IDT Corporation Reports First Quarter Fiscal Year 2020 Results

NEWARK, N.J., Dec. 5, 2019 — IDT Corporation (NYSE: IDT) reported a loss per diluted share of $0.06 and Non-GAAP earnings per diluted share* of $0.10 on revenue of $340.2 million for the first quarter of FY 2020, the three months ended October 31, 2019.

1Q20 OPERATIONAL HIGHLIGHTS
(Results are for 1Q20 and are compared to 1Q19)

net2phone’s cloud-based Unified Communications as a Service (UCaaS) offering served 112,000 seats at October 31^st compared to 68,000 a year earlier. Subscription revenue increased 87.0% to $5.9 million. The results include the acquisition of Versature, a Canadian UCaaS provider, during 1Q19;
National Retail Solutions (NRS) had deployed over 10,600 point-of-sale (POS) terminals with independent retailers nationwide by October 31^st of which approximately 8,200 were active compared to 5,900 a year earlier. NRS revenue increased 93.4% to $2.4 million;
BOSS Revolution Money Transfer transactions increased to 1.1 million from 715,000 in the year ago quarter. Revenue increased 55.8% to $7.4 million with solid growth from both direct-to-consumer (DTC) and retail channels. DTC revenue increased 68.9% to $4.6 million.

REMARKS BY SHMUEL JONAS, CEO
“IDT delivered consistent results in the first quarter of our 2020 fiscal year highlighted by expansion of our higher-margin growth initiatives and our lower margin Mobile Top-Up services offset by decreases of our BOSS Revolution Calling and Carrier Service revenues in line with our expectations.

“In IDT’s growth initiatives, net2phone’s cloud-based UCaaS offering increased revenue 50% year-over-year, and 35% exclusive of our acquisition of Versature. National Retail Solutions turned in a strong quarter, increasing revenue by 93% year-over-year. NRS’ advertising, data analytics and credit card processing offerings drove the expansion as they began to gain traction in their respective markets. BOSS Revolution Money Transfer boosted revenue by 56% year-over-year to $7.4 million. DTC revenue increased 69% year-over-year to $4.6 million while retail channel revenue increased 38% to $2.8 million.

“In IDT’s Core operations, Mobile Top-Up revenue increased 18% year-over-year to $76.8 million boosted by expanded sales of bundled offerings.

“Expansion of our growth initiatives and Mobile Top-Up drove an increase in gross profit for the fourth consecutive quarter, while Adjusted EBITDA* climbed to $7.3 million from $7.1 million a year ago.”

CONSOLIDATED RESULTS

*Results* *(in millions, except EPS)*	1Q20	4Q19	1Q19	1Q20 – 1Q19 change (%/$)
Revenue	$340.2	$356.1	$362.3	(6.1)%
Direct cost of revenue	$279.5	$295.4	$304.7	(8.3)%
Revenue less direct cost of revenue	$60.8	$60.8	$57.6	+5.5%
Revenue less direct cost of revenue as a percentage of revenue	17.9%	17.1%	15.9%	+200 BP
SG&A expense	$53.5	$53.4	$50.6	+5.8%
Depreciation and amortization	$5.3	$5.8	$5.6	(5.3)%
Severance expense	$0.6	$0.9	–	$(0.6)
Other operating expense, net	$(2.8)	$(1.9)	$(1.3)	$(1.5)
(Loss) income from operations	$(1.4)	$(1.2)	0.2	$(1.6)
Adjusted EBITDA*	$7.3	$7.4	$7.1	+$0.2
Net (loss) income attributable to IDT	$(1.5)	$1.6	$(2.3)	+$0.8
Diluted (loss) earnings per share	$(0.06)	$0.06	$(0.10)	+$0.04
Non-GAAP net income (loss)*	$2.8	$4.1	$(0.5)	+$3.3
Non-GAAP earnings (loss) per share*	$0.10	$0.15	$(0.02)	+$0.12

*Throughout this release, Non-GAAP earnings (loss) per share, Adjusted EBITDA, and Non-GAAP net income (loss) for all periods presented 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.

Notes on Consolidated Results and Balance Sheet
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased to $2.2 million in 1Q20 from $2.3 million in 1Q19.

At October 31, 2019, IDT held $77.8 million in unrestricted cash, cash equivalents, debt securities and current equity investments. Current assets totaled $373.7 million and current liabilities totaled $396.4 million.

Net cash used in operating activities during 1Q20 was $5.0 million, including the impact of a $1.8 million increase in customer deposits at IDT’s Gibraltar-based bank, compared to net cash provided by operating activities of $8.2 million in the year ago quarter, including a $5.6 million increase in customer deposits at the bank. The year-over-year decrease in cash-flow from operations is mostly due to the timing of prepayments made to disbursement agents in the BOSS Revolution Money Transfer business.

Capital expenditures were $3.9 million and $4.5 million in 1Q20 and 1Q19, respectively.

RESULTS BY SEGMENT
(Results are for 1Q20 and are compared to 1Q19)

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.3% and 97.1% of IDT’s consolidated revenue in 1Q20 and 1Q19, respectively. The segment includes Core and Growth verticals:

Core includes IDT’s three largest communications and payments offerings by revenue: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the U.S., Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide, and Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to mobile accounts internationally and domestically. Core also includes smaller communications and payments offerings, many in harvest mode.

Growth comprises National Retail Solutions, which operates a POS, terminal-based network for independent retailers, BOSS Revolution Money Transfer, an international money remittance service for customers in the U.S., and BOSS Revolution Mobile, a mobile virtual network operator.

net2phone
IDT’s net2phone segment accounted for 3.7% and 2.9% of IDT’s consolidated revenue in 1Q20 and 1Q19, respectively. The segment comprises two verticals:

net2phone-UCaaS, a unified cloud communications service for businesses in North and South America and certain other international markets.

net2phone-Platform Services provides telephony services to cable operators and other businesses by leveraging a common technology platform.

Revenue in 1Q20 and comparative periods for all verticals and for the most significant core offerings is provided in the following chart:

Revenue by Segment and Vertical *(in millions)*	1Q20	4Q19	1Q19	1Q20-1Q19 change
TPS
Core	$317.8	$334.4	$345.8	(8.1%)
BOSS Revolution Calling	$116.2	$124.5	$123.5	(5.9%)
Carrier Services	$113.5	$123.1	$142.2	(20.2%)
Mobile Top-Up	$76.8	$74.8	$65.3	+17.6%
Other	$11.2	$11.9	$14.8	(23.8%)
Growth	$9.8	$8.9	$6.0	+63.1%
Total TPS	$327.6	$343.3	$351.8	(6.9%)
net2phone
net2phone-UCaaS	$7.2	$7.0	$4.8	+50.3%
net2phone-Platform Services	$5.4	$5.9	$5.7	(4.5%)
Total net2phone	$12.6	$12.9	$10.5	+20.6%

Segment level financial results are summarized in the following chart:

Results by Segment *(in millions)*	TPS			net2phone
Results by Segment *(in millions)*	1Q20	4Q19	1Q19	1Q20	4Q19	1Q19
Revenue	$327.6	$343.3	$351.8	$12.6	$12.9	$10.5
Direct cost of revenue	$276.5	$292.1	$301.7	$3.0	$3.2	$3.0
Revenue less direct cost of revenue	$51.2	$51.1	$50.2	$9.6	$9.6	$7.4
SG&A expense	$40.8	$41.7	$40.9	$10.4	$9.6	$7.4
Depreciation and amortization	$3.2	$4.2	$4.0	$2.1	$1.5	$1.5
Severance expense	$0.6	$0.9	–	–	–	–
Other operating expense, net	$(2.2)	$(2.6)	$(1.1)	$(0.4)	$(0.3)	–
Income (loss) from operations	$4.4	$1.7	$4.2	$(3.3)	($1.8)	($1.5)
Adjusted EBITDA	$10.3	$9.4	$9.3	$(0.8)	–	–

TPS Segment Takeaways:

BOSS Revolution Calling revenue decreased 5.9% to $116.2 million and Carrier Services revenue decreased 20.2% to $113.5 million, in line with expectations;
Mobile Top-Up revenue increased 17.6% to $76.8 million boosted by expanded sales of bundled offerings;
NRS revenue increased by 93.4% to $2.4 million led by increased sales of advertising capacity to digital-out-of-home advertisers, transaction data to data analyt
ics and consumer package goods marketers, and credit card processing services to retailers operating NRS terminals. NRS increased the number of active terminals in its POS network at October 31, 2019 to 8,200 from 5,900 a year earlier;
BOSS Revolution Money Transfer revenue increased 55.8% to $7.4 million with solid growth from both DTC and retail channels.

net2phone Segment Takeaways:

net2phone-UCaaS revenue increased 50.3% to $7.2 million led by growth in South American markets. The year-over-year increases include the impact of the acquisition of Versature, a Canadian UCaaS provider, during 1Q19. Exclusive of the Versature acquisition, net2phone-UCaaS revenue increased 34.9%.
net2phone-UCaaS subscription revenue for its cloud communications offering – exclusive of equipment sales and SIP-trunking offerings – increased 87.0% to $5.9 million inclusive of the Versature acquisition;
net2phone’s cloud communications offering served 112,000 seats at October 31st, compared to 68,000 a year earlier, including seats served by Versature.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “Investors & Media” section of the IDT Corporation website (http://ir.idt.net/) 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, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately three hours after the call concludes through December 12, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10137108. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

ABOUT IDT:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its Boss Revolution^®, net2phone^® and National Retail Solutions^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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.

IDT CORPORATION CONSOLIDATED BALANCE SHEETS

Assets	October 31, 2019	July 31, 2019
Current assets:	(Unaudited) (in thousands)

Cash and cash equivalents	$ 62,183	$ 80,168
Restricted cash and cash equivalents	190,218	177,031
Debt securities	9,894	2,534
Equity investments	5,710	5,688
Trade accounts receivable, net of allowance for doubtful accounts of $5,675 at October 31, 2019 and $5,444 at July 31, 2019	50,963	58,060
Prepaid expenses	27,809	20,276
Other current assets	26,964	24,704
Total current assets	373,741	368,461
Property, plant and equipment, net	32,874	34,355
Goodwill	11,214	11,209
Other intangibles, net	4,110	4,196
Equity investments	9,337	9,319
Operating lease right-of-use assets	11,597	–
Deferred income tax assets, net	4,110	4,589
Other assets	12,054	11,574
Total assets	$ 459,037	$ 443,703
Liabilities and equity
Current liabilities:
Trade accounts payable	$ 37,159	$ 37,077
Accrued expenses	121,058	127,834
Deferred revenue	40,739	42,479
Customer deposits	188,258	175,028
Other current liabilities	9,180	6,652

Total current liabilities	396,394	389,070
Operating lease liabilities	9,335	–
Other liabilities	977	1,076
Total liabilities	406,706	390,146
Commitments and contingencies
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 October 31, 2019 and July 31, 2019	33	33
Class B common stock, $.01 par value; authorized shares-200,000; 25,835 and 25,803 shares issued and 24,927 and 24,895 shares outstanding at October 31, 2019 and July 31, 2019, respectively	258	258
Additional paid-in capital	274,953	273,313
Treasury stock, at cost, consisting of 1,698 shares of Class A common stock and 908 shares of Class B common stock at October 31, 2019 and July 31, 2019	(51,739)	(51,739 )
Accumulated other comprehensive loss	(6,062)	(4,858)
Accumulated deficit	(162,276 )	(160,763 )
Total IDT Corporation stockholders’ equity	55,167	56,244
Noncontrolling interests	(2,836 )	(2,687)
Total equity	52,331	53,557
Total liabilities and equity	$ 459,037	$ 443,703

IDT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


	Three Months Ended October 31,
	2019	2018
	(in thousands, except per share data)
Revenues	$ 340,245	$ 362,316
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)	279,461	304,693
Selling, general and administrative (i)	53,480	50,552
Depreciation and amortization	5,295	5,594
Severance	626	–

