8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report  (Date of earliest event reported)   February 18, 2010

j2 Global Communications, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization) 0-25965 (Commission File Number) 51-0371142 (IRS Employer Identification No.)

6922 Hollywood Blvd.

Suite 500

Los Angeles, California  90028

(Address of principal executive offices)

(323) 860-9200

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 and 7.01.         Results of Operations and Financial Condition and Regulation FD Disclosure.

On February 18, 2010, j2 Global Communications, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2009. The press release also contains the following financial guidance for fiscal year 2010: j2 Global targets revenue growth of 5% with a range of 3% to 7% compared to fiscal year 2009 revenues. Net earnings, excluding 123(R) non-cash compensation expense, are expected to approximate non-GAAP earnings in 2009 as the Company intends to reinvest its incremental operating income in initiatives designed to accelerate growth in 2011 and beyond.  The range of anticipated revenues takes into account both organic growth and acquisition related growth within the context of current economic conditions.  A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

Also on February 18, 2010, j2 Global hosted its fiscal 2009 earnings conference call and Webcast. Via the Webcast, the Company presented its February 2010 Investor Presentation, which contains a summary of j2 Global’s financial results for the fiscal year ended December 31, 2009; financial estimates for fiscal year 2010; and certain other financial and operating information regarding j2 Global. A copy of this presentation is furnished as Exhibit 99.2 to this Form 8-K.

NOTE: This information is being furnished under both Item 2.02 (Results of Operations and Financial Condition) and Item 7.01 (Regulation FD Disclosure) of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release dated February 18, 2010.
99.2	February 2010 Investor Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	j2 Global Communications, Inc. (Registrant)
Date:   February 18, 2010	By:	/s/ Kathleen M. Griggs
		Kathleen M. Griggs Chief Financial Officer

- 2 - -

INDEX TO EXHIBITS

EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release dated February 18, 2010.
99.2	February 2010 Investor Presentation.

- 3 - -

EX-99.1

EXHIBIT 99.1

j2 Global Reports 2009 Year End Results

Non-GAAP Q4 EPS $0.45; Non-GAAP 2009 EPS $1.85;

GAAP Q4 EPS $0.39; GAAP 2009 EPS $1.48;

Record Annual Free Cash Flow

LOS ANGELES—February 18, 2010—j2 Global Communications, Inc. [NASDAQGS:JCOM] today reported financial results for the fourth quarter and year ended December 31, 2009.

FOURTH QUARTER 2009 RESULTS

Subscriber revenues for Q4 2009 increased 1% to $60.2 million compared to $59.6 million in Q4 2008.

Total revenues for Q4 2009 increased 0.5% to $60.9 million compared to $60.6 million in Q4 2008.

Net earnings per diluted share on a Non-GAAP basis, which excludes share based compensation, impairment of auction rate and related securities, gain on sale of investments and disposal of long lived asset, was $0.45 for Q4 2009 compared to $0.49 for Q4 2008.  GAAP net earning per diluted share for Q4 2009 was $0.39 compared to $0.45 for Q4 2008.

Share-based compensation impacted Q4 2009 and Q4 2008 net earnings per diluted share by approximately $0.07 and $0.04, respectively, net of tax. Share-based compensation in Q4 2009 was impacted by $0.02 for certain non-tax deductible share based compensation expense.

During Q4 2009, the Company increased its Non-GAAP gross and operating margins to 83.3% and 47.8%, respectively, from 81.9% and 46.5%, respectively, in Q4 2008.

The Company ended the year with approximately $244 million in cash and investments compared to $162 million as of December 31, 2008.

Key financial results for fourth quarter 2009 versus fourth quarter 2008 are as follows:

	Q4 2009	Q4 2008
Subscriber Revenues	$60.2 million	$59.6 million
Total Revenues	$60.9 million	$60.6 million
Non-GAAP Net Earnings per Diluted Share (1) (2)	$0.45	$0.49
GAAP Net Earnings per Diluted Share (1) (2)	$0.39	$0.45
Free Cash Flow (3)	$22.2 million	$24.4 million

(1)   The Q4 2009 and Q4 2008 tax rate was approximately 31% and 25%, respectively. The Q4 2008 tax rate reflects recognition during the quarter of $1.8 million in federal and state research and development tax credits.

(2)   Share-based compensation, impairment of auction rate and related securities, gain on sale of investments and disposal of long lived asset impacted Q4 2009 net earnings per diluted share by approximately $0.07, $0.00, ($0.04) and $0.03, in each case net of tax, respectively.

