j2 Global, Inc. (NASDAQGS:JCOM) today reported financial results for the fourth quarter and year ended December 31, 2011 and announced that its Board of Directors has declared an increased quarterly cash dividend of $0.21 per share and a five million share repurchase program.

FULL YEAR 2011 RESULTS

GAAP revenues increased 29.3% to an annual record $330.2 million compared to $255.4 million for 2010. Non-GAAP revenues(1) increased 33.3% to an annual record $340.5 million compared to $255.4 million for 2010.

GAAP net earnings per diluted share increased 34.3% to an annual record $2.43 compared to $1.81 for 2010. Non-GAAP net earnings per diluted share(2)(3) increased 29.1% to an annual record $2.53 compared to $1.96 for 2010.

Free cash flow(4) increased 44.7% to an annual record $157.5 million compared to $108.8 million for 2010.

Key annual financial results for 2011 versus 2010 are as follows:

      2011     2010     % Change
GAAP Revenues     $330.2 million     $255.4 million     29.3 %
Non-GAAP Revenues (1)     $340.5 million     $255.4 million     33.3 %
GAAP Net Earnings per Diluted Share(2)     $ 2.43     $ 1.81     34.3 %
Non-GAAP Net Earnings per Diluted Share(2) (3)     $ 2.53     $ 1.96     29.1 %
Free Cash Flow(4)     $157.5 million     $108.8 million     44.7 %

(1) In the first quarter of 2011, the Company made a change in estimate regarding its remaining service obligations to its annual eFax® subscribers. As a result of system upgrades, the Company is now basing the estimate on the actual remaining service obligations to these customers. As a result of this change, in Q1 2011 the Company recorded a one-time, non-cash increase to deferred revenues of $10.3 million with an equal offset to revenues.

(2) The estimated GAAP effective tax rate was approximately 16.3% for 2011 and 24.9% for 2010. The estimated Non-GAAP effective tax rate was approximately 25% for 2011 and 26.3% for 2010.

(3) For 2011, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, certain acquisition-related integration costs, the sale of a tradename, the reversal of uncertain income tax positions due to expired statutes of limitations and gain on sale of auction rate securities, in each case net of tax, totaling $0.10. For 2010, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, certain acquisition-related integration costs, in each case net of tax, totaling $0.15.

(4) Free cash flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefit from share-based compensation. In addition, the amount shown for 2010 excludes the impact of a $14.2 million payment to the IRS in settlement of an audit for transfer pricing covering tax years 2004 through 2008 which was fully accrued for in prior periods. Including this settlement amount, the Company's free cash flow for the year was $94.6 million. Free cash flow for 2010 was impacted by approximately $3.4 million, net of tax, of transition and acquisition-related costs.

FOURTH QUARTER 2011 RESULTS

GAAP revenues increased 19.8% to $85.1 million compared to $71 million for Q4 2010.

GAAP net earnings per diluted share increased 6.9% to $0.62 compared to $0.58 for Q4 2010. Non-GAAP net earnings per diluted share(5)(6) increased 6.7% to $0.64 compared to $0.60 for Q4 2010.

Free cash flow(7) increased 85.8% to $40.1 million compared to $21.6 million for Q4 2010.

Key financial results for fourth quarter 2011 versus fourth quarter 2010 are as follows:

      Q4 2011     Q4 2010     % Change
GAAP Revenues     $85.1 million     $71 million     19.8 %
GAAP Net Earnings per Diluted Share(5)     $ 0.62     $ 0.58     6.9 %
Non-GAAP Net Earnings per Diluted Share(5) (6)     $ 0.64     $ 0.60     6.7 %
Free Cash Flow(7)     $40.1 million     $21.6 million     85.8 %

(5) The estimated GAAP effective tax rate was approximately 24.3% for Q4 2011 and 14% for Q4 2010. The estimated Non-GAAP effective tax rate was approximately 24.7% for Q4 2011 and 18% for Q4 2010.