Total costs and expenses	338,862	360,839
Other operating expense, net	(2,775)	(1,295)

(Loss) income from operations	(1,392)	182
Interest income, net	272	108
Other income (expense), net	234	(1,349)

Loss before income taxes	(886)	(1,059)
Provision for income taxes	(536)	(939)

Net loss	(1,422)	(1,998)
Net income attributable to noncontrolling interests	(91)	(301)

Net loss attributable to IDT Corporation	$ (1,513)	$ (2,299)


Basic and diluted loss per share attributable to IDT Corporation common stockholders	$ (0.06)	$ (0.10)


Weighted-average number of shares used in calculation of basic and diluted loss per share	26,279	23,831



(i) Stock-based compensation included in selling, general and administrative expenses	$ 1,364	$ 413

IDT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended October 31,
	2019	2018
	(in thousands)
Operating activities
Net loss	$ (1,422)	$ (1,998)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	5,295	5,594
Deferred income taxes	479	1,117
Provision for doubtful accounts receivable	549	447
Stock-based compensation	1,364	413
Other	(34)	46
Change in assets and liabilities:
Trade accounts receivable	7,975	97
Prepaid expenses, other current assets and other assets	(9,166)	(8,766)
Trade accounts payable, accrued expenses, other current liabilities and other liabilities	(10,012)	6,919
Customer depositsat IDT Financial Services Limited, our Gibraltar-based bank	1,793	5,567
Deferred revenue	(1,798)	(1,206)
Net cash (used in) provided by operating activities	(4,977)	8,230
Investing activities
Capital expenditures	(3,851)	(4,463)
Payment for acquisition, net of cash acquired	–	(5,453)
Purchases of debt securities and equity investments	(8,195)	–
Proceeds from maturities and sales of debt securities and sales of equity investments	782	3,372
Net cash used in investing activities	(11,264)	(6,544)
Financing activities
Distributions to noncontrolling interests	(240 )	(339)
Repayment of other liabilities	(19 )	(599)
Proceeds from exercise of stock options	276	–
Repurchases of Class B common stock	–	(3,854)
Net cash provided by (used in) financing activities	17	(4,792)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents	11,426	(4,590)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents	(4,798)	(7,696)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	257,199	203,197
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$ 252,401	$ 195,501

Reconciliation of Non-GAAP Financial Measures for the
First Quarter Fiscal 2020 and 2019

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 1Q20, 4Q19, and 1Q19, Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share, which are non-GAAP measures. Generally, a non-GAAP financial 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 Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income (loss) from operations, add depreciation and amortization, severance expense, and other operating expense, and deduct other operating gains.

IDT’s measure of non-GAAP net income (loss) starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net.

IDT’s measure of non-GAAP earnings (loss) per share is calculated by dividing non-GAAP net income (loss) by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2020 and fiscal 2019 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 (loss), 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. 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, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. Other operating expense, net includes accruals for non-income related taxes related to one of IDT’s foreign entities, legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint, and expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer. From time-to-time, IDT may incur costs related to non-routine tax and legal matters. However, these matters do not occur each quarter. IDT does not believe the gains or losses from these non-routine matters are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. As the other excluded items are not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.

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 net income (loss) and non-GAAP earnings (loss) per share 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 (loss), basic and diluted earnings (loss) per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share may not be comparable t
o similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 (loss) for IDT on a consolidated basis, (b) for non-GAAP net income (loss), net income (loss), and (c) for non-GAAP earnings (loss) per share, basic and diluted earnings (loss) per share.

IDT Corporation

Reconciliation of Adjusted EBITDA to Net (Loss) Income

(unaudited)

in millions

Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	Corporate
Three Months Ended October 31, 2019 (1Q20)
Adjusted EBITDA	$ 7.3	$ 10.3	$ (0.8)	$ (2.2)
Subtract:
Depreciation and amortization	5.3	3.2	2.1	–
Severance expense	0.6	0.6	–	–
Other operating expense, net	2.8	2.2	0.4	0.3
(Loss) income from operations	(1.4)	$ 4.4	$ (3.3)	$ (2.5)
Interest income, net	0.3
Other income, net	0.2
Loss before income taxes	(0.9)
Provision for income taxes	(0.5)
Net loss	(1.4)
Net income attributable to noncontrolling interests	(0.1)
Net loss attributable to IDT Corporation	$ (1.5)


	Total IDT Corporation	Telecom & Payment Services	net2phone	Corporate
Three Months Ended July 31, 2019 (4Q19)
Adjusted EBITDA	$ 7.4	$ 9.4	$ -	$ (2.1)
Subtract (Add):
Depreciation and amortization	5.8	4.2	1.5	–
Severance expense	0.9	0.9	–	–
Other operating expense (gains), net	1.9	2.6	0.3	(1.0)
(Loss) income from operations	(1.2)	$ 1.7	$ (1.8)	$ (1.1)
Interest income, net	0.3
Other income, net	1.2
Income before income taxes	0.3
Benefit from income taxes	0.6
Net income	0.9
Net income attributable to noncontrolling interests	0.7
Net income attributable to IDT Corporation	$ 1.6

IDT Corporation Reconciliation of Adjusted EBITDA to Net Loss (unaudited) in millions Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	Corporate
Three Months Ended October 31, 2018 (1Q19)
Adjusted EBITDA	$ 7.1	$ 9.3	$ -	$ (2.3)
Subtract:
Depreciation and amortization	5.6	4.0	1.5	–
Other operating expense	1.3	1.1	–	0.2
Income (loss) from operations	0.2	$ 4.2	$ (1.5)	$ (2.5)
Interest income, net	0.1
Other expense, net	(1.3)
Loss before income taxes	(1.1)
Provision for income taxes	(0.9)
Net loss	(2.0)
Net income attributable to noncontrolling interests	(0.3)
Net loss attributable to IDT Corporation	$ (2.3)

IDT Corporation Reconciliations of Net (Loss) Income to Non-GAAP Net Income (Loss) and Earnings (Loss) per share to Non- GAAP Earnings (Loss) per share (unaudited) in millions, except per share data Figures may not foot due to rounding to millions.

	1Q20	4Q19	1Q19

Net (loss) income	$ (1.4)	$ 0.9	$ (2.0)
Adjustments (add) subtract:
Stock-based compensation	(1.3)	(1.0)	(0.4)
Severance exp ense	(0.6)	(0.9)	–
Other operating expense, net	(2.8)	(1.9)	(1.3)
Total adjustments	(4.7)	(3.8)	(1.7)
Income tax effect of total adjustments	0.5	0.6	0.2
	4.2	3.2	1.5
Non-GAAP net income (loss)	$ 2.8	$ 4.1	$ (0.5)

Earnings (loss) per share:
Basic	$ (0.06)	$ 0.06	$ (0.10)
Total adjustments	0.17	0.09	0.08
Non-GAAP – basic	$ 0.11	$ 0.15	$ (0.02)

Weighted-average number of shares used in calculation of basic earnings (loss) per share	26.3	26.3	23.8

Diluted	$ (0.06)	$ 0.06	$ (0.10)
Total adjustments	0.16	0.09	0.08
Non-GAAP – diluted	$ 0.10	$ 0.15	$ (0.02)

Weighted-average number of shares used in calculation of diluted earnings (loss) per share	26.5	26.3	23.8

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SOURCE IDT Corporation

IDT Corporation to Report First Quarter Fiscal Year 2020 Results

NEWARK, N.J., Nov. 20, 2019 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for the first quarter of its fiscal year 2020 (the three-months ended October 31, 2019) on Thursday, December 5, 2019.

IDT’s earnings release will be issued and posted on the IDT investor relations website (http://ir.idt.net/) at approximately 4:30 PM Eastern.

IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately three hours after the call concludes through December 12, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10137108. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

About IDT Corporation:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls.

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SOURCE IDT Corporation

NRS Promotes Retail Executive Vanessa Strain to Vice President of Data Sales

NEWARK, N.J., Nov. 11, 2019 – National Retail Solutions (NRS), operator of a leading point-of-sale network for independent retailers, today announced the promotion of Vanessa Strain to Vice President of Data Sales.

“Our nationwide network of terminals operated by independent retailers around the country generates rich data flows for insight in the dynamic independent retailer market. Vanessa has proven an invaluable leader to NRS as we continue to drive data-set based value to consumer package goods clients and safeguard the personal data of customers,” said Eli Korn, COO of NRS.

Ms. Strain, who formerly served as NRS’ Director of Data Sales, has over 30 years of experience in the Consumer Goods Industry on both the manufacturer and supplier sides. Prior to joining NRS, she served at Nielsen as Vice President of Multicultural and E-Commerce Growth and Strategy. During her career, Ms. Strain led client relationships with several Fortune 500 companies.

“Vanessa’s superior analytical and leadership skills, her deep understanding of category management and her ability to develop and execute on strategic priorities have proven invaluable to NRS. This new position is a great fit for her and for our company,” added Elie Y. Katz, NRS’ CEO.

About National Retail Solutions (NRS):

NRS operates a point-of-sale (POS) terminal-based platform for independent retailers and bodega owners nationwide. The platform provides a robust portfolio of tools to help these retailers compete more effectively, including inventory tracking, store statistics, user management, integration with Boss Revolution® communication and payment services, and integration with the BR Club loyalty program. Consumer packaged goods (CPG) suppliers are able to leverage the NRS platform to provision promotions, coupons and special offers to independent retailers and their predominantly urban customer bases nationwide. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

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SOURCE National Retail Solutions

IDT Corporation Reports Fourth Quarter and Full Fiscal Year 2019 Results

NEWARK, N.J., Oct. 10, 2019 — IDT Corporation (NYSE: IDT) reported EPS of $0.06 and Non-GAAP EPS* of $0.15 on revenue of $356.1 million for the fourth quarter of FY 2019, the three months ended July 31, 2019. For the full fiscal year 2019, IDT reported EPS of $0.01 and Non-GAAP EPS of $0.38 on revenue of $1,409.2 million.

4Q19 & FISCAL YEAR OPERATIONAL HIGHLIGHTS
(4Q19 results are compared to 4Q18. FY 2019 results are compared to FY 2018)

net2phone’s Unified Communications as a Service (UCaaS) attained the 100,000-seat milestone. Growth was particularly strong in Brazil and other South American markets. net2phone-UCaaS revenue increased 78% to $7.0 million in 4Q19, and for FY 2019 increased 84% to $24.5 million. The year-over-year increases include the impact of the acquisition of Versature, a Canadian UCaaS provider, in 1Q19;
National Retail Solutions (NRS) operated approximately 7,800 active terminals in its retailer point-of-sale (POS) network at July 31, 2019 compared to 5,200 a year earlier. Revenue increased 72% to $1.9 million in 4Q19 driven in part by relatively new offerings to digital out-of-home advertisers and data analytics providers. FY 2019 revenue increased 56% to $6.2 million;
BOSS Revolution international money transfer processed over one million transactions in 4Q19. Money transfer revenue increased 42% to $6.9 million in 4Q19. Revenue from the direct-to-consumer (D2C) channel increased 88% to $4.4 million. FY 2019 revenue increased 33% to $23.1 million powered by a 113% increase in D2C channel revenue which increased to $14.4 million.

REMARKS BY SHMUEL JONAS, CEO
“Our growth initiatives – net2phone’s UCaaS offerings, National Retail Solutions and our BOSS Revolution international money transfer service – continued their rapid expansions in the fourth quarter.

“As expected, revenue from our core Carrier Services and BOSS Revolution Calling offerings continued to decrease as a result of industry-wide headwinds in the paid minute communications market, but the company-wide margin impact was dampened by increased contributions from our growth initiatives. Consolidated revenue less direct cost of revenue has increased sequentially in each of the last three quarters.

“Consolidated Adjusted EBITDA* was $7.4 million in the fourth quarter. In the year ago quarter, consolidated Adjusted EBITDA was $16.8 million — a significant outlier to the upside as a result of changes to estimates for recognizing breakage revenue. For the full fiscal year, consolidated Adjusted EBITDA was $30.8 million compared to $38.2 million in fiscal 2018.

