (the “Registrant”) issued a press release announcing its results of operations for its fiscal
quarter ended January 31, 2024. A copy of the earnings release concerning the foregoing results is furnished herewith as Exhibit 99.1
and is incorporated herein by reference.
The
Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated
by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with
the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition,
this Report and the press release contain statements intended as “forward-looking statements” that are subject to the cautionary
statements about forward-looking statements set forth in the press release.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
IDT
CORPORATION |
|
|
|
|
By: |
/s/
Shmuel Jonas |
|
Name: |
Shmuel
Jonas |
|
Title: |
Chief
Executive Officer |
Dated:
March 6, 2024
EXHIBIT
INDEX
Exhibit
99.1
IDT
Corporation Reports Second Quarter Fiscal Year 2024 Results
GAAP
EPS of $0.57 – unchanged YoY; Non-GAAP EPS* increased to $0.67 from $0.62
Cash,
cash equivalents, debt securities, and current equity investments totaled $177.6 million
Initiates
quarterly dividend of $0.05 per share of Common Stock
NEWARK,
NJ — March 6, 2024: IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications
services, today reported results for the second quarter of its fiscal year 2024, the three months ended January 31, 2024.
HIGHLIGHTS
(Throughout
this release, unless otherwise noted, results are for the second quarter of fiscal year 2024 (2Q24) and are compared to the second quarter
of fiscal year 2023 (2Q23). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)
| ● | National
Retail Solutions (NRS) added approximately 1,500 net active point-of-sale (POS) terminals
during 2Q24 to reach approximately 28,700 as of January 31st. NRS recurring revenue**
increased 30% to $23.9 million; |
| ● | BOSS
Money, the principal business in IDT’s Fintech segment, increased revenue 42% to $25.0
million while increasing remittance volume by 37% to 4.2 million transactions during 2Q24; |
| ● | net2phone
added approximately 11,000 net seats served during 2Q24 to reach approximately 375,000 as
of January 31st. Subscription revenue** increased 19% to $19.3 million.
Income from operations increased to $0.4 million and Adjusted EBITDA* increased
to $1.8 million; |
| ● | Consolidated
revenue decreased 6% to $296 million from $314 million; |
| ● | Consolidated
gross profit*** increased 8% to a record $97 million from $90 million, and the
consolidated gross profit margin increased 410 basis points to 32.9% from 28.8%; |
| ● | Consolidated
income from operations decreased 12% to $16.0 million from $18.2 million; |
| ● | Net
income attributable to IDT decreased slightly to $14.4 million from $14.6 million; |
| ● | Consolidated
Adjusted EBITDA* decreased 7% to $21.8 million from $23.4 million; |
| ● | GAAP
EPS was unchanged at $0.57 and Non-GAAP EPS* increased to $0.67 from $0.62. |
| ● | IDT’s
Board of Directors has initiated a quarterly cash dividend of $0.05 per share of its Class
A and Class B Common stock. The initial dividend will be paid on or about March 27th
with a record date of March 19th. |
(See
‘Notes’ later in this release for supplemental information on asterisked metrics).
REMARKS
BY SHMUEL JONAS, CEO
“The
second quarter was highlighted by the continued expansion of our growth businesses, with both NRS and BOSS Money surpassing the $100
million annual revenue run rate milestone.
“NRS
continued to deliver robust recurring revenue per terminal. We again saw strong growth in Merchant Services and SaaS revenues, and increased
Merchant Services revenue per NRS Pay account. We added approximately 1500 net new terminals to the NRS network this quarter.
“BOSS
Money delivered another quarter of impressive results, with 42% year-over-year revenue growth. Its improving economics helped our Fintech
segment to achieve Adjusted EBITDA break-even for the quarter.
“I
am also very pleased with net2phone increasing subscription revenue 19% year over year and achieving cash flow break-even – which
we measure as Adjusted EBITDA less CapEx. Together, our combined growth segments propelled IDT to achieve another quarter of record consolidated
gross profit and increased gross margin.
“The
businesses within our Traditional Communications segment continue to generate strong cash-flow. Over the past few months, we have been
very focused on reducing our overhead and on streamlining our operations within Traditional Communications and company-wide. You will
see the benefits of these efforts in the third quarter and beyond.
“Now,
I want to provide some context to our Board’s decision to initiate a quarterly cash dividend.
“NRS,
BOSS Money and net2phone no longer need new cash investments to fund their organic growth. In aggregate, they have become significant
contributors to our bottom line. Meanwhile, we expect cash flows from our Traditional Communications segment to remain robust for years
to come. The strength of our operational results and of our balance sheet — including our enhanced liquidity — provides us
with flexibility as we invest in the development of our next generation of exciting early-stage initiatives and scout for other growth
opportunities.
“In
light of our robust financial position and positive outlook, the Board felt that we should supplement our ongoing program of opportunistic
stock buybacks, which can vary from quarter to quarter, with a regular, predictable dividend payment to our stockholders.”
