Scot Melland Chairman, President & CEO Mike...

37
Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO

Transcript of Scot Melland Chairman, President & CEO Mike...

Page 1: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

Mike DurneySVP, Finance & CFO

Scot MellandChairman, President & CEO

Page 2: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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.

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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

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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.

---

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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

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Look to Dice for Your Staffing SolutionsAgenda

Vertical Advantage

Favorable Market Dynamics

Growth Strategy

Solid Financial Model

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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

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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

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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

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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

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Look to Dice for Your Staffing SolutionsAgenda

Vertical Advantage

Favorable Market Dynamics

Growth Strategy

Solid Financial Model

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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.

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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

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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.

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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

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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

Page 17: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

Look to Dice for Your Staffing SolutionsAgenda

Targeted Advantage

Growth Strategy

Favorable Market Dynamics

Solid Financial Model

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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

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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

Page 20: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 21: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

Look to Dice for Your Staffing SolutionsGrow eFinancialCareers Markets

Estimated 2009 eFinancialCareers Revenue

UK

EMEAAPAC US

($ mm)

$12

$8

$4

Page 22: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

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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

Page 24: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 25: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 26: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

Look to Dice for Your Staffing SolutionsAgenda

Vertical Advantage

Growth Strategy

Favorable Market Dynamics

Solid Financial Model

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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

Page 28: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 29: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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)

Page 30: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 31: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

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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

Page 33: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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)

Page 34: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 35: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 36: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

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

Page 37: Scot Melland Chairman, President & CEO Mike …s2.q4cdn.com/537623210/files/doc_presentations/2010/DHX...Mike Durney SVP, Finance & CFO Scot Melland Chairman, President & CEO Forward

Q&A

Mike DurneySVP, Finance & CFO

Scot MellandChairman, President & CEO