“Overall, the fourth quarter marked a consistent end to a solid year, and I want to thank everyone in our company for all their hard work. As fiscal 2020 gets underway, we are working from a strong position to vigorously pursue our exciting growth opportunities.”

4Q19 AND FISCAL YEAR 2019 CONSOLIDATED RESULTS

*Results* *(in millions, except EPS)*	4Q19	3Q19	4Q18	4Q19 – 4Q18 Change (%/$)	Fiscal Year 2019	Fiscal Year 2018	FY2019 – FY2018 Change (%/$)
Revenue	$356.1	$341.3	$392.6	(9.3%)	$1,409.2	$1,547.5	(8.9%)
Direct cost of revenue	$295.4	$282.8	$325.1	(9.2%)	$1,174.0	$1,306.0	(10.1%)
Revenue less direct cost of revenue	$60.8	$58.5	$67.5	(10.0%)	$235.2	$241.5	(2.6%)
Revenue less direct cost of revenue as a percentage of revenue	17.1%	17.1%	17.2%	(0.1%)	16.7%	15.6%	+1.1%
SG&A expense	$53.4	$49.5	$50.7	+5.3%	$204.4	$203.3	+0.5%
Depreciation and amortization	$5.8	$5.5	$5.6	+2.8%	$22.6	$22.8	(0.7%)
Severance expense	$0.9	$0.6	$0.3	+162.7%	$1.4	$4.6	(68.9%)
(Loss) income from operations	$(1.2)	$0.4	$10.5	($11.7)	$(1.0)	$8.4	($9.4)
Adjusted EBITDA*	$7.4	$8.9	$16.8	($9.4)	$30.8	$38.2	($7.4)
Net income attributable to IDT	$1.6	$2.2	$8.2	($6.6)	$0.1	$4.2	($4.1)
Diluted earnings per share	$0.06	$0.08	$0.33	($0.27)	$0.01	$0.17	($0.16)
Non-GAAP net income*	$4.1	$5.2	$9.8	($5.7)	$9.7	$12.5	($2.8)
Non-GAAP earnings per share*	$0.15	$0.20	$0.40	($0.25)	$0.38	$0.51	($0.13)

*Throughout this release, Non-GAAP earnings per share, Adjusted EBITDA, and Non-GAAP net income for all periods presented 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.

Notes on Consolidated Results and Balance Sheet
Income from operations and net income include accruals of $2.6 million, $2.3 million and $8.0 million for 4Q19, 3Q19 and FY 2019, respectively, for non-income related taxes pertaining to one of our foreign entities in our Telecom & Payment Services (TPS) segment. Also within TPS, 4Q18 revenue increased $9.5 million as a result of changes to estimates for recognizing certain breakage revenue, and direct cost increased by $4.5 million as a result of a change in accrued regulatory fee expense. Consolidated and TPS revenue less direct cost increased by the net of the changes, $5.0 million.

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased to $2.1 million in 4Q19 from $2.6 million in 4Q18, and decreased to $9.2 million in FY 2019 from $9.8 million in FY 2018.

At July 31, 2019, IDT held $88.4 million in unrestricted cash, cash equivalents, debt securities and current equity investments. Current assets totaled $368.5 million and current liabilities totaled $389.1 million. As of 3Q19, IDT no longer classifies its Gibraltar-based bank’s assets and liabilities as “held for sale” in the consolidated balance sheets for all periods presented.

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows and has conformed prior period results.

Net cash provided by operating activities during 4Q19 was $37.8 million, including a $26.0 million increase in customer deposits at IDT’s Gibraltar-based bank, compared to $19.3 million in the year ago quarter, including a $3.8 million reduction in customer deposits. In the corresponding periods, capital expenditures were $5.0 million and $4.6 million, respectively. FY 2019 net cash provided by operating activities was $85.1 million including a $59.1 million increase in customer deposits at IDT’s Gibraltar-based bank, compared to $20.4 million in FY 2018 including a $14.7 million increase in customer deposits. In the corresponding periods, capital expenditures were $18.7 million and $20.6 million, respectively.

4Q19 AND FISCAL YEAR 2019 RESULTS BY SEGMENT
(4Q19 results are compared to 4Q18 and FY 2019 results are compared to FY 2018).

Beginning with fiscal year 2019, IDT has modified the way it reports its business verticals within its two reporting segments to align more closely with IDT’s business strategy and operational structure, as follows:

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.4% and 97.5% of IDT’s consolidated revenue in 4Q19 and 4Q18, respectively, and 96.6% and 97.7% of consolidated revenue in FY 2019 and FY 2018, respectively. The segment includes Core and Growth verticals:

Core includes IDT’s three largest communications and payments offerings from both a revenue and cash generation perspective: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the US; Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide, and; Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to mobile phones overseas and within the US. TPS Core also includes smaller communications and payments offerings – some of which are in harvest mode.

Growth is comprised of NRS’ retailer POS terminal-based services, the BOSS Revolution international money transfer service, and the BOSS Revolution Mobile service.

net2phone
IDT’s net2phone segment accounted for 3.6% and 2.5% of IDT’s consolidated revenue in 4Q19 and 4Q18, respectively, and 3.4% and 2.3% of FY 2019 and FY 2018 consolidated revenue, respectively. The segment comprises two verticals:

net2phone-UCaaS comprises unified cloud communications in the US and certain international markets and SIP-trunking offerings in South America.

net2phone-Platform Services includes other offerings leveraging a common technology platform to provide cable telephony and other voice services.

Revenue in 4Q19, fiscal year 2019 and comparative periods for all verticals and the most significant core offerings is provided in the following chart:

Revenue by Segment and Vertical *(in millions)*	4Q19	3Q19	4Q18	4Q19- 4Q18 % change	FY 2019	FY 2018	FY 2019-FY 2018 % change
TPS
Core	$334.4	$321.2	$376.9	(11.3%)	$1,332.5	$1,490.2	(10.6%)
BOSS Revolution Calling	$124.5	$120.5	$136.3	(8.6%)	$490.7	$529.7	(7.4%)
Carrier Services	$123.1	$121.0	$156.9	(21.5%)	$514.2	$639.0	(19.5%)
Mobile Top-Up	$74.8	$67.6	$67.4	+11.0%	$272.0	$253.6	+7.3%
Other	$11.9	$12.2	$16.4	(27.6%)	$55.6	$67.9	(18.1%)
Growth	$8.9	$7.7	$6.0	+48.0%	$29.4	$21.3	+38.1%
Total TPS	$343.3	$328.8	$383.0	(10.4%)	$1,361.9	$1,511.5	(9.9%)
net2phone
net2phone-UCaaS	$7.0	$6.7	$3.9	+77.6%	$24.5	$13.3	+84.4%
net2phone-Platform Services	$5.9	$5.8	$5.7	+2.0%	$22.8	$21.6	+5.6%
Total net2phone	$12.9	$12.4	$9.7	+32.8%	$47.3	$34.9	+35.6%

Segment level financial results are summarized in the following chart:

Results by Segment *(in millions)*	TPS				net2phone
Results by Segment *(in millions)*	4Q19	4Q18	FY2019	FY2018	4Q19	4Q18	FY2019	FY2018
Revenue	$343.3	$383.0	$1,361.9	$1,511.5	$12.9	$9.7	$47.3	$34.9
Direct cost of revenue	$292.1	$322.1	$1,161.2	$1,294.8	$3.2	$3.1	$12.9	$11.3
Revenue less direct cost of revenue	$51.1	$60.9	$200.7	$216.7	$9.6	$6.6	$34.4	$23.6
SG&A expense	$41.7	$42.7	$161.1	$170.1	$9.6	$5.4	$34.1	$20.9
Depreciation and amortization	$4.2	$4.0	$16.1	$16.3	$1.5	$1.6	$6.5	$5.3
Severance expense	$0.9	$0.3	$1.4	$4.5	–	–	–	–
Income (loss) from operations	$1.7	$13.8	$14.3	$25.8	($1.8)	($0.4)	($6.5)	($2.7)
Adjusted EBITDA	$9.4	$18.2	$39.6	$46.7	–	$1.2	$0.3	$2.7

TPS Segment Takeaways – Core:

4Q19 revenue from core offerings decreased $42.5 million (11.3%) to $334.4 million reflecting continuing headwinds in the paid minute communications market globally;
FY 2019 revenue from core offerings decreased $157.7 million (10.6%) to $1,332.5 million. From a margin perspective, the impact of the revenue decline was partially offset by an increase in the percentage of margin contribution generated by Carrier Services revenue and by the mix increase in the relatively higher margin BOSS Revolution Calling revenue as a component of all Core revenue.

TPS Segment Takeaways – Growth:

NRS 4Q19 revenue increased by 71.9% compared to the year ago quarter to $1.9 million, while FY 2019 revenue rose 55.9% to $6.2 million. The increases were driven by expansion of NRS’ POS network to additional retailers and emerging NRS offerings to other participants, including sales of advertising capacity to digital-out-of-home advertisers and transaction data to data analytics and consumer package goods marketers;
BOSS Revolution money transfer revenue increased 42.2% compared to the year ago quarter to $6.9 million led by an 87.6% increase in sales through D2C channels. FY 2019 money transfer revenue increased 33.3% year-over-year to $23.1 million. D2C sales contributed over 60% of money transfer revenue in FY 2019;
IDT is optimizing its BOSS Revolution mobile offering including enhanced marketing, training of IDT’s direct to retailer sales force and improving the user experience.

net2phone Segment Takeaways:

net2phone-UCaaS revenue increased 77.5% compared to the year ago quarter to $7.0 million led by growth in South American markets and reflecting the acquisition of Canadian provider Versature in 1Q19. Revenue totaled $24.5 million in FY 2019 compared to $13.3 million in FY 2018;
net2phone-UCaaS served 100,000 seats at July 31st, compared to 89,000 at April 30th and 42,000 at July 31st of 2018.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “Investors & Media” section of the IDT Corporation website (http://idt.net/ir) 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, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately two hours after the call concludes through October 17, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10134470. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

ABOUT IDT:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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.

CONSOLIDATED BALANCE SHEETS

July 31 (in thousands, except per share data)	2019	2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$ 80,168	$ 73,981
Restricted cash and cash equivalents	177,031	129,216
Debt securities	2,534	5,612
Equity investments	5,688	360
Trade accounts receivable, net of allowance for doubtful accounts of $5,444 and $5,358 at July 31, 2019 and 2018, respectively	58,060	70,746
Prepaid expenses	20,276	20,566
Other current assets	24,704	28,400
TOTAL CURRENT ASSETS	368,461	328,881
Property, plant and equipment, net	34,355	36,080
Goodwill	11,209	11,315
Other intangibles, net	4,196	496
Equity investments	9,319	6,633
Deferred income tax assets, net	4,589	5,668
Other assets	11,574	10,524
TOTAL ASSETS	$ 443,703	$ 399,597
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade accounts payable	$ 37,077	$ 45,900
Accrued expenses	127,834	130,225
Deferred revenue	42,479	55,015
Customer deposits	175,028	127,571
Other current liabilities	6,652	8,273
TOTAL CURRENT LIABILITIES	389,070	366,984
Other liabilities	1,076	1,310
TOTAL LIABILITIES	390,146	368,294
Commitments and contingencies
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 July 31, 2019 and 2018	33	33
Class B common stock, $.01 par value; authorized shares-200,000; 25,803 and 25,594 shares issued and 24,895 and 22,872 shares outstanding at July 31, 2019 and 2018, respectively	258	256
Additional paid-in capital	273,313	294,047
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 908 and 2,722 shares of Class B common stock at July 31, 2019 and 2018, respectively	(51,739)	(85,597)
Accumulated other comprehensive loss	(4,858)	(4,972)
Accumulated deficit	(160,763)	(173,103)
Total IDT Corporation stockholders’ equity	56,244	30,664
Noncontrolling interests	(2,687)	639
TOTAL EQUITY	53,557	31,303
TOTAL LIABILITIES AND EQUITY	$ 443,703	$ 399,597