CONSOLIDATED
RESULTS
IDT
Consolidated Results ($
in millions, except gross profit margin and EPS)
|
| |
2Q24 | | |
1Q24 | | |
4Q23 | | |
3Q23 | | |
2Q23 | | |
2Q24-2Q23
Variance | |
Revenue | |
$ | 296.1 | | |
$ | 301.2 | | |
$ | 303.8 | | |
$ | 299.3 | | |
$ | 313.9 | | |
| (5.7 | )% |
Gross
profit*** | |
$ | 97.4 | | |
$ | 94.4 | | |
$ | 91.1 | | |
$ | 87.9 | | |
$ | 90.4 | | |
| +7.7 | % |
Gross
profit margin | |
| 32.9 | % | |
| 31.4 | % | |
| 30.0 | % | |
| 29.4 | % | |
| 28.8 | % | |
| +410
bps | |
SG&A | |
$ | 80.7 | | |
$ | 77.2 | | |
$ | 78.2 | | |
$ | 72.6 | | |
$ | 72.1 | | |
| +12.0 | % |
Income
from operations | |
$ | 16.0 | | |
$ | 17.2 | | |
$ | 12.0 | | |
$ | 10.4 | | |
$ | 18.2 | | |
| (11.9 | )% |
Adjusted
EBITDA* | |
$ | 21.8 | | |
$ | 22.3 | | |
$ | 18.1 | | |
$ | 20.5 | | |
$ | 23.4 | | |
| (7.0 | )% |
Net
income attributable to IDT | |
$ | 14.4 | | |
$ | 7.7 | | |
$ | 8.0 | | |
$ | 6.9 | | |
$ | 14.6 | | |
$ | (0.2 | ) |
EPS
(diluted) | |
$ | 0.57 | | |
$ | 0.30 | | |
$ | 0.31 | | |
$ | 0.27 | | |
$ | 0.57 | | |
| NC | |
Non-GAAP
EPS* (diluted) | |
$ | 0.67 | | |
$ | 0.32 | | |
$ | 0.36 | | |
$ | 0.46 | | |
$ | 0.62 | | |
| +$0.05 | |
RESULTS
BY SEGMENT
National
Retail Solutions (NRS)
During
2Q24 and 2Q23, the NRS segment contributed 8.5% and 6.3% of IDT’s consolidated revenue, respectively.
National
Retail Solutions (NRS) (Terminals
and accounts at end of period. $ in millions, except for revenue per terminal)
|
| |
2Q24 | | |
1Q24 | | |
4Q23 | | |
3Q23 | | |
2Q23 | | |
2Q24-2Q23
Variance | |
Terminals
and payment processing accounts | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Active
POS terminals | |
| 28,700 | | |
| 27,200 | | |
| 25,700 | | |
| 23,900 | | |
| 22,400 | | |
| +28.5 | % |
Payment
processing accounts | |
| 18,200 | | |
| 17,100 | | |
| 15,800 | | |
| 14,100 | | |
| 12,500 | | |
| +45.2 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Recurring
revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Merchant
Services and other | |
$ | 12.5 | | |
$ | 11.4 | | |
$ | 10.3 | | |
$ | 8.7 | | |
$ | 7.4 | | |
| +68.1 | % |
Advertising
& Data | |
$ | 8.7 | | |
$ | 8.5 | | |
$ | 6.2 | | |
$ | 5.8 | | |
$ | 9.0 | | |
| (3.0 | )% |
SaaS
Fees | |
$ | 2.7 | | |
$ | 2.5 | | |
$ | 2.3 | | |
$ | 2.1 | | |
$ | 1.9 | | |
| +40.0 | % |
Total
recurring revenue | |
$ | 23.9 | | |
$ | 22.4 | | |
$ | 18.8 | | |
$ | 16.5 | | |
$ | 18.3 | | |
| +30.4 | % |
POS
Terminal Sales | |
$ | 1.3 | | |
$ | 1.6 | | |
$ | 1.1 | | |
$ | 1.6 | | |
$ | 1.5 | | |
| (11.3 | )% |
Total
revenue | |
$ | 25.2 | | |
$ | 24.0 | | |
$ | 19.9 | | |
$ | 18.1 | | |
$ | 19.8 | | |
| +27.2 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Monthly
average recurring revenue per terminal** | |
$ | 285 | | |
$ | 282 | | |
$ | 253 | | |
$ | 237 | | |
$ | 283 | | |
| +0.7 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
profit | |
$ | 22.6 | | |
$ | 20.9 | | |
$ | 17.4 | | |
$ | 15.1 | | |
$ | 17.2 | | |
| +31.0 | % |
SG&A | |
$ | 17.2 | | |
$ | 15.4 | | |
$ | 15.6 | | |
$ | 13.0 | | |
$ | 11.9 | | |
| +45.3 | % |
Income
from operations | |
$ | 5.3 | | |
$ | 5.5 | | |
$ | 1.7 | | |
$ | 2.1 | | |
$ | 5.4 | | |
| (0.5 | )% |
Adjusted
EBITDA* | |
$ | 6.1 | | |
$ | 6.2 | | |
$ | 2.4 | | |
$ | 2.7 | | |
$ | 6.0 | | |
| +2.7 | % |
Take-Aways:
| ● | During
2Q24, NRS added approximately 1,500 net active terminals to reach approximately 28,700 and
added approximately 1,100 net payment processing accounts to reach approximately 18,200. |
| ● | The
68% year-over-year increase in Merchant Services and other revenue reflects both the
increases in payment processing accounts and merchant services revenue per payment processing
account. |
| ● | Monthly
average recurring revenue per terminal** increased slightly year-over-year reflecting
the increases in Merchant Services and other and SaaS Fees revenues per terminal. |
net2phone
During
2Q24 and 2Q23, the net2phone segment contributed 6.9% and 5.7% of IDT’s consolidated revenue, respectively.
