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Bankrate Announces Second Quarter 2007 Financial ResultsTotal Revenue of $23.3 Million
NEW YORK, Aug. 2 /PRNewswire-FirstCall/ -- Bankrate, Inc. (NASDAQ: RATE) , today reported financial results for the second fiscal quarter ended June 30, 2007. Total revenue increased by 18% to $23.3 million over the $19.7 million reported in the second quarter of 2006. Net income increased by 107% to $5.2 million, or $0.28 per fully diluted share, in the second quarter of 2007 compared to $2.5 million, or $0.14 per fully diluted share, in the second quarter 2006. Earnings per fully diluted share ("EPS") excluding stock compensation expense, increased by 48% to $0.34 for the second quarter 2007 compared to $0.23 for the second quarter 2006. Earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted to exclude $2.5 million in stock compensation expense, were $10.3 million, an increase of 44% over the $7.1 million reported in the second quarter 2006. EBITDA for the second quarter, including stock compensation expense, were $7.7 million, an increase of 96% over the $3.9 million reported in the second quarter 2006. "We are pleased to report another quarter of solid results," stated Thomas R. Evans, President and CEO of Bankrate, Inc. "Our core online business continues to gain momentum, and the component pieces of consumer traffic, advertising demand and pricing leverage remain strong," Mr. Evans added. Total revenue for the six months ended June 30, 2007 was $45.5 million, an increase of $6.0 million, or 15%, over the $39.5 million reported in the first half of 2006. Net income increased by 118% to $10.6 million, or $0.56 per fully diluted share, in the first half of 2007, compared to $4.9 million, or $0.28 per fully diluted share, in the first half of 2006. Earnings per fully diluted share, excluding stock compensation expense, increased by 52% to $0.67 for the six months ended June 30, 2007, compared to $0.44 for the same period in 2006. Earnings per diluted share, including stock compensation expenses, increased by 100% to $0.56 for the six months ended July 30, 2007, compared to $0.28 for the same period in 2006. EBITDA for the first half of 2007, adjusted to exclude $4.2 million in stock compensation expense, were $20.3 million, an increase of 47% over the $13.8 million reported in the second quarter 2006. EBITDA for the first half of 2007, including stock compensation expenses, were $16.1 million, an increase of 83% over the $8.8 million reported for the first half of 2006. Second Quarter 2007 Financial Results
-- Total revenue for the quarter was $23.3 million, an increase of 18%, or
$3.6 million, over the $19.7 million reported in the same period last
year.
-- Online revenue for the second quarter increased by 31% to $20.2
million, an increase of $4.7 million over the $15.5 million reported in
the second quarter of 2006.
-- Graphic advertising increased 31% to $12.0 million in the second
quarter of 2007, compared to $9.2 million reported in the second
quarter of 2006. Excluding lead aggregation revenue, (FastFind &
Bankrate Select), graphic revenue increased by 51% over Q2 2006.
-- Hyperlink revenue increased 31% to $8.2 million in the second quarter
of 2007 compared to $6.2 million reported for the same quarter last
year. The company raised hyperlink rates in the third quarter of 2006.
-- Print publishing and licensing revenue for the second quarter was $3.0
million, a decrease of $1.2 million or 28%, compared to the $4.2
million reported in the second quarter of 2006.
-- The gross margin on revenue in the second quarter of 2007 was 75%,
compared to 67% during the same period last year.
-- The EBITDA margin, adjusted to exclude stock compensation expense was
44%, compared to 36% during the same period last year.
-- The company reported $135 million in cash and cash equivalents, an
increase of $14 million over the March 31, 2007 balances of cash and
short-term investments.
-- Page views for the second quarter of 2007 increased by 17% to 136.1
million, compared to the 116.0 million reported in the second quarter
of 2006.
