BANKRATE INC 
By Revenue of
ADJUSTED EBITDA of
ADJUSTED EPS of
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
Earnings before interest, taxes, depreciation, and amortization, excluding share-based compensation expense ("Adjusted EBITDA"), were
"Given the difficult economic and financial environment for our advertising customers, particularly in the banking sector, we're proud of our performance. Our consumer traffic continues to be strong and we believe that through our redesign and the diversification of our business that we are well-positioned for the future," said
2009 Guidance
"Consistent with our previous earnings call, we will not be issuing guidance for 2009 as the environment continues to provide limited visibility," Mr. Evans stated. "Bankrate has no debt and generates significant cash every month. We remain confident in our business over the long term and believe we are well positioned to take maximum advantage as the online advertising market improves. However, it is just difficult to predict how the economic environment plays out over the short term and how it will impact our business," Mr. Evans added.
First Quarter 2009 Highlights
-- Total revenue for the quarter was $38.3 million, a decrease of 10%, or
$4.2 million from the $42.5 million reported in the same period last
year.
-- Adjusted EBITDA for the first quarter was $13.1 million, a decrease of
$3.0 million, or 18% from the $16.1 million reported in the first
quarter of 2008.
-- Online revenue for the first quarter was $36.5 million, a decrease of
9%, or $3.5 million from the $40.0 million reported in the same period
last year.
-- Graphic advertising and lead generation revenue was $25.4 million, a
decrease of 4%, or $1.0 million from the $26.4 million reported in the
first quarter of 2008.
-- Hyperlink revenue for the quarter was $11.0 million, a decrease of 19%,
or $2.6 million from the $13.6 million reported in the same period last
year.
-- Print publishing and licensing revenue for the first quarter was $1.9
million, a decrease of $0.6 million or 23%, compared to the $2.5 million
reported in the first quarter of 2008.
-- Page views for the first quarter were 199.5 million, a sequential
increase of 21% over Q4 4008 and a decrease of 14.9 million, or 7%,
compared to the 214.4 million reported in the first quarter of 2008.
(The first quarter of 2008 was unusually high due to the previously
disclosed January 2008 traffic spike.)
On
Consumers
-- Easier to navigate
-- Cleaner and less cluttered
-- New editorial features
-- More robust rate table experience
Advertisers
-- All ad formats to be IAB (Internet Advertising Bureau) compliant
-- Better integration opportunities
-- Greater flexibility to accommodate advertiser's best performing
units
-- More robust targeting and reporting
The Company
-- Architecture that will optimize traffic opportunities
-- Foundation for future personalization and registration
-- Ability to integrate other services across Bankrate's network
"The new site is off to a great start. Consumer feedback has been positive and we're confident that both our consumers and our advertisers will enjoy a better experience with the new and improved Bankrate.com Web site," Mr. Evans commented.
To participate in the teleconference please call: (877) 681-3370. International participants should dial: (719) 325-4940. 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/.
Replay Information:
A replay of the conference call will be available beginning
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, Adjusted EBITDA, Adjusted EPS and Operating EPS, 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 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, Bankrate 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.
The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers 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 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO),
SafeHarbor 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 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 effects of expanding our operations internationally, the ability of consumers to access our Online Network through non-PC devices, our ability to manage traffic on our Online Network and service interruptions, increased competition and its effect on traffic, advertising rates, margins and market share, our ability to protect our intellectual property, the effects of facing liability for content on our Online Network, 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, 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, effects of changes in the stock market and other capital markets, the strength of
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
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
March 31, December 31,
2009 2008
---- ----
Assets
Cash and cash equivalents $47,038 $46,055
Accounts receivable, net of allowance
for doubtful accounts of approximately
$1,026 and $1,566 at March 31, 2009
and December 31, 2008, respectively 21,023 22,567
Deferred income taxes, current portion 816 816
Prepaid expenses and other current assets 1,215 1,608
----- -----
Total current assets 70,092 71,046
Furniture, fixtures and equipment, net 7,026 2,521
Deferred income taxes 7,413 7,413
Intangible assets, net 80,694 83,347
Goodwill 101,886 101,856
Other assets 667 4,567
--- -----
Total assets $267,778 $270,750
======== ========
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $3,470 $3,723
Accrued expenses 8,638 5,665
Acquisition earn-out liability - 11,750
Deferred revenue 1,086 1,018
Other current liabilities 15 16
-- --
Total current liabilities 13,209 22,172
Other liabilities 142 148
--- ---
Total liabilities 13,351 22,320
------ ------
Stockholders' equity:
Preferred stock, 10,000,000 shares
authorized and undesignated - -
