Announces
second quarter ended
"I am encouraged by our recent progress on integration initiatives and
key investments in the areas of product, sales and technology that
strengthen our foundation to drive stronger growth and will maximize our
longer-term value for clients, employees and shareholders," said
Giuliani, president and CEO of Conversant.
"We generated very strong cash flows in Q2 that we returned to
shareholders by repurchasing approximately four percent of our common
shares outstanding during the quarter," Giuliani added. "Today's
announcement of a
underscores our confidence in our strategy and Conversant's future as a
leader in personalized digital marketing."
|
|||||||||||
Q2 Results Summary |
|||||||||||
In millions, except percentages and per share amounts |
|
Q2 2014 |
|
Q2 2013 |
|
% Change |
|
||||
Revenue |
|
$ |
137.4 |
|
$ |
128.1 |
|
7 |
% |
||
Adjusted EBITDA(1) |
$ |
41.8 |
$ |
46.8 |
(11 |
)% |
|||||
GAAP Net Income from Continuing Operations |
$ |
17.0 |
$ |
6.0 |
182 |
% |
|||||
Non-GAAP Net Income(1) |
$ |
23.7 |
$ |
12.3 |
93 |
% |
|||||
GAAP Net Income from Continuing Operations Per Diluted Common Share |
$ |
0.25 |
$ |
0.08 |
213 |
% |
|||||
Non-GAAP Net Income Per Diluted Common Share(1) |
|
$ |
0.35 |
|
$ |
0.16 |
|
119 |
% |
||
|
|||||||||||
(1) Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Common Share are Non-GAAP measures and are described below and reconciled to their most comparable GAAP measures. |
|||||||||||
|
Q2 2014 Financial Summary
Revenue was
$137.4 million , an increase of 7% year-over-year.
Adjusted EBITDA was
$41.8 million , a decrease of 11% year-over-year.
The decrease reflects significant investments in people, products and
technology to support future growth.
Non-GAAP net income per diluted common share was
$0.35 and GAAP net
income from continuing operations per diluted share was
$0.25 , up from
$0.16 and$0.08 , respectively, in the second quarter of 2013. Non-GAAP
and GAAP net income per diluted share measures in Q2 2013 were
negatively impacted by a non-cash impairment charge equivalent to
approximately
$0.18 .
Recent Business Highlights
Conversant has strategically expanded its real-time bidding technology
platform to include ad inventory from Conversant's thousands of direct
publisher relationships in the Media segment, enabling its CRM client
campaigns to access this high-quality source of display and mobile
publisher inventory via real-time bidding.
The Company recently added significant new analytics capabilities to
further leverage Conversant data sources companywide in creating
custom audiences to maximize ad campaign performance.
The Company has integrated SET Media's video content consumption data,
which greatly enhances Conversant's anonymous consumer profiles for
audience targeting based on consumer interests.
Total bid requests (real-time bidding opportunities for individual
advertising impressions) exceeded one trillion in
June 2014 ,
demonstrating Conversant's vast scale and media reach.
Internet Retailer named Conversant's CJ Affiliate the top
affiliate marketing vendor in its "Top Tech 2014" book. Internet
Retailer data indicated that 57 percent of the Internet Retailer
500 advertisers on an affiliate network choose CJ Affiliate.
The Company has increased its headcount by approximately 9% since
December 31, 2013 to accelerate its growth initiatives.
Cash Flows
Free cash flow for the six months ended
June 30, 2014 was$88.7
million, an increase of 21% year-over-year. (The Company defines free
cash flow as net cash provided by operating activities less capital
expenditures.)
Free cash flow for the trailing 12 month period ended
June 30, 2014
was
$180.1 million .
Stock Repurchases
Conversant repurchased 2,556,000 common shares at an average cost of
$24.39 during the second quarter endedJune 30, 2014 . For the trailing
12 month period through
June 30, 2014 , Conversant has repurchased
11,314,000 common shares.
The Company recently surpassed the milestone of more than
$1 billion
in total stock repurchases. Since the program's inception in 2001 and
through
June 30, 2014 , Conversant has repurchased 84.3 million common
shares at an average cost of approximately
$12.00 , a greater than 50%
discount to Conversant's closing stock price on
August 5, 2014 .
In
July 2014 , the Company repurchased an additional 778,000 common
shares and utilized its remaining stock repurchase authorization.