"The leverage in our business model is clearly evident in our results," stated Mr. Evans. "Our business continues to grow and our margins are expanding nicely," added Mr. Evans. 2007 Guidance Bankrate increased EBITDA guidance and reaffirmed revenue guidance for the full fiscal year 2007 on higher than anticipated internet media revenue and lower than anticipated print revenues. EBITDA, adjusted to exclude stock compensation expense is now expected to be in the range of $39 to $43 million on revenues in the range of $95 to $100 million. Stock compensation expense is expected to be in the range of $10.5 to $11.5 million. August 2, 2007 Conference Call Interactive Dial-In and Webcast Information: To participate in the teleconference please call: (800) 565-5442. International participants may dial: (913) 312-1298. Please access at least 10 minutes prior to the time the conference is set to begin. The webcast can be accessed on the internet at http://investor.bankrate.com/ under the Events and Presentations tab. Replay Information: A replay of the conference call will be available beginning August 2, 2007, 2:00 p.m. ET/ 11:00 a.m. PT through August 16, 2007. To listen to the replay, call (888) 203-1112 and use the passcode: 5714823. International callers should dial (719) 457-0820 and use the passcode: 5714823. 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. Bankrate, Inc. (NASDAQ: RATE) ("Bankrate") owns and operates Bankrate.com, a leading Internet consumer banking marketplace. 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 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 2006, Bankrate.com had nearly 53 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 (NYSE: DJ) and The New York Times (NYSE: NYT) . Bankrate.com's information is also distributed through more than 450 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates FastFind, an internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information. 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, our need and ability to obtain additional equity or debt financing, consumers' increasing acceptance of the Internet as a medium for obtaining financial product information, the ability of consumers to access our online network through non-PC devices, 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, the impact of resolution of lawsuits to which we are a party, 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 monetary and fiscal policies of the United States government, the effect of changes in the stock markets and other capital markets, 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, technological changes, changes in consumer spending and saving habits, the concentration of ownership of our common stock, the effect of provisions in our Articles of Incorporation, Bylaws and certain laws on change-in-control transactions, fluctuating results of operations, and the accuracy of our financial statement estimates and assumptions. 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, 2006, 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. -Financial Statements Follow-
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2007 2006
Assets
Cash and cash equivalents $134,729,660 $13,125,360
Short-term investments - 96,800,000
Accounts and notes receivable, net of
allowance for doubtful accounts of
approximately $2,587,000 at June 30, 2007
and $2,155,000 at December 31, 2006 13,667,647 15,801,403
Deferred income taxes, current portion 1,703,747 1,703,747
Prepaid expenses and other current assets 900,822 1,032,423
Total current assets 151,001,876 128,462,933
Furniture, fixtures and equipment, net 1,644,793 1,703,680
Deferred income taxes 1,262,279 1,262,279
Intangible assets, net 13,594,502 14,441,162
Goodwill 30,039,425 30,039,425
Other assets 644,734 774,117
Total assets $198,187,609 $176,683,596
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $144,596 $312,489
Accrued expenses 8,947,530 5,237,222
Deferred revenue 255,950 729,019
Other current liabilities 53,110 27,427
Total current liabilities 9,401,186 6,306,157
Other liabilities 253,647 222,920
Total liabilities 9,654,833 6,529,077
Stockholders' equity:
Preferred stock, 10,000,000 shares
authorized and undesignated - -
Common stock, par value $.01 per
share--100,000,000 shares authorized;
18,385,755 and 18,224,620 shares issued
and outstanding at June 30, 2007 and
December 31, 2006, respectively 183,858 182,246
Additional paid in capital 186,034,198 178,255,314
Retained earnings (deficit) 2,314,720 (8,283,041)
Total stockholders' equity 188,532,776 170,154,519
Total liabilities and
stockholders' equity $198,187,609 $176,683,596
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Revenue: 2007 2006 2007 2006
Online publishing $20,239,876 $15,464,987 $39,291,900 $31,080,986
Print publishing
