Q2 Revenue of $40.2 Million, Increased 73% Over Q2 2007
NEW YORK, Aug. 4 /PRNewswire-FirstCall/ --
Reminder -- Conference Call and Webcast Today at 4:30 P.M. Eastern Time
Interactive Dial-In: (877) 440-5784 International Callers (719) 325-4907
(10 minutes before the call)
Webcast: http://investor.bankrate.com/
Bankrate, Inc. (Nasdaq: RATE), today reported financial results for the
second quarter ended June 30, 2008. Total revenue for the second quarter
increased by 73% to $40.2 million over the $23.3 million reported in the
second quarter of 2007. Net income was $4.1 million, or $0.21, per fully
diluted share in the second quarter of 2008, compared to $5.2 million, or
$0.28, per fully diluted share in the second quarter of 2007. Adjusted
earnings per fully diluted share, excluding share-based compensation expense
("Adjusted EPS"), was $0.33 for the second quarter of 2008, compared to the
Adjusted EPS of $0.34 for the second quarter of 2007. Adjusted EPS excluding
intangible asset amortization ("Operating EPS"), for the second quarter of
2008 was $0.39 per share compared to $0.35 per share for the same period in
2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
Earnings before interest, taxes, depreciation and amortization, excluding
share-based compensation expense ("Adjusted EBITDA"), were $12.8 million, an
increase of 25% over the $10.3 million reported in the second quarter of 2007.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for
the second quarter 2008, including stock compensation were $9.0 million, an
increase of 17% over the $7.7 million reported in the second quarter 2007.
"We are pleased with the company's performance, particularly in this
economic environment, which has been so challenging for many of our largest
advertisers," said Thomas R. Evans, Chief Executive Officer at Bankrate, Inc.
"While our display advertising has been relatively soft, the other components
of our business, such as CPC, deposits, insurance, retirement and credit cards
are all doing very well."
Total revenue for the six months ended June 30, 2008 increased by 82% to
$82.7 million over the $45.5 million reported in the first half of 2007. Net
income was $10.9 million, or $0.55, per fully diluted share in the first half
of 2008, compared to $10.6 million, or $0.56, per fully diluted share in the
same period in 2007. Adjusted EPS was $0.78 for the six months ended June 30,
2008, compared to the Adjusted EPS of $0.67 for the same period in 2007.
Operating EPS for the first half of 2008 was $0.89 per share compared to $0.70
per share for the same period in 2007.
Adjusted EBITDA for the first half of 2008, were $28.9 million, an
increase of 42% over the $20.3 million reported in the same period in 2007.
EBITDA for the six months ended June 30, 2008, including stock compensation,
were $21.7 million, an increase of 35% over the $16.1 million reported in the
first half of 2007.
In July, the company initiated a stock repurchase program. The company's
Board of Directors previously authorized management to make stock repurchases
for up to $50 million dollars. As market and business conditions warrant, the
company is repurchasing shares under applicable SEC guidelines and
regulations, in open market, negotiated or in block transactions. All
purchases are subject to the availability of shares and, accordingly, there is
no assurance as to the number of shares to be repurchased. In addition, the
company will also continue to pursue accretive acquisitions and therefore,
there is no assurance that the entire authorized funding will be available for
the stock repurchase program.
Second Quarter 2008 Financial Highlights
-- Total revenue for the quarter was $40.2 million, an increase of $16.9
million, or 73%, over the $23.3 million reported in Q2 2007.
-- Online revenue for Q2 2008 was $37.8 million, an increase of $17.6
million, or 87%, over the $20.2 million reported in the second quarter of
2007.
-- Graphic advertising and lead generation revenue was $27.1 million, an
increase of $15.1 million, or 125%, over the $12.0 million reported in Q2
2007.
-- Hyperlink revenues were $10.7 million, an increase of $2.5 million, or
30%, over the $8.2 million reported in the second quarter of 2007.
-- Print publishing and licensing revenue in Q2 2008 was $2.4 million, a
decrease of 22% from the $3.0 million reported in the same period in 2007.
-- Adjusted EBITDA for the second quarter of 2008 was $12.8 million, an
increase of $2.5 million, or 25%, from the $10.3 million reported in the
second quarter of 2007.
-- Page views for Q2 2008 were 148 million, an increase of 12 million, or
9%, compared to the 136 million reported in Q2 2007.