(6) For Q4 2011, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, certain acquisition-related integration costs and gain on sale of auction rate securities, in each case net of tax, totaling $0.02. For Q4 2010, Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, certain acquisition-related integration costs and gain on auction rate securities, in each case net of tax, totaling $0.02.

(7) Free cash flow is defined as net cash provided by operating activities, less purchases of property, plant and equipment, plus excess tax benefit from share-based compensation.

"I am pleased with both our operational and financial performance for 2011," said Hemi Zucker, CEO of j2 Global. "We successfully integrated substantially all of Protus IP Solutions, the largest acquisition in the Company's history. We also significantly broadened our suite of business cloud services with the addition of online backup (KeepItSafe®), email marketing (Campaigner®) and most recently customer relationship management (LandslideCRM?). For 2012, we are continuing our program of acquisitions to further expand our cloud service customer base and services, already closing three transactions this year as we continue to look for larger acquisitions such as Protus®. We are making significant incremental investments to grow our new service offerings, expand our business internationally and develop enhanced cross-selling capabilities."

BUSINESS OUTLOOK

For fiscal 2012, the Company is leveraging the gains made in 2011 with substantial investments in the new services acquired over the past 15 months, geographic expansion and to take advantage of our initial success with cross-sell efforts launched in 2011. No large acquisitions or new strategic initiatives are included in the guidance below. We anticipate that these investments will position the Company for increased growth in 2013 and beyond.

For fiscal 2012, j2 Global expects revenues of between $345 and $365 million and Non-GAAP net earnings per diluted share to be approximately the same as for 2011.

It is anticipated that the normalized tax rate for 2012 (exclusive of the release of certain FIN 48 reserves) will be between 24% and 26%.

DIVIDEND

The Company's Board of Directors has approved the declaration of a quarterly cash dividend to its shareholders of $0.21 per common share, a 2.4% increase versus last quarter's dividend. The dividend will be paid on March 12, 2012 to all shareholders of record as of the close of business on February 27, 2012. Future dividends will be subject to Board approval.

SHARE REPURCHASE PROGRAM

j2 Global's Board of Directors has also approved a share repurchase program, replacing the existing share repurchase program set to expire April 30, 2012. Under the new program, the Company may purchase in the public market or in off-market transactions up to five million shares at any time or times through February 20, 2013. The timing and amounts of any purchases will be determined by the Company from time to time, depending on market conditions and other factors it deems relevant.

About j2 Global

Founded in 1995, j2 Global, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses around the world. j2 Global's network spans 49 countries on six continents. The Company offers Internet fax, virtual phone, hosted email, email marketing, online backup, unified communications and customer relationship management solutions. j2 Global markets its services principally under the brand names eFax®, Onebox®, eVoice®, Campaigner®, Fusemail®, KeepItSafe? and LandslideCRM?. As of December 31, 2011, j2 Global had achieved 16 consecutive fiscal years of revenue growth. For more information about j2 Global, please visit www.j2global.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995, particularly those contained in the "Business Outlook" portion regarding the Company's expected fiscal 2012 financial performance and increased growth in 2013 and beyond. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: subscriber growth and retention; variability of revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments surrounding messaging and communications, including but not limited to the imposition or increase of taxes or regulatory-related fees; and the numerous other factors set forth in j2 Global's filings with the Securities and Exchange Commission ("SEC"). For a more detailed description of the risk factors and uncertainties affecting j2 Global, refer to the 2010 Annual Report on Form 10-K filed by j2 Global on February 28, 2011, and the other reports filed by j2 Global from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release and particularly those contained in the "Business Outlook" portion regarding the Company's expected fiscal 2012 financial performance and increased growth in 2013 and beyond are based on limited information available to the Company at this time, which is subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

 
 
j2 GLOBAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
       
 
DECEMBER 31, DECEMBER 31,
2011 2010
 
ASSETS
Cash and cash equivalents $ 139,359 $ 64,752
Short-term investments 38,513 14,035
Accounts receivable,
net of allowances of $3,404 and $2,588, respectively 19,071 17,423
Prepaid expenses and other current assets 14,311 15,196
Deferred income taxes   1,950     4,096  
 
