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Bankrate Announces First Quarter 2007 Financial Results
Company Reports 129% Increase in Net Income
Adjusted EBITDA Increased 51% to $10.0 Million
Reminder -- Conference Call and Webcast Today at 11:00 A.M. Eastern Time
Interactive Dial-In: 866-831-6270 Passcode 47041810 (10 minutes before the
call)
NEW YORK, May 2 /PRNewswire-FirstCall/ -- Bankrate, Inc. (
RATE), today reported financial results for the first fiscal quarter ended
March 31, 2007. Total revenue increased by 12% to $22.2 million over the
$19.8 million reported in the first quarter of 2006. Net income increased
by 129% to $5.4 million, or $0.28 per fully diluted share, in the first
quarter of 2007 compared to $2.3 million, or $0.14 per fully diluted share,
in the first quarter 2006. Earnings per diluted share ("EPS") excluding
stock compensation expense, increased by 57% to $0.33 per fully diluted
share for the first quarter 2007 compared to $0.21 per fully diluted share
for the first quarter 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
Earnings before interest, taxes, depreciation and amortization
("EBITDA"), for the first quarter adjusted to exclude $1.7 million in stock
compensation expense, were $10.0 million, an increase of 51% over the $6.6
million reported in the first quarter 2006.
"It was a strong quarter for the company. Online revenue continued to
increase and margins grew dramatically," said Thomas R. Evans, President
and CEO of Bankrate, Inc. "The industry's concerns regarding the problems
of subprime lenders and the slowdown in the mortgage market have not had a
negative impact on our business. In fact, we continued to see strong
consumer traffic and experienced significant demand from both graphic and
hyperlink advertisers," Mr. Evans added.
First Quarter 2007 Financial Results
-- Total revenue for the quarter was $22.2 million, an increase of 12%, or
$2.4 million, over the $19.8 million reported in the corresponding
period last year.
-- Online publishing revenue for the first quarter of $19.1 million was
22%, or $3.5 million higher than the $15.6 million reported in the
first quarter of 2006.
-- Graphic advertising increased 14% to $10.5 million in the first quarter
of 2007 compared to $9.2 million reported in the first quarter of 2006.
Excluding lead aggregation revenue (FastFind & Bankrate Select),
graphic revenue increased 32% over Q1 2006.
-- Hyperlink revenue grew 33% to $8.6 million in the first quarter of 2007
compared to $6.5 million reported for the same quarter last year.
-- Print publishing and licensing revenue for the first quarter was $3.2
million, down $1.0 million, or 24%, compared to the $4.2 million
reported in the first quarter of 2006.
-- Gross margin in the first quarter of 2007 was 73%, and the EBITDA
margin, adjusted to exclude stock compensation expense was 45%,
compared to 67% and 33%, respectively, during the same period last
year.
-- Page views for the first quarter of 2007 were 143.2 million, up 15%
compared to the 124.2 million reported in the first quarter of 2006,
and an increase of 22.6 million, or 19%, from the 120.6 million
reported last quarter.
-- After an RFP process (initiated by the Audit Committee), Bankrate
selected Grant Thornton LLP to serve as its auditor for 2007, replacing
KPMG LLP.
"We're pleased with the quarter and with the record level of
profitability, which included significant margin expansion," said Mr.
Evans. "Bankrate has proven to be a highly-productive marketing channel for
financial advertisers to reach in-market consumers and we are optimistic
that our strong performance will continue," said Mr. Evans.
2007 Guidance
Bankrate did not change its earlier guidance for the fiscal year 2007
with revenues to be within the range of $95 to $100 million and EBITDA,
adjusted to exclude stock compensation expense, to be within the range of
$36 to $40 million.
May 2, 2007 Conference Call Interactive Dial-In and Webcast
Information:
To participate in the teleconference please call: 866-831-6270
Passcode: 47041810. International participants may dial: 617-213-8858
Passcode: 47041810. Please access at least 10 minutes prior to the time the
conference is set to begin.
This call is being webcast by CCBN and can be accessed at Bankrate's
web site at www.bankrate.com/investor-relations/. The webcast is also being
distributed over CCBN's Investor Distribution Network to both institutional
and individual investors. Individual investors can listen to the call
through CCBN's individual investor center at www.fulldisclosure.com or by
visiting any of the investor sites in CCBN's Individual Investor Network.
Institutional investors can access the call via CCBN's password-protected
event management site, StreetEvents (www.streetevents.com).