Shortly thereafter, Conversant's Board of Directors approved a
$150
million increase in the stock repurchase program.
Balance Sheet
Cash and cash equivalents were
$83.6 million and total debt was$65.0
million as of
June 30, 2014 . Strong cash flow enabled Conversant to
remain in a positive net cash position despite investing
$62.4 million
to repurchase shares during the second quarter.
|
|||||||||||
Conversant Segment Financial Summary |
|||||||||||
In millions, except percentages |
|
Q2 2014 |
|
Q2 2013 |
|
% Change |
|||||
|
|||||||||||
Affiliate Marketing Revenue |
$ |
40.6 |
$ |
36.6 |
11 |
% |
|||||
Media Revenue |
|
96.7 |
|
|
91.5 |
|
|
6 |
% |
||
Consolidated Revenue |
$ |
137.4 |
$ |
128.1 |
7 |
% |
|||||
|
|||||||||||
Affiliate Marketing Income from Operations |
$ |
24.8 |
$ |
22.6 |
10 |
% |
|||||
Media Income from Operations |
|
22.1 |
|
|
28.0 |
|
|
(21 |
)% |
||
Total Segment Income from Operations |
$ |
46.8 |
$ |
50.6 |
(7 |
)% |
|||||
|
Q2 2014 Segment Results Summary
Affiliate marketing segment revenue was
$40.6 million , an increase of
11% year-over-year.
Media segment revenue was
$96.7 million , an increase of 6%
year-over-year.
The decrease in Media segment income from operations primarily
reflects increased headcount, higher marketing expenses, and an
approximately
$2 million operating loss contribution from SET Media,
the digital video technology company acquired in
February 2014 .
Q3 2014 Business Outlook
Conversant's financial guidance for the third quarter of 2014 is
presented in the following tables.
|
|
|
Consolidated Financial Outlook |
|
Q3 2014 Guidance |
Revenue |
|
|
Adjusted EBITDA |
|
|
Mid-Point Adjusted EBITDA Margin |
31.4% |
|
Non-GAAP Net Income per Diluted Common Share |
|
|
Impact of stock-based compensation and amortization of intangibles, net of tax |
|
|
GAAP Net Income from Continuing Operations per Diluted Common Share |
|
|
|
||
Segment Revenue Assumptions |
|
Q3 2014 Guidance |
Affiliate Marketing Segment Revenue |
|
|
Media Segment Revenue |
|
|
|
Additional Guidance Assumptions
Conversant's third quarter 2014 guidance assumes: stock-based
compensation of
million (
interest and other expense of
and 66.0 million diluted shares outstanding.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding Conversant's
financial results, Conversant has disclosed in the tables below and
elsewhere in this press release Adjusted EBITDA and Non-GAAP Net Income
Per Diluted Common Share. Each of these Non-GAAP measures is defined
within the following section of this press release and reconciled to
their most comparable GAAP financial measure. Investors should not
consider these Non-GAAP measures in isolation or as a substitute for
GAAP financial measures. Conversant's definition of Adjusted EBITDA and
Non-GAAP Net Income Per Diluted Common Share may not necessarily be
directly comparable to similarly titled Non-GAAP measures employed by
other companies.
Q2 2014 Conference Call and Webcast Today at
(
Conversant management will host a conference call at
Time (
operating results for the second quarter of 2014. A live webcast of the
conference call, along with a financial highlights presentation
containing supplemental information, will be available on Conversant's
investor relations website at http://ir.conversantmedia.com.
A replay of the webcast will be available through the same link
beginning approximately two hours after the completion of the live call.
To access the live conference call by telephone, interested parties
should dial 888-256-9154 (for domestic participants) or 913-312-0850
(for international participants) at least 10 minutes prior to the start
time and use conference ID 2825301. A telephonic replay of the
conference call will be available from
6, 2014 until
replay, interested parties should dial 888-203-1112 (for domestic
participants) and 719-457-0820 (for international participants) and the
conference ID 2825301.
About Conversant
marketing. Conversant helps the world's biggest companies grow by
creating personalized experiences that deliver higher returns for brands
and greater satisfaction for people. We offer a fully integrated
personalization platform, personalized media programs and the world's
largest affiliate marketing network - all fueled by a deep understanding
of what motivates people to engage, connect and buy. For more
information, please visit www.conversantmedia.com.
