Scot Melland Chairman, President & CEO Mike...
Transcript of Scot Melland Chairman, President & CEO Mike...
Mike DurneySVP, Finance & CFO
Scot MellandChairman, President & CEO
Look to Dice for Your Staffing SolutionsForward Looking Statement
This presentation contains forward-looking statements. You should not place undue reliance on those
statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Forward-
looking statements include information concerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words such as “may,”
“will,”
“should,”
“believe,”
“expect,”
“anticipate,”
“intend,”
“plan,”
“estimate”
or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors
could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, competition from existing and future competitors, failure to maintain and develop our reputation and brand recognition, failure to increase or maintain the number of customers who purchase recruitment packages, cyclicality or downturns in the economy or industries we serve, and the failure to attract qualified professionals or grow the number of qualified professionals who use our websites. These factors and others are discussed in more detail in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, under the headings “Risk Factors,”
“Forward-Looking Statements”
and “Management's Discussion and Analysis of Financial Condition and Results of Operations.”
You should keep in mind that any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which we make it. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect us. We have no
obligation to update any forward-looking statements after the date hereof, except as required by federal securities laws. All statements contained in this presentation are made only as of the date of this presentation.
This presentation includes certain "Non-GAAP financial information." A reconciliation of such information to the most directly comparable GAAP data can be found in the Company’s most recent earnings release.
Look to Dice for Your Staffing SolutionsDice Holdings: Leading Specialty Career Sites
Global OnlineCompany withVertical Focus
TargetedRecruitment
Focused on Large, Diverse
Market
Traffic Rankingin each
Dice Community
#1$3.1B
Look to Dice for Your Staffing Solutions
Technology / Engineering
Financial Services
U.S.69%
24%U.K. Base
18 Global Markets
Government Security Clearances
Key Brands & Select Communities
Market% of 2009Revenue
5%U.S.
HealthcareU.S.
---
Look to Dice for Your Staffing SolutionsMarket Conditions Improving
U.S. GDP
U.S. Employment Situation
Turnover
Job Postings
Positive
Stable
Stable
Stable to Positive
IndicatorSix
MonthsAgo
Today Outlook
Resume Database Searches Positive
Look to Dice for Your Staffing SolutionsAgenda
Vertical Advantage
Favorable Market Dynamics
Growth Strategy
Solid Financial Model
Look to Dice for Your Staffing Solutions
Post JobsSearch Resumes
AdvertiseNetwork
Recruiters & HR Vertical Focus
High ValueAudience
Efficient Reach
Pay-off
Strong ROI
Vertical Focus Leads to Superior Results
Look to Dice for Your Staffing SolutionsDice.com: Leading Tech Career Community
2+ millionUnique Visitors
per month
1/3rd ofTotal
Tech Pros
950,000 SearchableResumes
LargelyPassive
CommunityLeadership
>80%Traffic
Non-Paid
Look to Dice for Your Staffing SolutionsClear Leadership with Tech Professionals
61%
52%
41%
13%
20%20%
32%
22%18%
33%
16%
34%
14%11%
35%
Tech Industry Authority The #1 tech jobsite First Place Visited forTech Career Advice
Dice Monster Careerbuilder Indeed Linked In
Dice Internal Report done by Dynamic Logic; Q3 2009
Look to Dice for Your Staffing SolutionseFinancialCareers.com: Leading Finance Career Community
1+ millionUnique Visitors
per month
550,000 SearchableResumes
18Markets
Highly SkilledCommunity
40% have AdvancedDegrees
#1Financial
Community
Look to Dice for Your Staffing SolutionsAgenda
Vertical Advantage
Favorable Market Dynamics
Growth Strategy
Solid Financial Model
Look to Dice for Your Staffing Solutions
$1.4$1.5
$0.0
$0.5
$1.0
$1.5
$2.0
2009 2010
Small Share of Sizeable Market
$1.7$1.6
$0.0
$0.5
$1.0
$1.5
$2.0
2009 2010
Dice Holdings’
Estimate of the Global Market for Online Recruiting
($Bn) ($Bn)North America International*
*Does not include Africa, Middle East.
