Banks.com, Inc. Reports First Quarter 2009 Financial Results and Status Updates

SAN FRANCISCO--(Business Wire)--
Banks.com, Inc. (NYSE Amex: BNX), operator of leading financial services focused
online media properties, today announced its results for the first quarter of
2009.

Financial Highlights

For the first quarter of 2009, Banks.com, Inc. (the "Company", "Banks.com")
reported revenue of $2.9 million compared to revenue of $5.0 million reported
for the first quarter of 2008. GAAP1 net income was $81 thousand or $0.00 per
diluted share versus a GAAP net loss of $367 thousand or $0.01 per diluted share
for the first quarter of 2008. Adjusted EBITDA2 was $961 thousand for the first
quarter of 2009, compared to Adjusted EBITDA of $278 thousand for the first
quarter of 2008.

"We believe that overall trends in our business have stabilized and we are
pleased with our results for the first quarter and for the important tax
season," said Dan O`Donnell, Chief Executive Officer of Banks.com. "Despite the
challenging global economic environment, and for financial services online
advertising in particular, we were able to deliver revenue results above our
expectations as both our advertising and services businesses performed well
during the quarter. Additionally, our stronger margin performance and ongoing
efforts to reduce our operating cost structure have enabled us to achieve
improved profitability in our business."

Select Business Highlights

* Reduced first quarter 2009 cash SG&A expenses by greater than 50% year over
year versus the first quarter 2008
* Since May 2008, have paid off approximately 42% of the original $7MM principal
balance of the Company`s 13.50% notes due 2010
* Launched a white label Online Tax Extension product
* Raised $300 thousand through the sale of Series C Preferred Stock to the
Company`s CEO

Second Quarter 2009 Business Outlook

* For the second quarter of 2009, the Company expects revenue to be in the range
of $2.4 million to $2.7 million
* For the second quarter of 2009, the Company expects Adjusted EBITDA to be in
the range of $800 thousand to $1.0 million

Received Waiver of Financial Covenants on Notes Payable

The Company also announced today that it has received an extended waiver of its
obligation to comply with certain of the financial covenants of its 13.50%
Senior Subordinated Notes due June 30, 2010 (the "Notes") to June 29, 2009. The
Company`s Notes require that the Company maintain certain financial ratios until
the Notes are paid in full, and although the Company has remained current on all
its principal and interest payments, it is currently not in compliance with the
financial covenants related to the Leverage Ratio and the Fixed Charge Coverage
Ratio. As part of the lender`s agreement to extend the waiver, the Company has
agreed to make three additional principal payments of $109,375 on May 15, 2009,
$109,375 on June 15, 2009, and $145,833 before September 30, 2009. The Company
currently expects that it will regain full compliance with the financial
covenants on June 30, 2009 through normal business operations, without the sale
of any additional company assets or equity and expects to remain in covenant
compliance throughout the remainder of the term of the Notes.

Received Extension from NYSE Amex on Plan of Compliance

Banks.com announced today that NYSE Amex (the "Exchange") granted the Company
additional time to achieve its plan to comply with Exchange listing standards.
As previously disclosed, the Company received notice from the Exchange on
October 10, 2008, indicating that the Company is below certain of the Exchange`s
continued listing standards. Specifically, the Company is not in compliance with
Section 1003(a) (iv) of the Exchange`s Company Guide in that it has sustained
losses which are so substantial in relation to its overall operations or its
existing financial resources, or its financial condition has become so impaired
that it appears questionable, in the opinion of the Exchange, as to whether the
Company will be able to continue operations and/or meet its obligations as they
mature.

The Company was afforded the opportunity to submit a plan of compliance to the
Exchange and on November 17, 2008, presented its plan to the Exchange. In a
letter dated January 6, 2009, the Exchange notified the Company that it accepted
the Company`s plan of compliance and granted the Company an extension until
April 10, 2009 to regain compliance with the continued listing standards. On May
11, 2009, after evaluating the Company`s progress with the plan, the Exchange
notified the Company that it granted the Company an additional extension until
August 11, 2009 to achieve such compliance. The Company will be subject to
periodic review by the Exchange staff during the extension period. Failure to
make progress consistent with the plan or to regain compliance with the
continued listing standards by the end of the extension period could result in
the Company`s shares of common stock being delisted from the Exchange.