Guidance
As previously announced on July 7, 2008, the company lowered its 2008
annual guidance as a result of softness in display advertising. The company
expects annual revenue to be between $164 and $169 million and Adjusted EBITDA
for the year to be between $54 and $58 million. The mid-range of the updated
guidance represents a 74% increase in revenue and a 36% increase in Adjusted
EBITDA over 2007. Previous guidance for revenue was between $167 and $172
million and Adjusted EBITDA of between $64 and $68 million.
"Over the past couple of years we've been focused on diversifying our
business, through growth, internal development and acquisitions, and are now
seeing that strategy paying off in a tough market," added Evans.
August 4, 2008 Conference Call Interactive Dial-In and Webcast
Information:
To participate in the teleconference please call: (877) 440-5784.
International participants may dial: (719) 325-4907. Please access at least
10 minutes prior to the time the conference is set to begin. A Webcast of
this call can be accessed at Bankrate's Web site:
http://investor.bankrate.com/ .
Replay Information:
A replay of the conference call will be available beginning August 4,
2008, 7:30 p.m. ET/ 4:30 p.m. PT through August 17, 2008. To listen to the
replay, call (888) 203-1112 and use the passcode: 9314625. International
callers should dial (719) 457-0820 and use the passcode: 9314625.
Non-GAAP Measures
To supplement Bankrate's financial statements presented in accordance with
generally accepted accounting principles ("GAAP"), Bankrate uses non-GAAP
measures of certain components of financial performance, including EBITDA,
income from operations, earnings per diluted share and net income, which are
adjusted from results based on GAAP to exclude certain expenses, gains and
losses. These non-GAAP measures are provided to enhance investors' overall
understanding of the Bankrate's current financial performance and its
prospects for the future. Specifically, Bankrate believes the non-GAAP
results provide useful information to both management and investors by
excluding certain expenses, gains and losses that may not be indicative of its
core operating results. In addition, because Bankrate has historically
reported certain non-GAAP results to investors, the Company believes the
inclusion of non-GAAP measures provides consistency in its financial
reporting. These measures should be considered in addition to results prepared
in accordance with GAAP, but should not be considered a substitute for, or
superior to, GAAP results. The non-GAAP measures included in this press
release have been reconciled to the nearest GAAP measure.
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.com, Interest.com,
Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee
Disclosure and InsureMe. Each of these businesses helps consumers to make
informed decisions about their personal finance matters. The company's
flagship brand, Bankrate.com is a destination site of personal finance
channels, including banking, investing, taxes, debt management and college
finance. Bankrate.com is the leading aggregator of rates and other information
on more than 300 financial products, including mortgages, credit cards, new
and used auto loans, money market accounts and CDs, checking and ATM fees,
home equity loans and online banking fees. Bankrate.com reviews more than
4,800 financial institutions in 575 markets in 50 states. In 2007,
Bankrate.com had nearly 60 million unique visitors. Bankrate.com provides
financial applications and information to a network of more than 75 partners,
including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street
Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also
distributed through more than 500 newspapers.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995:
Certain matters included in the discussion above may be considered to be
"forward-looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities
Litigation Reform Act of 1995. Those statements include statements regarding
the intent, belief or current expectations of the Company and members of our
management team. Such forward-looking statements include, without limitation,
statements made with respect to future revenue, revenue growth, market
acceptance of our products, and profitability. Investors and prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements. Important factors currently known to management
that could cause actual results to differ materially from those in
forward-looking statements include the following: the willingness of our
advertisers to advertise on our web site, interest rate volatility, our
ability to establish and maintain distribution arrangements, our ability to
integrate the operations and realize the expected benefits of businesses that
we have acquired and may acquire in the future, consumers' increasing
acceptance of the Internet as a medium for obtaining financial product
information, our ability to maintain the confidence of our advertisers by
detecting click-through fraud or unscrupulous advertisers, the effect of
unexpected liabilities we assume from our acquisitions, our ability to manage
traffic on our web sites and service interruptions, the effects of facing
liability for content on our web sites, changes in, or interpretations of,
accounting rules and regulations, changes in, or interpretations of, tax rules
and regulations may adversely impact our effective tax rate, increased
competition and its effect on traffic, advertising rates, margins and market
share, our ability to protect our intellectual property, legislative and
regulatory changes in Internet regulation, our ownership is concentration,
fluctuating results of operations, and volatility in our stock price. These
and additional important factors to be considered are set forth under
"Introductory Note", "Item 1A. Risk Factors", "Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
in the other sections of our Annual Report on Form 10-K for the year ended
December 31, 2007, and in our other filings with the Securities and Exchange
Commission. We undertake no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results or expectations.