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

ANNUAL RESULTS

Subscriber revenues for fiscal year 2009 increased 2% to $242 million compared to $237 million in fiscal year 2008.

Total revenues for fiscal year 2009 increased 2% to $246 million compared to $242 million in fiscal year 2008.

Net earnings per diluted share on a Non-GAAP basis, which excludes share based compensation, impairment of auction rate and related securities, gain on sale of investments and disposal of long lived asset increased 9% to $1.85 for 2009 compared to $1.70 for 2008. GAAP net earnings per diluted share were $1.48 for 2009 compared to $1.58 for 2008.

Share-based compensation impacted 2009 and 2008 net earnings per diluted share by approximately $0.19 and $0.12, respectively, net of tax.

During fiscal year 2009, the Company increased its Non-GAAP gross and operating margins to 82.3% and 48.0%, respectively, compared to 81.2% and 43.9%, respectively, in fiscal year 2008.

For fiscal year 2009 the Company achieved record free cash flow of $101.6 million versus $89.8 million for fiscal 2008, a 13% increase.

Key financial results for fiscal year 2009 versus fiscal year 2008 are as follows:

	2009	2008
Subscriber Revenues	$242 million	$237 million
Total Revenues	$246 million	$242 million
Non-GAAP Net Earnings per Diluted Share (1) (2)	$1.85	$1.70
GAAP Net Earnings per Diluted Share (1) (2)	$1.48	$1.58
Free Cash Flow (3)	$101.6 million	$89.8 million

(1)   For fiscal 2009 and fiscal 2008 the tax rate was approximately 32% and 29%, respectively.

(2)   Share-based compensation, impairment of auction rate and related securities, gain on sale of investments and disposal of long lived asset impacted 2009 net earnings per diluted share by approximately $0.19, $0.19, ($0.04) and $0.03, in each case net of tax, respectively.

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

“We are pleased with the execution against our business plan for 2009,” said Hemi Zucker, j2 Global’s chief executive officer. “We enhanced our margins and free cash flow generation, positioning us well for making greater investments in the business in 2010. We have already announced three acquisitions and begun to enhance our marketing efforts through more direct marketing spend, building our free base of customers and beginning to invest in new markets.”

BUSINESS OUTLOOK

For fiscal 2010, j2 Global targets revenue growth of 5% with a range of 3% to 7% compared to fiscal year 2009 revenues. Net earnings, excluding 123R non-cash compensation expense, are expected to approximate non-GAAP earnings in 2009 as the Company intends to reinvest its incremental operating income in initiatives designed to accelerate growth in 2011 and beyond.

The range of anticipated revenues takes into account both organic growth and acquisition related growth within the context of current economic conditions.

About j2 Global Communications

Founded in 1995, j2 Global Communications, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses around the world. j2 Global’s network spans more than 3,500 cities in 46 countries on six continents. The Company offers Internet fax, voice and email solutions. j2 Global markets its services principally under the brand names eFax®, eFax Corporate®, Onebox®, eVoice® and Electric Mail®.As of December 31, 2009, j2 Global had achieved 14 consecutive fiscal years of revenue growth and eight consecutive fiscal years of positive and growing operating earnings. For more information about j2 Global, please visit www.j2global.com.

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

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this Press Release are “forward-looking statements” within the meaning of The Private Securities Litigation Act of 1995, particularly those contained in the “Business Outlook” portion regarding the Company’s expected fiscal 2010 financial performance. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: Subscriber growth and retention; variability of revenue based on changing conditions in particular industries and the economy generally; protection of the Company’s proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments surrounding messaging and communications, including but not limited to the imposition or increase of taxes or regulatory-related fees; and the numerous other factors set forth in j2 Global’s filings with the Securities and Exchange Commission (“SEC”). For a more detailed description of the risk factors and uncertainties affecting j2 Global, refer to the 2008 Annual Report on Form 10-K filed by j2 Global on February 25, 2009, and the other reports filed by j2 Global from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release and particularly those contained in the “Business Outlook” portion regarding the Company’s expected fiscal 2010 financial performance are based on limited information available to the Company at this time, which is subject to change. Although management’s expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