net2phone
(Seats
in thousands at end of period. $ in millions)
|
| |
2Q24 | | |
1Q24 | | |
4Q23 | | |
3Q23 | | |
2Q23 | | |
2Q24-2Q23
Variance | |
Seats | |
| 375 | | |
| 364 | | |
| 352 | | |
| 340 | | |
| 327 | | |
| +14.7 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Subscription
revenue** | |
$ | 19.3 | | |
$ | 18.5 | | |
$ | 17.9 | | |
$ | 17.1 | | |
$ | 16.3 | | |
| +18.5 | % |
Other
revenue | |
$ | 1.0 | | |
$ | 1.4 | | |
$ | 1.4 | | |
$ | 1.3 | | |
$ | 1.5 | | |
| (30.7 | )% |
Total
Revenue | |
$ | 20.4 | | |
$ | 19.9 | | |
$ | 19.3 | | |
$ | 18.4 | | |
$ | 17.8 | | |
| +14.4 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
profit | |
$ | 16.4 | | |
$ | 16.1 | | |
$ | 15.5 | | |
$ | 14.8 | | |
$ | 14.2 | | |
| +15.4 | % |
SG&A | |
$ | 16.1 | | |
$ | 16.1 | | |
$ | 16.1 | | |
$ | 15.2 | | |
$ | 14.8 | | |
| +8.9 | % |
Income
(loss) from operations | |
$ | 0.4 | | |
$ | 0.0 | | |
$ | (0.7 | ) | |
$ | (0.4 | ) | |
$ | (0.6 | ) | |
| +$0.9 | |
Adjusted
EBITDA* | |
$ | 1.8 | | |
$ | 1.4 | | |
$ | 0.9 | | |
$ | 1.0 | | |
$ | 0.8 | | |
| +$1.0 | |
Take-Aways:
| ● | Contact
center as a service (CCaaS) seats served increased 23% year-over-year to approximately 11,000. |
| ● | net2phone’s
sequential and year-over-year increases in unified communications as a service (UCaaS) seats
served were powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. |
| ● | The
18.5% increase in subscription revenue was driven by an increase in seats served augmented
by an increase in average recurring revenue per seat (ARPU). The ARPU increase reflects,
in part, the faster rate of CCaaS seat expansion compared to UCaaS seats. |
Fintech
During
2Q24 and 2Q23, the Fintech segment contributed 9.4% and 6.5% of IDT’s consolidated revenue, respectively.
Fintech
(Transactions
in millions. $ in millions except for revenue per transaction)
|
| |
2Q24 | | |
1Q24 | | |
4Q23 | | |
3Q23 | | |
2Q23 | | |
2Q24-2Q23
Variance | |
BOSS
Money Transactions | |
| 4.2 | | |
| 4.0 | | |
| 3.8 | | |
| 3.3 | | |
| 3.1 | | |
| +37.1 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Fintech
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
BOSS
Money | |
$ | 25.0 | | |
$ | 24.2 | | |
$ | 22.3 | | |
$ | 19.4 | | |
$ | 17.6 | | |
| +41.9 | % |
Other | |
$ | 2.9 | | |
$ | 2.3 | | |
$ | 2.3 | | |
$ | 2.3 | | |
$ | 2.7 | | |
| +10.3 | % |
Total
Revenue | |
$ | 28.0 | | |
$ | 26.6 | | |
$ | 24.6 | | |
$ | 21.8 | | |
$ | 20.3 | | |
| +37.7 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Average
revenue per transaction** | |
$ | 5.98 | | |
$ | 5.99 | | |
$ | 5.87 | | |
$ | 5.94 | | |
$ | 5.78 | | |
| +3.5 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
profit | |
$ | 16.1 | | |
$ | 14.8 | | |
$ | 13.6 | | |
$ | 12.6 | | |
$ | 12.3 | | |
| +31.1 | % |
SG&A | |
$ | 16.8 | | |
$ | 16.2 | | |
$ | 15.5 | | |
$ | 13.9 | | |
$ | 13.4 | | |
| +25.3 | % |
Loss
from operations | |
$ | (0.7 | ) | |
$ | (1.4 | ) | |
$ | (1.9 | ) | |
$ | (1.3 | ) | |
$ | (0.8 | ) | |
| +$0.1 | |
Adjusted
EBITDA* | |
$ | 0.0 | | |
$ | (0.7 | ) | |
$ | (1.2 | ) | |
$ | (0.6 | ) | |
$ | (0.5 | ) | |
| +$0.5 | |
Take-Aways:
| ● | The
37% year-over-year increase in BOSS Money transactions comprised a 36% increase in digital
transactions and a 43% increase in retail transactions. The latter was driven by expansion
of the BOSS Money retail agent network. |
| ● | BOSS
Money revenue increased 42% driven primarily by cross-marketing within the larger BOSS ecosystem,
an expansion of the BOSS Money retailer network, and ongoing efforts to enhance user-experience
within the BOSS Money and Boss Calling apps. |
| ● | The
continued growth of BOSS Money transaction volumes and improving unit economics drove the
Fintech segment’s year-over-year and sequential improvements in loss from operations
and Adjusted EBITDA. |
Traditional
Communications
During
2Q24 and 2Q23, the Traditional Communications segment contributed 75.2% and 81.5% of IDT’s consolidated revenue, respectively.
