ValueClick Reports Record Fourth Quarter 2003 and Raises
Guidance for Full Year 2004; Quarter's Net Income per Share Exceeds
Guidance by 75 Percent
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Feb. 12,
2004--ValueClick, Inc. (Nasdaq:VCLK), the single-source provider of
digital marketing media, technology and services across all major
online marketing channels, today reported financial results for the
fourth quarter and fiscal year ended December 31, 2003. Performance
in the fourth quarter of 2003 exceeded the Company's previously
issued guidance for revenue, net income per share and EBITDA(a),
and was ValueClick's fifth consecutive quarter of operating income
and net income growth.
For the quarter ended December 31, 2003, ValueClick reported
revenue of $30.3 million, which was an increase of $11.5 million,
or 61 percent, from revenue of $18.8 million for the fourth quarter
of 2002. Fourth quarter 2003 results include a full quarter of the
Search123 operations, acquired in late May 2003, and one month of
the Commission Junction operations, acquired in December 2003. The
operations of Hi-Speed Media, acquired in late December 2003, are
not included in the Company's results.
Laptop Battery Fourth quarter 2003 income before taxes and minority interest
was $5.3 million compared to $1.8 million for the fourth quarter of
2002. Net income for the fourth quarter of 2003 of $5.3 million, or
$0.07 per diluted common share, and was an improvement compared to
net income of $1.8 million, or $0.02 per diluted common share, for
the fourth quarter of 2002. Fourth quarter 2003 net income before
interest, taxes, depreciation, and amortization (EBITDA) of $6.7
million was an improvement compared to EBITDA of $1.9 million for
the fourth quarter of 2002.
Stamps.com Reports First Quarter 66% Year over Year Revenue Growth, and Increased Guidance for 2004 Company Now Anticipates Approximately 55% Fiscal Year 2004 Revenue Growth and Profitability in the Fourth Quarter of 2004 SANTA MONICA, Calif. April 21, Stamps.com™ ( STMP) today announced financial results for the first quarter of 2004. First quarter revenue was an all time quarterly high of $7.6 million, up 66% versus the first quarter of 2003 and up 19% versus the fourth quarter of 2003. In addition, Stamps.com announced that it has adjusted its guidance for fiscal 2004 total revenue to be up approximately 55% versus fiscal year 2003; previously the company guided to an overall increase of 35%. Further, the company now anticipates profitability in the fourth quarter of 2004, a quarter earlier than previously expected.
Thinkpad For the fiscal year ended December 31, 2003, ValueClick reported
revenue of $92.5 million, an increase of approximately $30.0
million, or 48 percent, from revenue of $62.6 million for fiscal
year 2002. Fiscal year 2003 results include seven months of the
Search123 operations and one month of the Commission Junction
operations. Fiscal year 2003 income before taxes and minority
interest was $10.6 million compared to a loss before taxes,
minority interest and cumulative effect of a change in accounting
principle of $2.7 million for fiscal year 2002. Net income for
fiscal year 2003 of $9.8 million, or $0.13 per diluted common
share, was an improvement compared to a net loss of $10.6 million,
or $0.14 per diluted common share, for fiscal year 2002. EBITDA was
$14.8 million for fiscal year 2003 compared to a negative EBITDA of
$3.3 million for fiscal year 2002.
laptop computers is driving strong sales for notebook computers, according to the latest quarterly sales figures from the research firm IDC, which reported a 37% computer sales for the second quarter, compared with a year earlier. In the U.S., laptop sales grew 17.7%, while sales of desktop computers and servers fell 4%. The New York Times ( 10), CNET ( 10)
Microsoft The December 31, 2003 consolidated balance sheet remained strong
with $220.1 million in cash, cash equivalents and marketable
securities, $213.8 million in working capital and $274.2 million in
total stockholders' equity. Cash provided by operations for the
fourth quarter of 2003 was approximately $6.4 million, and as of
December 31, 2003 the cash, cash equivalents and marketable
securities balance represented $2.82 per outstanding common
share.