Common stock, par value $.01 per
share-- 100,000,000 shares authorized;
18,776,986 and 18,816,986 shares
issued and outstanding at March 31,
2009 and December 31, 2008,
respectively 188 188
Additional-paid in capital 220,833 219,294
Retained earnings 33,406 28,948
------ ------
Total stockholders' equity 254,427 248,430
------- -------
Total liabilities and stockholders'
equity $267,778 $270,750
======== ========
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
March 31,
2009 2008
---- ----
Revenue $38,337 $42,463
Cost of revenue (1) 14,995 16,406
------ ------
Gross margin 23,342 26,057
------ ------
Operating expenses (1):
Sales 2,434 2,078
Marketing 2,477 2,828
Product development 1,817 1,702
General and administrative 5,513 6,790
Depreciation and amortization 2,983 1,797
----- -----
15,224 15,195
------ ------
Income from operations 8,118 10,862
Interest income 10 846
-- ---
Income before income taxes 8,128 11,708
Income tax expense 3,413 4,874
----- -----
Net income $4,715 $6,834
====== ======
Basic and diluted net income per share:
Basic $0.25 $0.36
===== =====
Diluted $0.25 $0.35
===== =====
Shares used in computing basic net
income per share 18,808,819 18,880,521
Shares used in computing diluted
net income per share 19,203,903 19,607,246
(1) Includes share-based compensation
expense as follows:
Cost of revenue $372 $603
Other expenses:
Sales 579 495
Marketing 178 196
Product development 233 267
General and administrative 649 1,855
--- -----
$2,011 $3,416
====== ======
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
March 31,
2009 2008
---- ----
Revenue $38,337 $42,463
Cost of revenue 14,623 15,803
------ ------
Gross margin 23,714 26,660
------ ------
Operating expenses:
Sales 1,855 1,583
Marketing 2,299 2,632
Product development 1,584 1,435
General and administrative 4,864 4,935
Share-based compensation expense(1) 2,011 3,416
Depreciation and amortization 2,983 1,797
----- -----
15,596 15,798
------ ------
Income from operations 8,118 10,862
Interest income 10 846
-- ---
Income before income taxes 8,128 11,708
Income tax expense 3,413 4,874
----- -----
Net income $4,715 $6,834
====== ======
Basic and diluted net income per share:
Basic $0.25 $0.36
===== =====
Diluted $0.25 $0.35
===== =====
Adjusted EPS $0.31 $0.46
===== =====
Shares used in computing basic
net income per share, GAAP
basis 18,808,819 18,880,521
Shares used in computing
diluted net income per share,
GAAP basis 19,203,903 19,607,246
Shares used in computing
diluted net income per share,
Non-GAAP basis 19,566,808 19,859,396
(1) See reconciliation of GAAP to Non-GAAP Condensed Consolidated
Statements of Income.
Bankrate, Inc.
Non-GAAP Measures Reconciliation
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
March 31,
2009 2008
---- ----
EBITDA-
Income from operations, GAAP basis $8,118 $10,862
Depreciation and amortization 2,983 1,797
----- -----
EBITDA $11,101 $12,659
======= =======
Adjusted EBITDA-
Income from operations, GAAP basis $8,118 $10,862
Share-based compensation expense 2,011 3,416
Depreciation and amortization 2,983 1,797
----- -----
Adjusted EBITDA $13,112 $16,075
======= =======
Adjusted EPS-
Net income, GAAP basis $4,715 $6,834
Share-based compensation expense,
net of tax 1,368 2,240
----- -----
Net income excluding share-based
compensation expense $6,083 $9,074
====== ======
Adjusted EPS $0.31 $0.46
===== =====
Operating EPS-
Net income, GAAP basis $4,715 $6,834
Share-based compensation expense,
net of tax 1,368 2,240
Intangibles amortization, net of tax 1,592 872
Interest income, net of tax (6) (508)
-- ----
Net income excluding share-based
compensation expense, intangibles
amortization and interest income $7,669 $9,438
====== ======
Operating EPS $0.39 $0.48
===== =====
Shares used in computing basic
net income per share, GAAP basis 18,808,819 18,880,521
========== ==========
Shares used in computing diluted
net income per share, GAAP basis 19,203,903 19,607,246
Impact of applying SFAS No. 123R 362,905 252,150
------- -------
Shares used in computing diluted
net income per share, excluding
the impact of applying SFAS No.
123R 19,566,808 19,859,396
========== ==========
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 Three Months Ended
March 31, 2009 March 31, 2008
Adjust- Adjust-
GAAP ments(1) Non-GAAP GAAP ments(1) Non-GAAP
---- ------ -------- ---- ------ --------
Revenue $38,337 $- $38,337 $42,463 $- $42,463
Cost of
revenue: 14,995 (372) 14,623 16,406 (603) 15,803
------ ---- ------ ------ ---- ------
Gross margin 23,342 372 23,714 26,057 603 26,660
------ --- ------ ------ --- ------
Operating
expenses:
Sales 2,434 (579) 1,855 2,078 (495) 1,583
Marketing 2,477 (178) 2,299 2,828 (196) 2,632
Product
Development 1,817 (233) 1,584 1,702 (267) 1,435
General and
admini-
strative 5,513 (649) 4,864 6,790 (1,855) 4,935
Share-based
compensation
expense - 2,011 2,011 - 3,416 3,416
Depreciation
and
amortization 2,983 - 2,983 1,797 - 1,797
----- --- ----- ----- --- -----
15,224 372 15,596 15,195 603 15,798
------ --- ------ ------ --- ------
Income from
operations 8,118 - 8,118 10,862 - 10,862
Interest
income, net 10 - 10 846 - 846
-- --- -- --- --- ---
Income
before
income
taxes 8,128 - 8,128 11,708 - 11,708
Provision for
income taxes 3,413 - 3,413 4,874 - 4,874
----- --- ----- ----- --- -----
Net income $4,715 $- $4,715 $6,834 $- $6,834
====== == ====== ====== == ======
Basic and
diluted net
income per
share:
Basic $0.25 $- $0.25 $0.36 $- $0.36
===== == ===== ===== == =====
Diluted $0.25 $- $0.25 $0.35 $- $0.35
===== == ===== ===== == =====
Shares
used in
computing
basic net
income
per
share 18,808,819 - 18,808,819 18,880,521 - 18,880,521
Shares
used in
computing
diluted
net income
per
share 19,203,903 362,905 19,566,808 19,607,246 252,150 19,859,396
(1) Adjustments for the impact of applying SFAS No. 123R
SOURCE Bankrate, Inc.