CONSOLIDATED STATEMENTS OF INCOME

Year ended July 31 (in thousands, except per share data)	2019	2018	2017
REVENUES	$ 1,409,172	$ 1,547,495	$ 1,501,729
COSTS AND EXPENSES:
Direct cost of revenues (exclusive of depreciation and amortization)	1,174,015	1,306,037	1,275,708
Selling, general and administrative (i)	204,366	203,251	188,293
Depreciation and amortization	22,632	22,801	21,704
Severance	1,438	4,630	–
TOTAL COSTS AND EXPENSES	1,402,451	1,536,719	1,485,705
Other operating expense, net	(7,726)	(2,398)	(10,475)
(Loss) income from operations	(1,005)	8,378	5,549
Interest income, net	776	1,071	1,254
Other income (expense), net	682	(1,348)	817
Income before income taxes	453	8,101	7,620
(Provision for) benefit from income taxes	(123)	(2,902)	2,021
NET INCOME	330	5,199	9,641
Net income attributable to noncontrolling interests	(196)	(991)	(1,464)
NET INCOME ATTRIBUTABLE TO IDT CORPORATION	$ 134	$ 4,208	$ 8,177

Earnings per share attributable to IDT Corporation common stockholders:
Basic	$ 0.01	$ 0.17	$ 0.35
Diluted	$ 0.01	$ 0.17	$ 0.35

Weighted-average number of shares used in calculation of earnings per share:
Basic	25,293	24,655	23,182
Diluted	25,308	24,718	23,309

(i) Stock-based compensation included in selling, general and administrative expenses	$ 2,236	$ 3,581	$ 3,740

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended July 31 (in thousands)	2019	2018	2017
OPERATING ACTIVITIES
Net income	$ 330	$ 5,199	$ 9,641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	22,632	22,801	21,704
Deferred income taxes	285	6,174	(2,329)
Provision for doubtful accounts receivable	2,028	2,199	686
Stock-based compensation	2,236	3,581	3,740
Other	(1,765)	7	(679)
Change in assets and liabilities:
Trade accounts receivable	7,594	(6,668)	(17,972)
Prepaid expenses, other current assets, and other assets	4,119	(18,889)	(4,856)
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities	(7,546)	12,769	16,722
Customer deposits at IDT Financial Services Limited, our Gibraltar-based bank	59,077	14,660	18,980
Deferred revenue	(3,853)	(21,439)	(9,543)
Net cash provided by operating activities	85,137	20,394	36,094
INVESTING ACTIVITIES
Capital expenditures	(18,681)	(20,567)	(22,949)
Proceeds from sale of interest in Straight Path IP Group Holding, Inc	–	6,000	–
Purchase of IP interest from Straight Path Communications Inc	–	(6,000)	–
Payments for acquisitions, net of cash acquired	(5,526)	–	(1,827)
Cash used for purchase of investments	(1,000)	(53)	(9,438)
Proceeds from redemptions of investments	1,000	–	15
Purchases of marketable securities	(7,276)	(22,523)	(53,402)
Proceeds from maturities and sales of marketable securities	5,312	41,502	47,99 6
Net cash used in investing activities	(26,171)	(1,641)	(39,605)
FINANCING ACTIVITIES
Dividends paid	–	(13,941)	(17,874)
Distributions to noncontrolling interests	(1,520)	(1,040)	(1,482)
Repayment of other liabilities acquired	(654)	–	–
Proceeds from sales of Class B common stock to Howard S. Jonas	13,272	–	24,930
Proceeds from sale of interest and rights in Rafael Pharmaceuticals, Inc. to Howard S. Jonas	–	–	1,000
Proceeds from sale of member interests in CS Pharma Holdings, LLC	–	–	1,250
Cash of Rafael deconsolidated as a result of spin-off	–	(9,287)	–
Proceeds from exercise of stock options	–	–	836
Proceeds from borrowings under revolving credit facility	3,000	22,320	–
Repayments of borrowings under revolving credit facility	(3,000)	(22,320)	–
Repurchases of Class B common stock	(3,882)	(2,293)	(1,838)
Net cash provided by (used in) financing activities	7,216	(26,561)	6,822
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents	(12,180)	(957)	293
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents	54,002	(8,765)	3,604
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year	203,197	211,962	208,358
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$ 257,199	$ 203,197	$ 211,962
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest	$ 186	$ 94	$ 288
span class="prnews_span">Cash payments made for income taxes	$ 46	$ 192	$ 576
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES
Howard S. Jonas’s advance payment used for sale of Class B common stock	$ 1,500	$ –	$ –
Net assets excluding cash and cash equivalents of Rafael deconsolidated as a result of spin-off	$ –	$ (105,632)	$ –
Reclassification of liability for member interests in CS Pharma Holdings, LLC	$ –	$ –	$ 8,750

Reconciliation of Non-GAAP Financial Measures for the
Fourth Quarter and Full Fiscal Years 2019 and 2018

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 4Q19, 3Q19, 4Q18 and the full fiscal years 2019 and 2018, Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, which are non-GAAP measures. Generally, a non-GAAP financial 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 Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income from operations, add depreciation and amortization, severance expense, and other operating expense, and deduct other gains, net.

IDT’s measure of non-GAAP net income starts with net income in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net, and subtracts the income tax benefit from The Tax Cuts and Jobs Act.

IDT’s measure of non-GAAP earnings per share is calculated by dividing non-GAAP net income by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2019 and fiscal 2018 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share measures 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, non-GAAP net income and non-GAAP earnings per share 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 at this time.

Management refers to Adjusted EBITDA, as well as the GAAP measures (loss) income 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 constructed 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, non-GAAP net income and non-GAAP earnings per share. 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, net, which is a component of (loss) income from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. In 4Q19, 3Q19 and fiscal 2019, other operating expense, net included an accrual for non-income related taxes related to one of our foreign entities. In fiscal 2019 and fiscal 2018, other operating expense, net also included legal fees net of insurance proceeds related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint. In addition, in 2Q19, other operating expense, net included a gain on the sale of a calling card business in Asia. From time-to-time, IDT may incur costs related to non-routine tax, legal and regulatory matters or disposal of certain assets. However, these matters and disposals do not occur each quarter. IDT does not believe the gains or losses from these non-routine matters or asset sales are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. As the other excluded items are not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.

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 net income and non-GAAP earnings per share 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 co
ntinue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

In 2Q18, IDT recorded an income tax benefit of $3.3 million for its anticipated AMT credit refund due to The Tax Cuts and Jobs Act enacted in December 2017. This income tax benefit is excluded from IDT’s calculation of non-GAAP net income and non-GAAP earnings per share because it was not directly related to the results of IDT’s core operations.

Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share 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, non-GAAP net income and non-GAAP earnings per share may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (loss) income from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, (b) for non-GAAP net income, net income, and (c) for non-GAAP earnings per share, basic and diluted earnings per share.

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended July 31, 2019 (4Q19)
Adjusted EBITDA	$ 7.4	$ 9.4	$ –	$ –	$ (2.1)
Subtract (Add):
Depreciation and amortization	5.8	4.2	1.5	–	–
Severance expense	0.9	0.9	–	–	–
Other operating expense (gains), net	1.9	2.6	0.3	–	(1.0)
(Loss) income from operations	(1.2)	$ 1.7	$ (1.8)	$ –	$ (1.1)
Interest income, net	0.3
Other income, net	1.2
Income before income taxes	0.3
Benefit from income taxes	0.6
Net income	0.9
Net loss attributable to noncontrolling interests	0.7
Net income attributable to IDT Corporation	$ 1.6


	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended April 30, 2019 (3Q19)
Adjusted EBITDA	$ 8.9	$ 11.3	$ 0.1	$ –	$ (2.4)
Subtract:
Depreciation and amortization	5.5	4.2	1.4	–	–
Severance expense	0.6	0.6	–	–	–
Other operating expense	2.4	2.3	–	–	0.1
Income (loss) from operations	0.4	$ 4.2	$ (1.3)	$ –	$ (2.5)
Interest income, net	0.2
Other income, net	0.4
Income before income taxes	1.0
Benefit from income taxes	1.5
Net income	2.5
Net income attributable to noncontrolling interests	(0.3)
Net income attributable to IDT Corporation	$ 2.2

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation		Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended July 31, 2018 (4Q18)
Adjusted EBITDA	$ 16.8		$ 18.2	$ 1.2	$ –	$ (2.6)
Subtract:
Depreciation and amortization	5.6	br />	4.0	1.6	–	–
Severance expense	0.3		0.3	–	–	–
Other operating expense	0.4		–	0.1	–	0.3
Income (loss) from operations	10.5		$ 13.8	$ (0.4)	$ –	$ (2.9)
Interest income, net	0.2
Other expense, net	(0.2)
Income before income taxes	10.5
Provision for income taxes	(2.0)
Net income	8.5
Net income attributable to noncontrolling interests	(0.3)
Net income attributable to IDT Corporation	$ 8.2

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Year Ended July 31, 2019 (FY 2019)
Adjusted EBITDA	$ 30.8	$ 39.6	$ 0.3	$ –	$ (9.2)
Subtract (Add):
Depreciation and amortization	22.6	16.1	6.5	–	–
Severance expense	1.4	1.4	–	–	–
Other operating expense (gains), net	7.7	7.8	0.3	–	(0.3)
(Loss) income from operations	(1.0)	$ 14.3	$ (6.5)	$ –	$ (8.9)
Interest income, net	0.8
Other income, net	0.7
Income before income taxes	0.5
Provision for income taxes	(0.1)
Net income	0.3
Net income attributable to noncontrolling interests	(0.2)
Net income attributable to IDT Corporation	$ 0.1


	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Year Ended July 31, 2018 (FY 2018)
Adjusted EBITDA	$ 38.2	$ 46.7	$ 2.7	$ (1.4)	$ (9.8)
Subtract:
Depreciation and amortization	22.8	16.3	5.3	1.2	–
Severance expense	4.6	4.5	–	–	0.1
Other operating expense	2.4	–	0.1	–	2.3
Income (loss) from operations	8.4	$ 25.8	$ (2.7)	$ (2.6)	$ (12.2)
Interest income, net	1.1
Other expense, net	(1.3)
Income before income taxes	8.1
Provision for income taxes	(2.9)
Net income	5.2
Net income attributable to noncontrolling interests	(1.0)
Net income attributable to IDT Corporation	$ 4.2

IDT Corporation
Reconciliations of Net Income to Non-GAAP Net Income and Earnings per share t o Non-GAAP Earnings per share
(unaudited)
in millions, except per share data
Figures may not foot due to rounding to millions.

	4Q19	3Q19	4Q18	FY 2019	FY 2018

Net income	$ 0.9	$ 2.5	$ 8.5	$ 0.3	$ 5.2
Adjustments (add) subtract:
Stock-based compensation	(1.0)	(0.3)	(0.7)	(2.2)	(3.6)
Severance expense	(0.9)	(0.6)	(0.3)	(1.4)	(4.6)
Other operating expense, net	(1.9)	(2.4)	(0.4)	(7.7)	(2.4)
Income tax benefit	–	–	–	–	3.3
Total adjustments	(3.8)	(3.3)	(1.5)	(11.4)	(7.3)
Income tax effect of total adjustments	0.6	0.6	0.2	2.0	–
	3.2	2.7	1.3	9.4	7.3
Non-GAAP net income	$ 4.1	$ 5.2	$ 9.8	$ 9.7	$ 12.5

Earnings per share:
Basic	$ 0.06	$ 0.08	$ 0.33	$ 0.01	$ 0.17
Total adjustments	0.09	0.12	0.07	0.37	0.34
Non-GAAP – basic	$ 0.15	$ 0.20	$ 0.40	$ 0.38	$ 0.51

Weighted-average number of shares used in calculation of basic earnings per share	26.3	26.3	24.7	25.3	24.7

Diluted	$ 0.06	$ 0.08	$ 0.33	$ 0.01	$ 0.17
Total adjustments	0.09	0.12	0.07	0.37	0.34
Non-GAAP – diluted	$ 0.15	$ 0.20	$ 0.40	$ 0.38	$ 0.51

Weighted-average number of shares used in calculation of diluted earnings per share	26.3	26.3	24.7	25.3	24.7

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SOURCE IDT Corporation

IDT Corporation Reschedules Report of Fourth Quarter and Full Fiscal Year 2019 Results

NEWARK, N.J., Oct. 3, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has rescheduled the report of its financial and operational results for the fourth quarter and full fiscal year 2019 for Thursday, October 10, 2019 to provide the Company additional time to finalize its financial statements. The report was initially scheduled for today after market close.