2004 Guidance The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. Based on its fourth quarter results and outlook for the first quarter of 2004, ValueClick is raising its fiscal year 2004 guidance. For the first quarter of 2004, ValueClick anticipates revenue in the range of $32.0 million to $33.0 million, an approximate 67 percent increase in revenue from the first quarter of 2003. The Company expects diluted net income per share of approximately $0.04 in the first quarter of 2004. EBITDA for the first quarter of 2004 is expected to be in the range of $6.0 million to $6.5 million. For fiscal year 2004, ValueClick is raising its guidance as follows: Previous Guidance New Guidance ----------------- ------------ Revenue $142 million to $146 $145 million to $148 million million Diluted net income $0.20 to $0.25 $0.21 to $0.27 per share EBITDA $34 million to $37 $36 million to $38 million million "ValueClick's strong fourth quarter was a fitting conclusion to a highly successful year," said James Zarley, chairman and chief executive officer of ValueClick. "In addition to completing three accretive acquisitions that extended the Company's position as the single-source provider of digital marketing solutions, ValueClick delivered organic revenue growth of 46 percent and operating margin improvement that drove more of our revenue to the bottom line for our shareholders. We hold an optimistic view for 2004, and believe that the focus and discipline we applied to our businesses in 2003 will serve us well in 2004 and beyond." Fourth Quarter 2003 Conference Call Today James Zarley, chairman and chief executive officer, and Sam Paisley, chief financial officer, will present an overview of the results and other factors affecting financial performance for the quarter during a webcast on February 12, 2004 at 1:00PM PT. Investors and analysts may obtain dial-in information through StreetEvents (www.streetevents.com). The live webcast and other information of potential interest to investors will be available to the public in the Investor Relations section of the Company's website (www.valueclick.com). Please allow 15 minutes prior to the call to download and install any necessary audio software. An archive of the webcast will be available in the Investor Relations section of the Company's website for seven days after the call. An archived audio replay will be available for seven days after the call and may be accessed at 888-203-1112 for domestic and 719-457-0820 for international callers. The passcode is 661652. Webcast participants are encouraged to submit questions on financial results and business operations to management prior to the call. Please call 818-575-4677 to leave your question on our Investor Relations voice message system. Questions will be addressed on the live call and should be received no later than 11:00AM PT on Thursday, February 12, 2004. About ValueClick ValueClick, Inc. (Nasdaq:VCLK) is the single-source provider of media, technology and related services that enable advertisers, agencies and publishers to reach consumers in all major online marketing channels, through our four business units: * ValueClick Media (media.valueclick.com) provides a wide range of online marketing solutions -- including Web Marketing, Email Marketing, Lead Generation Marketing and Search Marketing -- to create awareness, build brands, deliver targeted visitors, generate leads, drive sales, and grow customer relationships. * Be Free/Commission Junction (www.befree.com, www.cj.com) provides advanced performance marketing solutions that help marketers increase online leads and sales. By facilitating strategic relationships between advertisers and publishers, Be Free/Commission Junction leverages its proven expertise in affiliate marketing and search marketing to drive measurable results for its clients. * Mediaplex (www.mediaplex.com) provides technology and services that help advertisers, agencies and website publishers manage their online advertising and permission-based email campaigns. * AdWare (www.adware.com) provides software and services that help advertising agencies and other companies operate their businesses more efficiently, through effective agency management, media management, and content management. For more information, please visit www.valueclick.com. This release contains forward-looking statements that involve risks and uncertainties, including trends in online advertising spending and estimates of future online performance-based advertising. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including its Annual Report on Form 10-K filed on March 28, 2003, recent quarterly reports on Form 10-Q and current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. (a) Please see the attached schedule entitled "Reconciliation of Net Income to EBITDA" for a reconciliation of EBITDA to net income, and a discussion of why the Company believes EBITDA is a useful non-GAAP financial measure to investors and how management uses EBITDA. VALUECLICK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three-month Period Ended December 31, ----------------- 2003 2002 -------- -------- (note a) (Unaudited) Revenue $30,273 $18,789 Cost of revenue 10,044 6,250 -------- -------- Gross profit 20,229 12,539 Operating expenses: Sales and marketing 6,251 4,542 General and administrative 5,841 4,484 Product development 2,925 2,838 Stock-based compensation 86 121 Amortization of intangible assets 515 220 -------- -------- Total operating expenses 15,618 12,205 -------- -------- Income from