Replay Information:
A replay of the conference call will be available beginning May 2,
2007, 1:00 p.m. ET/ 10:00 a.m. PT through May 15, 2007. To listen to the
replay, call 888-286-8010 and enter 38357245. International callers should
dial 617-801-6888 and enter 38357245.
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. ( 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! ( YHOO), America Online
( TWX), The Wall Street Journal ( DJ) and The New York Times
( NYT). Bankrate.com's information is also distributed through more
than 400 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.
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, 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.
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2007 2006
Assets
Cash $8,175,448 $13,125,360
Short-term investments 112,500,000 96,800,000
Accounts and notes receivable, net
of allowance for doubtful accounts
of approximately $2,499,000 at
March 31, 2007 and $2,155,000 at
December 31, 2006, respectively 15,454,246 15,801,403
Deferred income taxes, current portion 1,703,747 1,703,747
Prepaid expenses and other current
assets 798,875 1,032,423
Total current assets 138,632,316 128,462,933
Furniture, fixtures and equipment, net 1,663,102 1,703,680
Deferred income taxes 1,262,279 1,262,279
Intangible assets, net 14,013,286 14,441,162
Goodwill 30,039,425 30,039,425
Other assets 709,233 774,117
Total assets $186,319,641 $176,683,596
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $387,193 $312,489
Accrued expenses 7,258,537 5,237,222
Deferred revenue 358,726 729,019
Other current liabilities 78,590 27,427
Total current liabilities 8,083,046 6,306,157
Other liabilities 238,447 222,920
Total liabilities 8,321,493 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;
18,270,277 and 18,224,620 shares issued
and outstanding at March 31, 2007 and
December 31, 2006, respectively 182,703 182,246
Additional paid in capital 180,725,814 178,255,314
Accumulated deficit (2,910,369) (8,283,041)
Total stockholders' equity 177,998,148 170,154,519
Total liabilities and
stockholders' equity $186,319,641 $176,683,596
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
Revenue: 2007 2006
Online publishing $19,052,024 $15,615,999
Print publishing and licensing 3,175,906 4,172,433
Total revenue 22,227,930 19,788,432
Cost of revenue (1):
Online publishing 3,142,027 2,900,584
Print publishing and licensing 2,827,667 3,542,110
Total cost of revenue 5,969,694 6,442,694
Gross margin 16,258,236 13,345,738
Operating expenses (1):
Sales 1,286,773 1,088,275
Marketing 1,455,224 851,343
Product development 952,881 1,024,503
General and administrative 4,227,483 5,537,824
Depreciation and amortization 644,715 557,762
8,567,076 9,059,707
Income from operations 7,691,160 4,286,031
Interest income 1,462,170 20,330
Income before income taxes 9,153,330 4,306,361
Income tax expense 3,780,658 1,964,534
Net income $5,372,672 $2,341,827
Basic and diluted net income per share:
Basic $0.29 $0.15
Diluted $0.28 $0.14
Weighted average common shares outstanding:
Basic 18,250,836 15,874,946
Diluted 18,880,646 16,771,044
(1)Includes stock compensation expense as follows:
Cost of revenue:
Online publishing $369,142 $208,496
Print publishing and licensing 41,583 10,131
Other expenses:
Sales 60,204 156,885
Marketing 82,685 -
Product development 114,042 113,532
General and administrative 1,013,067 1,288,579
$1,680,723 $1,777,623
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
Revenue: 2007 2006
Online publishing $19,052,024 $15,615,999
Print publishing and licensing 3,175,906 4,172,433
Total revenue 22,227,930 19,788,432
Cost of revenue:
Online publishing 2,772,885 2,692,088
Print publishing and licensing 2,786,084 3,531,979
Total cost of revenue 5,558,969 6,224,067
Gross margin 16,668,961 13,564,365
Operating expenses:
Sales 1,226,569 931,390
Marketing 1,372,539 851,343
Product development 838,839 910,971
General and administrative 3,214,416 4,249,245
Stock compensation expense (1) 1,680,723 1,777,623
Depreciation and amortization 644,715 557,762
8,977,801 9,278,334
Income from operations 7,691,160 4,286,031
Interest income 1,462,170 20,330
Income before income taxes 9,153,330 4,306,361
Income tax expense 3,780,658 1,964,534
Net income $5,372,672 $2,341,827
Basic and diluted net income per share:
Basic $0.29 $0.15
Diluted $0.28 $0.14
Basic and diluted net income per share
excluding stock compensation expense (1)
Basic $0.36 $0.23
Diluted $0.33 $0.21
Weighted average common shares outstanding:
Basic 18,250,836 15,874,946
Diluted 18,880,646 16,771,044
(1) See reconciliation of GAAP to Non-GAAP Measures.
