Reminder -- Conference Call and Webcast Today at
Webcast: http://investor.bankrate.com/
Bankrate, Inc. (Nasdaq: RATE), today reported financial results for the
fourth quarter and fiscal year ended
(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO )
In the fourth quarter of 2008, the company recorded non-cash impairment
charges of
Earnings before interest, taxes, depreciation and amortization, excluding
share-based compensation expense and non-cash intangible asset impairment
charges ("Adjusted EBITDA"), were
"In spite of the difficult economic conditions for financial companies, we
reported another record year for revenue, growth, traffic and profitability,"
said
Total revenue for the year ended
Adjusted EBITDA, excluding share-based compensation expense and non-cash
intangible asset impairment charges, for the year ended
2009 Guidance
"Given the continued uncertainty and the lack of visibility in the financial environment, we feel it is wise to refrain from issuing guidance for 2009. However, we remain confident that our business is well-positioned, fundamentally strong and will continue to grow. We have a strong balance sheet, no debt and continue to generate cash on a monthly basis. It's just impossible to predict how the macro-economic environment will play out over the course of the year and how it will impact our business," Mr. Evans stated.
Fourth Quarter 2008 Highlights
-- Total revenue for the quarter was
-- Adjusted EBITDA for the fourth quarter was
-- Impairment charges of
-- Online revenue for the fourth quarter was
-- Graphic advertising and lead generation revenue was
-- Hyperlink revenue for the quarter was
-- Print publishing and licensing revenue for the fourth quarter was
-- Page views for the fourth quarter were 164.7 million, an increase of 33.7 million, or 26%, compared to the 131.0 million reported in the fourth quarter of 2007.
Full Year 2008 Highlights
-- Total revenue for the year was
-- Adjusted EBITDA for the year was
-- Online publishing revenue for the full year 2008 was
-- Graphic advertising and lead generation revenue was
-- Hyperlink revenue was
-- Print publishing and licensing revenue in 2008 was
-- Page views for 2008 were 687.1 million, an increase of 132.6 million, or 24%, compared to the 554.5 million reported in 2007.
-- In
During 2008, the company acquired or launched:
-- InsureMe -
-- Lower Fees - Its Web site, Fee Disclosure, aggregates vendor and fee information across a variety of services associated with mortgage loans.
-- CreditCardGuide.com - A Bankrate-owned NCS affiliate, its Web site generates leads from consumers searching for the best credit card offers.
-- Bankaholic.com - A financial information and social networking site which attracts consumers looking for deposit, credit card and other banking products.
-- Bankrate China - launched in
The company indicated at the time of the acquisitions and launch that it expected InsureMe, CreditCardGuide.com and Bankaholic.com to be accretive within the year, while Bankrate China and Fee Disclosure will require additional investment to support their development.
To participate in the teleconference please call: (888) 297-0356. International participants should dial: (719) 325-2436. 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),
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 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
-Financial Statements Follow- Bankrate, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share data) December 31, December 31, 2008 2007 Assets Cash and cash equivalents $46,055 $125,058 Accounts receivable, net of allowance for doubtful accounts of approximately $1,566 and $2,290 at December 31, 2008 and 2007, respectively 22,567 19,052 Deferred income taxes, current portion 816 878 Prepaid expenses and other current assets 1,608 5,350 Total current assets 71,046 150,338 Furniture, fixtures and equipment, net 2,521 1,802 Deferred income taxes 7,413 3,671 Intangible assets, net 83,347 27,485 Goodwill 101,856 43,720 Other assets 4,567 1,338 Total assets $270,750 $228,354 Liabilities and Stockholders' Equity Liabilities: Accounts payable $3,723 $2,246 Accrued expenses 5,665 8,092 Acquisition earn-out liability 11,750 - Deferred revenue 1,018 550 Other current liabilities 16 13 Total current liabilities 22,172 10,901 Other liabilities 148 187 Total liabilities 22,320 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; 18,816,986 and 18,876,393 shares issued and outstanding at December 31, 2008 and 2007, respectively 188 189 Additional-paid in capital 219,294 205,306 Retained earnings 28,948 11,771 Total stockholders' equity 248,430 217,266 Total liabilities and stockholders' equity $270,750 $228,354 Bankrate, Inc. Condensed Consolidated Statements of Income (Unaudited) (In thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, Revenue: 