Received Audit Opinion Containing Going Concern Qualification

The Company disclosed today, as required by Section 610(b) of the NYSE Amex
Company Guide, that it received an audit opinion from its independent registered
public accounting firm, Hacker, Johnson and Smith PA, that contains a going
concern qualification with respect to its consolidated financial statements for
the fiscal year ended December 31, 2008, included in its Annual Report on Form
10-K/A for the fiscal year ended December 31, 2008 that was filed on April 1,
2009.

This announcement does not represent any change or amendment to the Company`s
financial statements or to its Annual Report on Form 10-K/A for the fiscal year
ended December 31, 2008, or to the matters discussed in its fourth quarter and
fiscal year 2008 results conference call that occurred on March 31, 2009.

Conference Call

Banks.com will host a conference call today at 2:00 PM PST / 5:00 PM EST to
discuss its first quarter 2009 results. To listen to the call and have the
opportunity to ask questions, please dial 800-901-5226 (domestic) or
617-786-4513 (International) five to ten minutes before the call and reference
the Passcode 95799101. A replay of the call will be available by dialing
888-286-8010 (domestic) or 617-801-6888 (international) and referencing Passcode
90155466. Questions for the conference call will also be taken via email at:
stockwatch@banks.com and can be sent any time prior to the conference call`s
starting time. Investors will also have the opportunity to listen to the
conference call and the replay on the Investor Relations section of the
Banks.com website at: www.Banks.com.

Forward Looking Statements

This press release contains forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve substantial risks
and uncertainties. Forward looking statements, which are based on management`s
current expectations, are generally identifiable by the use of terms, such as
"anticipates," "believes," "could," "estimates," "expects," "intends," "may,"
"plans," "possible," "potential," "predicts," "projects," "should," "would" and
similar expressions. The forward looking statements in this press release
include statements regarding: our ability to comply with the financial covenants
in our notes, our ability to comply with continued listing standards of the NYSE
Amex, management`s expectations regarding our strategy, management`s
expectations regarding our financial results for the second quarter of 2009, the
effect of recent events, our ability to repay our indebtedness, andthe outlook
for our business. The potential risks and uncertainties that could cause actual
results to differ materially from those expressed or implied herein include,
among others, unanticipated slowdown in the financial services vertical; market
acceptance of the enhanced version of the Banks.com website; introduction of
additional competitors in the Internet search services space; unexpected
diversion of advertising dollars away from the Internet; slower than anticipated
growth rate of our advertising base; dependence on our search providers; market
development of Internet advertising and paid search services;the stability of
our infrastructure; and continued weak economic conditions. Further information
on the factors that could affect our financial results is included in our
filings with the Securities and Exchange Commission, including our Annual Report
on Form 10-K/A for the fiscal year ended December 31, 2008, our quarterly
reports on Form 10-Q and our Current Reports on Form 8-K. Except as required by
law, we assume no responsibility to update these forward looking statements
publicly, even if new information becomes available in the future.

Non-GAAP Financial Measures

This press release includes the following financial measure defined as a
non-GAAP financial measure by the Securities and Exchange Commission: Adjusted
EBITDA.This supplemental financial measure is not required by GAAP, nor is the
presentation of this financial information intended to be considered in
isolation or as a substitute for the financial information prepared and
presented in accordance with GAAP.Management recognizes that non-GAAP financial
measures have limitations in that they do not reflect all of the items
associated with Banks.com`s earnings results as determined in accordance with
GAAP.However, for the reasons described below, management uses this non-GAAP
measure to evaluate the performance of Banks.com`s business.Banks.com`s
management believes that it is important to provide investors with these same
tools, together with a reconciliation to GAAP, for evaluating the performance of
Banks.com`s business, as it may provide additional insight into Banks.com`s
financial results.See "Reconciliation of GAAP Net Earnings to Earnings Before
Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense
(Adjusted EBITDA)" table included in this press release for further information
regarding these non-GAAP financial measures.In addition, Adjusted EBITDA is
presented because management believes it is frequently used by securities
analysts, investors and others in the evaluation of companies.

Adjusted EBITDA is calculated by adding income taxes, interest expense,
depreciation and amortization to net earnings, adjusted for certain items
management believes should be excluded in order to reflect a more meaningful
representation of Banks.com`s financial performance, including stock
compensation expense.Banks.com`s management excludes the impact of equity-based
compensation to eliminate the effects of this non-cash item, which, because it
is based upon estimates on the grant dates, may bear little resemblance to the
actual values realized upon the future exercise, expiration, termination or
forfeiture of the stock-based compensation. Adjusted EBITDA is not defined under
GAAP and should not be considered in isolation or as a substitute for net
earnings and other consolidated earnings data prepared in accordance with GAAP
or as a measure of Banks.com`s profitability.