Total current assets 213,204 115,502
 
Long-term investments 43,077 8,175
Property and equipment, net 14,438 13,567
Goodwill 279,016 281,848
Other purchased intangibles, net 98,067 99,954
Deferred income taxes 11,838 12,967
Other assets   516     610  
 
TOTAL ASSETS $ 660,156   $ 532,623  
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 24,070 $ 25,112
Income taxes payable 1,494 1,798
Deferred revenue 26,695 16,938
Liability for uncertain tax positions 5,523 13,471
Deferred income taxes   355     573  
 
Total current liabilities 58,137 57,892
 
Liability for uncertain tax positions 24,554 24,391
Deferred income taxes 20,748 15,293
Other long-term liabilities   2,342     3,302  
 
Total liabilities 105,781 100,878
 
Commitments and contingencies -- --
 
Stockholders' Equity:
Preferred stock -- --
Common stock 554 537
Additional paid-in capital 197,374 164,769
Treasury stock (112,671 ) (112,671 )
Retained earnings 472,595 381,145
Accumulated other comprehensive loss   (3,477 )   (2,035 )
 
Total stockholders' equity   554,375     431,745  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 660,156   $ 532,623  
 
 
 
 
j2 GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
           
 
THREE MONTHS ENDED DECEMBER 31, TWELVE MONTHS ENDED DECEMBER 31,
2011 2010 2011 2010
 
Revenues
Subscriber $ 84,165 $ 70,319 $ 327,953 $ 252,492
Other 907 706 2,206 2,902
 
Total revenue 85,072 71,025 330,159 255,394
 
Cost of revenues (including share-based compensation of $246 and $982 for the three and twelve months of 2011, respectively, and $254 and $1,217 for the three and twelve months of 2010, respectively) 14,661 12,708 60,613 44,086
 
Gross profit 70,411 58,317 269,546 211,308
 
Operating expenses:
Sales and marketing (including share-based compensation of $382 and $1,431 for the three and twelve months of 2011, respectively, and $366 and $1,826 for the three and twelve months of 2010, respectively) 14,137 14,005 59,066 46,332
Research, development and engineering (including share-based compensation of $110 and $477 for the three and twelve months of 2011, respectively, and $170 and $815 for the three and twelve months of 2010, respectively) 3,659 4,017 16,373 12,827
General and administrative (including share-based compensation of $1,571 and $6,103 for the three and twelve months of 2011, respectively, and $1,380 and $7,079 for the three and twelve months of 2010, respectively) 14,120 13,963 58,157 48,226
 
Total operating expenses 31,916 31,985 133,596 107,385
 
Operating earnings 38,495 26,332 135,950 103,923
 
Interest and other income (expense), net 904 4,964 1,166 6,714
 
Earnings before income taxes 39,399 31,296 137,116 110,637
 
Provision for income taxes 9,580 4,429 22,350 27,590
 
Net earnings $ 29,819 $ 26,867 $ 114,766 $ 83,047
 
 
Basic net earnings per common share $ 0.63 $ 0.60 $ 2.46 $ 1.86
 
Diluted net earnings per common share $ 0.62 $ 0.58 $ 2.43 $ 1.81
 
 
Basic weighted average shares outstanding 46,692,364 44,843,543 45,799,615 44,578,036
 
Diluted weighted average shares outstanding 46,989,376 46,358,698 46,384,848 45,941,843
 
 
 
 
j2 GLOBAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN THOUSANDS)
       