2008 2007 2008 2007 Online publishing $38,288 $22,779 $158,053 $83,695 Print publishing and licensing 1,878 2,452 8,802 11,897 Total revenue 40,166 25,231 166,855 95,592 Cost of revenue (1): Online publishing 13,349 5,816 57,905 15,149 Print publishing and licensing 1,695 2,283 8,190 10,698 Total cost of revenue 15,044 8,099 66,095 25,847 Gross margin 25,122 17,132 100,760 69,745 Operating expenses (1): Sales 2,304 1,684 9,097 6,384 Marketing 3,806 2,612 13,197 8,475 Product development 1,885 1,328 7,135 4,656 General and administrative 6,722 5,080 26,662 19,853 Impairment charges 2,433 - 2,433 - Depreciation and amortization 2,668 805 9,134 2,731 19,818 11,509 67,658 42,099 Income from operations 5,304 5,623 33,102 27,646 Interest income 46 1,727 1,562 6,688 Income before income taxes 5,350 7,350 34,664 34,334 Income tax expense 2,682 3,255 15,043 14,280 Net income $2,668 $4,095 $19,621 $20,054 Basic and diluted net income per share: Basic $0.14 $0.22 $1.04 $1.09 Diluted $0.14 $0.21 $1.01 $1.04 Shares used in computing basic net income per share 18,797,814 18,688,571 18,848,125 18,423,414 Shares used in computing diluted net income per share 19,133,106 19,505,158 19,498,209 19,356,039 (1) Includes share-based compensation expense as follows: Cost of revenue: Online publishing $348 $562 $1,798 $1,984 Print publishing and licensing 41 39 165 159 Other expenses: Sales 582 473 2,206 1,334 Marketing 171 191 760 630 Product development 247 240 1,068 803 General and administrative 1,432 1,879 7,420 6,299 $2,821 $3,384 $13,417 $11,209 Bankrate, Inc. Non-GAAP Condensed Consolidated Statements of Income (Unaudited) (In thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, Revenue: 2008 2007 2008 2007 Online publishing $38,288 $22,779 $158,053 $83,695 Print publishing and licensing 1,878 2,452 8,802 11,897 Total revenue 40,166 25,231 166,855 95,592 Cost of revenue: Online publishing 13,001 5,254 56,107 13,165 Print publishing and licensing 1,654 2,244 8,025 10,539 Total cost of revenue 14,655 7,498 64,132 23,704 Gross margin 25,511 17,733 102,723 71,888 Operating expenses: Sales 1,722 1,211 6,891 5,050 Marketing 3,635 2,421 12,437 7,845 Product development 1,638 1,088 6,067 3,853 General and administrative 5,290 3,201 19,242 13,554 Share-based compensation expense (1) 2,821 3,384 13,417 11,209 Impairment charges 2,433 - 2,433 - Depreciation and amortization 2,668 805 9,134 2,731 20,207 12,110 69,621 44,242 Income from operations 5,304 5,623 33,102 27,646 Interest income 46 1,727 1,562 6,688 Income before income taxes 5,350 7,350 34,664 34,334 Income tax expense 2,682 3,255 15,043 14,280 Net income $2,668 $4,095 $19,621 $20,054 Basic and diluted net income per share: Basic $0.14 $0.22 $1.04 $1.09 Diluted $0.14 $0.21 $1.01 $1.04 Adjusted EPS $0.33 $0.33 $1.54 $1.39 Shares used in computing basic net income per share, GAAP basis 18,797,814 18,688,571 18,848,125 18,423,414 Shares used in computing diluted net income per share, GAAP basis 19,133,106 19,505,158 19,498,209 19,356,039 Shares used in computing diluted net income per share, Non-GAAP basis 19,486,435 19,757,598 19,682,211 19,603,203 (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 Year Ended December 31, December 31, 2008 2007 2008 2007 EBITDA- Income from operations, GAAP basis $5,304 $5,623 $33,102 $27,646 Depreciation and amortization 2,668 805 9,134 2,731 EBITDA $7,972 $6,428 $42,236 $30,377 Adjusted EBITDA- Income from operations, GAAP basis $5,304 $5,623 $33,102 $27,646 Share-based compensation expense 2,821 3,384 13,417 11,209 Impairment charges 2,433 - 2,433 - Depreciation and amortization 2,668 805 9,134 2,731 Adjusted EBITDA $13,226 $9,812 $58,086 $41,586 Adjusted EPS- Net income, GAAP basis $2,668 $4,095 $19,621 $20,054 Share-based compensation expense, net of tax 2,234 2,345 9,227 7,272 Impairment charges, net of tax 1,460 - 1,460 - Net income excluding share-based compensation expense and impairment charges- $6,362 $6,440 $30,308 $27,326 Adjusted EPS $0.33 $0.33 $1.54 $1.39 Operating EPS- Net income, GAAP basis $2,668 $4,095 $19,621 $20,054 Share-based compensation expense, net of tax 2,234 2,345 9,227 7,272 Impairment charges, net of tax 1,460 - 1,460 - Intangibles amortization, net of tax 1,401 357 4,780 1,126 Interest income, net of tax (28) (1,036) (937) (4,013) Net income excluding share-based compensation expense, impairment charges, intangibles amortization and interest income $7,735 $5,761 $34,151 $24,439 Operating EPS $0.40 $0.29 $1.74 $1.25 Shares used in computing basic net income per share, GAAP basis 18,797,814 18,688,571 18,848,125 18,423,414 Shares used in computing diluted net income per share, GAAP basis 19,133,106 19,505,158 19,498,209 19,356,039 Impact of applying SFAS No. 123R 353,329 252,440 184,002 247,164 Shares used in computing diluted net income per share, excluding