NEWARK, N.J., Sept. 26, 2018 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report fourth quarter and full fiscal year 2018 (the three and twelve months ended July 31, 2018) financial and operational results on Tuesday, October 9, 2018.

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 recording of the conference call can be accessed approximately two hours after the call concludes through October 16, 2018, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this call number: 10123225.  A recording 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

NEWARK, N.J., June 5, 2018 – IDT Corporation (NYSE: IDT) reported a loss per share of $0.14 on revenue of $365.4 million for the third quarter of FY 2018, the three months ended April 30, 2018. 

FINANCIAL HIGHLIGHTS   
(3Q18 results are compared to 3Q17)

• Revenue of $365.4 million compared to $370.0 million;
• Loss from operations of $1.7 million including charges of $0.3 million for litigation related expenses and $3.7 million for severance, compared to a loss from operations of $6.5 million, including a charge of $10.2 million for a legal settlement;
• Adjusted EBITDA* of $8.1 million compared to $9.1 million;
• Loss per share of $0.14 compared to a loss per share of $0.21;
• Non-GAAP EPS* of $0.07 compared to $0.12;
• IDT has declared a dividend of $0.09 per share for 3Q18.

OPERATIONAL HIGHLIGHTS 

• The spin-off of Rafael Holdings to IDT stockholders was successfully completed on March 26, 2018 **.
• As previously disclosed, IDT’s Chairman, Howard Jonas, has agreed to purchase 2.55 million shares of IDT Class B Common Stock from the company for $15 million subject to stockholder approval. The initial payment of $1.5 million was received on May 31, 2018;
• net2phone^® expanded its hosted PBX offering to Colombia following the quarter close. The provider of cloud-based communications solutions is growing well in both Brazil and Argentina after launching there in 2017;
• The sale of IDT’s Gibraltar-based bank remains pending regulatory approval. There can be no assurance that the sale will be completed.

*Throughout this release, Adjusted EBITDA, non-GAAP EPS, 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. 

**The spin-off did not meet the criteria to be reported as a discontinued operation and accordingly, Rafael Holdings’ assets, liabilities, results of operations and cash flows have not been reclassified.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION 
“The spin-off of Rafael Holdings in March marked another important step in our effort to maximize long-term stockholder value. Following the spin-off, we implemented a restructuring to reduce SG&A expense by over $2 million per quarter –  offsetting potential reductions in gross profit generated by our mature retail and wholesale businesses while facilitating continued investment in our growth initiatives.

“Financial results this quarter were overall consistent with recent trends. Our revenue decrease was primarily the result of a loss of high volume but low margin wholesale carrier minutes and had no significant impact on our gross profit. Although our bottom line reflected $3.7 million in severance expense, overall it was good quarter. We were happy with the revenue growth generated by our early-stage business initiatives and the relative resilience of our core BOSS Revolution calling service. 

“This quarter, we launched BOSS Revolution® Mobile with a compelling offer of just $5 per month per line and pay-only-for-what-you-use voice, messaging and data – capped at $39 per month. We have invested a significant amount of time and financial resources to develop our BOSS Revolution Mobile platform. We are hopeful that this substantial investment will pay off for our business.

“Our National Retail Solutions business continues to grow its retail point-of-sale terminal network adding about one thousand units this quarter.  We also signed deals with large market research and advertising firms.  Our POS network offers market research firms valuable insights into certain market segments, while our in-store screens tap into the large market for digital out-of-home advertising.  

“Our BOSS Revolution online money transfer business continued its rapid growth and is now larger than our retailer-based transfer business and generating stronger margins.  However, we continued to struggle with money transfer in retail stores.  Our low fee pricing model that we recently introduced has not yet had the positive effect that we were hoping for.

“Finally, our net2phone cloud-based business communications service is growing impressively.   Following the successful launches in Brazil and Argentina in 2017, net2phone expanded its offering to Colombia in May, and we plan to launch in Hong Kong and Mexico later this calendar year.”

3Q18 CONSOLIDATED RESULTS   
(Results are for 3Q18 and compared to 3Q17 unless otherwise noted).

The net loss attributable to IDT in 3Q18 was $3.5 million or $0.14 per share compared to a net loss attributable to IDT of $4.8 million or $0.21 per share in 3Q17.