Look to Dice for Your Staffing Solutions
Online Recruitment Growth Driven by Economic Recovery, Demographics
Employment Growth in our Sectors
Shift from General to Targeted Media
Positioned for Accelerated Growth when Market Turns
Look to Dice for Your Staffing SolutionsDice Holdings Verticals Exhibit Tighter Demand
Unemployment Rates
0.0
1.0
2.03.0
4.0
5.0
6.0
7.0
8.09.0
10.0
11.0
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
OverallFinancialTechnologyHealthcare
Source: Bureau of Labor Statistics; overall unemployment rates are seasonally adjusted –
Technology, Finance and Healthcare are not seasonally adjusted.
Look to Dice for Your Staffing Solutions
DCS Online Monster N.A. Revenue CareerBuilder N.A. Network Revenues
Shift from General to Targeted Media
020406080
100120140160180
1Q 2
006
2Q 2
006
3Q 2
006
4Q 2
006
1Q 2
007
2Q 2
007
3Q 2
007
4Q 2
007
1Q 2
008
2Q 2
008
3Q 2
008
4Q 2
008
1Q 2
009
2Q 2
009
3Q 2
009
`
Online Recruiting LeadersQuarterly Revenue Index
Source: Company Reports
Look to Dice for Your Staffing SolutionsEmployment Outlook Favors Our Sectors
Source: Bureau of Labor Statistics, December 2009
U.S. Employment Growth by Sector 2008 –
2018(in millions)
Professional & Business Services 4.2
Healthcare 4.0
Construction
1.6State & Local Gov’t
1.3
Leisure & Hospitality 1.1
Retail & Wholesale 0.9
Educational Services
0.8Other Services
0.8
0.6Financial Activities
Look to Dice for Your Staffing SolutionsAgenda
Targeted Advantage
Growth Strategy
Favorable Market Dynamics
Solid Financial Model
Look to Dice for Your Staffing SolutionsDice Holdings Growth Strategy
Maximize customer opportunity
Pursue new verticals and professional communities -
likely through acquisition
Expand core technology and finance verticals globally
Look to Dice for Your Staffing SolutionsLeading Position = Returning to Peak Customers
Dice.com Recruitment Package CustomersEnd of Quarter
0
5,000
10,000
Q1
04
Q3
04
Q1
05
Q3
05
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
9,150
Look to Dice for Your Staffing SolutionsDice Holdings: Growth Roadmap
Grow Dice.com Customers to 18,000(1) $50 mm
$20 mmReturn Dice.com to Previous Customer Count Peak(1)
(1) At Base Level of Service
Incremental AnnualRevenue Contribution
Look to Dice for Your Staffing SolutionsGrow eFinancialCareers Markets
Estimated 2009 eFinancialCareers Revenue
UK
EMEAAPAC US
($ mm)
$12
$8
$4
Look to Dice for Your Staffing SolutionsDice Holdings: Growth Roadmap
Grow Dice.com Customers to 18,000(1) $50 mm
Grow Existing eFC Regions $20 mm
$20 mmReturn Dice.com to Previous Customer Count Peak(1)
(1)
At Base Level of Service
$ 5 mmReturn eFC UK to Previous Level(2)
Incremental AnnualRevenue Contribution
(2) Using Current $/GBP Rates
Look to Dice for Your Staffing SolutionsHealthcare: The ClearanceJobs Experience
ClearanceJobsAnnual New Job Seeker Registrations
0
15,000
30,000
45,000
60,000
75,000
2004
2005
2006
2007
2008
2009
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2004
2005
2006
2007
2008
2009
($ in millions)
ClearanceJobsAnnual Revenue
Look to Dice for Your Staffing SolutionsDice Holdings: Growth Roadmap
Grow Dice.com Customers to 18,000(1) 50 mm
Grow Existing eFC Regions 20 mm
$20 mmReturn Dice.com to Previous Customer Count Peak(1)
5 mmReturn eFC UK to Previous Level(2)
Grow AllHealthcareJobs at CJ rate 10 mm
Total $105 mm
Incremental AnnualRevenue Contribution
(1)
At Base Level of Service(2)
Using Current $/GBP Rates
Look to Dice for Your Staffing Solutions
Maximize customer opportunity