Cautionary Information Regarding Forward-Looking Statements
This release contains forward-looking statements that involve risks
and uncertainties, including, but not limited to, the risk that market
demand for on-line advertising will not grow as rapidly as predicted,
and the risk that legislation and governmental regulation could
negatively impact the Company's performance. Actual results may differ
materially from the results predicted, and reported results should not
be considered an indication of future performance. Important factors
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements are detailed
under "Risk Factors" and elsewhere in filings with the
Exchange Commission made from time to time by Conversant, including, but
not limited to: its annual report on Form 10-K filed on
recent quarterly reports on Form 10-Q; and other current reports on Form
8-K.
The Business Outlook contained in this release is based on current
expectations. These statements are forward-looking, and actual results
may differ materially. These statements do not include the potential
impact of any mergers, acquisitions or other business combinations that
may be completed after the date of this release. Actual stock-based
compensation may differ from these estimates based on the timing and
amount of stock awards granted, the assumptions used in stock award
valuation and other factors. Actual income tax expense may differ from
these estimates based on tax planning, changes in tax accounting rules
and laws, and other factors.
Conversant undertakes no obligation to release publicly any revisions
to any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
|
|
|||||||||||||||
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||
|
||||||||||||||||
Three Months |
Six Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
2014 |
|
2013 |
2014 |
|
2013 |
|||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Revenue |
$ |
137,380 |
$ |
128,094 |
$ |
283,293 |
$ |
262,577 |
||||||||
Cost of revenue |
47,335 |
|
41,883 |
|
94,555 |
|
84,213 |
|
||||||||
Gross profit |
90,045 |
86,211 |
188,738 |
178,364 |
||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing (Note 1) |
25,942 |
21,380 |
52,457 |
42,443 |
||||||||||||
General and administrative (Note 1) |
15,618 |
13,895 |
33,488 |
30,488 |
||||||||||||
Technology (Note 1) |
17,165 |
13,959 |
33,137 |
27,582 |
||||||||||||
Amortization of intangible assets acquired in business combinations |
3,606 |
|
3,549 |
|
8,144 |
|
7,100 |
|
||||||||
Total operating expenses |
62,331 |
|
52,783 |
|
127,226 |
|
107,613 |
|
||||||||
Income from operations |
27,714 |
33,428 |
61,512 |
70,751 |
||||||||||||
Interest and other income (expense), net |
528 |
|
(23,464 |
) |
264 |
|
(23,870 |
) |
||||||||
Income before income taxes |
28,242 |
9,964 |
61,776 |
46,881 |
||||||||||||
Income tax expense |
11,245 |
|
3,927 |
|
24,697 |
|
17,465 |
|
||||||||
Net income from continuing operations |
16,997 |
6,037 |
37,079 |
29,416 |
||||||||||||
Net income from discontinued operations |
— |
3,552 |
155 |
6,456 |
||||||||||||
Gain on sale, net of tax |
669 |
|
2,286 |
|
34,895 |
|
2,286 |
|
||||||||
Net income |
$ |
17,666 |
|
$ |
11,875 |
|
$ |
72,129 |
|
$ |
38,158 |
|
||||
|
||||||||||||||||
Net income from continuing operations per common share - basic |
$ |
0.26 |
|
$ |
0.08 |
|
$ |
0.56 |
|
$ |
0.39 |
|
||||
Net income from continuing operations per common share - diluted |
$ |
0.25 |
|
$ |
0.08 |
|
$ |
0.55 |
|
$ |
0.38 |
|
||||
Net income per common share - basic |
$ |
0.27 |
|
$ |
0.16 |
|
$ |
1.09 |
|
$ |
0.50 |
|
||||
Net income per common share - diluted |
$ |
0.26 |
|
$ |
0.15 |
|
$ |
1.06 |
|
$ |
0.49 |
|
||||
Weighted-average shares used to compute net income per common share - basic |
65,820 |
|
75,531 |
|
66,450 |
|
75,590 |
|
||||||||
Weighted-average shares used to compute net income per common share - diluted |
67,202 |
|
77,413 |
|
67,960 |
|
77,490 |
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Note 1 - Includes stock-based compensation as follows: |
||||||||||||||||
Three Months |
Six Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Sales and marketing |
