Print page
Download PDF
« Previous Release | Next Release »
NEW YORK, May 1, 2008 /PRNewswire-FirstCall via COMTEX News Network/ --
Reminder -- Conference Call and Webcast Today at 4:30 P.M. Eastern Time
Interactive Dial-In: (877) 440-5784 International Callers (719) 325-4844
(10 minutes before the call)
Webcast: http://investor.bankrate.com/
Bankrate, Inc. (Nasdaq: RATE), today reported financial results for the first quarter ended March 31, 2008. Total revenue for the first quarter increased by 91% to $42.5 million over the $22.2 million reported in the first quarter of 2007. Net income increased by 27% to $6.8 million, or $0.35 per fully diluted share in the first quarter of 2008, compared to $5.4 million, or $0.28 per fully diluted share in the first quarter of 2007. Adjusted earnings per fully diluted share ("Adjusted EPS"), excluding share-based compensation expense, increased by 39% to $0.46 for the first quarter 2008, compared to the Adjusted EPS of $0.33 for the first quarter 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
Earnings before interest, taxes, depreciation and amortization ("EBITDA"), excluding share-based compensation expense, were $16.1 million, an increase of 60% over the adjusted $10.0 million reported in the first quarter 2007. EBITDA for the first quarter 2008 were $12.7 million, an increase of 52% over the $8.3 million reported in the first quarter 2007.
"It was a strong quarter, with traffic, revenue and EBITDA all at record levels," said Thomas R. Evans, Chief Executive Officer of Bankrate, Inc. "The increase in consumer activity, combined with the diversification of our business has strengthened our financial performance," added Mr. Evans.
Guidance
The Company reaffirmed annual guidance for the year with revenue expected to be in the range of $167 to $172 million and Adjusted EBITDA to be in the range of $64 to $68 million, excluding stock compensation expense. Stock compensation is expected to be in the range of $13.5 to $14.0 million. In addition, the Company also indicated that amortization of intangible assets and depreciation, resulting primarily from the NCS and InsureMe acquisitions is expected to be in the range of $8.8 to $9.3 million for the year.
"The year is off to a good start. We are integrating our recent acquisitions and are pleased with our progress to date," added Mr. Evans.
Stock Repurchase Plan
The Bankrate Board of Directors has recently authorized a stock repurchase plan. According to the terms of the plan, the Company may repurchase up to $50 million of its outstanding common stock. Stock repurchases under this program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate and will be funded using the Company's working capital. The timing and amount of specific repurchases are subject to the requirements of the Securities and Exchange Commission, market conditions, alternative uses of capital and other factors. The stock repurchase program does not obligate the Company to acquire any particular amount of shares and the program may be limited or terminated at any time without prior notice. Shares of stock repurchased under the program will be cancelled.
Financial Highlights - First Quarter 2008
-- Total revenue for the quarter was $42.5 million, an increase of 91%, or
$20.3 million, over the $22.2 million reported in the same period last
year.
-- Online revenue for the first quarter was $40.0 million, an increase of
110% or $21.0 million, over the $19.0 million reported in the first
quarter of 2007.
-- Graphic advertising and lead generation revenue was $26.4 million in
the first quarter of 2008, an increase of 153%, or $15.9 million,
compared to $10.5 million reported in the first quarter of 2007.
-- Hyperlink revenue for the quarter was $13.6 million, an increase of
58%, or $5.0 million, compared to $8.6 million reported for the same
quarter last year.
-- Print publishing and licensing revenue for the first quarter was
$2.5 million, a decrease of 23%, or $0.7 million, compared to the
$3.2 million reported in the first quarter of 2007.
-- EBITDA, adjusted to exclude share-based compensation expense, was
$16.1 million in the first quarter of 2008, up 60%, or $6.1 million,
over the $10.0 million in the same quarter last year.
-- Page views for the first quarter of 2008 were 214.4 million, an
increase of 50%, compared to the 143.2 million reported in the first
quarter of 2007.