and licensing 3,039,296 4,201,383 6,215,202 8,373,816
Total revenue 23,279,172 19,666,370 45,507,102 39,454,802
Cost of revenue(1):
Online publishing 3,048,958 2,806,868 6,190,985 5,707,452
Print publishing
and licensing 2,713,430 3,773,258 5,541,097 7,315,368
Total cost
of revenue 5,762,388 6,580,126 11,732,082 13,022,820
Gross margin 17,516,784 13,086,244 33,775,020 26,431,982
Operating expenses(1):
Sales 1,640,024 1,247,916 2,926,797 2,336,191
Marketing 2,121,387 1,188,918 3,576,611 2,040,261
Product development 1,157,774 805,193 2,110,655 1,829,696
General and
administrative 4,877,320 5,896,743 9,104,803 11,434,567
Depreciation and
amortization 649,071 564,653 1,293,786 1,122,415
10,445,576 9,703,423 19,012,652 18,763,130
Income from
operations 7,071,208 3,382,821 14,762,368 7,668,852
Interest income 1,675,488 624,975 3,137,658 645,305
Income before
income taxes 8,746,696 4,007,796 17,900,026 8,314,157
Income tax expense 3,521,607 1,481,815 7,302,265 3,446,349
Net income $5,225,089 $2,525,981 $10,597,761 $4,867,808
Basic and diluted net
income per share:
Basic $0.29 $0.15 $0.58 $0.29
Diluted $0.28 $0.14 $0.56 $0.28
Shares used in
computing basic
net income per
share 18,325,404 17,138,053 18,288,323 16,509,989
Shares used in
computing diluted
net income per
share 18,959,646 17,876,380 18,832,388 17,183,295
(1)Includes stock
compensation expense
as follows:
Cost of revenue:
Online publishing $481,008 $288,500 $850,150 $496,996
Print publishing
and licensing 39,032 57,691 80,615 67,822
Other expenses:
Sales 313,806 170,152 374,010 327,038
Marketing 158,695 - 241,380 -
Product development 206,056 133,101 320,098 246,632
General and
administrative 1,333,926 2,535,428 2,346,993 3,824,007
$2,532,523 $3,184,872 $4,213,246 $4,962,495
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Revenue: 2007 2006 2007 2006
Online publishing $20,239,876 $15,464,987 $39,291,900 $31,080,986
Print publishing
and licensing 3,039,296 4,201,383 6,215,202 8,373,816
Total revenue 23,279,172 19,666,370 45,507,102 39,454,802
Cost of revenue:
Online publishing 2,567,950 2,518,368 5,340,835 5,210,456
Print publishing
and licensing 2,674,398 3,715,567 5,460,482 7,247,546
Total cost of
revenue 5,242,348 6,233,935 10,801,317 12,458,002
Gross margin 18,036,824 13,432,435 34,705,785 26,996,800
Operating expenses:
Sales 1,326,218 1,077,764 2,552,787 2,009,153
Marketing 1,962,692 1,188,918 3,335,231 2,040,261
Product development 951,718 672,092 1,790,557 1,583,064
General and
administrative 3,543,394 3,361,315 6,757,810 7,610,560
Stock compensation
expense(1) 2,532,523 3,184,872 4,213,246 4,962,495
Depreciation and
amortization 649,071 564,653 1,293,786 1,122,415
10,965,616 10,049,614 19,943,417 19,327,948
Income from
operations 7,071,208 3,382,821 14,762,368 7,668,852
Interest income 1,675,488 624,975 3,137,658 645,305
Income before
income taxes 8,746,696 4,007,796 17,900,026 8,314,157
Income tax expense 3,521,607 1,481,815 7,302,265 3,446,349
Net income $5,225,089 $2,525,981 $10,597,761 $4,867,808
Basic and diluted net
income per share:
Basic $0.29 $0.15 $0.58 $0.29
Diluted $0.28 $0.14 $0.56 $0.28
Basic and diluted net
income per share
excluding stock
compensation expense(1)
Basic $0.37 $0.25 $0.73 $0.48
Diluted $0.34 $0.23 $0.67 $0.44
Shares used in computing
basic net income per
share 18,325,404 17,138,053 18,288,323 16,509,989
Shares used in computing
diluted net income per
share 18,959,646 17,876,380 18,832,388 17,183,295
(1) See reconciliation of GAAP to Non-GAAP Measures.
Non-GAAP Measures Three Months Ended Six Months Ended
Reconciliation June 30, June 30,
(Unaudited): 2007 2006 2007 2006
EBITDA-
Income from
operations $7,071,208 $3,382,821 $14,762,368 $7,668,852
Depreciation and
amortization 649,071 564,653 1,293,786 1,122,415
EBITDA $7,720,279 $3,947,474 $16,056,154 $8,791,267
EBITDA excluding stock
compensation expense-
Income from
operations $7,071,208 $3,382,821 $14,762,368 $7,668,852
Stock compensation
expense 2,532,523 3,184,872 4,213,246 4,962,495
Depreciation and
amortization 649,071 564,653 1,293,786 1,122,415
EBITDA excluding
stock compensation
expense $10,252,802 $7,132,346 $20,269,400 $13,753,762
Net income excluding
stock compensation
expense-
Net income $5,225,089 $2,525,981 $10,597,761 $4,867,808
Stock compensation
expense, net of tax 1,542,445 1,789,620 2,670,205 3,098,183
Net income excluding
stock compensation
expense $6,767,534 $4,315,601 $13,267,966 $7,965,991
Per basic share $0.37 $0.25 $0.73 $0.48
Per diluted share $0.34 $0.23 $0.67 $0.44
Shares used in
computing basic
net income per
share 18,325,404 17,138,053 18,288,323 16,509,989
Shares used in
computing diluted
net income per
share 18,959,646 17,876,380 18,832,388 17,183,295
Impact of applying
SFAS No. 123R 837,061 864,815 889,568 861,600
Shares used in
computing diluted
net income per
share, excluding the
impact of applying