At April 30, 2018, following the spin-off of Rafael Holdings, IDT held $60.7 million in cash, cash equivalents and marketable securities. Current assets less current liabilities, exclusive of current assets and current liabilities held for sale, was negative $54.4 million.  Rafael Holdings received $114.9 million in total net assets through the spin-off, including $42.3 million in cash, cash equivalents, and marketable securities.

Net cash provided by operating activities during 3Q18 was $11.5 million compared to net cash provided by operating activities of $1.3 million in 3Q17. In the same periods, capital expenditures were $5.0 million and $6.5 million, respectively. 

3Q18 RESULTS BY SEGMENT 
(Results are for 3Q18 and compared to 3Q17 unless otherwise noted).

Telecom & Payment Services (TPS)  
TPS is comprised of communications and payment offerings grouped in three broad verticals: Retail Communications, Wholesale Carrier Services and Payment Services.  Effective 1Q18, TPS’ Retail Communications vertical also includes the results of IDT’s Consumer Phone Services (CPS) which had been previously reported as a separate segment.  Effective 3Q18, TPS includes a small business that was previously reported in All Other.  All comparative prior periods have been adjusted to conform to the current presentation.  The TPS segment contributed 97.5% of IDT’s consolidated revenue in 3Q18 and 97.8% in 3Q17.

TPS’ 3Q18 revenue decreased 1.6% year-over-year to $356.4 million as declines in both Retail Communications’ and Wholesale Carrier Services’ revenues were partially offset by a strong increase in Payment Services’ revenue.  When comparing sequential quarterly results, note that the third quarter had three fewer days (3.3%) than the second quarter.

 

 

Retail Communications:  IDT’s flagship BOSS Revolution calling service – which accounted for over 90% of Retail Communications’ revenue in 3Q18 – continued to be negatively impacted by persistent, market-wide trends including the proliferation of unlimited calling plans offered by wireless carriers and MVNOs, increasing penetration of free and paid over-the-top voice and messaging services and decreased immigration in
to the U.S.  These factors contributed to a 3.6% reduction in BOSS Revolution calling service’s revenue compared to the year ago quarter.  Revenue from other Retail Communications offerings, including the sale of traditional ‘hard’ prepaid calling cards in the U.S. and overseas, continued to decline in line with expectations.

Wholesale Carrier Services:  Wholesale Carrier Services’ revenue decreased largely as a result of diminished volumes on certain heavily trafficked, low revenue-per-minute routes. Wholesale Carrier Services’ revenue has historically been more volatile than Retail Communications’ revenue, and changes in revenue do not necessarily generate corresponding changes in gross profit.

Payment Services:  Payment Services’ revenue increased year-over-year primarily reflecting growth in mobile top-up sales, which comprised nearly 90% of Payment Services’ revenue in 3Q18.  Sales generated by the BOSS Revolution money transfer service – primarily from its direct-to-consumer offering (app and web) – and from National Retail Solutions’ (NRS) merchant services and out-of-home advertising offerings also increased. 

TPS’ direct cost of revenue expressed as a percentage of revenue decreased to 85.3% from 86.1%.  This improvement reflects the decrease in wholesale carrier revenues generated on certain low margin routes, stronger margins on sales of the Boss Revolution international voice service, and the increased margin contributions generated by the rapid growth of NRS and our money transfer businesses.

TPS’ SG&A expense – $41.4 million – increased 3.0% from 3Q17, primarily as a result of increased employee compensation and credit card processing charges.  Expressed as a percentage of revenue, TPS’ SG&A expense increased to 11.6% from 11.1% in the year ago quarter. 

Following the spin-off of Rafael Holdings on March 26^th, IDT initiated a significant restructuring program that, once fully implemented, is expected to reduce the Company’s SG&A by over $2 million per quarter.  The reduction in SG&A will be predominantly in the TPS segment.   TPS severance expense incurred as a result of the restructuring was $3.6 million in 3Q18 compared to nil in 3Q17.

TPS’ income from operations decreased to $3.1 million from $6.0 million in 3Q17 primarily as a result of the severance charge.  Adjusted EBITDA increased to $10.9 million from $10.1 million in 3Q17 as the impact of the decrease in the direct cost of revenue more than offset the increase in SG&A expense and the decrease in revenue.

net2phone – Unified Communications as a Service (UCaaS)  
The net2phone-UCaaS segment is comprised of offerings from IDT’s net2phone division, including its cloud communications and SIP trunking offerings for businesses, and its cable telephony service.

net2phone-UCaaS’ 3Q18 revenue increased to $9.1 million from $7.4 million in 3Q17, driven by the rapid growth in its cloud-based communications offerings in the US and South America. 

net2phone-UCaaS’ 3Q18 loss from operations was $769 thousand compared to a loss from operations of $456 thousand in 3Q17, reflecting increased sales commissions and personnel costs. IDT continues to invest in net2phone’s long-term growth by developing the proprietary technologies that power net2phone’s unified cloud communications offerings and by front-loading commissions and other sales expenses incurred in customer acquisition.