Three Months Ended
March 31,
Non-GAAP Measures Reconciliation
(Unaudited): 2007 2006
EBITDA-
Income from operations $7,691,160 $4,286,031
Depreciation and amortization 644,715 557,762
EBITDA $8,335,875 $4,843,793
EBITDA excluding stock compensation
expense-
Income from operations $7,691,160 $4,286,031
Stock compensation expense 1,680,723 1,777,623
Depreciation and amortization 644,715 557,762
EBITDA excluding stock compensation
expense $10,016,598 $6,621,416
Net income excluding stock
compensation expense-
Net income $5,372,672 $2,341,827
Stock compensation expense,
net of tax 1,127,760 1,308,563
Net income excluding stock
compensation expense $6,500,432 $3,650,390
Per basic share $0.36 $0.23
Per diluted share $0.33 $0.21
Weighted average common shares
outstanding:
Basic 18,250,836 15,874,946
Diluted 18,880,646 16,771,044
Impact of applying SFAS No. 123R 797,791 700,673
Diluted shares excluding impact
of applying SFAS No. 123R 19,678,437 17,471,717
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Operating Results
(Unaudited)
Three Months Ended
March 31, 2007
Revenue: GAAP Adjustments (1) Non-GAAP
Online publishing $19,052,024 $- $19,052,024
Print publishing and licensing 3,175,906 - 3,175,906
Total revenue 22,227,930 - 22,227,930
Cost of revenue:
Online publishing 3,142,027 (369,142) 2,772,885
Print publishing and licensing 2,827,667 (41,583) 2,786,084
Total cost of revenue 5,969,694 (410,725) 5,558,969
Gross margin 16,258,236 410,725 16,668,961
Operating expenses:
Sales 1,286,773 (60,204) 1,226,569
Marketing 1,455,224 (82,685) 1,372,539
Product development 952,881 (114,042) 838,839
General and administrative 4,227,483 (1,013,067) 3,214,416
Stock compensation expense - 1,680,723 1,680,723
Depreciation and amortization 644,715 - 644,715
8,567,076 410,725 8,977,801
Income from operations 7,691,160 - 7,691,160
Interest income, net 1,462,170 - 1,462,170
Income before income taxes 9,153,330 - 9,153,330
Provision for income taxes 3,780,658 - 3,780,658
Net income $5,372,672 $- $5,372,672
Basic and diluted net income per
share:
Basic $0.29 $- $0.29
Diluted $0.28 $- $0.28
Weighted average common shares
outstanding:
Basic 18,250,836 - 18,250,836
Diluted 18,880,646 797,791 19,678,437
(1) Adjustments for the impact of applying SFAS No. 123R
Three Months Ended
March 31, 2006
Revenue: GAAP Adjustments (1) Non-GAAP
Online publishing $15,615,999 $- $15,615,999
Print publishing and licensing 4,172,433 - 4,172,433
Total revenue 19,788,432 - 19,788,432
Cost of revenue:
Online publishing 2,900,584 (208,496) 2 ,692,088
Print publishing and licensing 3,542,110 (10,131) 3,531,979
Total cost of revenue 6,442,694 (218,627) 6,224,067
Gross margin 13,345,738 218,627 13,564,365
Operating expenses:
Sales 1,088,275 (156,885) 931,390
Marketing 851,343 - 851,343
Product development 1,024,503 (113,532) 910,971
General and administrative 5,537,824 (1,288,579) 4,249,245
Stock compensation expense - 1,777,623 1,777,623
Depreciation and amortization 557,762 - 557,762
9,059,707 218,627 9,278,334
Income from operations 4,286,031 - 4,286,031
Interest income, net 20,330 - 20,330
Income before income taxes 4,306,361 - 4,306,361
Provision for income taxes 1,964,534 - 1,964,534
Net income $2,341,827 $- $2,341,827
Basic and diluted net income per
share:
Basic $0.15 $- $0.15
Diluted $0.14 $- $0.14
Weighted average common shares
outstanding:
Basic 15,874,946 - 15,874,946
Diluted 16,771,044 700,673 17,471,717
(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
SOURCE Bankrate, Inc.