For more information contact:
Edward J. DiMaria
SVP, Chief Financial Officer
edimaria@bankrate.com
(917) 368-8608
Bruce J. Zanca
SVP, Chief Communications/Marketing Officer
bzanca@bankrate.com
(917) 368-8648
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
June 30, December 31,
2008 2007
Assets
Cash and cash equivalents $75,169 $125,058
Accounts receivable, net of
allowance for doubtful accounts of
approximately $1,338 and $2,290 at
June 30, 2008 and December 31, 2007,
respectively 19,714 19,052
Deferred income taxes, current portion 878 878
Prepaid expenses and other current assets 7,994 5,350
Total current assets 103,755 150,338
Furniture, fixtures and equipment, net 3,222 1,802
Deferred income taxes 3,671 3,671
Intangible assets, net 50,435 27,485
Goodwill 85,373 43,720
Other assets 2,272 1,338
Total assets $248,728 $228,354
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $4,266 $2,246
Accrued expenses 6,209 8,092
Deferred revenue 1,051 550
Other current liabilities 16 13
Total current liabilities 11,542 10,901
Other liabilities 290 187
Total liabilities 11,832 11,088
Stockholders' equity:
Preferred stock, 10,000,000
shares authorized and undesignated - -
Common stock, par value $.01 per
share-- 100,000,000 shares authorized;
18,932,832 and 18,876,393 shares issued
and outstanding at June 30, 2008 and
December 31, 2007, respectively 189 189
Additional paid in capital 214,023 205,306
Retained earnings 22,684 11,771
Total stockholders' equity 236,896 217,266
Total liabilities and
stockholders' equity $248,728 $228,354
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
Revenue: 2008 2007 2008 2007
Online publishing $37,814 $20,240 $77,819 $39,292
Print publishing and
licensing 2,379 3,039 4,837 6,215
Total revenue 40,193 23,279 82,656 45,507
Cost of revenue (1):
Online publishing 15,147 3,049 29,246 6,191
Print publishing and
licensing 2,212 2,713 4,520 5,541
Total cost of revenue 17,359 5,762 33,766 11,732
Gross margin 22,834 17,517 48,890 33,775
Operating expenses(1):
Sales 2,207 1,640 4,285 2,927
Marketing 3,115 2,121 5,943 3,576
Product development 1,890 1,158 3,591 2,111
General and administrative 6,580 4,877 13,370 9,105
Depreciation and
amortization 2,246 649 4,043 1,294
16,038 10,445 31,232 19,013
Income from operations 6,796 7,072 17,658 14,762
Interest income 360 1,675 1,206 3,138
Income before income taxes 7,156 8,747 18,864 17,900
Income tax expense 3,077 3,522 7,951 7,302
Net income $4,079 $5,225 $10,913 $10,598
Basic and diluted net income
per share:
Basic $0.22 $0.29 $0.58 $0.58
Diluted $0.21 $0.28 $0.55 $0.56
Shares used in
computing basic net
income per share 18,907,321 18,325,404 18,893,682 18,288,323
Shares used in
computing diluted net
income per share 19,557,759 18,959,646 19,678,146 18,832,388
(1)Includes share-based
compensation expense
as follows:
Cost of revenue:
Online publishing $577 $481 $1,139 $850
Print publishing and
licensing 41 39 82 81
Other expenses:
Sales 525 314 1,020 374
Marketing 204 159 401 241
Product development 287 206 554 320
General and
administrative 2,105 1,334 3,959 2,347
$3,739 $2,533 $7,155 $4,213
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
Revenue: 2008 2007 2008 2007
Online publishing $37,814 $20,240 $77,819 $39,292
Print publishing and
licensing 2,379 3,039 4,837 6,215
Total revenue 40,193 23,279 82,656 45,507
Cost of revenue:
Online publishing 14,570 2,568 28,107 5,341
Print publishing and
licensing 2,171 2,674 4,438 5,460
Total cost of revenue 16,741 5,242 32,545 10,801
Gross margin 23,452 18,037 50,111 34,706
Operating expenses:
Sales 1,682 1,326 3,265 2,553
Marketing 2,911 1,962 5,542 3,335
Product development 1,603 952 3,037 1,791
General and
administrative 4,475 3,543 9,411 6,758
Share-based
compensation expense(1) 3,739 2,533 7,155 4,213
Depreciation and
amortization 2,246 649 4,043 1,294
16,656 10,965 32,453 19,944
Income from operations 6,796 7,072 17,658 14,762
Interest income 360 1,675 1,206 3,138
Income before income taxes 7,156 8,747 18,864 17,900
Income tax expense 3,077 3,522 7,951 7,302
Net income $4,079 $5,225 $10,913 $10,598
Basic and diluted net income
per share:
Basic $0.22 $0.29 $0.58 $0.58
Diluted $0.21 $0.28 $0.55 $0.56
Adjusted EPS $0.33 $0.34 $0.78 $0.67
Shares used in
computing basic net
income per share,
GAAP basis 18,907,321 18,325,404 18,893,682 18,288,323
Shares used in
computing diluted net
income per share,
GAAP basis 19,557,759 18,959,646 19,678,146 18,832,388
Shares used in
computing diluted net
income per share,
Non-GAAP basis 19,909,843 19,796,707 19,898,715 19,721,956
(1)See reconciliation of GAAP to Non-GAAP Condensed Consolidated
Statements of Income.