	DECEMBER 31,		DECEMBER 31,
	2009		2008
ASSETS
Cash and cash equivalents	$	197,411	$	150,780
Short-term investments		31,381		14
Accounts receivable,
net of allowances of $3,077 and $2,896, respectively		11,928		14,083
Prepaid expenses and other current assets		13,076		6,683
Deferred income taxes		2,657		2,958
Total current assets		256,453		174,518
Long-term investments		14,887		11,081
Property and equipment, net		13,366		18,938
Goodwill		81,258		72,783
Other purchased intangibles, net		39,091		36,791
Deferred income taxes		8,717		7,787
Other assets		229		142
TOTAL ASSETS	$	414,001	$	322,040
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	15,941	$	16,915
Income taxes payable		1,563		1,800
Deferred revenue		11,411		13,680
Total current liabilities		28,915		32,395
Accrued income tax liability		46,820		38,643
Other long-term liabilities		2,094		1,022
Total liabilities		77,829		72,060
Commitments and contingencies		—		—
Total stockholders' equity		336,172		249,980
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	414,001	$	322,040

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	THREE MONTHS ENDED DECEMBER 31,					TWELVE MONTHS ENDED DECEMBER 31,
	2009			2008		2009			2008
Revenues
Subscriber	$	60,188		$	59,622	$	241,922		$	236,841
Other		727			1,014		3,649			4,672
Total revenue		60,915			60,636		245,571			241,513
Cost of revenues (including share-based compensation of $328 and $1,263 for the three and twelve months of 2009, respectively, and $255 and $901 for the three and twelve months of 2008, respectively)		10,480			11,224		44,730			46,250
Gross profit		50,435			49,412		200,841			195,263
Operating expenses:
Sales and marketing (including share-based compensation of $480 and $1,818 for the three and twelve months of 2009, respectively, and $313 and $1,268 for the three and twelve months of 2008, respectively)		9,563			9,683		37,006			41,270
Research, development and engineering (including share-based compensation of $219 and $853 for the three and twelve months of 2009, respectively, and $183 and $803 for the three and twelve months of 2008, respectively)		2,972			2,851		11,657			12,031
General and administrative (including share-based compensation of $1,896 and $7,084 for the three and twelve months of 2009, respectively, and $1,243 and $5,014 for the three and twelve months of 2008, respectively)		11,693			10,668		45,275			44,028
Loss on disposal of long-lived asset		2,442			—		2,442			-
Total operating expenses		26,670			23,202		96,380			97,329
Operating earnings		23,765			26,210		104,461			97,934
Other-than-temporary impairment losses		(150	)		—		(9,343	)		—
Interest and other income, net		2,184			673		2,661			4,219
Earnings before income taxes		25,799			26,883		97,779			102,153
Income tax expense		8,095			6,607		30,952			29,591
Net earnings	$	17,704		$	20,276	$	66,827		$	72,562
Basic net earnings per common share	$	0.40		$	0.47	$	1.52		$	1.63
Diluted net earnings per common share	$	0.39		$	0.45	$	1.48		$	1.58
Basic weighted average shares outstanding		44,220,725			43,578,619		43,936,194			44,609,174
Diluted weighted average shares outstanding		45,244,333			44,717,716		45,138,001			45,937,506

j2 GLOBAL COMMUNICATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

	TWELVE MONTHS ENDED DECEMBER 31,
	2009			2008
Cash flows from operating activities:
Net earnings	$	66,827		$	72,562
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization		14,707			13,177
Share-based compensation		11,018			7,986
Excess tax benefits from share-based compensation		(3,063	)		(1,565	)
Provision for doubtful accounts		2,378			2,815
Deferred income taxes		(629	)		(2,908	)
Loss (Gain) on disposal of long-lived asset		2,529			(6	)
Loss on trading securities		4			418
Gain on sale of available-for-sale investment		(1,812	)		—
Other-than-temporary impairment losses		9,343			—
Decrease (increase) in:
Accounts receivable		(6	)		(1,809	)
Prepaid expenses and other current assets		(2,253	)		1,403
Other assets		(35	)		46
(Decrease) increase in:
Accounts payable and accrued expenses		(3,677	)		(994	)
Income taxes payable		(1,161	)		(5,633	)
Deferred revenue		(537	)		(2,118	)
Accrued income tax liability		8,178			7,399
Other		22			(57	)
Net cash provided by operating activities		101,833			90,716
Cash flows from investing activities:
Sales of available-for-sale investments		2,706			36,170
Redemptions/Sales of held-to-maturity investments		—			27,881
Purchases of available-for-sale investments		(12,900	)		—
Purchases of certificates of deposit		(31,372	)		—
Purchases of property and equipment		(3,251	)		(2,507	)
Proceeds from sale of assets		1,340			25
Acquisition of businesses, net of cash received		(12,500	)		(42,825	)
Purchases of intangible assets		(5,472	)		(3,818	)
Net cash (used in) provided by investing activities		(61,449	)		14,926
Cash flows from financing activities:
Repurchases of common stock and restricted stock		(470	)		(108,492	)
Issuance of common stock under employee stock purchase plan		120			183
Exercise of stock options		2,708			1,829
Excess tax benefits from share-based compensation		3,063			1,565
Net cash provided by (used in) financing activities		5,421			(104,915	)
Effect of exchange rate changes on cash and cash equivalents		826			(4,167	)
Net increase (decrease) in cash and cash equivalents		46,631			(3,440	)
Cash and cash equivalents at beginning of period		150,780			154,220
Cash and cash equivalents at end of period	$	197,411		$	150,780