IDT’s earnings release will be issued and posted on the IDT investor relations website (http://ir.idt.net/) at approximately 4:30 PM Eastern on October 10^th.

IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately two hours after the call concludes through October 17, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10134470. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

About IDT Corporation:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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SOURCE IDT Corporation

IDT Corporation to Report Fourth Quarter and Full Fiscal Year 2019 Results

NEWARK, N.J., Sept. 25, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for its fourth quarter and full fiscal year 2019 (the three and twelve-month periods ended July 31, 2019) on Thursday, October 3, 2019.

IDT’s earnings release will be issued and posted on the IDT investor relations website (http://ir.idt.net/) at approximately 4:30 PM Eastern.

IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call will be available approximately two hours after the call concludes through October 10, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10134470. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

About IDT Corporation:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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SOURCE IDT Corporation

Consumer Data Insights Executive Suzy Silliman Joins NRS

NEWARK, N.J., Sept. 18, 2019 — National Retail Solutions (NRS), operator of a leading point-of-sale networks for independent retailers and pioneers of data insights in the independent retail space, today announced the appointment of Suzy Silliman as NRS' Senior Vice President of Data Strategy and Sales.

“We are delighted to welcome Suzy Silliman to NRS. Her deep industry expertise and proven leadership capabilities complement our position as a leading provider of data and analytics from independent retailers,” said Eli Korn, COO of NRS. “At NRS, Suzy will focus on customer awareness while developing and diversifying dataset-derived revenues from our nationwide point-of-sale (POS) platform. Our platform is comprised of over 8,000 terminals operated by independently-owned urban outlets frequented by diverse, multicultural shopper bases.”

Ms. Silliman is a highly regarded, 30-year veteran of demand data and analytics within the consumer packaged goods industry. She joins NRS after holding senior leadership positions for over two decades at Management Science Associates, Inc (MSA). Most recently, she served as Managing Director and Senior Vice President of its largest division, Information Management Solutions (IMS) where she oversaw strategy through execution of their Consumer Goods demand-chain portfolio and managed a team of over 200 people.

Elie Y. Katz, CEO of NRS, commented, “We are very pleased that Suzy Silliman has joined the NRS team. Suzy understands the depth and quality of the NRS datasets, and will work to ensure that we maximize its value by deriving and delivering actionable insights to support the trading partners throughout multi-cultural retail markets.”

About National Retail Solutions (NRS):

NRS operates a point-of-sale (POS) terminal-based platform for independent retailers and bodega owners nationwide. The platform provides a robust portfolio of tools to help these retailers compete more effectively, including inventory tracking, store statistics, user management, integration with Boss Revolution® communication and payment services, and integration with the BR Club loyalty program. Consumer packaged goods (CPG) suppliers are able to leverage the NRS platform to provision promotions, coupons and special offers to independent retailers and their predominantly urban customer bases nationwide. NRS is a subsidiary of IDT Corporation (NYSE: IDT).

IDT Corporation Reports Third Quarter Fiscal Year 2019 Results

NEWARK, N.J., June 5, 2019 – IDT Corporation (NYSE: IDT) reported EPS of $0.15 and Non-GAAP EPS* of $0.20 on revenue of $341.3 million for the third quarter of FY 2019, the three months ended April 30, 2019.

3Q19 HIGHLIGHTS
(3Q19 results are compared to 3Q18)

Consolidated Results

Revenue decreased to $341.3 million from $365.4 million;
Revenue less direct cost of revenue increased to $58.5 million from $58.2 million. Increased margin contributions from IDT’s growth initiatives more than offset the margin impact of decreased revenue from IDT’s core offerings;
Income from operations increased to $2.7 million from a loss from operations of $1.7 million;
Adjusted EBITDA* increased to $8.9 million from $8.1 million;
EPS increased to $0.15 from a loss per share of $0.14;
Non-GAAP EPS increased to $0.20 from $0.07.

Growth Initiatives

net2phone’s unified communications as a service (UCaaS) revenue increased 80% to $6.7 million including the impact of the acquisition of Versature, a Canadian UCaaS provider, in 1Q19;
National Retail Solutions (NRS) revenue increased 32% to $1.5 million. NRS operated approximately 7,200 active terminals at April 30, 2019 compared to roughly 4,600 a year earlier;
BOSS Revolution international money transfer revenue increased 34% to $6.1 million. Revenue from its direct-to-consumer channel increased 98% to $3.9 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

“IDT’s third quarter results were consistent with recent trends. While our revenue was down substantially, we were able to maintain gross profit while continuing to invest in our growth initiatives.

“Adjusted EBITDA increased 10% year over year to $8.9 million in the third quarter, and income from operations increased to $2.7 million from a loss from operations of $1.7 million in the year ago quarter.

“Our growth initiatives continued to perform well. Net2phone’s unified communications business generated $6.7 million in revenue this quarter compared to $3.7 million a year ago. As of April 30th, net2phone served 89,000 seats. National Retail Solutions revenue increased 32% year over year to $1.5 million, and our POS network now serves over 7000 independent retailers around the country. BOSS Revolution money transfer revenue increased 34% year over year to $6.1 million. Direct-to-consumer revenue increased 98% year over year and we are now executing well over 300,000 transactions per month from all channels. Our MVNO continues to emphasize online acquisition.

“Overall, we head into the fourth quarter in a strong position. We still face challenges on multiple fronts, but our team deserves great credit for the considerable progress we have made diversifying our sources of revenue and margin.”

3Q19 CONSOLIDATED RESULTS

*Results* *(in millions, except EPS)*	3Q19	2Q19	3Q18	3Q19 – 3Q18 Change (%/$)
Revenue	$341.3	$349.5	$365.4	(6.6)%
Direct cost of revenue	$282.8	$291.2	$307.2	(7.9)%
Revenue less direct cost of revenue	$58.5	$58.3	$58.2	+0.4%
Direct cost of revenue as a percentage of revenue	82.9%	83.3%	84.1%	(120) BP
SG&A expense	$49.5	$50.9	$50.1	(1.2)%
Depreciation and amortization	$5.5	$5.8	$5.8	(4.7)%
Severance expense	$0.6	–	$3.7	$(3.1)
Income (loss) from operations	$2.7	$1.5	$(1.7)	+$4.4
Adjusted EBITDA*	$8.9	$7.4	$8.1	+10.3%
Net income (loss) attributable to IDT	$3.9	$0.2	$(3.5)	+$7.3
Diluted earnings (loss) per share	$0.15	$0.01	$(0.14)	+$0.29
Non-GAAP net income*	$5.2	$1.0	$1.8	+$3.4
Non-GAAP earnings per share*	$0.20	$0.04	$0.07	+$0.13

*Throughout this release, Non-GAAP earnings per share, Adjusted EBITDA, and Non-GAAP net income for all periods presented are Non-GAAP measures intended to provide useful information that supplements IDT’s or the relevant segment’s core 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.

Notes on Consolidated Results and Balance Sheet
Beginning in 3Q19, certain expenses that were previously included in IDT’s Telecom & Payment Services (TPS) segment were reclassified to Corporate. Comparative results have been reclassified for all periods presented.

Consolidated results for all periods presented include corporate overhead. Corporate G&A expense was $2.4 million in 3Q19 compared to $2.5 million in 3Q18.

At April 30, 2019, IDT held $79.6 million in unrestricted cash, cash equivalents and debt securities. Current assets totaled $346.4 million and current liabilities totaled $362.3 million. In 3Q19, IDT reclassified its Gibraltar-based bank’s assets and liabilities from “held for sale” to “held and used” in the consolidated balance sheets for all periods presented.

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows and we have conformed prior period results. Net cash provided by operating activities during 3Q19 was $9.3 million compared to $24.4 million in the year ago quarter. In the corresponding periods, capital expenditures were $4.3 million and $5.0 million, respectively.

3Q19 RESULTS BY SEGMENT
(Results are for 3Q19 and are compared to 3Q18 unless otherwise noted).

Beginning with fiscal year 2019, IDT has modified the way it reports its business verticals within its two reporting segments to align more closely with IDT’s business strategy and operational structure, as follows:

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.4% and 97.5% of IDT’s consolidated revenue in 3Q19 and 3Q18, respectively. The segment comprises Core and Growth verticals:

Core includes IDT’s three largest communications and payments offerings from both a revenue and cash generation perspective: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the US; Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide, and; Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to friends and family overseas and within the US. TPS Core also includes several smaller communications and payments offerings – many in harvest mode.
Growth is comprised of NRS’ retailer POS terminal-based services, the BOSS Revolution international money transfer service, and the BOSS Revolution Mobile service.

net2phone
IDT’s net2phone segment accounted for 3.6% and 2.5% of IDT’s consolidated revenue in 3Q19 and 3
Q18, respectively. The segment comprises two verticals:

net2phone-UCaaS is a rapidly growing, global, unified cloud communications offering for business.
net2phone-Platform Services includes other offerings leveraging a common technology platform to provide cable telephony and other voice services.

Revenue in 3Q19 and comparative periods for all verticals and the most significant core offerings is provided in the following chart:

Revenue by Segment and Vertical *(in millions)*	3Q19	2Q19	3Q18	3Q19-3Q18 % change
TPS
Core	$321.2	$331.1	$350.7	(8.4)%
BOSS Revolution Calling	$120.5	$122.1	$129.6	(7.1)%
Carrier Services	$121.0	$127.9	$142.5	(15.1)%
Mobile Top-Up	$67.6	$64.3	$62.5	+8.1%
Other	$12.2	$16.8	$16.0	(23.5)%
Growth	$7.7	$6.9	$5.7	+34.3%
Total TPS	$328.8	$338.0	$356.4	(7.7)%
net2phone
net2phone-UCaaS	$6.7	$6.0	$3.7	+79.6%
net2phone-Platform Services	$5.8	$5.5	$5.4	+7.1%
Total net2phone	$12.4	$11.5	$9.1	+36.7%

Segment level financial results are summarized in the following chart:

Results by Segment *(in millions)*	TPS		net2phone
Results by Segment *(in millions)*	3Q19	3Q18	3Q19	3Q18
Revenue	$328.8	$356.4	$12.4	$9.1
Direct cost of revenue	$279.4	$304.1	$3.3	$3.1
Revenue less direct cost of revenue	$49.4	$52.3	$9.1	$6.0
SG&A expense	$38.1	$41.4	$9.0	$5.5
Depreciation and amortization	$4.2	$4.2	$1.4	$1.2
Severance expense	$0.6	$3.6	–	–
Income (loss) from operations	$6.6	$3.1	$(1.3)	$(0.8)
Adjusted EBITDA	$11.3	$10.9	$0.1	$0.5

TPS Segment Takeaways:
TPS Core:

TPS revenue less direct cost of revenue decreased by $2.9 million dollars from the year ago quarter to $49.4 million while revenue decreased $27.5 million to $328.8 million. From a margin perspective, decreases in low margin revenue from Carrier Services and BOSS Revolution Calling offerings were substantially offset by a mix shift in Carrier Services traffic to higher margin routes and increased margin contributions from two of the high margin growth initiatives within TPS — BOSS Revolution money transfer and National Retail Solutions;
Mobile Top-Up revenue increased 8.1% year over year to $67.6 million. In 3Q19, IDT added new Mobile Top-Up corridors, expanded bundled offerings of minutes, text and data and launched partnerships with additional mobile operators overseas.

