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Reminder -- Conference Call and Webcast Today at 11:00 A.M. Eastern Time
Interactive Dial-In: 800-510-9836 Passcode 41330562
(10 minutes before the call)
Revenue of $19.7 Million Increased 59%
EBITDA(1) of $7.1 Million Increased 76%
EPS(2) of $0.23 Exceeds Analysts' Consensus Estimates
NEW YORK, Aug. 2 /PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE), today reported total revenue of $19.7 million for the quarter ended June 30, 2006, an increase of $7.3 million or 59% over the $12.4 million reported in the second quarter of 2005. Earnings per diluted share, excluding non-cash stock compensation expense, were $0.23 which exceeded analyst consensus estimates of $0.22 as reported by First Call / Thomson Financial. Earnings before interest, taxes, depreciation and amortization ("EBITDA"), excluding non-cash stock compensation expense for the quarter, was $7.1 million, an increase of $3.1 million or 76% over the $4.1 million for the second quarter of 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
Net income, excluding non-cash stock compensation expense was $4.3 million, an increase of $1.8 million or 72% over the $2.5 million reported in the second quarter of 2005. Net income for Q2 2006 was $2.5 million or $0.14 per diluted share including the non-cash stock compensation expense of $0.09 per diluted share after tax, compared to $2.5 million, or $0.15 per diluted share, in Q2 2005 with no stock compensation expense.
"We're pleased with our performance for this quarter," said Thomas R. Evans, President and CEO of Bankrate, Inc. "Evidence of the elasticity of our business was that revenue from our mortgage rate tables grew 13% and deposit- related revenue nearly quadrupled," Mr. Evans added.
Income before taxes of $4.0 million in the second quarter of 2006, decreased slightly from the second quarter of 2005, due to $3.2 million in non-cash stock compensation expense recorded during the second quarter of 2006. Results excluding stock compensation expense are comparable to prior period results, as the Company adopted FAS 123R and began recording stock option compensation expense prospectively in January 2006.
Total revenue in Q2 2006 was $19.7 million compared to $19.8 million reported in Q1 2006. EBITDA, excluding stock compensation expense, increased by 8% in sequential quarters from $6.6 million in Q1 2006 to $7.1 million in Q2 2006. EPS was $0.14 and $0.15 for the second quarter of 2006 and 2005 respectively and, excluding stock compensation expense was $0.23 for Q2 2006 compared to $0.21 for Q1 2006, representing a sequential increase of 10%.
Total revenue for the six months ended June 30, 2006 was $39.5 million, an increase of $16.7 million or 73% over the $22.8 million reported in the first half of 2005. EPS excluding stock compensation expense, was $0.44 and $0.27 for the first half of 2006 and 2005, respectively. EBITDA, excluding stock compensation expense, was $13.8 million, an increase of $6.8 million or 98% over the $6.9 million for the first half of 2005. Net income for the first half of 2006, excluding stock compensation expense, was $8.0 million compared to $4.4 million in the first half of 2005, an increase of 80%.
Net income for the six months ended June 30, 2006 was $4.9 million or $0.28 per diluted share including non-cash stock compensation expense of $0.16 per diluted share after tax, compared to $4.4 million, or $0.27 per diluted share, in the first half of 2005 with no stock compensation expense.
Recent Company Highlights:
* Online publishing revenue of $15.5 million in Q2 2006 was $4.3 million or 38% greater than the $11.2 million reported in Q2 2005.
* Hyperlink revenue grew 64% compared to Q2 2005. Deposits contributed 43% of that revenue -- an increase of 290% over the same quarter last year.
* Print publishing and licensing revenue of $4.2 million was 262% higher than Q2 2005.
* The gross margin for Q2 2006 was 68%, and the EBITDA margin was 36% (excluding non-cash stock compensation expense), compared to 77% and 33%, respectively, in Q2 2005. The difference in the gross margin was due to the fact that print became a greater percentage of the overall revenue in 2006, due to the acquisition of MMIS in December 2005.
* Page views for Q2 2006 were 116.0 million, up 2% compared to 113.8 million in Q2 2005 and were down from 124.2 million, or 7% in Q1 2006. Organic and partner (non-paid) traffic represented 93% of the page views.
* On May 10, 2006, the Company completed a secondary public offering of 2,697,776 shares of common stock at $48.25 per share. The total included 351,883 shares of common stock sold as a result of the underwriters' exercise of their over-allotment option to purchase additional shares of common stock. The offering was comprised of 2,005,991 shares issued by the Company and 691,785 shares sold by selling stockholders. Net proceeds to the Company totaled $92.5 million.
* In an earlier release today, the Company announced that it has signed an agreement to acquire three websites owned and operated by East West Mortgage, Inc. for $4.4 million in cash. The Internet sites to be purchased by Bankrate include: Mortgage-calc.com, Mortgagecalc.com and Mortgagemath.com. The transaction is expected to close within a week. The Company expects the acquisition to be accretive to earnings in 2006.