Traditional
Communications ($
in millions)
|
| |
2Q24 | | |
1Q24 | | |
4Q23 | | |
3Q23 | | |
2Q23 | | |
2Q24-2Q23
Variance | |
Revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
IDT
Digital Payments | |
$ | 99.6 | | |
$ | 100.0 | | |
$ | 100.8 | | |
$ | 101.0 | | |
$ | 106.1 | | |
| (6.1 | )% |
BOSS
Revolution Calling | |
$ | 66.7 | | |
$ | 71.2 | | |
$ | 75.4 | | |
$ | 77.6 | | |
$ | 82.8 | | |
| (19.5 | )% |
IDT
Global | |
$ | 48.7 | | |
$ | 52.0 | | |
$ | 55.6 | | |
$ | 54.5 | | |
$ | 58.6 | | |
| (16.9 | )% |
Other | |
$ | 7.5 | | |
$ | 7.5 | | |
$ | 8.2 | | |
$ | 7.9 | | |
$ | 8.4 | | |
| (11.2 | )% |
Total
Revenue | |
$ | 222.5 | | |
$ | 230.7 | | |
$ | 240.0 | | |
$ | 241.0 | | |
$ | 256.0 | | |
| (13.1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Gross
profit | |
$ | 42.3 | | |
$ | 42.6 | | |
$ | 44.7 | | |
$ | 45.4 | | |
$ | 46.7 | | |
| (9.4 | )% |
SG&A | |
$ | 27.3 | | |
$ | 26.6 | | |
$ | 28.4 | | |
$ | 28.2 | | |
$ | 29.5 | | |
| (7.3 | )% |
Income
from operations | |
$ | 14.6 | | |
$ | 15.4 | | |
$ | 14.1 | | |
$ | 12.9 | | |
$ | 17.0 | | |
| (14.0 | )% |
Adjusted
EBITDA* | |
$ | 17.0 | | |
$ | 18.1 | | |
$ | 18.6 | | |
$ | 19.7 | | |
$ | 19.6 | | |
| (13.2 | )% |
Take-Aways:
| ● | As
in recent prior quarters, the year-over-year decrease in IDT Digital Payments’ revenue
was due to the deterioration of a key international mobile top-up corridor. By 1Q24, however,
that corridor was no longer a significant factor in current results |
| ● | Traditional
Communications revenue continued to decrease in line with expectations while the segment’s
gross profits have been comparatively more durable. |
| ● | IDT
continues to streamline the operations of its Boss Revolution and IDT Global businesses and
expects this effort will drive reductions in SG&A in the coming quarters. |
OTHER
FINANCIAL RESULTS
Consolidated
results for all periods presented include corporate overhead. Corporate G&A expense increased to $3.2 million in 2Q24 from $2.5 million
in 2Q23 reflecting an increase in employee compensation expense.
As
of January 31, 2024, IDT held $177.6 million in cash, cash equivalents, debt securities, and current equity investments. Current assets
totaled $407.6 million and current liabilities totaled $285.0 million. IDT had no outstanding debt at the fiscal quarter’s end.
Net
cash provided by operating activities during 2Q24 was $24.9 million – an increase from $17.4 million during 2Q23. Exclusive of
changes in customer deposit balances at IDT’s Gibraltar-based bank, net cash provided by operating activities increased slightly
to $20.4 million from $20.3 million during 2Q23.
Capital
expenditures decreased to $4.6 million in 2Q24 from $5.4 million in 2Q23.
IDT
EARNINGS ANNOUNCEMENT INFORMATION
This
release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media)
and has been filed on a current report (Form 8-K) with the SEC.
IDT
will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A
with investors. To listen to the call and participate in the Q&A, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international)
and request the IDT Corporation call (participant access code: 918160).
A
replay of the conference call will be available approximately three hours after the call concludes through Wednesday, March 20, 2024.
To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode:
49825. The replay will also be accessible via streaming audio at the IDT investor relations website.
NOTES
*Adjusted
EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant
segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release
for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.
**See
‘Explanation of Key Performance Metrics’ at the end of this release.
***
IDT now includes depreciation and amortization expense in direct cost of revenues or SG&A expense, as appropriate, and reports
gross profit and gross margin in accordance with GAAP. Results for all prior periods presented have been reclassified to conform to the
current period’s presentation.
ABOUT
IDT CORPORATION
IDT
Corporation (NYSE: IDT) is a global provider of fintech and communications services through
a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent
retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets;
net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services
across channels and devices; IDT’s fintech and neo-banking services include BOSS Money, a popular international remittance
business, as well as other services that make saving, spending, and sharing money easy and secure; IDT Digital Payments and BOSS
Revolution Calling make sharing prepaid products and services and speaking with friends and family around the world convenient and
reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and
SMS messaging.
All
statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,”
“anticipate,” “expect,” “plan,” “intend,” “estimate,” “target”
and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While
these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially
from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed
information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law,
IDT assumes no obligation to update any forward-looking statements.