 
TWELVE MONTHS ENDED DECEMBER 31,
2011 2010
 
Cash flows from operating activities:
Net earnings $ 114,766 $ 83,047
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 19,756 14,510
Amortization of discount or premium of investments 941 837
Share-based compensation 8,968 10,937
Excess tax benefit from share-based compensation (13,561 ) (62 )
Provision for doubtful accounts 6,900 1,965
Deferred income taxes 6,822 (541 )
Loss on disposal of fixed assets 117 64
Loss on trading securities 4 3
Gain on sale of available-for-sale investment (552 ) (4,477 )
Decrease (increase) in:
Accounts receivable (9,509 ) (246 )
Prepaid expenses and other current assets 4,261 (2,253 )
Other assets 200 (165 )
(Decrease) increase in:
Accounts payable and accrued expenses 847 1,318
Income taxes payable 9,679 (15,767 )
Deferred revenue 8,664 (1,592 )
Liability for uncertain tax positions (7,786 ) 8,114
Other   231     693  
Net cash provided by operating activities   150,748     96,385  
 
Cash flows from investing activities:
Maturity of certificates of deposit -- 31,653
Purchase of certificate of deposit (8,000 ) --
Sales of available-for-sale investments 29,777 48,843
Purchases of available-for-sale investments (82,879 ) (52,921 )
Purchases of property and equipment (6,844 ) (1,842 )
Purchases of intangible assets (4,312 ) (8,312 )
Acquisition of businesses, net of cash received (3,926 ) (248,568 )
Proceeds from sale of assets   4     13  
Net cash used in investing activities   (76,180 )   (231,134 )
 
Cash flows from financing activities:
Repurchases of common stock and restricted stock (1,281 ) (4,221 )
Issuance of common stock under employee stock purchase plan 142 109
Exercise of stock options 7,090 6,721
Excess tax benefit from share-based compensation 13,561 62
Dividends paid   (19,174 )   --  
Net cash provided by financing activities   338     2,671  
 
Effect of exchange rate changes on cash and cash equivalents   (299 )   (581 )
 
Net increase (decrease) in cash and cash equivalents 74,607 (132,659 )
Cash and cash equivalents at beginning of period   64,752     197,411  
Cash and cash equivalents at end of period $ 139,359   $ 64,752  
 
 
 
 
j2 GLOBAL, INC.
UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS
THREE MONTHS ENDED DECEMBER 31, 2011 AND 2010
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
           
 

Modified net earnings are GAAP net earnings with the following modifications: (1) elimination of share-based compensation expense; (2) elimination of payroll taxes associated with share-based compensation; (3) elimination of certain acquisition and related exit costs; (4) elimination of gain on sale of certain investments and (5) elimination of income tax expense or benefit associated with share-based compensation, the associated payroll taxes, certain acquisition and related exit costs and gain on sale of certain investments. Modified net earnings and modified net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes. The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions. The Company believes that this non-GAAP financial information are useful measures of operating performance because they exclude certain non-cash or non-ordinary course transactions.

 
 
 
THREE MONTHS ENDED DECEMBER 31, 2011 THREE MONTHS ENDED DECEMBER 31, 2010
Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP
 
Revenues
Subscriber $ 84,165 $ - $ 84,165 $ 70,319 $ - $ 70,319
Other   907     -     907   706     -     706
 
Total revenue 85,072 - 85,072 71,025 - 71,025
 
Cost of revenues   14,661     (79 )

(1), (3)

   14,582   12,708     (510 )

(1), (3)

   12,198
 
Gross profit   70,411     79     70,490   58,317     510     58,827
 
Operating expenses:
Sales and marketing 14,137 (382 )

(1)

 13,755 14,005 (1,644 )

(1), (3)

 12,361
Research, development and engineering 3,659 269

(1), (3)

 3,928 4,017 (615 )

(1), (3)

 3,402
General and administrative   14,120     (1,572 )

(1), (2)

   12,548   13,963     (3,774 )

(1), (2), (3)

   10,189
 
Total operating expenses   31,916     (1,685 )   30,231   31,985     (6,033 )   25,952
 
Operating earnings 38,495 1,764 40,259 26,332 6,543 32,875
 
Interest and other income (expense), net   904     (554 )

(4)

   350   4,964     (3,922 )

(4)

   1,042
 
Earnings before income taxes 39,399 1,210 40,609 31,296 2,621 33,917
 
Provision for income taxes   9,580     462  

(5)