Company Highlights
Acquisitions
-- The InsureMe, Inc. ("InsureMe") asset acquisition was completed on
February 5, 2008. InsureMe, based in Englewood, Colorado, operated a
web site and a network of hundreds of affiliates that offer consumers
competitive insurance rates for auto, home, life, health, and
long-term care. InsureMe was purchased for $65.0 million in cash and an
additional $20.0 million in potential earn-out payments based on
achieving specific financial performance metrics over the next two
years.
-- The Lower Fees, Inc. ("Fee Disclosure") asset acquisition was completed
on February 5, 2008. Fee Disclosure, originally based in West Lake
Village, California and subsequently relocated to North Palm Beach,
Florida, empowers consumers with comprehensive information on mortgage
transaction and closing fees. Fee Disclosure was purchased for
$2.85 million in cash and a potential cash earn-out payment for the
achievement of certain performance metrics over the next two years.
-- The Nationwide Card Services, Inc. ("NCS") asset acquisition was
completed on December 7, 2007. NCS, based in Memphis, Tennessee,
markets a comprehensive line of consumer and business credit cards via
the Internet. NCS was purchased for $27.4 million in cash, which
includes $1.0 million in working capital, and an additional $7.0
million in potential earn-out payments based on achieving specific
financial performance metrics over the next two years.
-- The Savingforcollege.com, LLC ("SFC") asset acquisition was completed
on December 5, 2007. SFC, based in Rochester, New York, is the premier
Internet destination for objective information about 529 college
savings plans, helping consumers and financial professionals learn more
about options for college financing. SFC was purchased for $2.3 million
in cash and potential earn-out payments of $2.0 million for the
achievement of certain performance metrics over the next two years.
May 1, 2008 Conference Call Interactive Dial-In and Webcast Information:
To participate in the teleconference please call: (877) 440-5784. International participants may dial: (719) 325-4844. Please access at least 10 minutes prior to the time the conference is set to begin. A Webcast of this call can be accessed at Bankrate's Web site: http://investor.bankrate.com/events.cfm .
Replay Information:
A replay of the conference call will be available beginning May 1, 2008, 7:30 p.m. ET/ 4:30 p.m. PT through May 14, 2008. To listen to the replay, call (888) 203-1112 and use the passcode: 3754127. International callers should dial (719) 457-0820 and use the passcode: 3754127.
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, which might not be calculated in the same manner as, and thus might not be comparable to, similarly titled measures reported by other companies. These non-GAAP measures are provided to enhance investors' overall understanding of 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 within the accompanying financial statement tables.
About Bankrate, Inc. (Nasdaq: RATE)
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure and InsureMe. Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, 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 rates and other information on 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 2007, Bankrate.com had nearly 60 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 and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
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 sites; interest rate volatility and our ability to manage the fluctuations in the demand for our advertisements; our ability to develop and maintain a strong brand; our ability to establish and maintain distribution arrangements; our ability to integrate the business and operations of companies that we have acquired, and those we may acquire in the future; our ability to realize expected benefits, including synergies, of companies that we have acquired, and those that we may acquire in the future; our ability to maintain the confidence of our advertisers by detecting click-through fraud and unscrupulous advertisers; the effect of unexpected liabilities we assume from our acquisitions; the effects of expanding our operations internationally; the impact of lawsuits to which we are a party; the ability of consumers to access our Online Network through non-PC devices; increased competition and its effect on our web site traffic, advertising rates, margins, and market share; our ability to manage traffic on our web sites and service interruptions; our ability to protect our intellectual property; the effects of facing liability for content on our web sites; the concentration of ownership of our common stock; the