Bankrate, Inc.
Non-GAAP Measures Reconciliation
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
EBITDA-
Income from operations,
GAAP basis $6,796 $7,072 $17,658 $14,762
Depreciation and
amortization 2,246 649 4,043 1,294
EBITDA $9,042 $7,721 $21,701 $16,056
Adjusted EBITDA-
Income from operations,
GAAP basis $6,796 $7,072 $17,658 $14,762
Share-based
compensation expense 3,739 2,533 7,155 4,213
Depreciation and
amortization 2,246 649 4,043 1,294
Adjusted EBITDA $12,781 $10,254 $28,856 $20,269
Adjusted EPS-
Net income, GAAP basis $4,079 $5,225 $10,913 $10,598
Share-based
compensation expense,
net of tax 2,458 1,542 4,698 2,670
Net income excluding
share-based
compensation expense- $6,537 $6,767 $15,611 $13,268
Adjusted EPS $0.33 $0.34 $0.78 $0.67
Operating EPS-
Net income, GAAP basis $4,079 $5,225 $10,913 $10,598
Share-based
compensation expense,
net of tax 2,458 1,542 4,698 2,670
Intangibles amortization,
net of tax 1,173 257 2,045 514
Net income excluding
share-based
compensation expense
and intangibles
amortization $7,710 $7,024 $17,656 $13,782
Operating EPS $0.39 $0.35 $0.89 $0.70
Shares used in computing
basic net income per
share, GAAP basis 18,907,321 18,325,404 18,893,682 18,288,323
Shares used in
computing diluted net
income per share,
GAAP basis 19,557,759 18,959,646 19,678,146 18,832,388
Impact of applying
SFAS No. 123R 352,084 837,061 220,569 889,568
Shares used in
computing diluted net
income per share,
excluding the
impact of applying
SFAS No. 123R 19,909,843 19,796,707 19,898,715 19,721,956
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
June 30, 2008
GAAP Adjustments(1) Non-GAAP
Revenue:
Online publishing $37,814 $- $37,814
Print publishing and licensing 2,379 - 2,379
Total revenue 40,193 - 40,193
Cost of revenue:
Online publishing 15,147 (577) 14,570
Print publishing and licensing 2,212 (41) 2,171
Total cost of revenue 17,359 (618) 16,741
Gross margin 22,834 618 23,452
Operating expenses:
Sales 2,207 (525) 1,682
Marketing 3,115 (204) 2,911
Product development 1,890 (287) 1,603
General and administrative 6,580 (2,105) 4,475
Share-based compensation expense - 3,739 3,739
Depreciation and amortization 2,246 - 2,246
16,038 618 16,656
Income from operations 6,796 - 6,796
Interest income, net 360 - 360
Income before income taxes 7,156 - 7,156
Provision for income taxes 3,077 - 3,077
Net income $4,079 $- $4,079
Basic and diluted net income per
share:
Basic $0.22 $- $0.22
Diluted $0.21 $- $0.21
Shares used in computing basic
net income per share 18,907,321 - 18,907,321
Shares used in computing diluted
net income per share 19,557,759 352,084 19,909,843
(1)Adjustments for the impact of applying SFAS No. 123R
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
June 30, 2007
GAAP Adjustments(1) Non-GAAP
Revenue:
Online publishing $20,240 $- $20,240
Print publishing and licensing 3,039 - 3,039
Total revenue 23,279 - 23,279
Cost of revenue:
Online publishing 3,049 (481) 2,568
Print publishing and licensing 2,713 (39) 2,674
Total cost of revenue 5,762 (520) 5,242
Gross margin 17,517 520 18,037
Operating expenses:
Sales 1,640 (314) 1,326
Marketing 2,121 (159) 1,962
Product development 1,158 (206) 952
General and administrative 4,877 (1,334) 3,543
