EX-99.1 2 exhibit99-1_15949.htm POWERPOINT PRESENTATION

EXHIBIT 99.1

FBR 12th Annual Spring Investor Conference

(Based upon First Quarter 2008 results)

May 28, 2008

 

  Future operating results

  Subscriber growth, retention and usage levels

  Fax and voice service growth

  New products, services and features

  Corporate spending

  Liquidity

  Network capacity, coverage and security

  Regulatory developments

  Taxes

Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, particularly those contained in the slide “2008 Guidance.” These forward-
looking statements are based on management’s current expectations or beliefs as of May 28, 2008 and are subject to
numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described
in the forward-looking statements.  
We undertake no obligation to revise or publicly release the results of any revision
to these forward-looking statements. Readers should carefully review the risk factors described in this presentation.
Such statements address the following subjects:

Safe Harbor for Forward-Looking Statements

All information in this presentation speaks as of May 28, 2008 and any distribution of
this presentation after that date is not intended and will not be construed as updating
or confirming such information.

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Risk Factors

Inability to sustain growth in our customer base, revenue or profitability

Competition in price, quality, features and geographic coverage

Higher than expected tax rates or exposure to additional tax liability

Inability to obtain telephone numbers in sufficient quantities on acceptable terms in desired locations

Enactment of burdensome telecommunications or Internet regulations including increased taxes or fees

Reduced use of fax services due to increased use of email, scanning or widespread adoption of digital signatures

Inadequate intellectual property protection or violations of third party intellectual property rights

System failures or breach of system or network security and resulting harm to our reputation

Inability to adapt to technological change, or third party development of new technologies superior to ours

Economic downturns in industries which rely heavily on fax transmissions or general economic downturns

Loss of services of executive officers and other key employees

Inability to maintain existing or enter into new supplier and marketing relationships on acceptable terms

Other factors set forth in our Annual Report on Form 10-K filed on 02/25/2008 and the other reports filed by us from time to
time with the Securities and Exchange Commission

The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to
be materially adversely affected:

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All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.

Messaging/Communications as a Service

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Core j2 Global Assets

11.2 million Subscribed Telephone Numbers (DIDs)

1,099K Paid DIDs

Global Advanced Messaging Network

Over 3,000 cities in 44 countries on 5 continents

17.4M + unique DIDs worldwide in inventory

Intellectual Property

56 issued patents and l icensing programs designed to monetize the portfolio

Protection of brands and marks

Programs designed to effectively collect evidence to prosecute junk faxers

Expertise

Effective customer acquisition strategies and Web marketing

Breadth, depth and management of a complex network & architecture

Successful acquisition and integration of 16 businesses in 7 countries

Strong Financial Position

12 consecutive years of Revenue growth

6 consecutive years of positive and growing Operating Earnings

$27M of Free Cash Flow (Q1 2008)

$181M of cash & investments to fund growth/ no debt ( as of 03/31/08)

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Individuals

Targeted marketing (search, online media and radio)

Sold through: eFax.com, eVoice.com, Onebox.com, Fax.com, j2.com, and other brand   
websites

Use of proprietary Life Cycle Management

Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free base

Small to Mid-Sized Businesses (SMBs)

Sold through: eFax Corporate and Onebox Receptionist and eVoice Receptionist websites

Supported by Chat and Telesales groups in U.S. and Europe (in multiple languages)

Self-service Web-based broadcast fax engine at jblast.com

Outsourced email, spam & virus protection and archiving

Use of proprietary Life Cycle Management (i.e. feature up-sell)

Enterprise (SMEs)/Large Enterprise/Government

Direct sales force in U.S. and Europe

Marketed through Web and traditional direct selling methods

Designed for > 150 DID accounts

Subscriber Acquisition

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Seven Drivers for Paid DID Additions

Subscribers coming directly to the Company’s Websites/Telesales

Brand awareness driven by demand-generation programs and “word of mouth”

Search engine discovery

Accounts for over 40% of monthly paid DID signups

Free-to-Paid subscriber upgrades

Life Cycle Management

eFax Corporate SMB sales

Hybrid Website and human interaction (i.e. Telesales)

Direct SME/Enterprise/Government

Through the outside Corporate Sales team

Direct domestic marketing spend for paid subscribers

Targeted marketing program across various media

International marketing programs

Cross-sell

Offer additional services to existing customers

Paid Subscription Drivers

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Financial Highlights/Guidance

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(1)          Includes SFAS 123(R) non-cash compensation expense.

(2)          Includes SFAS 123(R) non-cash compensation expense, net of tax benefit.

(3)          See slide 15 for a reconciliation to the nearest GAAP financial measure.

GAAP Results

GAAP Revenues

$58.6M  

Gross Profit/Margin (1)

$47.0M

80.2%

Operating Profit/Margin (1)

$22.5M

38.4%

GAAP EPS (2)

$0.35 Per Share

Free Cash Flow (3)

$26.9M

Cash and Investments

$181.3M

                     

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2008 Guidance

(Reaffirmed 05/28/08)

$1.45 - $1.65

GAAP EPS

$240 - $270

2008

Revenues (M)

         

         2008 EPS is based on GAAP which includes SFAS 123(R) non-cash compensation expense.

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Similar Services to Onebox

Dedicated voicemail

Individual FM/FM

Virtual PBX

Operationally Lean Company Managed for Cash Flow

Sellers were a Family

Currently Offers Only Toll-Free Numbers

Emphasizes Search for Own Number

Opportunity to Create Best of Breed Services/Marketing

Integration to Occur over One Year Time Frame

Acquisition is Expected to be Accretive

Highlights

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Supplemental Information

13

 

Metrics

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(1) Net cash provided by operating activities, less purchases of property & equipment.  Free Cash Flow amounts are not meant as a substitute
for GAAP, but are solely for informational purposes.

15

Computation of Free Cash Flow

($ in millions)

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Net cash from operating activities

$19.245

$14.250

$13.607

$25.903

$26.659

$23.113

$18.656

$25.779

$27.411

Purch. of property & equipment

(0.757)

(3.288)

(1.181)

(1.973)

(0.529)

(2.506)

(2.940)

(4.340)

(0.469)

Free Cash Flow  

(1)

$18.488

$10.962

$12.426

$23.930

$26.130

$20.607

$15.716

$21.439

$26.942

 

Usage of Corporate and Web High Volume Users

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