Delaware
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1-16371
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22-3415036
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(State or other jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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520 Broad Street
Newark, New Jersey
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07102
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(Address of principal executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit No.
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Document
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99.1
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Press Release issued by Registrant, dated October 31, 2011.
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Page
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Pro Forma Consolidated Financial Statements – Basis of Presentation
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F-1
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Pro Forma Consolidated Balance Sheet as of July 31, 2011
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F-2
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Pro Forma Consolidated Statement of Operations for the year ended July 31, 2011
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F-3
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Pro Forma Consolidated Statement of Operations for the year ended July 31, 2010
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F-4
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Pro Forma Consolidated Statement of Operations for the year ended July 31, 2009
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F-5
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Notes and Management’s Assumptions to Pro Forma Consolidated Financial Information
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F-6
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Historical
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Pro forma adjustments
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Pro forma
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|||||||||||
ASSETS
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|||||||||||||
CURRENT ASSETS:
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|||||||||||||
Cash and cash equivalents
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$ | 254,253 | $ | (106,000 | ) |
(A)
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$ | 148,253 | |||||
Restricted cash and cash equivalents
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6,581 | (164 | ) |
(B)
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6,417 | ||||||||
Certificates of deposit
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3,542 | 3,542 | |||||||||||
Trade accounts receivable, net
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126,270 | (26,124 | ) |
(B)
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100,146 | ||||||||
Prepaid expenses
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24,078 | (2,157 | ) |
(B)
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21,921 | ||||||||
Deferred income tax assets, net – current portion
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1,019 | (1,019 | ) |
(B)
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— | ||||||||
Other current assets
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18,691 | (3,001 | ) |
(B)
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15,690 | ||||||||
TOTAL CURRENT ASSETS
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434,434 | 295,969 | |||||||||||
Property, plant and equipment, net
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90,806 | (335 | ) |
(B)
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90,471 | ||||||||
Goodwill
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18,675 | (3,663 | ) |
(B)
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15,012 | ||||||||
Other intangibles, net
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2,661 | 2,661 | |||||||||||
Investments
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8,721 | 8,721 | |||||||||||
Deferred income tax assets, net – long-term portion
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1,795 | (1,795 | ) |
(B)
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— | ||||||||
Other assets
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11,074 | (1,006 | ) |
(B)
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10,068 | ||||||||
TOTAL ASSETS
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$ | 568,166 | $ | 422,902 | |||||||||
LIABILITIES AND EQUITY
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|||||||||||||
CURRENT LIABILITIES:
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|||||||||||||
Trade accounts payable
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$ | 58,806 | $ | (16,537 | ) |
(B)
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$ | 42,269 | |||||
Accrued expenses
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174,092 | (7,474 | ) |
(B)
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166,618 | ||||||||
Deferred revenue
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78,852 | 78,852 | |||||||||||
Income taxes payable
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7,701 | (1,663 | ) |
(B)
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6,038 | ||||||||
Capital lease obligations–current portion
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1,701 | 1,701 | |||||||||||
Notes–current portion
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611 | 611 | |||||||||||
Other current liabilities
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3,378 | (91 | ) |
(B)
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3,287 | ||||||||
TOTAL CURRENT LIABILITIES
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325,141 | 299,376 | |||||||||||
Notes payable—long-term portion
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29,564 | 29,564 | |||||||||||
Other liabilities
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9,671 | (60 | ) |
(B)
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9,611 | ||||||||
TOTAL LIABILITIES
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364,376 | 338,551 | |||||||||||
Commitments and contingencies
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|||||||||||||
EQUITY:
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|||||||||||||
IDT Corporation stockholders’ equity:
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|||||||||||||
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued
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— | — | |||||||||||
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and outstanding
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33 | 33 | |||||||||||