Share-based compensation expense - 2,533 2,533
Depreciation and amortization 649 - 649
10,445 520 10,965
Income from operations 7,072 - 7,072
Interest income, net 1,675 - 1,675
Income before income taxes 8,747 - 8,747
Provision for income taxes 3,522 - 3,522
Net income $5,225 $- $5,225
Basic and diluted net income per
share:
Basic $0.29 $- $0.29
Diluted $0.28 $- $0.28
Shares used in computing basic
net income per share 18,325,404 - 18,325,404
Shares used in computing diluted
net income per share 18,959,646 837,061 19,796,707
(1)Adjustments for the impact of applying SFAS No. 123R
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per share data)
Six Months Ended
June 30, 2008
GAAP Adjustments(1) Non-GAAP
Revenue:
Online publishing $77,819 $- $77,819
Print publishing and licensing 4,837 - 4,837
Total revenue 82,656 - 82,656
Cost of revenue:
Online publishing 29,246 (1,139) 28,107
Print publishing and licensing 4,520 (82) 4,438
Total cost of revenue 33,766 (1,221) 32,545
Gross margin 48,890 1,221 50,111
Operating expenses:
Sales 4,285 (1,020) 3,265
Marketing 5,943 (401) 5,542
Product development 3,591 (554) 3,037
General and administrative 13,370 (3,959) 9,411
Share-based compensation expense - 7,155 7,155
Depreciation and amortization 4,043 - 4,043
31,232 1,221 32,453
Income from operations 17,658 - 17,658
Interest income, net 1,206 - 1,206
Income before income taxes 18,864 - 18,864
Provision for income taxes 7,951 - 7,951
Net income $10,913 $- $10,913
Basic and diluted net income per
share:
Basic $0.58 $- $0.58
Diluted $0.55 $- $0.55
Shares used in computing basic
net income per share 18,893,682 - 18,893,682
Shares used in computing diluted
net income per share 19,678,146 220,569 19,898,715
(1)Adjustments for the impact of applying SFAS No. 123R
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per share data)
Six Months Ended
June 30, 2007
GAAP Adjustments(1) Non-GAAP
Revenue:
Online publishing $39,292 $- $39,292
Print publishing and licensing 6,215 - 6,215
Total revenue 45,507 - 45,507
Cost of revenue:
Online publishing 6,191 (850) 5,341
Print publishing and licensing 5,541 (81) 5,460
Total cost of revenue 11,732 (931) 10,801
Gross margin 33,775 931 34,706
Operating expenses:
Sales 2,927 (374) 2,553
Marketing 3,576 (241) 3,335
Product development 2,111 (320) 1,791
General and administrative 9,105 (2,347) 6,758
Share-based compensation expense - 4,213 4,213
Depreciation and amortization 1,294 - 1,294
19,013 931 19,944
Income from operations 14,762 - 14,762
Interest income, net 3,138 - 3,138
Income before income taxes 17,900 - 17,900
Provision for income taxes 7,302 - 7,302
Net income $10,598 $- $10,598
Basic and diluted net income per
share:
Basic $0.58 $- $0.58
Diluted $0.56 $- $0.56
Shares used in computing basic
net income per share 18,288,323 - 18,288,323
Shares used in computing diluted
net income per share 18,832,388 889,568 19,721,956
(1)Adjustments for the impact of applying SFAS No. 123R
SOURCE Bankrate, Inc.
Edward J. DiMaria, SVP, Chief Financial Officer, +1-917-368-8608,
edimaria@bankrate.com, or Bruce J. Zanca, SVP, Chief Communications-Marketing
Officer, +1-917-368-8648, bzanca@bankrate.com, both of Bankrate, Inc.