Pursue new verticals and professional communities -
likely through acquisition
Expand core technology and finance verticals globally
Dice Holdings Growth Strategy
Look to Dice for Your Staffing SolutionsAgenda
Vertical Advantage
Growth Strategy
Favorable Market Dynamics
Solid Financial Model
Look to Dice for Your Staffing Solutions
$51.2
$38.2
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
9MO'08 9MO'09
First Nine Months 2009 Results
Revenue
$119.5
$83.3
$0.0$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0$90.0
$100.0$110.0$120.0$130.0
9MO'08 9MO'09
($m)
Margin % 43% 46%
($m) ($m)
Adjusted EBITDA Free Cash Flow
$46.7
$14.3
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
9MO'08 9MO'09
Look to Dice for Your Staffing SolutionsPreliminary Estimates – 2009 Fourth Quarter
> $11 m
> $26 m
~43%
~$9 m
Q4 2009Update
Revenue
Adjusted EBITDA Margin
Sales & Marketing Expense
Adjusted EBITDA
Projection as of Oct. 21, 2009
40%
$ 25 m
$ 8 m
$ 10 m $49 - $50 m
$109 - $110 m
~45%
~$35 m
FY 2009Update
Look to Dice for Your Staffing SolutionsDec. 31, 2009 Dice.com Preliminary Customer Metrics
Recruitment Package Customers on December 31, 2009 5,900
Estimated Average Monthly Revenue per Recruitment Pkg.
Customer for the quarter ended December 31, 2009 ~$808
Recruitment Package Customers under Annual Contract 87%
Fourth Quarter Renewal Rate on Annual Contracts (by count) 66%
Average Recruitment Package Customers –
4Q 2009 6,250
Sequential Change (400)
Look to Dice for Your Staffing SolutionsStrong Cash Generation Engine
5. Free Cash Flow-
$4-5 million Cap-Ex-
Contracts Generally Paid in Advance
4. Profitability
1. Predictable Revenues-
~75% of Revenues under contract at the start of a quarter
-
>80% under Annual Contract
2. Discretionary Expenses-
Matching MarketingSpend to Activity Levels
3. High Margins-
40-45% Adjusted EBITDA margin long-term target
Look to Dice for Your Staffing SolutionsDice Holdings Margin Structure
Adjusted EBITDA
35-40%
20-25%
40-45%
Sales Marketing
ProductDevelopment
Cost of Revenue G&A
Look to Dice for Your Staffing Solutions
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Q1
06
Q3
06
Q1
07
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Strong Profitability Despite Employment Declines
Dice Holdings’
Quarterly Adjusted EBITDA Margin
Look to Dice for Your Staffing Solutions
$12.7
$22.0
$38.1
$52.1 $50.2
$19.0
$0
$15
$30
$45
$6020
04
2005
2006
2007
2008
2009
Resilient Free Cash Flow Generation
Free Cash Flow
~
$(m)
Look to Dice for Your Staffing SolutionsApproaching Zero Net Debt
Total Debt Outstanding►Term loan due March 2012
►Approximately $49 million cash on December 31, 2009
►$75 million Revolver –
untapped
►$5
million prepayment in January
(in millions)
Net Debt
Sept. 30,2008
Dec. 31,2008
Mar. 31,2009
June 30,2009
$100.3$81.5
$50.9$61.2
$50.6
Sept. 30,2009
$50.3
Dec. 31,2009
Look to Dice for Your Staffing SolutionsFactors for Consideration 2010
Employment Situation Improving•
Operational Lag•
Financial Lag
Investments in Product and Marketing •
Product Enhancements•
Customer Acquisition•
Seeker Marketing
Expect Slightly Lower Margins/Higher Cash Flow
Look to Dice for Your Staffing SolutionsDice Holdings Highlights
Vertical Focus = Strong Competitive Advantage
Small share of sizeable global market
Sizeable growth opportunities for technology, finance and healthcare verticals
Excellent margins coupled with solid cash generation
Q&A
Mike DurneySVP, Finance & CFO
Scot MellandChairman, President & CEO