Print page
Download PDF
« Previous Release | Next Release »
Company Reports Record Revenue and Pre-Tax Income
NEW YORK, May 3 /PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE), the Internet's leading consumer banking marketplace, today reported total revenue of $10.4 million for the quarter ended March 31, 2005, an increase of 11% over the $9.3 million reported in the fourth quarter of 2004, and an increase of 1% over the $10.3 million reported in the first quarter of 2004. Income from operations in Q1 05 was $2.7 million and was 18% better than the $2.3 million reported in Q1 04, and was 32% ahead of the $2.1 million reported in Q4 04 (excluding a $120,000 legal settlement charge). Net income for Q1 2005 was $1.9 million, or $0.12 per diluted share, compared to $2.4 million, or $0.15 per diluted share, in Q1 2004, and $2.2 million, or $0.13 per diluted share, in Q4 04 (excluding a non-cash income tax benefit of $4.8 million related to the recognition of a deferred tax asset on the remaining portion of the Company's net operating loss benefits, and the legal settlement charge of $120,000). Q1 05 results included a $221,000 gain on insurance proceeds received in excess of costs and losses related to the hurricanes in September 2004, and a provision for deferred income taxes of $1.2 million, or approximately 38% of pre-tax income.
"We are pleased with our results," said Thomas R. Evans, President and CEO of Bankrate, Inc. "We achieved the highest pre-tax income and operating margins in the company's history. We believe that the initiatives we outlined in the past and have begun to implement are gaining traction."
Barter revenue for the three months ended March 31, 2005 was reduced to $621,000, or 6% of total revenue, compared to $938,000, or 9% of total revenue, for the same period in 2004.
Recent company highlights, include the following:
* Web site Redesign:
* Added Two New Channels:
* Aggregators RFP Award:
* Co-Brand Renewals:
* New Products:
* Extended Coverage:
* Sales Re-organization:
* Print Licensing:
* Editorial:
May 3, 2005 Conference Call Interactive Dial-In and Webcast Information: To participate in the teleconference please call: 800-299-9086 Passcode: 22115599
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 May 3, 2005, 1:00 p.m. ET/ 10:00 a.m. PT through June 3, 2005. To listen to the replay, call 888-286-8010 and enter 46780506. International callers should dial 617- 801-6888 and enter 46780506.
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business 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. In 2005, Bankrate expanded its offering by adding two new channels: Debt Management and College Finance. Bankrate.com reviews more than 4,800 financial institutions in more than 580 markets in 50 states. In 2004, Bankrate.com had over 38 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 100 national and state publications.
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; 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, 2004, 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 Balance Sheets (Unaudited)
March 31, December 31, 2005 2004 Assets
Cash and cash equivalents $30,066,554 $27,735,267 Accounts and notes receivable, net of allowance for doubtful accounts of $400,000 at March 31, 2005 and December 31, 2004, respectively 4,865,508 4,343,747 Deferred income taxes 5,938,898 4,359,058 Insurance claim receivable - 241,015 Other current assets 747,972 369,572 Total current assets 41,618,932 37,048,659
Furniture, fixtures and equipment, net 1,190,962 1,275,605 Deferred income taxes 4,300,291 7,047,521 Intangible assets, net 199,852 205,656 Other assets 318,164 429,079
Total assets $47,628,201 $46,006,520
Liabilities and Stockholders' Equity
Liabilities: Accounts payable $1,116,922 $1,386,164 Accrued expenses 1,803,783 1,749,058 Deferred revenue 171,029 192,357 Other current liabilities 103,523 93,352 Total current liabilities 3,195,257 3,420,931
Other liabilities 155,550 251,391
Total liabilities 3,350,807 3,672,322
Stockholders' equity: Preferred stock, 10,000,000 shares authorized and undesignated - - Common stock, par value $.01 per share -- 100,000,000 shares authorized; 15,801,974 and 15,780,811 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively 158,020 157,808 Additional paid in capital 70,175,756 70,137,462 Accumulated deficit (26,056,382) (27,961,072) Total stockholders' equity 44,277,394 42,334,198
Total liabilities and stockholders' equity $47,628,201 $46,006,520
Bankrate, Inc. Condensed Statements of Operations (Unaudited)
Three Months Ended March 31, Revenue: 2005 2004 Online publishing $9,266,553 $8,982,405 Print publishing and licensing 1,155,296 1,291,827 Total revenue 10,421,849 10,274,232 Cost of revenue: Online publishing 1,639,475 1,419,983 Print publishing and licensing 1,103,169 1,042,403 Total cost of revenue 2,742,644 2,462,385
Gross margin 7,679,205 7,811,847
Operating expenses: Sales 841,847 1,303,094 Marketing 1,519,623 1,749,861 Product development 504,106 606,251 General and administrative 1,914,278 1,686,576 Depreciation and amortization 189,239 172,511 4,969,093 5,518,293 Income from operations 2,710,112 2,293,553 Other income: Interest income 141,263 76,842 Insurance recovery 220,705 (a) - Total other income 361,968 76,842
Income before income taxes 3,072,080 2,370,395 Provision for income taxes (1,167,390) - Net income $1,904,690 $2,370,395
Basic and diluted net income per share: Basic $0.12 $0.16 Diluted $0.12 $0.15 Weighted average common shares outstanding: Basic 15,787,264 15,198,675 Diluted 16,561,802 15,958,487
(a) Amount reflects insurance recovery in excess of costs and expenses.
Comparable Basis Reconciliation Diluted Earnings Net Income Per Share Q1 05 Q4 04 Q1 04 Q1 05 Q4 04 Q1 04 As reported $1,904,690 $6,822,811 $2,370,395 $0.12 $0.42 $0.15 Income tax provision (benefit) 1,167,390 (4,765,660) - $0.07 $(0.29) $ - Insurance gain (220,705) - - $(0.01) $ - $ -
Legal settlement charge - 120,000 - $ - $0.01 $ - Adjusted $2,851,375 $2,177,151 $2,370,395 $0.17 $0.13 $0.15
For more information contact:
Robert J. DeFranco
Senior Vice President
Chief Financial Officer
http://www.bankrate.com/investor-relations/
bdefranco@bankrate.com
(561) 630-1230
Bruce J. Zanca
Senior Vice President
Chief Communications/Marketing Officer
bzanca@bankrate.com
(917) 368-8648
SOURCE Bankrate, Inc.