$ |
1,371 |
$ |
1,389 |
$ |
2,532 |
$ |
2,547 |
||||||||
General and administrative |
1,987 |
2,304 |
4,390 |
4,558 |
||||||||||||
Technology |
1,470 |
|
1,140 |
|
2,655 |
|
2,245 |
|
||||||||
Total stock-based compensation |
$ |
4,828 |
|
$ |
4,833 |
|
$ |
9,577 |
|
$ |
9,350 |
|
||||
|
|
|
||||||
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands) |
|||||||
|
|||||||
|
|
||||||
2014 |
2013 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current Assets: |
|||||||
Cash and cash equivalents |
$ |
83,574 |
$ |
81,319 |
|||
Accounts receivable, net |
126,407 |
148,738 |
|||||
Other current assets |
46,352 |
18,510 |
|||||
Assets held for sale |
— |
|
32,802 |
||||
Total current assets |
256,333 |
281,369 |
|||||
|
|||||||
Assets held for sale, less current portion |
— |
55,642 |
|||||
Property and equipment, net |
28,948 |
28,006 |
|||||
Goodwill |
402,254 |
388,922 |
|||||
Intangible assets, net |
45,670 |
48,501 |
|||||
Other assets |
2,985 |
|
15,335 |
||||
TOTAL ASSETS |
$ |
736,190 |
|
$ |
817,775 |
||
|
|||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
121,665 |
130,529 |
|||||
Borrowings under credit facility, less current portion |
65,000 |
140,000 |
|||||
Other non-current liabilities |
39,935 |
33,645 |
|||||
Liabilities related to assets held for sale |
— |
|
8,704 |
||||
Total liabilities |
226,600 |
312,878 |
|||||
Total stockholders' equity |
509,590 |
|
504,897 |
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
736,190 |
|
$ |
817,775 |
||
|
|
||||||||
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
|
||||||||
Six Months |
||||||||
2014 |
|
2013 |
||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
72,129 |
$ |
38,158 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Loss on note receivable |
— |
22,556 |
||||||
Depreciation and amortization |
19,212 |
19,434 |
||||||
Non-cash, stock-based compensation |
9,577 |
9,936 |
||||||
Provision for doubtful accounts and sales credits |
1,196 |
2,174 |
||||||
Gain on sale of business |
(34,895 |
) |
(2,286 |
) |
||||
Amortization of discount on note receivable |
— |
(570 |
) |
|||||
Deferred income taxes |
(3,075 |
) |
2,745 |
|||||
Tax benefit from stock-based awards |
2,412 |
2,831 |
||||||
Excess tax benefit from stock-based awards |
(2,478 |
) |
(2,986 |
) |
||||
Changes in operating assets and liabilities, excluding business acquisitions |
31,245 |
|
(12,523 |
) |
||||
Net cash provided by operating activities |
95,323 |
79,469 |
||||||
|
||||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(6,666 |
) |
(6,019 |
) |
||||
Principal payments received on note receivable |
— |
1,960 |
||||||
Proceeds from the sale of business, net of cash divested |
72,813 |
— |
||||||
Payments for acquisitions, net of cash acquired |
(24,286 |
) |
— |
|
||||
Net cash provided by (used in) investing activities |
41,861 |
(4,059 |
) |
|||||
|
||||||||
Cash flows from financing activities: |
||||||||
Proceeds from borrowings under credit agreement |
115,000 |
25,000 |
||||||
Repayments under credit agreement |
(190,000 |
) |
(65,000 |
) |
||||
Repurchases and retirement of common stock |
(81,069 |
) |
(52,079 |
) |
||||
Proceeds from shares issued under employee stock programs |
3,836 |
6,349 |
||||||
Excess tax benefit from stock-based awards |
2,478 |
|
2,986 |
|
||||
Net cash used in financing activities |
(149,755 |
) |
(82,744 |
) |
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents |
(107 |
) |
(2,236 |
) |
||||
Effect on cash and cash equivalents from discontinued operations |
14,933 |
|
— |
|
||||
Net increase (decrease) in cash and cash equivalents |
2,255 |
(9,570 |
) |
|||||
|
||||||||
Cash and cash equivalents, beginning of period |
81,319 |
|
136,638 |
|
||||
Cash and cash equivalents, end of period |
83,574 |
|
127,068 |
|
||||
|
|
|
||||||||||||||
|
|||||||||||||||
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS |
|||||||||||||||
TO ADJUSTED EBITDA (Note 1) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|||||||||||||||
Three Months |
Six Months |
||||||||||||||
Ended |
Ended |
||||||||||||||
2014 |
|
2013 |
2014 |
|
2013 |
||||||||||