Class B common stock, $.01 par value; authorized shares—200,000; 23,586 shares issued and 21,109 shares outstanding
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236 | 236 | |||||||||||
Additional paid-in capital
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520,732 | (124,887 | ) |
(B)
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395,845 | ||||||||
Treasury stock, at cost, consisting of 1,698 shares of Class A common stock and 2,477 shares of Class B common stock
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(94,941 | ) | (94,941 | ) | |||||||||
Accumulated other comprehensive income
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3,027 | (357 | ) | 2,670 | |||||||||
Accumulated deficit
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(219,992 | ) | (219,992 | ) | |||||||||
Total IDT Corporation stockholders’ equity
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209,095 | 83,851 | |||||||||||
Noncontrolling interests:
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|||||||||||||
Noncontrolling interests
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(4,305 | ) | 4,805 |
(B)
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500 | ||||||||
Receivable for issuance of equity
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(1,000 | ) | 1,000 |
(B)
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— | ||||||||
Total noncontrolling interests
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(5,305 | ) | 500 | ||||||||||
TOTAL EQUITY
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203,790 | 84,351 | |||||||||||
TOTAL LIABILITIES AND EQUITY
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$ | 568,166 | $ | 422,902 | |||||||||
Historical
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Pro forma adjustments
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Pro forma
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|||||||||||
REVENUES
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$ | 1,555,477 | $ | (203,561 | ) |
(C)
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$ | 1,351,916 | |||||
COSTS AND EXPENSES:
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Direct cost of revenues (exclusive of depreciation and amortization)
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1,269,380 | (149,714 | ) |
(C)
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1,119,666 | ||||||||
Selling, general and administrative
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237,847 | (33,768 | ) |
(C)
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204,079 | ||||||||
Depreciation and amortization
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20,976 | (24 | ) |
(C)
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20,952 | ||||||||
Research and development
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10,676 | (7,843 | ) |
(C)
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2,833 | ||||||||
Severance and other charges
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1,053 | 1,053 | |||||||||||
TOTAL COSTS AND EXPENSES
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1,539,932 | 1,348,583 | |||||||||||
Other operating gains, net
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6,324 | 6,324 | |||||||||||
Income from operations
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21,869 | 9,657 | |||||||||||
Interest expense, net
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(5,679 | ) | 1,974 |
(C)
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(3,705 | ) | |||||||
Other expense (income), net
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(1,857 | ) | 5,848 |
(C)
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3,991 | ||||||||
Income from continuing operations before income taxes
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14,333 | 9,943 | |||||||||||
Benefit from income taxes
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5,538 | (478 | ) |
(D)
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5,060 | ||||||||
Income from continuing operations
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19,871 | 15,003 | |||||||||||
Loss (income) from continuing operations attributable to noncontrolling interest
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3,441 | (4,185 | ) |
(C)
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(744 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO IDT CORPORATION
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$ | $23,312 | $ | 14,259 | |||||||||
Earnings per share attributable to IDT Corporation common stockholders:
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Basic:
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$ | $1.13 | $ | 0.69 | |||||||||
Diluted:
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$ | $1.04 | $ | 0.63 | |||||||||
Weighted-average number of shares used in calculation of earnings per share | |||||||||||||
Basic: | 20,565 | 20,565 | |||||||||||
Diluted: | 22,482 | 22,482 | |||||||||||
Historical
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Pro forma adjustments
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Pro forma
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|||||||||||
REVENUES
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$ | 1,394,935 | $ | (201,358 | ) |
(C)
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$ | 1,193,577 | |||||
COSTS AND EXPENSES:
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|||||||||||||
Direct cost of revenues (exclusive of depreciation and amortization)
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1,110,723 | (143,532 | ) |
(C)
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967,191 | ||||||||
Selling, general and administrative
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215,858 | (21,181 | ) |
(C)
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194,677 | ||||||||
Depreciation and amortization
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33,426 | (86 | ) |
(C)
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33,340 | ||||||||
Research and development
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8,008 | (5,226 | ) |
(C)
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2,782 | ||||||||
Severance and other charges
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4,841 | 4,841 | |||||||||||
TOTAL COSTS AND EXPENSES
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1,372,856 | 1,202,831 | |||||||||||
Other operating gains, net
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10,084 | 10,084 | |||||||||||
Income from operations
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32,163 | 830 | |||||||||||
Interest expense, net
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(6,262 | ) | 1,723 |
(C)
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(4,539 | ) | |||||||
Other income, net
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27 | 1,579 |