   10,042   4,429     1,750  

(5)

   6,179
 
Net earnings $ 29,819   $ 748   $ 30,567 $ 26,867   $ 871   $ 27,738
 
 
Diluted net earnings per share $ 0.62 $ 0.64 $ 0.58 $ 0.60
 
 
Diluted weighted average shares outstanding   46,989,376   46,989,376   46,358,698   46,358,698
 
 
 
 
 
 

(1)Share-based compensation expense:

Cost of revenues $ (246 ) $ (254 )
Sales and marketing (382 ) (366 )
Research, development and engineering (110 ) (170 )
General and administrative   (1,571 )   (1,380 )
$ (2,309 ) $ (2,170 )
 

(2)Payroll taxes associated with share-based compensation

General and administrative   (1 )   (42 )
$ (1 ) $ (42 )
 

(3)Acquisition and exit costs:

Cost of revenues $ 167 $ (256 )
Sales and marketing - (1,278 )
Research, development and engineering 379 (445 )
General and administrative   -     (2,352 )
$ 546   $ (4,331 )
 
 
(4)Gain on sale of investments: $ (554 ) $ (3,922 )
 
(5)Income tax adjustment, net impact of the items above
Change in estimate of deferred revenue
Share-based compensation expense $ 717 $ 659
Payroll taxes associated with share-based compensation - 10
Acquisition and exit costs (133 ) 1,081
Gain on sale of investments   (122 )   -  
$ 462   $ 1,750  
 
 
 
 
j2 GLOBAL, INC.
UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 2011 AND 2010
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
           
 

Modified net earnings are GAAP net earnings with the following modifications: (1) elimination of the impact to revenues resulting from a change in estimate of deferred revenue; (2) elimination of share-based compensation expense; (3) elimination of payroll taxes associated with share-based compensation; (4) elimination of certain acquisition and related exit costs, (5) elimination of gain on sale of certain investments and (6) elimination of income tax expense or benefit associated with the change in estimate of deferred revenue, shared-based compensation and associated payroll taxes, certain acquisition and related exit costs, gain on sale of certain investments, a change to our liability of uncertain tax position due to expiration of statues of limitations and a trade name sale. Modified net earnings and modified net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes. The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions. The Company believes that this non-GAAP financial information are useful measures of operating performance because they exclude certain non-cash or non-ordinary course transactions.

 
 
TWELVE MONTHS ENDED DECEMBER 31, 2011 TWELVE MONTHS ENDED DECEMBER 31, 2010
Reported Non-GAAP Entries Non-GAAP Reported Non-GAAP Entries Non-GAAP
 
Revenues
Subscriber $ 327,953 $ 10,325 (1) $ 338,278 $ 252,492 $ - $ 252,492
Other 2,206   - 2,206 2,902   - 2,902
 
Total revenue 330,159 10,325 340,484 255,394 - 255,394
 
Cost of revenues 60,613   (1,187) (2), (3), (4) 59,426 44,086   (1,473) (2), (4) 42,613
 
Gross profit 269,546   11,512 281,058 211,308   1,473 212,781
 
Operating expenses:
Sales and marketing 59,066 (2,201) (2), (3), (4) 56,865 46,332 (3,104) (2), (4) 43,228
Research, development and engineering 16,373 (834) (2), (3), (4) 15,539 12,827 (1,260) (2), (4) 11,567
General and administrative 58,157   (7,685) (2), (3), (4) 50,472 48,226   (9,847) (2), (3), (4) 38,379
 
Total operating expenses 133,596   (10,720) 122,876 107,385   (14,211) 93,174
 
Operating earnings 135,950 22,232 158,182 103,923 15,684 119,607
 
Interest and other income (expense), net 1,166   (554) (5) 612 6,714   (3,922) (5) 2,792
 