TPS Growth:

Revenue generated by IDT’s BOSS Revolution money transfer service increased 34% compared to the year ago quarter, to $6.1 million. Direct-to-consumer sales, which, in the period, contributed approximately 2/3 of money transfer revenues, increased 98% year over year driven by expansion of the service’s users, primarily through the Boss Revolution Money app;
NRS revenue increased 32% compared to the year ago quarter, to $1.5 million;
IDT is optimizing its BOSS Revolution mobile offering. Efforts this quarter focused on development of marketing campaigns, training of IDT’s direct to retailer sales force, and improving the user experience.

net2phone Segment Takeaways:

net2phone-UCaaS revenue increased 80% compared to the year ago quarter to $6.7 million led by rapid expansion in South American markets and solid results from its US channel partner network;
During 3Q19, net2phone continued to deploy its new proprietary platform with a focus on new US customers. The platform integrates voice, text, messaging and web chat services across devices. net2phone served 89,000 seats at April 30^th, compared to 77,000 at January 31^st and 34,000 at April 30^th of 2018.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “For Investors” section of the IDT Corporation website (http://idt.net/ir) 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 ET today with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call can be accessed approximately two hours after the call concludes through June 12, 2019, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this replay number: 1
0132103. A replay will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

ABOUT IDT:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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.

IDT CORPORATION CONSOLIDATED BALANCE SHEETS

	April 30, 2019	July 31, 2018
	(Unaudited)
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$ 79,326	$ 73,981
Restricted cash and cash equivalents	162,848	129,216
Debt securities	301	5,612
Trade accounts receivable, net of allowance for doubtful accounts of $4,851 at April 30, 2019 and $5,358 at July 31, 2018	54,366	70,746
Prepaid expenses	22,856	20,566
Other current assets	26,706	28,760
Total current assets	346,403	328,881
Property, plant and equipment, net	35,025	36,080
Goodwill	11,223	11,315
Other intangibles, net	4,212	496
Equity investments	8,350	6,633
Deferred income tax assets, net	2,825	5,668
Other assets	11,860	10,524
Total assets	$ 419,898	$ 399,597

Liabilities and equity
Current liabilities:
Trade accounts payable	$ 38,256	$ 45,900
Accrued expenses	115,308	130,225
Deferred revenue	40,681	55,015
Customer deposits	160,833	127,571
Other current liabilities	7,230	8,273
Total current liabilities	362,308	366,984
Other liabilities	1,163	1,310
Total liabilities	363,471	368,294
Commitments and contingencies
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 April 30, 2019 and July 31, 2018	33	33
Class B common stock, $.01 par value; authorized shares-200,000; 25,613 and 25,594 shares issued and 24,705 and 22,872 shares outstanding at April 30, 2019 and July 31, 2018, respectively	256	256
Additional paid-in capital	272,291	294,047
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 908 and 2,722 shares of Class B common stock at April 30, 2019 and July 31, 2018, respectively	(51,739 )	(85,597 )
Accumulated other comprehensive loss	(4,465)	(4,972)
Accumulated deficit	(160,289 )	(173,103 )
Total IDT Corporation stockholders’ equity	56,087	30,664
Noncontrolling interests	340	639
Total equity	56,427	31,303
Total liabilities and equity	$ 419,898	$ 399,597

IDT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended April 30,		Nine Months Ended April 30,
	2019	2018	2019	2018
	(in thousands, except per share data)

Revenues	$ 341,255	$ 365,410	$ 1,053,044	$ 1,154,848
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)	282,791	307,165	878,661	980,903
Selling, general and administrative (i)	49,518	50,136	150,970	152,565
Depreciation and amortization	5,524	5,799	16,881	17,207
Severance	553	3,658	553	4,293
Total costs and expenses	338,386	366,758	1,047,065	1,154,968
Other operating expense, net	(120)	(345)	(405)	(1,970)
Income (loss) from operations	2,749	(1,693)	5,574	(2,090)
Interest income, net	177	204	472	853
Other income (expense), net	360	(712)	(494)	(1,168)
Income (loss) before income taxes	3,286	(2,201)	5,552	(2,405)
Benefit from (provision for) income taxes	871	(1,029)	(2,054)	(931)
Net income (loss)	4,157	(3,230)	3,498	(3,336)
Net income attributable to noncontrolling interests	(287 )	(228)	(888)	(698)

Net income (loss) attributable to IDT Corporation	$ 3,870	$ (3,458)	$ 2,610	$ (4,034)

Earnings (loss) per share attributable to IDT Corporation common stockholders:
Basic	$ 0.15	$ (0.14)	$ 0.10	$ (0.16)
Diluted	$ 0.15	$ (0.14)	$ 0.10	$ (0.16)

Weighted-average number of shares used in calculation of earnings (loss) per share:
Basic	26,263	24,675	24,970	24,649
Diluted	26,263	24,675	24,972	24,649


(i) Stock-based compensation included in selling, general and administrative expenses	$ 332	$ 1,033	$ 1,212	$ 2,842

IDT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended April 30,
	2019	2018
	(in thousands)
Operating activities
Net income (loss)	$ 3,498	$ (3,336)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	16,881	17,207
Deferred income taxes	2,049	4,524
Provision for doubtful accounts receivable	1,218	1,120
Stock-based compensation	1,212	2,842
Other	(700)	5
Change in assets and liabilities:
Trade accounts receivable	14,045	2,943
Prepaid expenses, other current assets and other assets	213	(1 3,436)
Trade accounts payable, accrued expenses, other current liabilities and other liabilities	(18,432)	(21,075)
Customer deposits at IDT Financial Services Limited, our Gibraltar-based bank	33,086	18,468
Deferred revenue	(5,716)	(8,138)
Net cash provided by operating activities	47,354	1,124
Investing activities
Capital expenditures	(13,724 )	(15,969)
Payment for acquisition, net of cash acquired	(5,526)	–
Proceeds from redemption of investments	1,000	–
Cash used for purchase of investments	(1,000)	–
Proceeds from sale of interest in Straight Path IP Group Holding, Inc	–	6,000
Purchase of IP Interest from Straight Path Communications Inc	–	(6,000)
Purchases of marketable securities	(7)	(22,208)
Proceeds from maturities and sales of marketable securities	5,312	36,655
Net cash used in investing activities	(13,945)	(1,522)
Financing activities
Dividends paid	–	(11,677)
Cash of Rafael deconsolidated as a result of spin-off	–	(9,287)
Distributions to noncontrolling interests	(1,187 )	(1,023)
Proceeds from sale of Class B common stock to Howard S. Jonas	13,272	–
Repayment of other liabilities acquired	(635)	–
Proceeds from borrowings under revolving credit facility	3,000	22,125
Repayments of borrowings under revolving credit facility	(3,000)	(22,125)
Repurchases of Class B common stock	(3,882 )	(61)
Net cash provided by (used in) financing activities	7,568	(22,048)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents	(2,000)	5,472
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents	38,977	(16,974)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	203,197	211,963
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$ 242,174	$ 194,989


Supplemental schedule of non-cash investing and financing activities
Howard S. Jonas’ advance payment used for sale of Class B common stock	$ 1,500	$ -

Net assets excluding cash and cash equivalents of Rafael deconsolidated as a result of spin-off	$ -	$ (105,632)

Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2019 and 2018

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 3Q19, 2Q19, and 3Q18, Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, which are non-GAAP measures. Generally, a non-GAAP financial 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 Adjusted EBITDA consists of revenues less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income from operations, and add depreciation and amortization, severance expense, and other operating expense, net.

IDT’s measure of non-GAAP net income starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net.

IDT’s measure of non-GAAP earnings per share is calculated by dividing non-GAAP net income (loss) by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2019 and fiscal 2018 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share measures 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, non-GAAP net income and non-GAAP earnings per share 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 reporti
ng at this time.

Management refers to Adjusted EBITDA, as well as the GAAP measures income from operations and net income (loss), 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 constructed 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, non-GAAP net income and non-GAAP earnings per share. 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, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. In fiscal 2019 and fiscal 2018, other operating expense, net primarily included legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint. In addition, in 2Q19, other operating expense, net included a gain on the sale of a calling card business in Asia. From time-to-time, IDT may incur costs related to non-routine legal and regulatory matters or disposal of certain assets. However, such legal and regulatory matters and disposals do not occur each quarter. IDT does not believe the gains or losses from non-routine legal and regulatory matters or asset sales are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenues less direct cost of revenues and selling, general and administrative expense. As the other excluded items are not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.

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 net income and non-GAAP earnings per share 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, non-GAAP net income and non-GAAP earnings per share 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 (loss), basic and diluted earnings (loss) per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share 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 (loss) for IDT on a consolidated basis, (b) for non-GAAP net income, net income (loss), and (c) for non-GAAP earnings per share, basic and diluted earnings (loss) per share.

IDT Corporation Reconciliation of Adjusted EBITDA to Net Income (unaudited) in millions Figures may not foot or cross-foot due to rounding to millions.
	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended April 30, 2019 (3Q19)
Adjusted EBITDA	$ 8.9	$ 11.3	$ 0.1	$ -	$ (2.4)
Subtract:
Depreciation and amortization	5.5	4.2	1.4	–	–
Severance expense	0.6	0.6	–	–	–
Other operating expense	0.1	–	–	–	0.1
Income (loss) from operations	2.7	$ 6.6	$ (1.3)	$ –	$ (2.6)
Interest income, net	0.2
Other income, net	0.4
Income before income taxes	3.3
Benefit from income taxes	0.9
Net income	4.2
Net income attributable to noncontrolling interests	(0.3)
Net income attributable to IDT Corporation	$ 3.9


	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended January 31, 2019 (2Q19)
Adjusted EBITDA	$ 7.4	$ 9.7	$ 0.2	$ -	$ (2.5)
Subtract (Add):
Depreciation and amortization	5.8	3.7	2.1	–	–
Other operating expense (gain), net	0.1	(0.2)	–	–	0.3
Income (loss) from operations	1.5	$ 6.3	$ (1.9)	$ –	$ (2.8)
Interest income, net	0.2
Other income, net	0.5
Income before income taxes	2.2
Provision for income taxes	(1.7)
Net income	0.5
Net income attributable to noncontrolling interests	(0.3)
Net income attributable to IDT Corporation	$ 0.2

IDT Corporation Reconciliation of Adjusted EBITDA to Net Loss (unaudited) in millions Figures may not foot or cross-foot due to rounding to millions.
	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corp orate
Three Months Ended April 30, 2018 (3Q18)
Adjusted EBITDA	$ 8.1	$ 10.9	$ 0.5	$ (0.8)	$ (2.5)
Subtract:
Depreciation and amortization	5.8	4.2	1.2	0.4	–
Severance expense	3.7	3.6	–	–	0.1
Other operating expense	0.3	–	–	–	0.3
(Loss) income from operations	(1.7)	$ 3.1	$ (0.8)	$ (1.1)	$ (2.9)
Interest income, net	0.2
Other expense, net	(0.7)
Loss before income taxes	(2.2)
Provision for income taxes	(1.0)
Net loss	(3.2)
Net income attributable to noncontrolling interests	(0.2)
Net loss attributable to IDT Corporation	$ (3.5)

IDT Corporation Reconciliations of Net Income (Loss) to Non-GAAP Net Income and Earnings (Loss) per share to Non-GAAP Earnings per share (unaudited) in millions, except per share data Fi gures may not foot due to rounding to millions.
	3Q19	2Q19	3Q18

Net income (loss)	$ 4.2	$ 0.5	$ (3.2)
Adjustments (add) subtract:
Stock-based compensation	(0.3)	(0.5)	(1.0)
Severance expense	(0.6)	–	(3.7)
Other operating expense, net	(0.1)	(0.1)	(0.3)
Total adjustments	(1.0)	(0.5)	(5.0)
Income tax effect of total adjustments	–	–	–
	1.0	0.5	5.0
Non-GAAP net income	$ 5.2	$ 1.0	$ 1.8

Earnings (loss) per share:
Basic	$ 0.15	$ 0.01	$ (0.14)
Total adjustments	0.05	0.03	0.21
Non-GAAP – basic	$ 0.20	$ 0.04	$ 0.07

Weighted-average number of shares used in calculation of basic earnings per share	26.3	24.8	24.7

Diluted	$ 0.15	$ 0.01	$ (0.14)
Total adjustments	0.05	0.03	0.21
Non-GAAP – diluted	$ 0.20	$ 0.04	$ 0.07

Weighted-average number of shares used in calculation of diluted earnings per share	26.3	24.8	24.7

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SOURCE IDT Corporation

IDT Corporation Reports Second Quarter Fiscal Year 2019 Results

NEWARK, N.J., March 7, 2019 – IDT Corporation (NYSE: IDT) reported EPS of $0.01 and non-GAAP EPS* of $0.04 on revenue of $349.5 million for the second quarter of FY 2019, the three months ended January 31, 2019.