j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS

THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Modified net earnings are GAAP net earnings with the following modifications (1) elimination of share-based compensation expense for 2009 and 2008; (2) elimination of loss on disposal of long-lived asset, (3) elimination of other-than-temporary impairment losses, (4) elimination of gain on sale of investment and (5) elimination of income tax expense associated with share-based compensation, loss on disposal of a long-lived asset, other-than-temporary impairment losses and gain from sale of investment. Modified net earnings and modified net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes. The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions.  The Company believes that this non-GAAP financial information are useful measures of operating performance because they exclude certain non-recurring transactions outside the ordinary course of the Company's business.

		THREE MONTHS ENDED DECEMBER 31, 2009									THREE MONTHS ENDED DECEMBER 31, 2008
		Reported			Non-GAAP Entries				Non-GAAP		Reported		Non-GAAP Entries				Non-GAAP
Revenues
Subscriber		$	60,188		$	—			$	60,188	$	59,622	$	—			$	59,622
Other			727			—				727		1,014		—				1,014
Total revenue			60,915			—				60,915		60,636		—				60,636
Cost of revenues (1)			10,480			(328	)	(1)		10,152		11,224		(255	)	(1)		10,969
Gross profit			50,435			328				50,763		49,412		255				49,667
Operating expenses:
Sales and marketing (1)			9,563			(480	)	(1)		9,083		9,683		(313	)	(1)		9,370
Research, development and engineering (1)			2,972			(219	)	(1)		2,753		2,851		(183	)	(1)		2,668
General and administrative (1)			11,693			(1,896	)	(1)		9,797		10,668		(1,243	)	(1)		9,425
Loss on disposal of long-lived asset (2)			2,442			(2,442	)	(2)		—		—		—				—
Total operating expenses			26,670			(5,037	)			21,633		23,202		(1,739	)			21,463
Operating earnings			23,765			5,365				29,130		26,210		1,994				28,204
Other-than-temporary impairment losses (3)			(150	)		150		(3)		—		—		—				—
Interest and other income, net (4)			2,184			(1,812	)	(4)		372		673		—				673
Earnings before income taxes			25,799			3,703				29,502		26,883		1,994				28,877
Income tax expense (5)			8,095			965		(5)		9,060		6,607		575				7,182
Net earnings		$	17,704		$	2,738			$	20,442	$	20,276	$	1,419			$	21,695
Diluted net earnings per share		$	0.39						$	0.45	$	0.45					$	0.49
Diluted weighted average shares outstanding			45,244,333							45,244,333		44,717,716						44,717,716
(1)	Share-based compensation expense:
Cost of revenues					$	(328	)						$	(255	)
Sales and marketing						(480	)							(313	)
Research, development and engineering						(219	)							(183	)
General and administrative						(1,896	)							(1,243	)
					$	(2,923	)						$	(1,994	)
(2)	Loss on disposal of long-lived asset				$	(2,442	)
(3)	Other-than-temporary impairment losses				$	150
(4)	Gain on sale of investment				$	(1,812	)
(5)	Income tax adjustment, net impact of the items above
Share-based compensation expense					$	(38	)						$	575
Loss on disposal of long-lived asset						974								—
Other-than-temporary impairment losses						29								—
Gain from sale of investment						—								—
					$	965							$	575

j2 GLOBAL COMMUNICATIONS, INC.