CONTACT
IDT
Corporation Investor Relations
Bill
Ulrey
william.ulrey@idt.net
973-438-3838
IDT
CORPORATION
CONSOLIDATED
BALANCE SHEETS
| |
January 31, 2024 | | |
July 31, 2023 | |
| |
(Unaudited) | | |
| |
| |
(in thousands, except per share data) | |
Assets | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 141,081 | | |
$ | 103,637 | |
Restricted cash and cash equivalents | |
| 93,231 | | |
| 95,186 | |
Debt securities | |
| 31,419 | | |
| 42,414 | |
Equity investments | |
| 5,076 | | |
| 6,198 | |
Trade accounts receivable, net of allowance for credit losses of $6,315 at January 31, 2024 and allowance for doubtful accounts of $5,642 at July 31, 2023 | |
| 37,392 | | |
| 32,092 | |
Settlement assets, net of reserve of $1,514 at January 31, 2024 and $1,143 at July 31, 2023 | |
| 17,200 | | |
| 32,396 | |
Disbursement prefunding | |
| 27,749 | | |
| 30,113 | |
Prepaid expenses | |
| 23,523 | | |
| 16,638 | |
Other current assets | |
| 30,905 | | |
| 28,394 | |
Total current assets | |
| 407,576 | | |
| 387,068 | |
Property, plant, and equipment, net | |
| 38,713 | | |
| 38,655 | |
Goodwill | |
| 26,318 | | |
| 26,457 | |
Other intangibles, net | |
| 7,026 | | |
| 8,196 | |
Equity investments | |
| 7,558 | | |
| 9,874 | |
Operating lease right-of-use assets | |
| 5,079 | | |
| 5,540 | |
Deferred income tax assets, net | |
| 18,313 | | |
| 24,101 | |
Other assets | |
| 11,195 | | |
| 10,919 | |
Total assets | |
$ | 521,778 | | |
$ | 510,810 | |
Liabilities, redeemable noncontrolling interest, and equity | |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Trade accounts payable | |
$ | 21,514 | | |
$ | 22,231 | |
Accrued expenses | |
| 107,181 | | |
| 110,796 | |
Deferred revenue | |
| 33,803 | | |
| 35,343 | |
Customer deposits | |
| 87,553 | | |
| 86,481 | |
Settlement liabilities | |
| 15,789 | | |
| 21,495 | |
Other current liabilities | |
| 19,194 | | |
| 17,761 | |
Total current liabilities | |
| 285,034 | | |
| 294,107 | |
Operating lease liabilities | |
| 2,448 | | |
| 2,881 | |
Other liabilities | |
| 3,716 | | |
| 3,354 | |
Total liabilities | |
| 291,198 | | |
| 300,342 | |
Commitments and contingencies | |
| | | |
| | |
Redeemable noncontrolling interest | |
| 10,693 | | |
| 10,472 | |
Equity: | |
| | | |
| | |
IDT Corporation stockholders’ equity: | |
| | | |
| | |
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | |
| — | | |
| — | |
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at January 31, 2024 and July 31, 2023 | |
| 33 | | |
| 33 | |
Class B common stock, $.01 par value; authorized shares—200,000; 28,069 and 27,851 shares issued and 23,781 and 23,699 shares outstanding at January 31, 2024 and July 31, 2023, respectively | |
| 281 | | |
| 279 | |
Additional paid-in capital | |
| 300,631 | | |
| 301,408 | |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,288 and 4,152 shares of Class B common stock at January 31, 2024 and July 31, 2023, respectively | |
| (118,631 | ) | |
| (115,461 | ) |
Accumulated other comprehensive loss | |
| (17,276 | ) | |
| (17,192 | ) |
Retained earnings | |
| 46,746 | | |
| 24,662 | |
Total IDT Corporation stockholders’ equity | |
| 211,784 | | |
| 193,729 | |
Noncontrolling interests | |
| 8,103 | | |
| 6,267 | |
Total equity | |
| 219,887 | | |
| 199,996 | |
Total liabilities, redeemable noncontrolling interest, and equity | |
$ | 521,778 | | |
$ | 510,810 | |
IDT
CORPORATION
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
| |
Three Months Ended January 31, | | |
Six Months Ended January 31, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| |
(in thousands, except per share data) | |
| |
| |
Revenues | |
$ | 296,098 | | |
$ | 313,936 | | |
$ | 597,302 | | |
$ | 635,752 | |
Direct cost of revenues | |
| 198,699 | | |
| 223,499 | | |
| 405,475 | | |
| 456,170 | |
Gross profit | |
| 97,399 | | |
| 90,437 | | |
| 191,827 | | |
| 179,582 | |
Operating expenses (gains): | |
| | | |
| | | |
| | | |
| | |
Selling, general and administrative (i) | |
| 80,743 | | |
| 72,060 | | |
| 157,965 | | |
| 141,679 | |
Severance | |
| 345 | | |
| 213 | | |
| 869 | | |
| 312 | |
Other operating expense (gain), net | |
| 294 | | |
| (17 | ) | |
| (190 | ) | |
| (816 | ) |
Total operating expenses | |
| 81,382 | | |
| 72,256 | | |
| 158,644 | | |
| 141,175 | |
Income from operations | |
| 16,017 | | |
| 18,181 | | |
| 33,183 | | |
| 38,407 | |
Interest income, net | |
| 1,195 | | |
| 810 | | |
| 2,039 | | |
| 1,320 | |
Other income (expense), net | |
| 2,534 | | |
| 1,613 | | |
| (3,053 | ) | |
| (2,229 | ) |
Income before income taxes | |
| 19,746 | | |
| 20,604 | | |
| 32,169 | | |
| 37,498 | |
Provision for income taxes | |
| (3,992 | ) | |
| (5,295 | ) | |
| (7,939 | ) | |
| (9,634 | ) |
Net income | |
| 15,754 | | |
| 15,309 | | |
| 24,230 | | |
| 27,864 | |
Net income attributable to noncontrolling interests | |
| (1,329 | ) | |
| (686 | ) | |
| (2,146 | ) | |
| (2,239 | ) |
Net income attributable to IDT Corporation | |
$ | 14,425 | | |
$ | 14,623 | | |
$ | 22,084 | | |
$ | 25,625 | |
Earnings per share attributable to IDT Corporation common stockholders: | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.57 | | |
$ | 0.57 | | |
$ | 0.88 | | |
$ | 1.00 | |
Diluted | |
$ | 0.57 | | |
$ | 0.57 | | |
$ | 0.87 | | |
$ | 1.00 | |
Weighted-average number of shares used in calculation of earnings per share: | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 25,175 | | |
| 25,510 | | |
| 25,176 | | |
| 25,556 | |
Diluted | |
| 25,317 | | |
| 25,538 | | |
| 25,297 | | |
| 25,577 | |
(i) Stock-based compensation included in selling, general and administrative expenses | |
$ | 2,487 | | |
$ | 1,286 | | |
$ | 3,258 | | |
$ | 1,858 | |
IDT
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