operations 4,611 334 Interest income, net 675 1,490 -------- -------- Income before taxes and minority interest 5,286 1,824 Provision (benefit) for income taxes 16 (18) -------- -------- Income before minority interest 5,270 1,842 Minority share of loss (income) of consolidated subsidiary 76 (25) -------- -------- Net income $5,346 $1,817 ======== ======== Basic net income per share $0.07 $0.02 ======== ======== Weighted-average shares used in computing basic net income per share 75,629 82,244 ======== ======== Diluted net income per share $0.07 $0.02 ======== ======== Weighted-average shares used in computing diluted net income per share 80,295 84,718 ======== ======== Note (a) -- The condensed consolidated statements of operations include the results of Be Free, Search123 and Commission Junction from the dates of acquisition (May 23, 2002, May 30, 2003 and December 7, 2003, respectively) in accordance with the purchase method of accounting. Had these purchase transactions been completed as of January 1, 2002, on an unaudited pro forma GAAP basis revenues would have been $35.3 million and $24.1 million and the net income would have been $5.9 million, or $0.07 per share, and $1.0 million, or $0.01 per share, for the three-month periods ended December 31, 2003 and 2002, respectively. These unaudited pro forma GAAP results are for information purposes only and not necessarily indicative of what the actual results would have been had the acquisitions occurred on January 1, 2002, and are not necessarily indicative of future results. VALUECLICK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Year Ended December 31, ------------------ 2003 2002 -------- --------- (note b) Revenue $92,516 $62,554 Cost of revenue 32,024 21,733 -------- --------- Gross profit 60,492 40,821 Operating expenses: Sales and marketing 21,162 17,001 General and administrative 19,699 17,784 Product development 10,504 10,459 Stock-based compensation 352 1,527 Amortization of intangible assets 1,570 533 Restructuring charge -- 2,320 Merger-related costs -- 17 -------- --------- Total operating expenses 53,287 49,641 -------- --------- Income (loss) from operations 7,205 (8,820) Interest income, net 3,364 5,909 Gain on sale of marketable securities -- 134 Other -- 32 -------- --------- Income (loss) before taxes, minority interest and cumulative effect of a change in accounting principle 10,569 (2,745) Provision for income taxes 830 163 -------- --------- Income (loss) before minority interest and cumulative effect of a change in accounting principle 9,739 (2,908) Minority share of loss of consolidated subsidiary 84 (15) -------- --------- Income (loss) before cumulative effect of change in accounting principle 9,823 (2,923) Cumulative effect of a change in accounting principle (note a) -- (7,649) -------- --------- Net income (loss) $9,823 $(10,572) ======== ========= Basic net income (loss) per share before cumulative effect of a change in accounting principle $0.13 $(0.04) Per share effect of accounting change (note a) -- (0.10) -------- --------- Basic net income (loss) per share $0.13 $(0.14) ======== ========= Weighted-average shares used in computing basic net income (loss) per share 74,300 73,744 ======== ========= Diluted net income (loss) per share before cumulative effect of a change in accounting principle $0.13 $(0.04) Per share effect of accounting change -- (0.10) -------- --------- Diluted net income (loss) per share $0.13 $(0.14) ======== ========= Weighted-average shares used in computing diluted net income (loss) per share 78,436 73,744 ======== ========= Note (a) -- Impact of SFAS 142 -- On January 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, ("SFAS 142"). In accordance with the transitional guidance of SFAS 142, the Company recorded a one-time, non-cash impairment of approximately $7.6 million to reduce the carrying value of its goodwill. Such transitional charge is non-operational in nature and is reflected as a cumulative effect of a change in accounting principle in the amended condensed consolidated statement of operations for the year ended December 31, 2002. Note (b) -- The condensed consolidated statements of operations include the results of Be Free, Search123 and Commission Junction from the dates of acquisition (May 23, 2002, May 30, 2003 and December 7, 2003, respectively) in accordance with the purchase method of accounting. Had these purchase transactions been completed as of January 1, 2002, unaudited pro forma GAAP revenues would have been $116.6 million and $89.9 million and unaudited pro forma GAAP net income (loss) would have been $10.3 million, or $0.13 per share, and $(15.6) million, or $(0.17) per share, for the years ended December 31, 2003 and 2002, respectively. These unaudited pro forma GAAP results are for information purposes only and not necessarily indicative of what the actual results would have been had the acquisitions occurred on January 1, 2002, and are not necessarily indicative of future results. VALUECLICK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) December December 31, 2003 31, 2002 --------- --------- ASSETS CURRENT ASSETS: Cash, cash equivalents and marketable securities $220,120 $232,978 Accounts receivable, net 21,942 13,739 Other current assets 3,654 3,343 --------- --------- Total current assets 245,716 250,060 Property and equipment, net 10,559 9,237 Intangible assets, net 65,349 2,819 Other assets 1,475 1,734 --------- --------- TOTAL ASSETS 323,099 263,850 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities 31,907 15,831 Non-current liabilities 5,676 4,626 Minority interest in consolidated subsidiary 11,309 11,412 Total stockholders' equity 274,207 231,981 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $323,099 $263,850 ========= ========= VALUECLICK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, ------------------ 2003 2002 -------- --------- Cash Flows from operating activities: Net income (loss) $9,823 $(10,572) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 7,531 5,325 Cumulative effect of change in accounting principle -- 7,649 Non-cash restructuring charge -- 2,320 Provision for bad debts 1,213 1,409 Stock-based compensation 352 1,527 Minority share of (loss) income of consolidated subsidiary (84) 17 Provision for deferred income taxes (112) (179) Gain on ValueClick Japan stock issuance -- 10 -------- ---------- Changes in operating assets and liabilities (2,795) (5,771) -------- --------- Net cash provided by operating activities 15,928 1,735 -------- --------- Net cash (used in) provided by investing activities (531) 49,765 -------- --------- Net cash used in financing activities (8,806) (53,783) -------- --------- Effect of currency translations 2,985 2,458 -------- --------- Net increase in cash and cash equivalents 9,576 175 Cash and cash equivalents, beginning of period 27,066 26,891 -------- --------- Cash and cash equivalents, end of period $36,642 $27,066 ======== ========= VALUECLICK, INC. RECONCILIATION OF NET INCOME TO EBITDA (note a) (Unaudited, in thousands) Three-month Periods Ended December 31, ----------------- 2003 2002 ------- ------- Net income $5,346 $1,817 Less interest income, net (675) (1,490) Plus provision for (less benefit from) income taxes 16 (18) Plus amortization of intangible assets 515 220 Plus depreciation and leasehold amortization 1,452 1,328 ------- ------- EBITDA $6,654 $1,856 ======= ======= Years Ended December 31, ------------------- 2003 2002 -------- -------- Net income (loss) before cumulative effect of change in accounting principle $9,823 $(2,923) Less interest income, net (3,364) (5,909) Plus provision for income taxes 830 163 Plus amortization of intangible assets 1,570 533 Plus depreciation and leasehold amortization 5,961 4,792 -------- -------- EBITDA $14,820 $(3,344) ======== ========
Updated Guidance The following statements are based on current expectations. looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. Based on the closing of the Pricerunner acquisition, ValueClick is updating its financial guidance for third quarter and fiscal year 2004.
Laptop Computers
Note (a) -- Earnings before interest, taxes, depreciation
and
amortization ("EBITDA") included in this press release is a
non-GAAP
financial measure which represents net income (loss) excluding
the
effects of interest, income taxes, depreciation, amortization,
and
non-cash cumulative effect of a change in accounting
principle.
EBITDA, as defined above, may not be similar to EBITDA measures
used
by other companies and is not a measurement under generally
accepted
accounting principles.
- ScanSoft, Inc. ( SSFT), a global leader of speech and imaging solutions, month fiscal year ended September 30, 2004. ScanSoft reported third quarter 2004 revenue of $42.3 million, a 29 percent increase over third quarter 2003 revenue of $32.9 million. On a GAAP basis, ScanSoft recognized a third quarter 2004 net loss of $5.9 million, or $0.06 per basic share, compared with a net loss of $3.7 million, or $0.04 per basic share, in the third quarter of 2003.
Laptop Computer We believe that EBITDA provides useful information to investors
about
the Company's performance because it eliminates the effects of
period
to period changes in costs associated with capital investments
and
income from interest on our cash and marketable securities that
are
not directly attributable to the underlying performance of
the
Company's business operations. Management uses EBITDA in
evaluating
the overall performance of the Company's business operations.
Stamps.com Reports Third Quarter 2003 Financial Results Revenue Up 32% Year over Year; Customer Acquisition Momentum Builds SANTA MONICA, October 29, Stamps.com™ ( STMP) today announced financial results for the third fiscal quarter ended September 30, 2003. Third quarter revenue was up 32% versus the same quarter last year, and up 7% versus the second fiscal quarter of 2003. In addition, the company reported an increase in customer acquisition during the third quarter, particularly with higher value Power Plan customers.
Desktop Computer Though management finds EBITDA useful for evaluating aspects of
the
Company's business, its reliance on this measure is limited
because
excluded items often have a material effect on the Company's
earnings
and earnings per share calculated in accordance with GAAP.
Therefore,
management always uses EBITDA in conjunction with GAAP earnings
and
earnings per share measures. The Company believes that EBITDA
provides
investors with an additional tool for evaluating the Company's
core
performance, which management uses in its own evaluation of
performance, and a base line for assessing the future
earnings
potential of the Company. While the GAAP results are more
complete,
the Company prefers to allow investors to have this
supplemental
metric since, with a reconciliation to GAAP, it may provide
greater
insight into the Company's financial results.
Notebooks CONTACT: ValueClick, Inc.
Gary J. Fuges, 818-575-4677
Lenovo SOURCE: ValueClick, Inc.
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