August 2, 2006 Conference Call Interactive Dial-In and Webcast Information:
To participate in the teleconference please call: 800-510-9836 Passcode: 41330562. International participants may dial: 617-614-3670 Passcode: 41330562. 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 http://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 http://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 ( http://www.streetevents.com ).
Replay Information:
A replay of the conference call will be available beginning August 2, 2006, 1:00 p.m. ET/ 10:00 a.m. PT through August 9, 2006. To listen to the replay, call 888-286-8010 and enter 82127318.
Non-GAAP Measures
To supplement the Company'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, income before income taxes, 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 Company's current financial performance and its prospects for the future. Specifically, the Company 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 the Company 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) 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. It 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 2005, Bankrate.com had over 46 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 400 national and state publications. In addition to Bankrate.com, Bankrate, Inc. also owns and operates FastFind, an internet lead aggregator and MMIS/Interest.com, 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: our success depends on Internet advertising revenue, interest rate volatility, establishing and maintaining distribution arrangements, and increased acceptance of the Internet by consumers as a medium for obtaining financial product information; changes in, or interpretations of, accounting rules and regulations, such as expensing of stock options, could result in unfavorable accounting charges; changes in, or interpretations of, tax rules and regulations may adversely impact our effective tax rate; we use barter transactions which do not generate cash; our markets are highly competitive; our Web site may encounter technical problems and service interruptions; we rely on the protection of our intellectual property; we may face liability for information on our Web site; future government regulation of the Internet is uncertain and subject to change; we may be limited or restricted in the way we establish and maintain our online relationships by laws generally applicable to our business; our ownership is heavily concentrated; our success may depend on management and key employees; we may encounter difficulties with future acquisitions; our results of operations may fluctuate significantly; our stock price may be particularly volatile because of the industry we are in; and, if our common stock price drops significantly, we may be delisted from the Nasdaq National Market, which could eliminate the trading market for our common stock. These and additional important factors to be considered are set forth under "Item 1. Business - 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, 2005, as amended, 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-
(1) Earnings before interest, taxes, depreciation and amortization excluding stock compensation expense (2) Earnings per share excluding stock compensation expense net of taxes
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)
June 30, December 31, 2006 2005 Assets
Cash and cash equivalents $102,359,536 $3,479,609 Accounts and notes receivable, net of allowance for doubtful accounts of approximately $1,853,000 at June 30, 2006 and $1,630,000 at December 31, 2005, respectively 13,709,282 8,838,879 Deferred income taxes, current portion 4,546,690 6,445,636 Insurance claim receivable -- 85,575 Prepaid expenses and other current assets 708,881 481,677 Total current assets 121,324,389 19,331,376
Furniture, fixtures and equipment, net 1,504,489 1,063,307 Deferred income taxes 1,223,619 28,769 Intangible assets, net 10,900,627 11,652,161 Goodwill 30,030,233 30,035,399 Other assets 732,665 442,211
Total assets $165,716,022 $62,553,223
Liabilities and Stockholders' Equity
Liabilities: Accounts payable $2,601,551 $3,215,645 Accrued expenses 3,084,786 5,093,187 Deferred revenue 1,240,324 1,176,119 Other current liabilities 67,719 37,187 Total current liabilities 6,994,380 9,522,138
Other liabilities 199,617 178,133
Total liabilities 7,193,997 9,700,271
Stockholders' equity: Preferred stock, 10,000,000 shares authorized and undesignated -- -- Common stock, par value $.01 per share-- 100,000,000 shares authorized; 18,111,766 and 15,857,877 shares issued and outstanding at June 30, 2006 and December 31, 2005, respectively 181,118 158,579 Additional paid in capital 171,760,270 70,981,544 Accumulated deficit (13,419,363) (18,287,171) Total stockholders' equity 158,522,025 52,852,952
Total liabilities and stockholders' equity $165,716,022 $62,553,223
Bankrate, Inc. Non-GAAP Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, Revenue: 2006 2005 2006 2005 Online publishing $15,464,987 $11,204,023 $31,080,986 $20,470,576 Print publishing and licensing 4,201,383 1,161,007 8,373,816 2,316,303 Total revenue 19,666,370 12,365,030 39,454,802 22,786,879 Cost of revenue: Online publishing 2,518,368 1,823,127 5,210,456 3,462,602 Print publishing and licensing 3,715,567 1,075,375 7,247,546 2,178,544 Total cost of revenue 6,233,935 2,898,502 12,458,002 5,641,146
Gross margin 13,432,435 9,466,528 26,996,800 17,145,733
Operating expenses: Sales 1,077,764 970,597 2,009,153 1,812,444 Marketing 1,188,918 1,713,010 2,040,261 3,232,633 Product development 672,092 510,777 1,583,064 1,014,883 General and administrative 3,361,315 2,221,655 7,610,560 4,135,933 Stock compensation expense (1) 3,184,872 -- 4,962,495 -- Depreciation and amortization 564,653 208,335 1,122,415 397,574 10,049,614 5,624,374 19,327,948 10,593,467 Income from operations 3,382,821 3,842,154 7,668,852 6,552,266 Other income: Interest income, net 624,975 212,144 645,305 353,407 Insurance recovery in excess of costs and expenses -- -- -- 220,705 Total other income 624,975 212,144 645,305 574,112
Income before income taxes 4,007,796 4,054,298 8,314,157 7,126,378 Provision for income taxes 1,481,815 1,540,634 3,446,349 2,708,024 Net income $2,525,981 $2,513,664 $4,867,808 $4,418,354
Basic and diluted net income per share: Basic $0.15 $0.16 $0.29 $0.28 Diluted $0.14 $0.15 $0.28 $0.27 Basic and diluted net income per share excluding stock compensation expense (1): Basic $0.25 $0.16 $0.48 $0.28 Diluted $0.23 $0.15 $0.44 $0.27 Weighted average common shares outstanding: Basic 17,138,053 15,804,045 16,509,989 15,795,981 Diluted 17,876,380 16,590,763 17,183,295 16,578,483
(1)See reconciliation of GAAP to Non-GAAP Measures.