All Other 
For 3Q18, All Other included only the Company’s real estate holdings and other investments that were included in the March 26, 2018 spin-off of Rafael Holdings to IDT stockholders. A small business that was previously included in All Other has been reclassified to the TPS segment, and certain other cost centers have been reclassified to Corporate overhead.  Comparative results have been reclassified and restated as if this business and costs were included in TPS or Corporate in all periods presented.

All Other’s financial results for 3Q18 were consistent with expectations.

Corporate 
Corporate loss from operations in 3Q18 was $2.9 million, including other operating expense of $0.3 million in legal costs compared to $11.9 million in 3Q17, including other operating expense of $10.1 million resulting from a legal settlement and associated legal costs.

DIVIDEND  
IDT’s Board of Directors has declared a quarterly dividend of $0.09 per share of IDT’s Class A and Class B common stock for 3Q18 to be paid on or about June 29, 2018 to stockholders of record as of the close of business on June 19^th.  This distribution will be treated as a return of capital for tax purposes.

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 today beginning today 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 recording of the conference call will be accessible approximately two hours after the call through June 12, 2018, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing call number: 10120736.  A recording 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.

 

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IDT CORPORATION
CONSOLIDATED BALANCE SHEETS
	April 30, 2018	July 31, 2017
	(Unaudited)
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$            50,153	$         90,344
Marketable securities	10,570	58,272
Trade accounts receivable, net of allowance for doubtful accounts of $2,748 at April 30, 2018 and $2,657 at July 31, 2017	63,249	64,979
Prepaid expenses	16,273	14,506
Other current assets	26,608	18,749
Assets held for sale	147,429	124,267
Total current assets	314,282	371,117
Property, plant and equipment, net	37,074	88,994
Goodwill	11,387	11,326
Investments	6,635	26,894
Deferred income tax assets, net	7,318	11,841
Other assets	5,433	3,657
Assets held for sale	5,765	5,134
Total assets	$          387,894	$        518,963
Liabilities and equity
Current liabilities:
Trade accounts payable	$            23,538	$         40,989
Accrued expenses	125,075	125,359
Deferred revenue	68,359	76,451
Other current liabilities	4,235	4,659
Liabilities held for sal e	138,324	115,318
Total current liabilities	359,531	362,776
Other liabilities	876	1,080
Liabilities held for sale	570	550
Total liabilities	360,977	364,406
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,    2018 and July 31, 2017	33	33
Class B common stock, $.01 par value; authorized shares-200,000; 25,582 and 25,561 shares issued and 23,280 and 23,264 shares    outstanding at April 30, 2018 and July 31, 2017, respectively	256	256
Additional paid-in capital	293,308	394,462
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,302 and 2,297 shares of Class B    common stock at April 30, 2018 and July 31, 2017, respectively	(83,365)	(83,304 )
Accumulated other comprehensive loss	(4,597)	(2,343)
Accumulated deficit	(179,081 )	(163,370 )
Total IDT Corporation stockholders’ equity	26,554	145,734
Noncontrolling interests	363	8,823
Total equity	26,917	154,557
Total liabilities and equity	$          387,894	$        518,963

NEWARK, N.J., May 22, 2018 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report third quarter fiscal 2018 (the three months ended April 30, 2018) financial and operational results on Tuesday, June 5, 2018.

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 recording of the conference call can be accessed approximately two hours after the call concludes through June 19, 2018, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this call number: 10120736.  A recording 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

NEWARK, N.J., March 8, 2018 — IDT Corporation (NYSE: IDT) reported EPS of $0.06 on revenue of $395.9 million for the second quarter of FY 2018, the three months ended January 31, 2018.  