About Banks.com

Banks.com operates an Internet media property that provides a unique breadth and
depth of products and services in the financial services sector. Our mission is
to bring our users and subscribers the most relevant financial information on
the web. Banks.com provides access to thousands of pages of current financial
content, including: business articles, stock quotes, tax information, audio,
blogs and much more. In addition, Banks.com provides free tools to assist
visitors with their financial decision-making including stock tracking and
financial calculators. Our site contains information and services on a variety
of topics such as Banking, Stocks & Bonds, Taxes, Mortgages, Personal Finance,
Credit Cards, Insurance and Retirement Planning. Banks.com, Inc. is
headquartered in San Francisco, California at 222 Kearny Street, Suite 550 and
can be reached at 415.962.9700. More information about Banks.com, Inc. can be
found at: www.Banks.com.

1 Generally accepted accounting principles in the United States of America.

2 Adjusted EBITDA is calculated by adding income taxes, interest expense,
depreciation and amortization to net earnings, adjusted for certain items
management believes should be excluded in order to reflect a more meaningful
representation of our financial performance, including stock compensation
expense.Adjusted EBITDA is a non-GAAP financial measure. This measure may be
different from non-GAAP financial measures used by other companies. We encourage
investors to review the section below entitled "Non-GAAP Financial Measures" and
to review the reconciling adjustments between the GAAP and non-GAAP measures
attached to this press release.

BANKS.COM, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2009 2008

Revenues $ 2,856 $ 4,995

Cost of revenues 781 2,548

Gross profit 2,075 2,447

Operating expenses:
Sales and marketing expense 189 339
General and administrative expense 1,439 2,369

Total operating expenses 1,628 2,708

Earnings (loss) from operations 447 (261 )

Interest expense 310 299

Earnings (loss) before income taxes 137 (560 )

Income taxes (benefit) 56 (193 )

Net earnings (loss) $ 81 $ (367 )

Basic earnings (loss) per share $ 0.00 $ (0.01 )

Diluted earnings (loss) per share $ 0.00 $ (0.01 )

BANKS.COM, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)

March 31, December 31,
2009 2008
Assets

Current assets:
Cash $ 309 $ 479
Accounts receivable 1,730 747
Prepaid expenses and other 290 253
Refundable income taxes - 1,331
Deferred income taxes 318 78

Total current assets 2,647 2,888

Propert and equipment, net 946 1,065
Debt issuance costs, net 437 493
Patents and trademarks, net 30 31
Domains, net 11,679 11,937
Other intangible assets, net 936 998
Other assets 125 125
Deferred income taxes 496 789

Total Assets $ 17,296 $ 18,326

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable 882 544
Accrued liabilities 400 532
Accrued contributions 764 764
Deferred revenue 4 4
Notes payable, net of discount 3,879 5,517

Total current liabilities 5,929 7,361

Total liabilities 5,929 7,361

Stockholders' equity:
Preferred stock 3 -
Common stock 26 25
Additional paid-in capital 10,640 10,316
Retained earnings 698 624

Total stockholders' equity 11,367 10,965

Total Liabilities and Stockholders' Equity $ 17,296 $ 18,326

BANKS.COM, INC. AND SUBSIDIARIES
Reconciliation of GAAP Net Earnings to Earnings Before
Interest, Taxes, Depreciation, Amortization, and Stock Compensation Expense (Adjusted EBITDA)
(In thousands)
(Unaudited)

Three Months Ended
March 31,
2009 2008

Net earnings (loss) $ 81 $ (367 )

Income taxes (benefit) 56 (193 )

Earnings (loss) before income taxes 137 (560 )

Interest expense 310 299

Earnings (loss) from operations 447 (261 )

Depreciation 119 111

Amortization 321 330

Stock compensation expense 74 98

Adjusted earnings before interest, taxes, depreciation,
amortization, and stock compensation expense (Adjusted EBITDA) $ 961 $ 278

Banks.com, Inc.
Daniel O`Donnell, 415-962-9700
President and Chief Executive Officer

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