| |
Six Months Ended January 31, | |
| |
2024 | | |
2023 | |
| |
(in thousands) | |
Operating activities | |
| | | |
| | |
Net income | |
$ | 24,230 | | |
$ | 27,864 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 10,146 | | |
| 9,801 | |
Deferred income taxes | |
| 5,787 | | |
| 7,788 | |
Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets | |
| 1,696 | | |
| 915 | |
Net unrealized loss from marketable securities | |
| 1,234 | | |
| 2,349 | |
Stock-based compensation | |
| 3,258 | | |
| 1,858 | |
Other | |
| 1,595 | | |
| 1,359 | |
Change in assets and liabilities: | |
| | | |
| | |
Trade accounts receivable | |
| (7,040 | ) | |
| 2,483 | |
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets | |
| 9,966 | | |
| 2,323 | |
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities | |
| (12,021 | ) | |
| (19,344 | ) |
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) | |
| 2,253 | | |
| 15 | |
Deferred revenue | |
| (1,381 | ) | |
| (1,795 | ) |
Net cash provided by operating activities | |
| 39,723 | | |
| 35,616 | |
Investing activities | |
| | | |
| | |
Capital expenditures | |
| (8,885 | ) | |
| (10,578 | ) |
Purchase of convertible preferred stock in equity method investment | |
| (1,009 | ) | |
| — | |
Payments for acquisition | |
| (60 | ) | |
| — | |
Purchases of debt securities and equity investments | |
| (19,357 | ) | |
| (28,129 | ) |
Proceeds from maturities and sales of debt securities and redemptions of equity investments | |
| 31,231 | | |
| 27,531 | |
Net cash provided by (used in) investing activities | |
| 1,920 | | |
| (11,176 | ) |
Financing activities | |
| | | |
| | |
Distributions to noncontrolling interests | |
| (59 | ) | |
| (187 | ) |
Proceeds from other liabilities | |
| 100 | | |
| 300 | |
Repayment of other liabilities. | |
| (15 | ) | |
| (2,014 | ) |
Proceeds from borrowings under revolving credit facility | |
| 30,588 | | |
| 2,383 | |
Repayment of borrowings under revolving credit facility. | |
| (30,588 | ) | |
| (2,383 | ) |
Proceeds from exercise of stock options | |
| 172 | | |
| 172 | |
Repurchases of Class B common stock | |
| (3,170 | ) | |
| (5,341 | ) |
Net cash used in financing activities | |
| (2,972 | ) | |
| (7,070 | ) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | |
| (3,182 | ) | |
| 746 | |
Net increase in cash, cash equivalents, and restricted cash and cash equivalents | |
| 35,489 | | |
| 18,116 | |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | |
| 198,823 | | |
| 189,562 | |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | |
$ | 234,312 | | |
$ | 207,678 | |
Supplemental schedule of non-cash financing activities | |
| | | |
| | |
Restricted net2phone common stock withheld from employees for income tax obligations | |
$ | 3,558 | | |
$ | — | |
Value of Class B common stock exchanged for NRS shares | |
$ | 6,254 | | |
$ | — | |
Stock issued to certain executive officers for bonus payments | |
$ | — | | |
$ | 615 | |
*Reconciliation
of Non-GAAP Financial Measures for the
Second
Quarter Fiscal 2024 and 2023
In
addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United
States of America (GAAP), IDT also disclosed for 2Q24, 1Q24, 4Q23, 3Q23, and 2Q23 Adjusted EBITDA and non-GAAP earnings per diluted share
(EPS), both of which are non-GAAP measures.
Generally,
a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or
includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance
with GAAP.
IDT’s
measure of non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of
non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation,
and other operating expense, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items
in the relevant fiscal 2024 and fiscal 2023 periods.
Management
believes that IDT’s Adjusted EBITDA and non-GAAP EPS are measures which provide useful information to both management and investors
by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s
core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths
in its financial and operational decision making. In addition, management uses Adjusted EBITDA and non-GAAP EPS to evaluate operating
performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance
and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making.
In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial
information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.
Management
refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated
level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making
operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.
While
depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period
allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is
exclusive of depreciation and amortization, is a useful indicator of its current performance.
Severance
expense is excluded from the calculation of Adjusted EBITDA and non-GAAP EPS. Severance expense is reflective of decisions made by management
in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities
and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly
and do not reflect the performance of IDT’s core and continuing operations.
Other
operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA
and non-GAAP EPS. Other operating (expense) gain, net includes, among other items, legal fees net of insurance claims related to Straight
Path Communications Inc.’s stockholders’ class action, gains from the write-off of contingent consideration liabilities,
gain from the sale of state income tax credits, and fixed asset write-offs. From time-to-time, IDT may have gains or incur costs related
to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain
and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.
