NEWARK, N.J., Dec. 3, 2020 /PRNewswire/ — IDT Corporation (NYSE: IDT) reported net income per diluted share of $0.32 and Non-GAAP earnings per diluted share* of $0.35 on revenue of $343 million for the first quarter of FY 2021, the three months ended October 31, 2020.
1Q FY21 HIGHLIGHTS
(Results are for 1Q21 and are compared to 1Q20)
- Consolidated revenue increased 1% to $343 million from $340 million.
- Consolidated revenue less direct cost of revenue increased 16% to $70 million from $61 million, the fifth consecutive year-over-year quarterly increase.
- Consolidated income from operations increased to $13.3 million from a loss from operations of $1.4 million.
- Adjusted EBITDA* increased 148% to $18.1 million from $7.3 million, and Adjusted EBITDA less CAPEX** increased 291% to $13.5 million from $3.5 million.
- EPS was $0.32 compared to a loss per share of $0.06. Non-GAAP earnings per diluted share* was $0.35 compared to $0.10.
- IDT repurchased 463,792 shares of its Class B common stock for $2.8 million during 1Q21.
REMARKS BY SHMUEL JONAS, CEO
“This was another strong financial quarter for IDT, with substantial year-over-year improvements in revenue less direct cost of revenue and bottom-line results.
“All three of our high growth, higher margin businesses – BOSS Revolution Money Transfer, NRS and net2phone’s cloud communications offerings – generated impressive year over year revenue growth.
“In aggregate, these businesses have been contributing an increasing share of our consolidated revenue less direct cost of revenue, and this quarter their contribution topped 30%. Our money transfer business again benefitted, although less significantly, from the favorable foreign exchange market conditions that boosted its results last quarter.
“As a result of strong operational cash generation, IDT closed the quarter with a stronger balance sheet, even as we continued to invest in our businesses and repurchase our stock.”CONSOLIDATED RESULTS
| Results(in millions, except EPS) | 1Q21 | 4Q20 | 1Q20 | 1Q21 – 1Q20 change (%/$) | |
| Revenue | $343 | $360 | $340 | +0.9% | |
| Direct cost of revenue | $273 | $283 | $279 | (2.2)% | |
| Revenue less direct cost of revenue | $70 | $77 | $61 | +15.7% | |
| Revenue less direct cost of revenue as a percentage of revenue** | 20.5% | 21.5% | 17.9% | +260 bps | |
| SG&A expense | $52 | $55 | $53 | (2.4)% | |
| Depreciation and amortization | $4.5 | $4.7 | $5.3 | $(0.8) | |
| Severance expense | $0.1 | $1.8 | $0.6 | $(0.5) | |
| Other operating expense, net | $0.3 | $1.7 | $2.8 | $(2.5) | |
| Income (loss) from operations | $13.3 | $14.2 | $(1.4) | +$14.6 | |
| Adjusted EBITDA* | $18.1 | $22.4 | $7.3 | +$10.8 | |
| Adjusted EBTIDA* less CAPEX** | $13.5 | $18.2 | $3.5 | +$10.1 | |
| Net income (loss) attributable to IDT | $8.3 | $21.5 | $(1.5) | +$9.8 | |
| Diluted earnings per share | $0.32 | $0.82 | $(0.06) | +$0.38 | |
| Non-GAAP net income* | $9.0 | $16.3 | $2.8 | +$6.3 | |
| Non-GAAP earnings per diluted share* | $0.35 | $0.62 | $0.10 | +$0.25 |
* Throughout this release, Adjusted EBITDA, Non-GAAP net income and Non-GAAP earnings per diluted share are Non-GAAP 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 at the end of this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measure.
** Revenue less direct cost of revenue as a percentage of revenue and Adjusted EBITDA less CAPEX are key performance metrics. Please refer to the Explanation of Key Performance Metrics at the end of this release for an explanation of these metrics.
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