Earnings before income taxes 137,116 21,678 158,794 110,637 11,762 122,399
 
Provision for income taxes 22,350   17,361 (6) 39,711 27,590   4,599 (6) 32,189
 
Net earnings $ 114,766   $ 4,317 $ 119,083 $ 83,047   $ 7,163 $ 90,210
 
 
Diluted net earnings per share $ 2.43 $ 2.53 $ 1.81 $ 1.96
 
 
Diluted weighted average shares outstanding 46,384,848 46,384,848 45,941,843 45,941,843
 
 
 
 

(1)Change in estimate of deferred revenue

$ 10,325 $ -
 
(2)Share-based compensation expense:
Cost of revenues $ (982) $ (1,217)
Sales and marketing (1,431) (1,826)
Research, development and engineering (477) (815)
General and administrative (6,103) (7,079)
$ (8,993) $ (10,937)
 
(3)Payroll taxes associated with share-based compensation
Cost of revenues $ (6) $ -
Sales and marketing (6) -
Research, development and engineering (5) -
General and administrative (161) (211)
$ (178) $ (211)
 
(4)Acquisition and exit costs:
Cost of revenues $ (199) $ (256)
Sales and marketing (764) (1,278)
Research, development and engineering (352) (445)
General and administrative (1,421) (2,557)
$ (2,736) $ (4,536)
 
 
(5)Gain on sale of investments: $ (554) $ (3,922)
 
(6)Income tax adjustment, net impact of the items above
Change in estimate of deferred revenue $ 2,707 $ -
Share-based compensation expense 2,772 3,397
Payroll taxes associated with share-based compensation 51 61
Acquisition and exit costs 717 1,141
Gain on sale of investments (122) -
Change in uncertain income tax position due to expiration of statutes of limitations 15,128 -
Trade name sale (3,892) -
$ 17,361 $ 4,599
 
 
         
 
j2 Global, Inc.
Free Cash Flows
(in Thousands)
 

Q1

Q2

Q3

Q4

YTD

2011

Net cash provided by operating activities $ 38,153 $ 42,398 $ 28,682 $ 41,515 $ 150,748
Less: Purchases of property and equipment (625 ) (1,860 ) (2,590 ) (1,769 ) (6,844 )
Add: Excess tax (deficiency) benefit from share-based compensation   679       1,443       11,124       315       13,561  
Free cash flows $ 38,207     $ 41,981     $ 37,216     $ 40,061     $ 157,465  
 
 

2010

Net cash provided by operating activities $ 34,688 $ 12,317 $ 27,147 $ 22,233 $ 96,385
Less: Purchases of property and equipment (86 ) (495 ) (692 ) (569 ) (1,842 )
Add: Excess tax (deficiency) benefit from share-based compensation (406 ) 374 196 (102 ) 62
Add: IRS settlement*   -       14,223       -       -       14,223  
Free cash flows $ 34,196     $ 26,419     $ 26,651     $ 21,562     $ 108,828  
 
* Free cash flows of $26.4 million for Q2 2010 were before the effects of our IRS settlement. In the second quarter, we successfully settled our audit for transfer pricing for the years of 2004 to 2008 for $14.2 million, which was fully accrued for in prior periods. Taking this settlement into consideration, our free cash flow for the quarter was $12.2 million.
 
 

2009

Net cash provided by operating activities $ 31,152 $ 20,362 $ 26,469 $ 23,850 $ 101,833
Less: Purchases of property and equipment (721 ) (217 ) (767 ) (1,546 ) (3,251 )
Add: Excess tax benefit (deficiency) from share-based compensation   5       2,718       403       (63 )     3,063  
$ 30,436     $ 22,863     $ 26,105     $ 22,241     $ 101,645  
 
 

2008

Net cash provided by operating activities $ 27,411 $ 23,840 $ 15,676 $ 23,789 $ 90,716
Less: Purchases of property and equipment (469 ) (796 ) (937 ) (305 ) (2,507 )
Add: Excess tax benefit from share-based compensation   239       204       212       910       1,565  
$ 27,181     $ 23,248     $ 14,951     $ 24,394     $ 89,774  
 

j2 Global, Inc.
Jeff Adelman
323-372-3617
press@j2global.com