the impact of applying SFAS No. 123R 19,486,435 19,757,598 19,682,211 19,603,203 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 December 31, 2008 Adjust- Revenue: GAAP ments (1) Non-GAAP Online publishing $38,288 $- $38,288 Print publishing and licensing 1,878 - 1,878 Total revenue 40,166 - 40,166 Cost of revenue: Online publishing 13,349 (348) 13,001 Print publishing and licensing 1,695 (41) 1,654 Total cost of revenue 15,044 (389) 14,655 Gross margin 25,122 389 25,511 Operating expenses: Sales 2,304 (582) 1,722 Marketing 3,806 (171) 3,635 Product development 1,885 (247) 1,638 General and administrative 6,722 (1,432) 5,290 Share-based compensation expense - 2,821 2,821 Impairment charges 2,433 2,433 Depreciation and amortization 2,668 - 2,668 19,818 389 20,207 Income from operations 5,304 - 5,304 Interest income, net 46 - 46 Income before income taxes 5,350 - 5,350 Provision for income taxes 2,682 - 2,682 Net income $2,668 $- $2,668 Basic and diluted net income per share: Basic $0.14 $- $0.14 Diluted $0.14 $- $0.14 Shares used in computing basic net income per share 18,797,814 - 18,797,814 Shares used in computing diluted net income per share 19,133,106 353,329 19,486,435 (1) Adjustments for the impact of applying SFAS No. 123R 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 December 31, 2007 Adjust- Revenue: GAAP ments (1) Non-GAAP Online publishing $22,779 $- $22,779 Print publishing and licensing 2,452 - 2,452 Total revenue 25,231 - 25,231 Cost of revenue: Online publishing 5,816 (562) 5,254 Print publishing and licensing 2,283 (39) 2,244 Total cost of revenue 8,099 (601) 7,498 Gross margin 17,132 601 17,733 Operating expenses: Sales 1,684 (473) 1,211 Marketing 2,612 (191) 2,421 Product development 1,328 (240) 1,088 General and administrative 5,080 (1,879) 3,201 Share-based compensation expense - 3,384 3,384 Impairment charges - - Depreciation and amortization 805 - 805 11,509 601 12,110 Income from operations 5,623 - 5,623 Interest income, net 1,727 - 1,727 Income before income taxes 7,350 - 7,350 Provision for income taxes 3,255 - 3,255 Net income $4,095 $- $4,095 Basic and diluted net income per share: Basic $0.22 $- $0.22 Diluted $0.21 $- $0.21 Shares used in computing basic net income per share 18,688,571 - 18,688,571 Shares used in computing diluted net income per share 19,505,158 252,440 19,757,598 (1) Adjustments for the impact of applying SFAS No. 123R 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) Year Ended December 31, 2008 Adjust- Revenue: GAAP ments (1) Non-GAAP Online publishing $158,053 $- $158,053 Print publishing and licensing 8,802 - 8,802 Total revenue 166,855 - 166,855 Cost of revenue: Online publishing 57,905 (1,798) 56,107 Print publishing and licensing 8,190 (165) 8,025 Total cost of revenue 66,095 (1,963) 64,132 Gross margin 100,760 1,963 102,723 Operating expenses: Sales 9,097 (2,206) 6,891 Marketing 13,197 (760) 12,437 Product development 7,135 (1,068) 6,067 General and administrative 26,662 (7,420) 19,242 Share-based compensation expense - 13,417 13,417 Impairment charges 2,433 2,433 Depreciation and amortization 9,134 - 9,134 67,658 1,963 69,621 Income from operations 33,102 - 33,102 Interest income, net 1,562 - 1,562 Income before income taxes 34,664 - 34,664 Provision for income taxes 15,043 - 15,043 Net income $19,621 $- $19,621 Basic and diluted net income per share: Basic $1.04 $- $1.04 Diluted $1.01 $- $1.01 Shares used in computing basic net income per share 18,848,125 - 18,848,125 Shares used in computing diluted net income per share 19,498,209 184,002 19,682,211 (1) Adjustments for the impact of applying SFAS No. 123R 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) Year Ended December 31, 2007 Adjust- Revenue: GAAP ments (1) Non-GAAP Online publishing $83,695 $- $83,695 Print publishing and licensing 11,897 - 11,897 Total revenue 95,592 - 95,592 Cost of revenue: Online publishing 15,149 (1,984) 13,165 Print publishing and licensing 10,698 (159) 10,539 Total cost of revenue 25,847 (2,143) 23,704 Gross margin 69,745 2,143 71,888 Operating expenses: Sales 6,384 (1,334) 5,050 Marketing 8,475 (630) 7,845 Product development 4,656 (803) 3,853 General and administrative 19,853 (6,299) 13,554 Share-based compensation expense - 11,209 11,209 Impairment charges - - Depreciation and amortization 2,731 - 2,731 42,099 2,143 44,242 Income from operations 27,646 - 27,646 Interest income, net 6,688 - 6,688 Income before income taxes 34,334 - 34,334 Provision for income taxes 14,280 - 14,280 Net income $20,054 $- $20,054 Basic and diluted net income per share: Basic $1.09 $- $1.09 Diluted $1.04 $- $1.04 Shares used in computing basic net income per share 18,423,414 - 18,423,414 Shares used in computing diluted net income per share 19,356,039 247,164 19,603,203 (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.