(C)
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1,606 | |||||||||
Income (loss) from continuing operations before income taxes
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25,928 | (2,103 | ) | ||||||||||
Provision for income taxes
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(5,275 | ) | 3,265 |
(D)
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(2,010 | ) | |||||||
Income (loss) from continuing operations
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20,653 | (4,113 | ) | ||||||||||
Net income attributable to noncontrolling interest
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(84 | ) | (492 | ) |
(C)
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(576 | ) | ||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO IDT CORPORATION
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$ | 20,569 | $ | (4,689 | ) | ||||||||
Earnings (loss) per share attributable to IDT Corporation common stockholders:
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Basic:
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$ | $1.00 | $ | (0.23 | ) | ||||||||
Diluted:
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$ | $0.95 | $ | (0.23 | ) | ||||||||
Weighted-average number of shares used in calculation of earnings (loss) per share | |||||||||||||
Basic: |
20,451
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20,451
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|||||||||||
Diluted: |
21,546
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20,451 |
Historical
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Pro forma adjustments
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Pro forma
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|||||||||||
REVENUES
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$ | 1,507,659 | $ | (264,709 | ) |
(C)
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$ | 1,242,950 | |||||
COSTS AND EXPENSES:
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Direct cost of revenues (exclusive of depreciation and amortization)
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1,160,121 | (192,550 | ) |
(C)
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967,571 | ||||||||
Selling, general and administrative
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281,896 | (26,863 | ) |
(C)
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255,033 | ||||||||
Depreciation and amortization
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47,698 | (118 | ) |
(C)
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47,580 | ||||||||
Bad debt
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7,122 | 7,122 | |||||||||||
Research and development
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9,035 | (6,253 | ) |
(C)
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2,782 | ||||||||
Impairments
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38,351 | 38,351 | |||||||||||
Severance and other charges
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9,332 | 9,332 | |||||||||||
TOTAL COSTS AND EXPENSES
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1,553,555 | 1,327,771 | |||||||||||
Gain on sale of interest in AMSO, LLC
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2,598 | (2,598 | ) |
(C)
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— | ||||||||
Loss from operations
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(43,298 | ) | (84,821 | ) | |||||||||
Interest expense, net
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(2,640 | ) | (67 | ) |
(C)
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(2,707 | ) | ||||||
Other expense, net
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(32,459 | ) | 614 |
(C)
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(31,845 | ) | |||||||
Loss from continuing operations before income taxes
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(78,397 | ) | (119,373 | ) | |||||||||
Benefit from income taxes
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4,633 | 3,478 |
(D)
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8,111 | |||||||||
Loss from continuing operations
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(73,764 | ) | (111,262 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest
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(485 | ) | (20 | ) |
(C)
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(505 | ) | ||||||
LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO IDT CORPORATION
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$ | (74,249 | ) | $ | (111,767 | ) | |||||||
Loss per share attributable to IDT Corporation common stockholders:
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Basic and diluted:
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$ | $(3.30 | ) | $ | (4.96 | ) | |||||||
Weighted-average number of shares used in calculation of basic and diluted loss per share
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22,542 | 22,542 | |||||||||||
1.
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The following is a description of the pro forma adjustments to the historical consolidated financial statements:
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(A)
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Reflects the (i) the removal of $23.9 million of cash of Genie, (ii) The repayment by IDT of the $5.2 million due from IDT, and (iii) the transfer of $82.1 million in cash to Genie. These assumed transactions were such that Genie’s total pro forma cash balance was approximately $106 million as of July 31, 2011.
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(B)
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Reflects the removal of assets, liabilities, noncontrolling interests and accumulated other comprehensive income of Genie as if the spinoff was consummated on July 31, 2011.
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(C) | Reflects the removal of the results of operations of Genie as if the spinoff was consummated on August 1, 2008. | |
(D) | Reflects adjusted provision for income taxes as if the spinoff was consummated on August 1, 2008 and Genie was not part of the consolidated federal income tax returns. |
IDT CORPORATION
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By:
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/s/ Howard S. Jonas
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Name: Howard S. Jonas
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Title: Chairman and Chief Executive Officer
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Exhibit Number
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Document
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99.1
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Press Release issued by Registrant, dated October 31, 2011.
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