2Q19 HIGHLIGHTS
(2Q19 results are compared to 2Q18)

Consolidated Results

Revenue less direct cost of revenue decreased to $58.3 million from $58.7 million;
Income from operations increased to $1.5 million from a loss from operations of $480 thousand;
Adjusted EBITDA* increased to $7.4 million from $6.3 million;
EPS of $0.01 compared to $0.06;
Non-GAAP EPS increased to $0.04 from $0.00.

Growth Initiatives

net2phone’s unified communications as a service (UCaaS) revenue increased 86% to $6.0 million including Versature, the Canadian UCaaS provider acquired in 1Q19;
National Retail Solutions (NRS) revenue increased 56% to $1.5 million. NRS operated 6,600 active terminals at January 31, 2019 compared to 3,800 a year earlier;
BOSS Revolution international money transfer revenue increased 35% to $5.4 million. Revenue from its direct-to-consumer channel increased 145% to $3.3 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

“IDT’s technology-driven growth initiatives performed well in the second quarter.

“Revenue generated by net2phone’s unified communications as a service offering increased by 86% compared to the year ago quarter and achieved an annual run rate of over $24 million. We performed ahead of plan in our South American markets – most notably in Brazil. Operationally, our priority continues to be the incremental deployment of net2phone’s proprietary technology platform. Reviews and feedback from customers on the new platform have been positive and enthusiastic. Also, within net2phone, we are focused on developing a robust direct-to-consumer channel in all of our markets worldwide.

“National Retail Solutions revenue increased 56% in the second quarter to an annual run rate of over 6 million dollars, and its point-of-sale network now comprises over 6,600 active terminals. We have only begun to tap the potential of this business, and are building-out and optimizing the offerings that will more fully monetize the network’s capabilities.

“Our international money transfer business surpassed $20 million in annualized-run-rate revenue this quarter. Direct to consumer sales increased 145% year over year as we expanded our international disbursement network, enhanced our transaction fulfillment technology and intensified marketing.

“We continue to focus on enhancing our profitability while investing in our growth initiatives. Consolidated revenue decreased by $46.4 million compared to the second quarter 2018 primarily because of a reduction in Carrier Services traffic on marginally profitable routes. The revenue decrease had a limited impact on margin contribution, and was offset by increased margin contributions from our growth initiatives and by reductions in SG&A expense – primarily generated from within our core business operations. As a result, we increased income from operations and Adjusted EBITDA compared to both the year ago quarter and the first quarter of this year.”

2Q19 CONSOLIDATED RESULTS

*Results* *(in millions, except EPS)*	2Q19	1Q19	2Q18	2Q19 – 2Q18 Change (%/$)
Revenue	$349.5	$362.3	$395.9	(11.7)%
Direct cost of revenue	$291.2	$304.7	$337.2	(13.7)%
Revenue less direct cost of revenue	$58.3	$57.6	$58.7	(0.6)%
Direct cost of revenue as a percentage of revenue	83.3%	84.1%	85.2%	(190) BP
SG&A expense	$50.9	$50.6	$52.4	(2.8)%
Depreciation and amortization	$5.8	$5.6	$5.7	+0.5%
Severance expense	–	–	$0.2	$(0.2)
Other operating expense, net	$(0.1)	$(0.2)	$(0.8)	+$0.7
Income (loss) from operations	$1.5	$1.3	$(0.5)	+$2.0
Adjusted EBITDA*	$7.4	$7.1	$6.3	+$1.1
Net income (loss) attributable to IDT	$0.2	$(1.4)	$1.5	$(1.3)
Diluted earnings (loss) per share	$0.01	$(0.06)	$0.06	$(0.05)
Non-GAAP net income (loss)*	$1.0	$(0.5)	$0.0	+$1.0
Non-GAAP earnings (loss) per share*	$0.04	$(0.02)	$0.00	+$0.04

*Throughout this release, Non-GAAP earnings (loss) per share, Adjusted EBITDA, and Non-GAAP net income (loss) for all periods presented are Non-GAAP measures intended to provide useful information that supplements IDT’s or the relevant segment’s core 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.

Notes on Consolidated Results and Balance Sheet
Consolidated results for all periods presented include corporate overhead. In both 2Q19 and 2Q18, corporate G&A expense was $2.4 million.

At January 31, 2019, IDT held $75.5 million in unrestricted cash, cash equivalents and debt securities. Current assets totaled $341.3 million and current liabilities totaled $361.7 million, inclusive of current assets and current liabilities “held for sale”. IDT’s intention is to sell its Gibraltar-based bank and it is continuing discussions with potential buyers. All of the bank’s assets and liabilities at January 31, 2019 and July 31, 2018 are classified as “held for sale” in the consolidated balance sheets.

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows. Net cash provided by operating activities during 2Q19 was $29.8 million compared to $21.9 million in the year ago quarter. In the corresponding periods, capital expenditures were $4.9 million and $5.6 million, respectively.

2Q19 RESULTS BY SEGMENT
(Results are for 2Q19 and are compared to 2Q18 unless otherwise noted).

For fiscal year 2019, IDT has modified the way it reports its business verticals within its two reporting segments to align more closely with IDT’s business strategy and operational structure, as follows:

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.7% and 97.8% of IDT’s consolidated revenue in 2Q19 and 2Q18, respectively. The segment comprises Core and Growth verticals:

Core includes IDT’s three largest communications and payments offerings from both a revenue and cash generation perspective: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the US; Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide; and Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to friends and family overseas and within the US. TPS Core also includes several smaller communications and payments offerings – many in harvest mode.
Growth comprises National Retail Solutions’ retailer POS terminal-based services, the BOSS Revolution international money transfer service, and the BOSS Revolution mobile service.

net2phone
IDT’s net2phone segment accounted for 3.3% and 2.1% of IDT’s consolidated revenue in 2Q19 and 2Q18, respectively. The segment comprises two verticals:

net2phone-UCaaS is a rapidly growing, global, unified cloud communications offering for business.
net2phone-Platform Services includes other offerings leveraging a common technology platform to provide cable telephony and other
voice services.

Revenue in 2Q19 and comparative periods for all verticals is provided in the following chart:

Revenue by Segment and Vertical *(in millions)*	2Q19	1Q19	2Q18	2Q19-2Q18 % change
TPS
Core	$330.9	$345.7	$382.0	(13.4)%
BOSS Revolution Calling	$122.1	$123.5	$131.6	(7.2)%
Carrier Services	$127.9	$142.2	$170.8	(25.1)%
Mobile Top-Up	$64.3	$65.3	$62.1	+3.5%
Other	$16.6	$14.6	$17.5	(5.0)%
Growth	$7.0	$6.2	$5.0	+39.8%
Total TPS	$338.0	$351.8	$387.1	(12.7)%
net2phone
net2phone-UCaaS	$6.0	$4.8	$3.2	+86.4%
net2phone-Platform Services	$5.5	$5.7	$5.1	+8.5%
Total net2phone	$11.5	$10.5	$8.3	+38.8%

Segment level financial results are summarized in the following chart:

Results by Segment *(in millions)*	TPS		net2phone
Results by Segment *(in millions)*	2Q19	2Q18	2Q19	2Q18
Revenue	$338.0	$387.1	$11.5	$8.3
Direct cost of revenue	$287.9	$334.6	$3.2	$2.6
Revenue less direct cost of revenue	$50.0	$52.4	$8.3	$5.7
SG&A expense	$40.4	$43.7	$8.1	$5.3
Depreciation and amortization	$3.7	$4.1	$2.1	$1.2
Severance expense	–	$0.2	–	–
Other gains	$0.2	–	–	–
Income (loss) from operations	$6.2	$4.5	$(1.9)	$(0.8)
Adjusted EBITDA	$9.6	$8.8	$0.2	$0.4

TPS Segment Takeaways:
TPS Core:

The BOSS Revolution Calling service continues to be impacted by persistent, market-wide trends, including the proliferation of unlimited calling plans offered by wireless carriers and MVNOs and the increasing penetration of free and paid over-the-top voice and messaging services. Minutes-of-use for the BOSS Revolution Calling service declined 11% compared to the year ago quarter, while revenue decreased 7.2% to $122.1 million.
Carrier Services’ minutes-of-use decreased 10% year over year and revenue declined 25.1% to $127.9 million. Carrier Services’ minutes-of-use and revenue will continue to be impacted over the long term as communications globally transition away from traditional international long-distance voice operators. However, minutes and revenue may fluctuate significantly from quarter-to-quarter, as the Company seeks to maximize gross profit economics rather than sustain minutes-of-use or revenue.

TPS Growth:

National Retail Solutions (NRS)’ revenue increased 56% compared to the year ago quarter. NRS’ point-of-sale terminal network has achieved sufficient scale to enable new revenue sources that supplement the monthly recurring fees generated by the use of its terminals. These emerging services include out-of-home advertising through the terminals’ consumer facing screen, retail analytics, and credit card processing.
Revenue generated by IDT’s BOSS Revolution money transfer service increased 35% compared to the year ago quarter. Direct-to-consumer sales increased 145% year over year driven by expansion of the service’s global disbursement network. Direct-to-consumer sales now constitute the majority of money transfer revenue.
IDT is optimizing its BOSS Revolution mobile offering. Efforts this quarter focused on development of marketing campaigns, training of IDT’s direct to retailer sales force, and improving the user experience.

TPS Financial Results:

TPS’ income from operations increased 39.1% to $6.2 million. The impact of the $49.1 million reduction in revenue was offset by improved Carrier Services margins and by the continued growth of Mobile Top-Up revenue. SG&A expense decreased 7.5% year over year to $40.4 million reflecting reduced compensation expense partially offset by increased marketing expense. Adjusted EBITDA in 2Q19 increased to $9.6 million from $8.8 million in 2Q18.

net2phone Segment Takeaways:

net2phone-UCaaS revenue increased 86% compared to the year ago quarter driven by the acquisition of Canadian UCaas provider Versature, growth in South American markets, expansion to Mexico, and additions to its US channel partner network.
During 2Q19, net2phone continued to deploy its new proprietary platform. The platform integrates voice, text, messaging and web chat services across devices. net2phone expects that the unified communications functionality afforded by the new platform will become a key driver of customer acquisition.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “For Investors” section of the IDT Corporation website (http://idt.net/ir) 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 ET today with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A recording of the conference call can be accessed beginning approximately two hours after the call concludes through March 14, 2019 by dialing 1-844-512-2921 (toll free from the US) or 1-412-317-6671 (international) and providing this PIN code: 10128968. The recording will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir) following the call.

ABOUT IDT:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^&#174

; and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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.