fluctuations of our results of operations from period to period; the accuracy of our financial statement estimates and assumptions; our ability to adapt to technological changes; our ability to secure debt or equity financing at acceptable terms; the impact of legislative or regulatory changes affecting our business; changes in consumer spending and saving habits; changes in accounting principles, policies, practices or guidelines; the effect of provisions in our Articles of Incorporation, Bylaws and certain laws on change-in-control transactions; effect of changes in the stock market and other capital markets; the strength of the United States economy in general; changes in monetary and fiscal policies of the United States Government; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. 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, 2007, 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)
(In thousands, except share and per share data)
March 31, December 31,
2008 2007
Assets
Cash and cash equivalents $66,072 $125,058
Accounts receivable, net of allowance
for doubtful accounts of approximately
$1,632 and $2,290 at March 31, 2008
and December 31, 2007, respectively 24,979 19,052
Deferred income taxes, current portion 878 878
Prepaid expenses and other current assets 1,577 5,350
Total current assets 93,506 150,338
Furniture, fixtures and equipment, net 2,899 1,802
Deferred income taxes 3,671 3,671
Intangible assets, net 52,391 27,485
Goodwill 85,368 43,720
Other assets 1,806 1,338
Total assets $239,641 $228,354
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $3,571 $2,246
Accrued expenses 6,908 8,092
Deferred revenue 1,054 550
Other current liabilities 70 13
Total current liabilities 11,603 10,901
Other liabilities 285 187
Total liabilities 11,888 11,088
Stockholders' equity:
Preferred stock, 10,000,000 shares authorized
and undesignated
Common stock, par value $.01 per
share -- 100,000,000 shares authorized;
18,885,482 and 18,876,393 shares issued
and outstanding at March 31, 2008 and
December 31, 2007, respectively 189 189
Additional paid in capital 208,959 205,306
Retained earnings 18,605 11,771
Total stockholders' equity 227,753 217,266
Total liabilities and stockholders'
equity $239,641 $228,354
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
March 31,
Revenue: 2008 2007
Online publishing $40,005 $19,052
Print publishing and licensing 2,458 3,176
Total revenue 42,463 22,228
Cost of revenue (1):
Online publishing 14,098 3,142
Print publishing and licensing 2,308 2,828
Total cost of revenue 16,406 5,970
Gross margin 26,057 16,258
Operating expenses (1):
Sales 2,078 1,287
Marketing 2,828 1,455
Product development 1,702 953
General and administrative 6,790 4,227
Depreciation and amortization 1,797 645
15,195 8,567
Income from operations 10,862 7,691
Interest income 846 1,462
Income before income taxes 11,708 9,153
Income tax expense 4,874 3,780
Net income $6,834 $5,373
Basic and diluted net income per share:
Basic $0.36 $0.29
Diluted $0.35 $0.28
Shares used in computing basic
net income per share 18,880,521 18,250,836
Shares used in computing
diluted net income per share 19,607,246 18,880,646
(1)Includes share-based compensation
expense as follows:
Cost of revenue:
Online publishing $562 $369
Print publishing and licensing 41 42
Other expenses:
Sales 495 60
Marketing 196 83
Product development 267 114
General and administrative 1,855 1,013
$3,416 $1,681
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
March 31,
Revenue: 2008 2007
Online publishing $40,005 $19,052
Print publishing and licensing 2,458 3,176
Total revenue 42,463 22,228
Cost of revenue:
Online publishing 13,536 2,773
Print publishing and licensing 2,267 2,786
Total cost of revenue 15,803 5,559
Gross margin 26,660 16,669
Operating expenses:
Sales 1,583 1,227
Marketing 2,632 1,372
Product development 1,435 839
General and administrative 4,935 3,214
Share-based compensation expense (1) 3,416 1,681
Depreciation and amortization 1,797 645
15,798 8,978
Income from operations 10,862 7,691
Interest income 846 1,462
Income before income taxes 11,708 9,153
Income tax expense 4,874 3,780
Net income $6,834 $5,373
Basic and diluted net income per share:
Basic $0.36 $0.29
Diluted $0.35 $0.28
Basic and diluted net income per share
excluding stock compensation expense (1)
Basic $0.48 $0.36
Diluted $0.46 $0.33
Shares used in computing basic
net income per share, GAAP basis 18,880,521 18,250,836
Shares used in computing diluted
net income per share, GAAP basis 19,607,246 18,880,646
Shares used in computing diluted
net income per share, Non-GAAP basis 19,859,396 19,678,437
(1) See reconciliation of GAAP to Non-GAAP Condensed Consolidated
Statements of Income.