UNAUDITED RECONCILIATION OF MODIFIED NET EARNINGS

TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Modified net earnings are GAAP net earnings with the following modifications (1) elimination of share-based compensation expense for 2009 and 2008; (2) elimination of loss on disposal of long-lived asset, (3) elimination of other-than-temporary impairment losses, (4) elimination of gain on sale of investment and (5) elimination of income tax expense associated with share-based compensation, loss on disposal of a long-lived asset, other-than-temporary impairment losses and gain from sale of investment.  Modified net earnings and modified net earnings per share are not meant as a substitute for measures determined under GAAP, but are solely for informational purposes. The following table illustrates and reconciles the GAAP net earnings with the aforementioned exclusions.  The Company believes that this non-GAAP financial information are useful measures of operating performance because they exclude certain non-recurring transactions outside the ordinary course of the Company's business.

		TWELEVE MONTHS ENDED DECEMBER 31, 2009									TWELVE MONTHS ENDED DECEMBER 31, 2008
		Reported			Non-GAAP Entries				Non-GAAP		Reported		Non-GAAP Entries				Non-GAAP
Revenues
Subscriber		$	241,922		$	—			$	241,922	$	236,841	$	—			$	236,841
Other			3,649			—				3,649		4,672		—				4,672
Total revenue			245,571			—				245,571		241,513		—				241,513
Cost of revenues (1)			44,730			(1,263	)	(1)		43,467		46,250		(901	)	(1)		45,349
Gross profit			200,841			1,263				202,104		195,263		901				196,164
Operating expenses:
Sales and marketing (1)			37,006			(1,818	)	(1)		35,188		41,270		(1,268	)	(1)		40,002
Research, development and engineering (1)			11,657			(853	)	(1)		10,804		12,031		(803	)	(1)		11,228
General and administrative (1)			45,275			(7,084	)	(1)		38,191		44,028		(5,014	)	(1)		39,014
Loss on disposal of long-lived asset (2)			2,442			(2,442	)	(2)		—		—		—				—
Total operating expenses			96,380			(12,197	)			84,183		97,329		(7,085	)			90,244
Operating earnings			104,461			13,460				117,921		97,934		7,986				105,920
Other-than-temporary impairment losses (3)			(9,343	)		9,343		(3)		—		—		—				—
Interest and other income, net (4)			2,661			(1,812	)	(4)		849		4,219		—				4,219
Earnings before income taxes			97,779			20,991				118,770		102,153		7,986				110,139
Income tax expense (5)			30,952			4,204		(5)		35,156		29,591		2,307				31,898
Net earnings		$	66,827		$	16,787			$	83,614	$	72,562	$	5,679			$	78,241
Diluted net earnings per share		$	1.48						$	1.85	$	1.58					$	1.70
Diluted weighted average shares outstanding			45,138,001							45,138,001		45,937,506						45,937,506
(1)	Share-based compensation expense:
Cost of revenues					$	(1,263	)						$	(901	)
Sales and marketing						(1,818	)							(1,268	)
Research, development and engineering						(853	)							(803	)
General and administrative						(7,084	)							(5,014	)
					$	(11,018	)						$	(7,986	)
(2)	Loss on disposal of long-lived asset				$	(2,442	)
(3)	Other-than-temporary impairment losses				$	9,343
(4)	Gain on sale of investment				$	(1,812	)
(5)	Income tax adjustment, net impact of the items above
Share-based compensation expense					$	2,425							$	2,307
Loss on disposal of long-lived asset						974								—
Other-than-temporary impairment losses						805								—
Gain from sale of investment						—								—
					$	4,204							$	2,307

j2 Global Communications, Inc.

Free Cash Flows

	Q1		Q2		Q3		Q4		YTD
2009
Net cash provided by operating activities	31,152		20,362		26,469		23,850			101,833
Less: Purchases of property and equipment	(721	)	(217	)	(767	)	(1,546	)		(3,251	)
Add: Excess tax benefit from share-based compensation	5		2,718		403		(63	)		3,063
	30,436		22,863		26,105		22,241			101,645
2008
Net cash provided by operating activities	27,411		23,840		15,676		23,789			90,716
Less: Purchases of property and equipment	(469	)	(796	)	(937	)	(305	)		(2,507	)
Add: Excess tax benefit from share-based compensation	239		204		212		910			1,565
	27,181		23,248		14,951		24,394			89,774
2007
Net cash provided by operating activities	26,659		23,113		18,656		25,779			94,207
Less: Purchases of property and equipment	(529	)	(2,506	)	(2,940	)	(4,340	)		(10,315	)
Add: Excess tax benefit from share-based compensation	2,163		780		517		1,271			4,731
	28,293		21,387		16,233		22,710			88,623

EX-99.2

EXHIBIT 99.2