SFAS No. 123R 19,796,707 18,741,195 19,721,956 18,044,895
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Operating Results
(Unaudited)
Three Months Ended
June 30, 2007
Revenue: GAAP Adjustments(1) Non-GAAP
Online publishing $20,239,876 $- $20,239,876
Print publishing and licensing 3,039,296 - 3,039,296
Total revenue 23,279,172 - 23,279,172
Cost of revenue:
Online publishing 3,048,958 (481,008) 2,567,950
Print publishing and licensing 2,713,430 (39,032) 2,674,398
Total cost of revenue 5,762,388 (520,040) 5,242,348
Gross margin 17,516,784 520,040 18,036,824
Operating expenses:
Sales 1,640,024 (313,806) 1,326,218
Marketing 2,121,387 (158,695) 1,962,692
Product development 1,157,774 (206,056) 951,718
General and administrative 4,877,320 (1,333,926) 3,543,394
Stock compensation expense - 2,532,523 2,532,523
Depreciation and amortization 649,071 - 649,071
10,445,576 520,040 10,965,616
Income from operations 7,071,208 - 7,071,208
Interest income, net 1,675,488 - 1,675,488
Income before income taxes 8,746,696 - 8,746,696
Provision for income taxes 3,521,607 - 3,521,607
Net income $5,225,089 $- $5,225,089
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
Three Months Ended
June 30, 2006
Revenue: GAAP Adjustments(1) Non-GAAP
Online publishing $15,464,987 $- $15,464,987
Print publishing and licensing 4,201,383 - 4,201,383
Total revenue 19,666,370 - 19,666,370
Cost of revenue:
Online publishing 2,806,868 (288,500) 2,518,368
Print publishing and licensing 3,773,258 (57,691) 3,715,567
Total cost of revenue 6,580,126 (346,191) 6,233,935
Gross margin 13,086,244 346,191 13,432,435
Operating expenses:
Sales 1,247,916 (170,152) 1,077,764
Marketing 1,188,918 - 1,188,918
Product development 805,193 (133,101) 672,092
General and administrative 5,896,743 (2,535,428) 3,361,315
Stock compensation expense - 3,184,872 3,184,872
Depreciation and amortization 564,653 - 564,653
9,703,423 346,191 10,049,614
Income from operations 3,382,821 - 3,382,821
Interest income, net 624,975 - 624,975
Income before income taxes 4,007,796 - 4,007,796
Provision for income taxes 1,481,815 - 1,481,815
Net income $2,525,981 $- $2,525,981
Basic and diluted net income per share:
Basic $0.15 $- $0.15
Diluted $0.14 $- $0.14
Shares used in computing
basic net income per share 17,138,053 - 17,138,053
Shares used in computing
diluted net income per share 17,876,380 864,815 18,741,195
(1) Adjustments for the impact of applying SFAS No. 123R
Six Months Ended
June 30, 2007
Revenue: GAAP Adjustments(1) Non-GAAP
Online publishing $39,291,900 $- $39,291,900
Print publishing and licensing 6,215,202 - 6,215,202
Total revenue 45,507,102 - 45,507,102
Cost of revenue:
Online publishing 6,190,985 (850,150) 5,340,835
Print publishing and licensing 5,541,097 (80,615) 5,460,482
Total cost of revenue 11,732,082 (930,765) 10,801,317
Gross margin 33,775,020 930,765 34,705,785
Operating expenses:
Sales 2,926,797 (374,010) 2,552,787
Marketing 3,576,611 (241,380) 3,335,231
Product development 2,110,655 (320,098) 1,790,557
General and administrative 9,104,803 (2,346,993) 6,757,810
Stock compensation expense - 4,213,246 4,213,246
Depreciation and amortization 1,293,786 - 1,293,786
19,012,652 930,765 19,943,417
Income from operations 14,762,368 - 14,762,368
Interest income, net 3,137,658 - 3,137,658
Income before income taxes 17,900,026 - 17,900,026
Provision for income taxes 7,302,265 - 7,302,265
Net income $10,597,761 $- $10,597,761
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
Six Months Ended
June 30, 2006
Revenue: GAAP Adjustments(1) Non-GAAP
Online publishing $31,080,986 $- $31,080,986
Print publishing and licensing 8,373,816 - 8,373,816
Total revenue 39,454,802 - 39,454,802
Cost of revenue:
Online publishing 5,707,452 (496,996) 5,210,456
Print publishing and licensing 7,315,368 (67,822) 7,247,546
Total cost of revenue 13,022,820 (564,818) 12,458,002
Gross margin 26,431,982 564,818 26,996,800
Operating expenses:
Sales 2,336,191 (327,038) 2,009,153
Marketing 2,040,261 - 2,040,261
Product development 1,829,696 (246,632) 1,583,064
General and administrative 11,434,567 (3,824,007) 7,610,560
Stock compensation expense - 4,962,495 4,962,495
Depreciation and amortization 1,122,415 - 1,122,415
18,763,130 564,818 19,327,948
Income from operations 7,668,852 - 7,668,852
Interest income, net 645,305 - 645,305
Income before income taxes 8,314,157 - 8,314,157
Provision for income taxes 3,446,349 - 3,446,349
Net income $4,867,808 $- $4,867,808
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 16,509,989 - 16,509,989
Shares used in computing
diluted net income per share 17,183,295 861,600 18,044,895
(1) Adjustments for the impact of applying SFAS No. 123R
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
Website: http://www.bankrate.com/Website: http://investor.bankrate.com/ |
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