Stock-based
compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various
valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s
calculation of non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results
per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant
expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.
Adjusted
EBITDA and non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations,
cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance
prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and non-GAAP EPS may not be comparable to
similarly titled measures reported by other companies.
Following
are reconciliations of Adjusted EBITDA and non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA,
income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for non-GAAP
EPS, diluted earnings per share.
IDT
Corporation
Reconciliation
of Net Income to Adjusted EBITDA
(unaudited)
in millions. Figures may not foot or cross-foot due to rounding to millions
| |
Total IDT Corporation | | |
Traditional Communica-tions | | |
net2phone | | |
NRS | | |
Fintech | | |
Corporate | |
Three
Months Ended January 31, 2024 (2Q24) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 14.4 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| 1.3 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 15.8 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 4.0 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 19.7 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income, net | |
| (1.2 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Other income, net | |
| (2.5 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Income (loss) from operations | |
| 16.0 | | |
$ | 14.6 | | |
$ | 0.4 | | |
$ | 5.3 | | |
$ | (0.7 | ) | |
$ | (3.6 | ) |
Depreciation and amortization | |
| 5.1 | | |
| 2.0 | | |
| 1.6 | | |
| 0.8 | | |
| 0.7 | | |
| - | |
Severance | |
| 0.3 | | |
| 0.3 | | |
| - | | |
| - | | |
| - | | |
| - | |
Other operating expense (gain), net | |
| 0.3 | | |
| - | | |
| (0.1 | ) | |
| - | | |
| - | | |
| 0.4 | |
Adjusted EBITDA | |
$ | 21.8 | | |
$ | 17.0 | | |
$ | 1.8 | | |
$ | 6.1 | | |
$ | - | | |
$ | (3.2 | ) |
IDT
Corporation
Reconciliation
of Net Income to Adjusted EBITDA
(unaudited)
in millions. Figures may not foot or cross-foot due to rounding to millions
| |
Total IDT Corporation | | |
Traditional Communica-tions | | |
net2phone | | |
NRS | | |
Fintech | | |
Corporate | |
Three
Months Ended October 31, 2023 (1Q24) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 7.7 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| 0.8 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 8.5 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 3.9 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 12.4 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income, net | |
| (0.8 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| 5.6 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income (loss) from operations | |
| 17.2 | | |
$ | 15.4 | | |
$ | - | | |
$ | 5.5 | | |
$ | (1.4 | ) | |
$ | (2.3 | ) |
Depreciation and amortization | |
| 5.0 | | |
| 2.1 | | |
| 1.4 | | |
| 0.7 | | |
| 0.7 | | |
| - | |
Severance | |
| 0.5 | | |
| 0.5 | | |
| - | | |
| - | | |
| - | | |
| - | |
Other operating gain, net | |
| (0.5 | ) | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.5 | ) |
Adjusted EBITDA | |
$ | 22.3 | | |
$ | 18.1 | | |
$ | 1.4 | | |
$ | 6.2 | | |
$ | (0.7 | ) | |
$ | (2.8 | ) |
| |
Total IDT Corporation | | |
Traditional Communica-tions | | |
net2phone | | |
NRS | | |
Fintech | | |
Corporate | |
Three
Months Ended July 31, 2023 (4Q23) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 8.0 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| 0.8 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 8.8 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 3.8 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 12.6 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income, net | |
| (1.1 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| 0.5 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income (loss) from operations | |
| 12.0 | | |
$ | 14.1 | | |
$ | (0.7 | ) | |
$ | 1.7 | | |
$ | (1.9 | ) | |
$ | (1.2 | ) |
Depreciation and amortization | |
| 5.1 | | |
| 2.3 | | |
| 1.5 | | |
| 0.7 | | |
| 0.7 | | |
| - | |
Severance | |
| 0.5 | | |
| 0.4 | | |
| 0.1 | | |
| - | | |
| - | | |
| - | |
Other operating expense (gain), net | |
| 0.5 | | |
| 1.8 | | |
| 0.1 | | |
| - | | |
| - | | |
| (1.4 | ) |
Adjusted EBITDA | |
$ | 18.1 | | |
$ | 18.6 | | |
$ | 0.9 | | |
$ | 2.4 | | |
$ | (1.2 | ) | |
$ | (2.6 | ) |
IDT
Corporation
Reconciliation
of Net Income to Adjusted EBITDA
(unaudited)
in millions. Figures may not foot or cross-foot due to rounding to millions
| |
Total IDT Corporation | | |
Traditional Communica-tions | | |
net2phone | | |
NRS | | |
Fintech | | |
Corporate | |
Three
Months Ended April 30, 2023 (3Q23) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 6.9 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| 0.9 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 7.7 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 3.0 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 10.7 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income, net | |
| (0.7 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Other expense, net | |