HIGHLIGHTS  
(2Q18 results are compared to 2Q17)

• The spin-off of Rafael Holdings to IDT stockholders has been scheduled for on or about March 26^th;
• IDT has declared a dividend of $0.09 per share for 2Q18;
• Revenue of $395.9 million compared to $367.6 million;
• Loss from operations of $0.5 million compared to income from operations of $3.1 million;
• Adjusted EBITDA* of $6.3 million compared to $9.3 million;
• EPS of $0.06 compared to EPS of $0.04;
• Non-GAAP EPS* of $0.00 compared to $0.12; 
• The sale of IDT’s Gibraltar-based bank remains pending regulatory approval.

*Throughout this release, non-GAAP EPS, 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. 

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

“Last week, the Securities and Exchange Commission concluded its review of our spin-off of Rafael Holdings.  As previously announced, we now expect to distribute the Rafael Holdings shares to our stockholders on or about March 26th. The spin-off of Rafael Holdings will include our pharma investments and over $100 million of real estate, cash, marketable securities and investments.

“IDT’s consolidated revenue of $395.9 million in the second quarter represents a $28.3 million increase compared to the year ago quarter. The revenue growth was contributed by two verticals – Wholesale Carrier, which generated its sixth consecutive quarter of revenue increases and Payment Services, reflecting increases in money remittance transactions originating from our direct to consumer channels and by sales of international and domestic mobile top-up. Retail Communications revenue decreased, but we have slowed the rate of decline while improving Retail’s margin contribution.

“Our growth initiatives are performing well and have begun to contribute significantly to our top line growth.  Looking ahead, we will be reducing our SG&A spend, primarily in our legacy offerings, while continuing to maintain and support the investment behind our growth initiatives.

“In light of our intention to continue to invest heavily in our promising growth initiatives and the impact of the spin-off of Rafael on our balance sheet, IDT’s Board of Directors has reduced our dividend for the second quarter to $0.09 per share.”

2Q18 CONSOLIDATED RESULTS 
(Results are for 2Q18 and compared to 2Q17 unless otherwise noted).

Consolidated results for all periods presented include corporate overhead as a separate segment.  The corporate segment loss from operations decreased to $3.3 million from $3.7 million in 2Q17 primarily because of a decrease in stock-based compensation, which declined to $632 thousand from $1.0 million. 

Net income attributable to IDT in 2Q18 was $1.5 million or $0.06 per diluted share, including a benefit from income taxes of $3.3 million as a result of a change in US tax law, compared to net income attributable to IDT of $0.9 million or $0.04 per diluted share in 2Q17.

At January 31, 2018, IDT held $100.3 million in cash, cash equivalents and marketable securities.  At the time of the spin-off, Rafael Holdings will have approximately $44 million in cash, cash equivalents, and marketable securities, as well as $6 million in hedge fund investments and other investment securities.  The hedge fund and securities holdings are currently included in “Investments” on the balance sheet. 

Net cash provided by operating activities during 2Q18 was $3.5 million compared to net cash used in operating activities of $6.3 million in 2Q17. In the same periods, capital expenditures were $5.6 million and $5.0 million, respectively. 

2Q18 RESULTS BY SEGMENT
(Results are for 2Q18 and compared to 2Q17 unless otherwise noted).

Telecom Platform Services (TPS)
TPS is comprised of communications and payment offerings grouped in three broad verticals: Retail Communications, Wholesale Carrier Services and Payment Services.  Effective 1Q18, TPS’ Retail Communications vertical also includes the results of IDT’s Consumer Phone Services (CPS).  CPS was previously reported as a separate segment.  All comparative prior periods have been adjusted to conform to the current presentation.  The TPS segment contributed 97.8% of IDT’s consolidated revenue in 2Q18 and 97.9% in 2Q17. 

TPS’ 2Q18 revenue increased 7.5% to $387.1 million.  Consistent with recent trends, the Wholesale Carrier Services and Payment Services verticals achieved robust revenue growth – more than offsetting a decline in Retail Communications’ revenue. 

Retail Communications:  IDT’s flagship BOSS Revolution^® calling service – which accounted for over 90% of Retail Communications’ revenue in 2Q18 – continued to be impacted by increased adoption of over-the-top voice and messaging, unlimited calling plans, as well as decreased immigration into the U.S.  These long-term, market-wide trends resulted in a 4.2% reduction in BOSS Revolution calling service’s revenue compared to the year ago quarter.  The rate of decline has slowed in recent quarters.  Revenue from other Retail Communications offerings,
including the sale of traditional ‘hard’ prepaid calling cards in the U.S. and overseas, continued to decline in line with expectations.