Three Months Ended Six Months Ended June 30, June 30, Non-GAAP Measures Reconciliation (Unaudited): 2006 2005 2006 2005
EBITDA- Income from operations $3,382,821 $3,842,154 $7,668,852 $6,552,266 Depreciation and amortization 564,653 208,335 1,122,415 397,574 EBITDA $3,947,474 $4,050,489 $8,791,267 $6,949,840 Per diluted share $0.22 $0.24 $0.51 $0.42
EBITDA excluding stock compensation expense- Income from operations $3,382,821 $3,842,154 $7,668,852 $6,552,266 Stock compensation expense 3,184,872 -- 4,962,495 -- Depreciation and amortization 564,653 208,335 1,122,415 397,574 EBITDA excluding stock compensation expense $7,132,346 $4,050,489 $13,753,762 $6,949,840 Per diluted share $0.38 $0.24 $0.76 $0.42
Income before income taxes excluding stock compensation expense- Income before income taxes $4,007,796 $4,054,298 $8,314,157 $7,126,378 Stock compensation expense 3,184,872 -- 4,962,495 -- $7,192,668 $4,054,298 $13,276,652 $7,126,378
Net income excluding stock compensation expense- Net income $2,525,981 $2,513,664 $4,867,808 $4,418,354 Stock compensation expense, net of tax 1,789,620 -- 3,098,183 -- Net income excluding stock compensation expense $4,315,601 $2,513,664 $7,965,991 $4,418,354 Per basic share $0.25 $0.16 $0.48 $0.28 Per diluted share $0.23 $0.15 $0.44 $0.27
Weighted average common shares outstanding: Basic 17,138,053 15,804,045 16,509,989 15,795,981
Diluted 17,876,380 16,590,763 17,183,295 16,578,483 Impact of applying SFAS No. 123R 864,815 -- 861,600 -- Diluted shares excluding impact of applying SFAS No 123R 18,741,195 16,590,763 18,044,895 16,578,483
Bankrate, Inc. Condensed Consolidated Statements of Income Reconciliation of GAAP to Non-GAAP Operating Results (Unaudited)
Three Months Ended June 30, 2006 Adjust- Revenue: GAAP ments (2) 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 Other income: Interest income, net 624,975 -- 624,975 Insurance recovery in excess of costs and expenses -- -- -- Total other income 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 Weighted average common shares outstanding: Basic 17,138,053 -- 17,138,053 Diluted 17,876,380 -- 17,876,380
(2) Adjustments for the impact of applying SFAS No. 123R
Bankrate, Inc. Condensed Consolidated Statements of Income Reconciliation of GAAP to Non-GAAP Operating Results (Unaudited) Six Months Ended June 30, 2006 Adjust- Revenue: GAAP ments (2) 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 Other income: Interest income, net 645,305 -- 645,305 Insurance recovery in excess of costs and expenses -- -- -- Total other income 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 Weighted average common shares outstanding: Basic 16,509,989 -- 16,509,989 Diluted 17,183,295 -- 17,183,295
(2) Adjustments for the impact of applying SFAS No. 123R
SOURCE Bankrate, Inc.
CONTACT: Edward J. DiMaria, SVP, Chief Financial Officer,
+1-917-368-8608, or edimaria@bankrate.com, or Bruce J. Zanca, SVP, Chief
Communications, Marketing Officer, +1-917-368-8648, or bzanca@bankrate.com,
both of Bankrate, Inc.