| 0.4 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income (loss) from operations | |
| 10.4 | | |
$ | 12.9 | | |
$ | (0.4 | ) | |
$ | 2.1 | | |
$ | (1.3 | ) | |
$ | (2.9 | ) |
Depreciation and amortization | |
| 5.2 | | |
| 2.5 | | |
| 1.4 | | |
| 0.6 | | |
| 0.7 | | |
| - | |
Severance | |
| 0.1 | | |
| 0.1 | | |
| - | | |
| - | | |
| - | | |
| - | |
Other operating expense, net | |
| 4.8 | | |
| 4.1 | | |
| - | | |
| - | | |
| - | | |
| 0.6 | |
Adjusted EBITDA | |
$ | 20.5 | | |
$ | 19.7 | | |
$ | 1.0 | | |
$ | 2.7 | | |
$ | (0.6 | ) | |
$ | (2.3 | ) |
| |
Total IDT Corporation | | |
Traditional Communica-tions | | |
net2phone | | |
NRS | | |
Fintech | | |
Corporate | |
Three Months Ended January 31, 2023 (2Q23) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 14.6 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to noncontrolling interests | |
| 0.7 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
| 15.3 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Provision for income taxes | |
| 5.3 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes | |
| 20.6 | | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income, net | |
| (0.8 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Other income, net | |
| (1.6 | ) | |
| | | |
| | | |
| | | |
| | | |
| | |
Income (loss) from operations | |
| 18.2 | | |
$ | 17.0 | | |
$ | (0.6 | ) | |
$ | 5.4 | | |
$ | (0.8 | ) | |
$ | (2.8 | ) |
Depreciation and amortization | |
| 5.0 | | |
| 2.4 | | |
| 1.4 | | |
| 0.6 | | |
| 0.7 | | |
| - | |
Severance | |
| 0.2 | | |
| 0.2 | | |
| - | | |
| - | | |
| - | | |
| - | |
Other operating (gain) expense, net | |
| - | | |
| - | | |
| - | | |
| - | | |
| (0.3 | ) | |
| 0.3 | |
Adjusted EBITDA | |
$ | 23.4 | | |
$ | 19.6 | | |
$ | 0.8 | | |
$ | 6.0 | | |
$ | (0.5 | ) | |
$ | (2.5 | ) |
IDT
Corporation
Reconciliation
of Earnings per share to Non-GAAP EPS
(unaudited)
in millions, except per share data. Figures may not foot due to rounding to millions.
| |
| 2Q24 | | |
| 1Q24 | | |
| 4Q23 | | |
| 3Q23 | | |
| 2Q23 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net income attributable to IDT Corporation | |
$ | 14.4 | | |
$ | 7.7 | | |
$ | 8.0 | | |
$ | 6.9 | | |
$ | 14.6 | |
Adjustments (add) subtract: | |
| | | |
| | | |
| | | |
| | | |
| | |
Stock-based compensation | |
| (2.5 | ) | |
| (0.8 | ) | |
| (1.0 | ) | |
| (1.7 | ) | |
| (1.3 | ) |
Severance expense | |
| (0.3 | ) | |
| (0.5 | ) | |
| (0.5 | ) | |
| (0.1 | ) | |
| (0.2 | ) |
Other operating (expense) gain, net | |
| (0.3 | ) | |
| 0.5 | | |
| (0.5 | ) | |
| (4.8 | ) | |
| - | |
Total adjustments | |
| (3.1 | ) | |
| (0.8 | ) | |
| (2.0 | ) | |
| (6.6 | ) | |
| (1.5 | ) |
Income tax effect of total adjustments | |
| (0.6 | ) | |
| (0.3 | ) | |
| (0.7 | ) | |
| (1.8 | ) | |
| (0.4 | ) |
| |
| 2.5 | | |
| 0.5 | | |
| 1.3 | | |
| 4.8 | | |
| 1.1 | |
Non-GAAP net income | |
$ | 16.9 | | |
$ | 8.2 | | |
$ | 9.3 | | |
$ | 11.7 | | |
$ | 15.7 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Earnings per share: | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.57 | | |
$ | 0.30 | | |
$ | 0.31 | | |
$ | 0.27 | | |
$ | 0.57 | |
Total adjustments | |
| 0.10 | | |
| 0.03 | | |
| 0.06 | | |
| 0.19 | | |
| 0.05 | |
Non-GAAP - basic | |
$ | 0.67 | | |
$ | 0.33 | | |
$ | 0.37 | | |
$ | 0.46 | | |
$ | 0.62 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted-average number of shares used in calculation of basic earnings per share | |
| 25.2 | | |
| 25.2 | | |
| 25.4 | | |
| 25.5 | | |
| 25.5 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Diluted | |
$ | 0.57 | | |
$ | 0.30 | | |
$ | 0.31 | | |
$ | 0.27 | | |
$ | 0.57 | |
Total adjustments | |
| 0.10 | | |
| 0.02 | | |
| 0.05 | | |
| 0.19 | | |
| 0.05 | |
Non-GAAP - diluted | |
$ | 0.67 | | |
$ | 0.32 | | |
$ | 0.36 | | |
$ | 0.46 | | |
$ | 0.62 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted-average number of shares used in calculation of diluted earnings per share | |
| 25.3 | | |
| 25.3 | | |
| 25.5 | | |
| 25.6 | | |
| 25.5 | |
**Explanation
of Key Performance Metrics
NRS’
recurring revenue is NRS’ revenue in accordance with GAAP excluding revenue from POS terminal sales. NRS’ Monthly Average
Recurring Revenue per Terminal is a financial metric. Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’
recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated
by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue
divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and
Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods
and to competitors and others in the market, as well as for forecasting future revenue from the customer base.
net2phone’s
subscription revenue is its revenue in accordance with GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking
offering in Brazil. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers
paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons
between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the
top-line growth and performance of the business.
BOSS
Money’s Average Revenue per Transaction is also a financial metric. Average Revenue per Transaction is calculated by dividing BOSS
Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful
for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as
for forecasting future revenue based on transaction trends.
#
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