Wholesale Carrier Services:  Wholesale Carrier Services’ revenue increased 18.3% as IDT’s carrier service continued to gain market share. Wholesale Carrier Services’ revenue has historically been more volatile than Retail Communications’ revenue, and changes in revenue do not necessarily generate corresponding changes in gross profit.

Payment Services:  Payment services revenue increased 16.5% year over year primarily reflecting growth in mobile top-up sales, which comprise 90% of Payment Services’ revenue.  Sales generated by the BOSS Revolution international money transfer service, primarily from its direct to consumer offering (app and web) and from National Retail Solutions’ merchant services offerings, also increased. 

TPS’ direct cost of revenue expressed as a percentage of revenue increased to 86.4% from 85.6%.  This increase reflects margin pressure on Wholesale Carrier Services’ offerings and a shift of revenue mix within TPS towards Wholesale Carrier Services, which generates relatively lower gross margins than Retail Communications’ offerings. In contrast, Retail Communications’ margins continued to improve during 2Q18.

TPS’ SG&A expense – $43.5 million – increased 6.8% from 2Q17, primarily on higher personnel and credit card processing costs.  Expressed as a percentage of revenue, SG&A expense decreased to 11.2% from 11.3% in the year ago quarter.  TPS’ depreciation and amortization expense increased slightly to $4.1 million from $4.0 million in 2Q17.

TPS’ income from operations decreased to $4.6 million, including the impact of $0.2 million in severance expense, from $7.2 million in 2Q17, as the increase in SG&A expense outpaced TPS’ increase in revenue less direct cost.  Adjusted EBITDA decreased to $8.9 million in 2Q18 from $11.2 million in 2Q17.

net2phone – Unified Communications as a Service (UCaaS)
The net2phone-UCaaS segment is comprised of offerings from IDT’s net2phone^® division, including its cloud communications and SIP trunking offerings for businesses, and its cable telephony service.

net2phone-UCaaS’ 2Q18 revenue increased to $8.3 million from $7.1 million in 2Q17, driven by the rapid growth in its cloud-based communications offering – both in the U.S. and in South America. 

net2phone-UCaaS’ 2Q18 loss from operations was $790 thousand compared to a loss from operations of $464 thousand in 2Q17, reflecting increased sales commissions and other personnel costs. IDT continues to invest in the proprietary technologies that power net2phone’s unified cloud communications offerings, and to finance front-loaded sales and commission expenses.

All Other
All Other includes interests in clinical stage pharmaceutical companies, Rafael Pharmaceuticals, Inc. and Lipomedix Pharmaceuticals Ltd., both of which are developing cancer therapies, as well as IDT’s real estate holdings, comprised of its public garage in Newark and commercial properties in Newark, Piscataway and Jerusalem, and other small businesses and investments.

All Other’s financial results for 2Q18 were consistent with expectations.

IDT’s subsidiary, Rafael Holdings, owns IDT’s real estate and pharmaceutical holdings included in All Other.  IDT expects to effectuate the spin-off of Rafael Holdings on or about March 26, 2018.

DIVIDEND
In light of IDT’s commitment to continue investment in its growth initiatives and the impact of the spin-off of Rafael Holdings on the company’s balance sheet, on March 5, 2018, IDT’s Board of Directors reduced the company’s dividend, declaring a quarterly dividend of $0.09 per share of IDT’s Class A and Class B common stock for 2Q18 to be paid on or about March 23, 2018.  The dividend will be paid to stockholders of record as of the close of business on March 19^th.  This distribution will be treated as a return of capital for tax purposes.

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 today beginning today 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 recording of the conference call can be accessed approximately two hours after the call concludes through March 13, 2018, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this call number: 10117078.  A recording will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

ABOUT IDT:
IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution® and net2phone® brands.  IDT Telecom’s wholesale 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.

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2018 and 2017

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 2Q18, 1Q18 and 2Q17, 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 from operations, and add depreciation and amortization, severance expense and other operating expense.

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, and subtracts the income tax benefits from The Tax Cuts and Jobs Act and the release of the valuation allowance and full recognition of deferred tax assets. 