Non-GAAP Measures Reconciliation
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
March 31,
2008 2007
EBITDA-
Income from operations, GAAP basis $10,862 $7,691
Depreciation and amortization 1,797 645
EBITDA $12,659 $8,336
EBITDA excluding share-based
compensation expense
Income from operations, GAAP basis $10,862 $7,691
Share-based compensation expense 3,416 1,681
Depreciation and amortization 1,797 645
EBITDA excluding share-based
compensation expense $16,075 $10,017
Net income excluding share-based
compensation expense
Net income, GAAP basis $6,834 $5,373
Share-based compensation expense,
net of tax 2,240 1,127
Net income excluding share-based
compensation expense $9,074 $6,500
Per basic share, excluding share-based
compensation expense $0.48 $0.36
Per diluted share, excluding share-based
compensation expense $0.46 $0.33
Shares used in computing basic net
income per share, GAAP basis 18,880,521 18,250,836
Shares used in computing diluted net
income per share, GAAP basis 19,607,246 18,880,646
Impact of applying SFAS No. 123R 252,150 797,791
Shares used in computing diluted net
income per share, excluding the
impact of applying SFAS No. 123R 19,859,396 19,678,437
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
March 31, 2008
Adjust-
Revenue: GAAP ments (1) Non-GAAP
Online publishing $40,005 $- $40,005
Print publishing and licensing 2,458 - 2,458
Total revenue 42,463 - 42,463
Cost of revenue:
Online publishing 14,098 (562) 13,536
Print publishing and licensing 2,308 (41) 2,267
Total cost of revenue 16,406 (603) 15,803
Gross margin 26,057 603 26,660
Operating expenses:
Sales 2,078 (495) 1,583
Marketing 2,828 (196) 2,632
Product development 1,702 (267) 1,435
General and administrative 6,790 (1,855) 4,935
Share-based compensation expense - 3,416 3,416
Depreciation and amortization 1,797 - 1,797
15,195 603 15,798
Income from operations 10,862 - 10,862
Interest income, net 846 - 846
Income before income taxes 11,708 - 11,708
Provision for income taxes 4,874 - 4,874
Net income $6,834 $- $6,834
Basic and diluted net income per
share:
Basic $0.36 $- $0.36
Diluted $0.35 $- $0.35
Shares used in computing basic
net income per share 18,880,521 - 18,880,521
Shares used in computing diluted
net income per share 19,607,246 252,150 19,859,396
Three Months Ended
March 31, 2007
Adjust-
Revenue: GAAP ments (1) Non-GAAP
Online publishing $19,052 $- $19,052
Print publishing and licensing 3,176 - 3,176
Total revenue 22,228 - 22,228
Cost of revenue:
Online publishing 3,142 (369) 2,773
Print publishing and licensing 2,828 (42) 2,786
Total cost of revenue 5,970 (411) 5,559
Gross margin 16,258 411 16,669
Operating expenses:
Sales 1,287 (60) 1,227
Marketing 1,455 (83) 1,372
Product development 953 (114) 839
General and administrative 4,227 (1,013) 3,214
Share-based compensation expense - 1,681 1,681
Depreciation and amortization 645 - 645
8,567 411 8,978
Income from operations 7,691 - 7,691
Interest income, net 1,462 - 1,462
Income before income taxes 9,153 - 9,153
Provision for income taxes 3,780 - 3,780
Net income $5,373 $- $5,373
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 18,250,836 - 18,250,836
Shares used in computing diluted
net income per share 18,880,646 797,791 19,678,437
(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.
http://www.bankrate.com
Copyright (C) 2008 PR Newswire. All rights reserved
News Provided by COMTEX