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

	January 31, 2019	July 31, 2018
	(Unaudited)
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$ 74,445	$ 68,089
Debt securities	1,051	5,612
Trade accounts receivable, net of allowance for doubtful accounts of $3,037 at January 31, 2019 and $3,166 at July 31, 2018	50,164	69,481
Prepaid expenses	20,432	19,550
Other current assets	28,078	28,877
Assets held for sale	167,083	137,272
Total current assets	341,253	328,881
Property, plant and equipment, net	36,186	36,068
Goodwill	11,273	11,315
Other intangibles, net	4,150	306
Equity investments	7,754	6,633
Deferred income tax assets, net	2,882	5,668
Other assets	6,680	5,020
Assets held for sale	5,962	5,706
Total assets	$ 416,140	$ 399,597

Liabilities and equity
Current liabilities:
Trade accounts payable	$ 35,288	$ 45,124
Accrued expenses	119,206	129,818
Deferred revenue	41,352	55,003
Other current liabilities	6,557	8,269
Liabilities held for sale	159,248	128,770
Total current liabilities	361,651	366,984
Other liabilities	853	768
Liabilities held for sale	433	542
Total liabilities	362,937	368,294
Commitments and contingencies
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, 2019 and July 31, 2018	33	33
Class B common stock, $.01 par value; authorized shares-200,000; 25,611 and 25,594 shares issued and 24,705 and 22,872 shares outstanding at January 31, 2019 and July 31, 2018, respectively	256	256
Additional paid-in capital	271,959	294,047
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 906 and 2,722 shares of Class B common stock at January 31, 2019 and July 31, 2018, respectively	(51,727)	(85,597)
Accumulated other comprehensive loss	(4,455)	(4,972)
Accumulated deficit	(163,366)	(173,103)
Total IDT Corporation stockholders’ equity	52,700	30,664
Noncontrolling interests	503	639
Total equity	53,203	31,303
Total liabilities and equity	$ 416,140	$ 399,597


IDT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended January 31,		Six Months Ended January 31,
	2019	2018	2019	2018
	(in thousands, except per share data)

Revenues	$ 349,473	$ 395,883	$ 711,789	$ 789,438
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)	291,178	337,229	595,870	673,738
Selling, general and administrative (i)	50,900	52,358	101,452	102,429
Depreciation and amortization	5,762	5,735	11,357	11,408
Severance	–	195	–	635
Total costs and expenses	347,840	395,517	708,679	788,210
Other operating expense, net	(90)	(846)	(285)	(1,625)
Income (loss) from operations	1,543	(480)	2,825	(397)
Interest income, net	186	286	295	648
Other income (expense), net	496	370	(853)	(456)
Income (loss) before income taxes	2,225	176	2,267	(205)
(Provision for) benefit from income taxes	(1,736)	1,514	(2,926)	99
Net income (loss)	489	1,690	(659)	(106)
Net income attributable to noncontrolling interests	(300)	(174)	(601)	(470)
Net income (loss) attributable to IDT Corporation	$ 189	$ 1,516	$ (1,260)	$ (576)

Earnings (loss) per share attributable to IDT Corporation common stockholders:
Basic	$ 0.01	$ 0.06	$ (0.05)	$ (0.02)
Diluted	$ 0.01	$ 0.06	$ (0.05)	$ (0.02)
Weighted-average number of shares used in calculation of earnings (loss) per share:
Basic	24,816	24,643	24,323	24,635
Diluted	24,821	24,724	24,323	24,635


(i) Stock-based compensation included in selling, general and administrative expenses	$ 467	$ 987	$ 880	$ 1,797

IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended January 31,
	2019	2018
	(in thousands)
Operating activities
Net loss	$ (659)	$ (106)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	11,357	11,408
Deferred income taxes	2,785	3,212
Provision for doubtful accounts receivable	620	696
Stock-based compensation	880	1,797
Other	(78)	(68)
Change in assets and liabilities:
Trade accounts receivable	17,333	(4,568)
Prepaid expenses, other current assets and other assets	79	(15,109)
Trade accounts payable, accrued expenses, other current liabilities and other liabilities	(18,288)	(20,347)
Customer deposits at IDT Financial Services Limited, our Gibraltar-based bank	29,015	4,481
Deferred revenue	(4,997)	(4,710)
Net cash provided by (used in) operating activities	38,047	(23,314)
Investing activities
Capital expenditures	(9,396 )	(10,931)
Payment for acquisition, net of cash acquired	(5,453)	–
Proceeds from redemption of investments	1,000	–
Cash used for purchase of investments	(500)	–
Proceeds from sale of interest in Straight Path IP Group Holding, Inc	–	6,000
Purchase of IP Interest from Straight Path Communications Inc	–	(6,000)
Purchases of marketable securities	–	(19,797)
Proceeds from maturities and sales of marketable securities	4,555	31,610
Net cash (used in) provided by investing activities	(9,794)	882
Financing activities
Dividends paid	–	(9,440)
Distributions to noncontrolling interests	(737 )	(717)
Proceeds from sale of Class B common stock to Howard S. Jonas	13,272	–
Repayment of other liabilities acquired	(615)	–
Proceeds from borrowings under revolving credit facility	3,000	19,080
Repayments of borrowings under revolving credit facility	(3,000)	(19,080)
Repurchases of Class B common stock	(3,870)	(61)
Net cash provided by (used in) financing activities	8,050	(10,218)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents	(236)	9,490
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents	36,067	(23,160)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	203,197	211,963
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$ 239,264	$ 188,803

Supplemental schedule of non-cash financing activities
Howard S. Jonas’ advance payment used for sale of Class B common stock	$ 1,500	$ -

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported in the consolidated balance sheet that equals the total of the same amounts reported in the consolidated statement of cash flows:

	January 31, 2019	July 31, 2018
	(in tho usands)
Cash and cash equivalents	$ 74,445	$ 68,089
Restricted cash included in other current assets	566	285
Cash and cash equivalents included in current assets held for sale	5,372	5,892
Restricted cash and cash equivalents included in current assets held for sale	158,881	128,931
Total cash, cash equivalents, and restricted cash and cash equivalents	$ 239,264	$ 203,197

Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2019 and 2018

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 2Q19, 1Q19, and 2Q18, Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share, which are non-GAAP measures. Generally, a non-GAAP financial 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 Adjusted EBITDA consists of revenues less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income (loss) from operations, and add depreciation and amortization, severance expense, and other operating expense, net.

IDT’s measure of non-GAAP net income (loss) starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net, and subtracts the income tax benefits from The Tax Cuts and Jobs Act.

IDT’s measure of non-GAAP earnings (loss) per share is calculated by dividing non-GAAP net income (loss) by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2019 and fiscal 2018 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share measures 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 at this time.

Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income (loss), 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 constructed 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. 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, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. In fiscal 2019 and 2018, other operating expense, net primarily included legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint. In addition, in 2Q19, other operating expense, net included a gain on the sale of a calling card business in Asia. From time-to-time, IDT may incur costs related to non-routine legal and regulatory matters or disposal of certain assets. However, such legal and regulatory matters and disposals do not occur each quarter. IDT does not believe the gains or losses from non-routine legal and regulatory matters or asset sales are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenues less direct cost of revenues and selling, general and administrative expense. As the other excluded items are not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.

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 net income (loss) and non-GAAP earnings (loss) per share 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.

In 2Q18, IDT recorded an income tax benefit o
f $3.3 million for its anticipated AMT credit refund due to The Tax Cuts and Jobs Act enacted in December 2017. This income tax benefit is excluded from IDT’s calculation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share because the benefits were not directly related to the current results of IDT’s core operations.

Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 (loss), 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, non-GAAP net income (loss) and non-GAAP earnings (loss) per share may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share 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 (loss) for IDT on a consolidated basis, (b) for non-GAAP net income (loss), net income (loss), and (c) for non-GAAP earnings (loss) per share, basic and diluted earnings per share.

IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended January 31, 2019 (2Q19)
Adjusted EBITDA	$ 7.4	$ 9.6	$ 0.2	$ -	$ (2.4)
Subtract (Add):
Depreciation and amortization	5.8	3.7	2.1	–	–
Other operating (gain) expense, net	0.1	(0.2)	–	–	0.3
Income (loss) from operations	1.5	$ 6.2	$ (1.9)	$ –	$ (2.8)
Interest income, net	0.2
Other income, net	0.5
Income before income taxes	2.2
Provision for income taxes	(1.7)
Net income	0.5
Net income attributable to noncontrolling interests	(0.3)
Net income attributable to IDT Corporation	$ 0.2


	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended October 31, 2018 (1Q19)
Adjusted EBITDA	$ 7.1	$ 9.3	$ -	$ -	$ (2.3)
Subtract:
Depreciation and amortization	5.6	4.0	1.5	–	–
Other operating expense	0.2	–	–	–	0.2
Income (loss) from operations	1.3	$ 5.3	$ (1.5)	$ –	$ (2.5)
Interest income, net	0.1
Other expense, net	(1.3)
Income before income taxes	0.1
Provision for income taxes	(1.2)
Net loss	(1.1)
Net income attributable to noncontrolling interests	(0.3)
Net loss attributable to IDT Corporation	$ (1.4)

IDT Corporati on
Reconciliation of Adjusted EBITDA to Net Income
(unaudited)
in millions
Figures may not foot or cross-foot due to rounding to millions.

	Total IDT Corporation	Telecom & Payment Services	net2phone	All Other	Corporate
Three Months Ended January 31, 2018 (2Q18)
Adjusted EBITDA	$ 6.3	$ 8.8	$ 0.4	$ (0.5)	$ (2.4)
Subtract:
Depreciation and amortization	5.7	4.1	1.2	0.4	–
Severance expense	0.2	0.2	–	–	–
Other operating expense	0.8	–	–	–	0.8
(Loss) income from operations	(0.5)	$ 4.5	$ (0.8)	$ (0.9)	$ (3.2)
Interest income, net	0.3
Other income, net	0.4
Income before income taxes	0.2
Benefit from income taxes	1.5
Net income	1.7
Net income attributable to noncontrolling interests	(0.2)
Net income attributable to IDT Corporation	$ 1.5

IDT Corporation Reconciliations of Net Income (Loss) to Non-GAAP Net Income (Loss) and Earnings (Loss) per share to Non-GAAP Earnings (Loss) per share (unaudited) in millions, except per share data Figures may not foot due to rounding to millions.

	2Q19	1Q19	2Q18

Net income (loss)	$ 0.5	$ (1.1)	$ 1.7
Adjustments (add) subtract:
Stock-based compensation	(0.5)	(0.4)	(1.0)
Severance expense	–	–	(0.2)
Other operating expense, net	(0.1)	(0.2)	(0.8)
Income tax benefit	–	–	3.3
Total adjustments	(0.5)	(0.6)	1.3
Income tax effect of total adjustments	–	–	0.4
	0.5	0.6	(1.7)
Non-GAAP net income (loss)	$ 1.0	$ (0.5)	$ 0.0

Earnings (loss) per share:
Basic	$ 0.01	$ (0.06)	$ 0.06
Total adjustments	0.03	0.04	(0.06)
Non-GAAP – basic	$ 0.04	$ (0.02)	$ 0.00

Weighted-average number of shares used in calculation of basic earnings (loss) per share	24.8	23.8	24.6

Diluted	$ 0.01	$ (0.06)	$ 0.06
Total adjustments	0.03	0.04	(0.06)
Non-GAAP – diluted	$ 0.04	$ (0.02)	$ 0.00

Weighted-average number of shares used in&#16 0; calculation of diluted earnings (loss) per share	24.8	23.8	24.7

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SOURCE IDT Corporation

IDT Corporation to Report Second Quarter Fiscal Year 2019 Results

NEWARK, N.J., Feb. 20, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for the second quarter of its 2019 fiscal year (the three months ended January 31, 2019) on Thursday, March 7, 2019.

IDT’s earnings release will be issued and posted on the IDT investor relations website (www.idt.net/ir) at approximately 4:30 PM Eastern.

IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.

To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call can be accessed approximately two hours after the call concludes through March 14, 2019, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this replay number: 10128968. A replay will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

About IDT Corporation:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, visit www.idt.net.

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SOURCE IDT Corporation

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