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

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2018 and fiscal 2017 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 all
ocation 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 is a component of income (loss) from operations. In fiscal 2018, other operating expense included legal fees related to potential liabilities and claims under agreements related to IDT’s spin-off in 2013 of Straight Path Communications Inc., and fees related to other legal matters. In fiscal 2017, other operating expense included legal fees related to an FCC inquiry, which was also related to IDT’s prior ownership of Straight Path Communications Inc. Other operating expense is excluded from the calculation of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) per share. From time-to-time, IDT may incur costs related to non-routine legal and regulatory matters. However, such legal and regulatory matters do not occur each quarter. IDT does not believe the gains or losses from non-routine legal and regulatory matters 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 of $3.3 million for its anticipated AMT credit refund due to The Tax Cuts and Jobs Act enacted in December 2017. In 1Q17, IDT recorded a foreign income tax benefit of $16.6 million from the release of the valuation allowance and full recognition of certain deferred tax assets. These income tax benefits are 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 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.

 

 

 

 

 

 

 

 

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SOURCE IDT Corporation

NEWARK, N.J., March 2, 2018 – IDT Corporation (NYSE: IDT) and Rafael Holdings, Inc. today announced that the SEC has completed its review of the registration statement and information statement related to the spin-off of IDT’s Rafael Holdings subsidiary to IDT stockholders.  The record date for IDT stockholders entitled to receive the distribution of Rafael Holdings stock has been changed to March 13, 2018, and the distribution date for the spin-off has been changed to on or about March 26, 2018.

The timeline for the spin-off is as follows:

• The record date will be 5:00 PM EDT on March 13, 2018;

• Beginning on March 12, 2018, the entitlement to shares of Rafael Holdings Class B common stock will trade on the NYSE American “when issued” market with the ticker symbol “RFL WI”. On the first day of trading following the distribution date, “when issued” trading will cease, and “regular-way” trading of Rafael Holdings Class B common stock will begin on the NYSE American with the ticker symbol “RFL”;

• Beginning on March 12, 2018, and continuing through the distribution date, there will be two NYSE markets in IDT Class B common stock: a “regular-way” market and an “ex-distribution” market. Shares of IDT Class B common stock exchanged in the “regular-way” market will trade with an entitlement to receive shares of Rafael Holdings Class B common stock through the distribution. Shares of IDT Class B common stock exchanged in the “ex-distribution” market will trade without such an entitlement;

• The spin-off will be effective at 11:59 p.m. EDT on the distribution date, which will be on or about March 26, 2018. On the distribution date, each eligible IDT stockholder will receive one share of Rafael Holdings Class A common stock for every two shares of IDT Class A common stock and one share of Rafael Holdings Class B common stock for every two shares of IDT Class B common stock;

• IDT expects to receive a legal opinion from Goulston & Storrs that the distribution should qualify as a tax-free transaction for U.S. federal income tax purposes. However, cash distributed in lieu of fractional shares generally will be taxable to the recipient stockholders. Stockholders are urged to consult their financial advisors and tax advisors regarding the particular consequences of the distribution in their situation, including, without limitation, the specific implications of selling IDT common stock on or prior to the distribution date and the applicability and effect of any U.S. federal, state, local and foreign tax laws;

• Rafael Holdings Class B common stock has been assigned CUSIP # 75062E 106.

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 IDT’s 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. IDT’s filings with the SEC and Rafael Holding’s amended Form 10 Registration Statement provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, neither IDT nor Rafael Holdings assumes any obligation to update any forward-looking statements.

About Rafael Holdings, Inc:
Rafael Holdings holds commercial real estate assets and interests in two clinical stage, oncology focused pharmaceutical companies.  The real estate holdings include properties in Newark and Piscataway, New Jersey and Jerusalem, Israel.  The pharmaceutical holdings consist of interests in Rafael Pharmaceuticals, Inc. and a majority stake in Lipomedix Pharmaceuticals Ltd., both of which are focused on development and commercialization of drugs in the oncology space. 

About IDT Corporation:
IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides telecommunications and payment services to individuals and businesses primarily through its flagship Boss Revolution® and net2phone® brands.  IDT Telecom’s wholesale 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

NEWARK, N.J., Feb. 28, 2018 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has scheduled its report of second quarter fiscal 2018 (the three months ended January 31, 2018) financial and operational results for Thursday, March 8, 2018.

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 recording of the conference call can be accessed approximately two hours after the call concludes through March 15, 2018, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this call number: 10117078.  A recording will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

About IDT Corporation:
IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^® and net2phone^® brands.  IDT Telecom’s wholesale 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