(Unaudited) |
(Unaudited) |
||||||||||||||
Net income from continuing operations |
$ |
16,997 |
$ |
6,037 |
$ |
37,079 |
$ |
29,416 |
|||||||
Interest and other (income) expense, net |
(528 |
) |
23,464 |
(264 |
) |
23,870 |
|||||||||
Income tax expense |
11,245 |
3,927 |
24,697 |
17,465 |
|||||||||||
Amortization of acquired intangible assets included in cost of revenue |
2,478 |
1,986 |
4,787 |
3,971 |
|||||||||||
Amortization of acquired intangible assets included in operating expenses |
3,606 |
3,549 |
8,144 |
7,100 |
|||||||||||
Depreciation and leasehold amortization |
3,204 |
3,009 |
6,272 |
6,008 |
|||||||||||
Stock-based compensation |
4,828 |
|
4,833 |
|
9,577 |
|
9,350 |
||||||||
Adjusted EBITDA |
$ |
41,830 |
|
$ |
46,805 |
|
$ |
90,292 |
|
$ |
97,180 |
||||
|
Note 1 - "Adjusted EBITDA" (GAAP net income from continuing
operations before interest, income taxes, depreciation, amortization,
and stock-based compensation) included in this press release is a
non-GAAP financial measure.
Adjusted EBITDA, as defined above, may not be similar to adjusted EBITDA
measures used by other companies and is not a measurement under GAAP.
Management believes that adjusted EBITDA provides useful information to
investors about the Company's performance because it eliminates the
effects of period-to-period changes in income from interest on the
Company's cash and cash equivalents, note receivable and borrowings, and
the costs associated with income tax expense, capital investments, and
stock-based compensation which are not directly attributable to the
underlying performance of the Company's business operations. Management
uses adjusted EBITDA in evaluating the overall performance of the
Company's business operations.
Though management finds adjusted EBITDA useful for evaluating aspects of
the Company's business, its reliance on this measure is limited because
excluded items often have a material effect on the Company's earnings
and earnings per common share calculated in accordance with GAAP.
Therefore, management uses adjusted EBITDA in conjunction with GAAP
earnings and earnings per common share measures. The Company believes
that adjusted EBITDA provides investors with an additional tool for
evaluating the Company's core performance, which management uses in its
own evaluation of overall performance, and a baseline for assessing the
future earnings potential of the Company. While the GAAP results are
more complete, the Company prefers to allow investors to have this
supplemental metric since, with a reconciliation to GAAP, it may provide
greater insight into the Company's financial results.
|
|
|||||||||||||||
|
||||||||||||||||
RECONCILIATION OF GAAP NET INCOME FROM CONTINUING OPERATIONS TO |
||||||||||||||||
NON-GAAP DILUTED NET INCOME PER COMMON SHARE (Note 1) |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
||||||||||||||||
Three Months |
Six Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
2014 |
|
2013 |
2014 |
|
2013 |
|||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Net income from continuing operations |
$ |
16,997 |
$ |
6,037 |
$ |
37,079 |
$ |
29,416 |
||||||||
Stock-based compensation |
4,828 |
4,833 |
9,577 |
9,350 |
||||||||||||
Amortization of acquired intangible assets included in cost of revenue |
2,478 |
1,986 |
4,787 |
3,971 |
||||||||||||
Amortization of acquired intangible assets included in operating expenses |
3,606 |
3,549 |
8,144 |
7,100 |
||||||||||||
Tax impact of above items |
(4,238 |
) |
(4,134 |
) |
(8,919 |
) |
(8,436 |
) |
||||||||
Non-GAAP net income |
$ |
23,671 |
|
$ |
12,271 |
|
$ |
50,668 |
|
$ |
41,401 |
|
||||
Non-GAAP net income per diluted common share |
$ |
0.35 |
|
$ |
0.16 |
|
$ |
0.75 |
|
$ |
0.53 |
|
||||
Weighted-average shares used to compute non-GAAP net income per diluted common share |
67,202 |
|
77,413 |
|
67,960 |
|
77,490 |
|
||||||||
|
Note 1 - "Non-GAAP net income per diluted common share" (GAAP net income
from continuing operations per diluted common share before the impact of
stock-based compensation and amortization of intangible assets) included
in this press release is a non-GAAP financial measure.
Non-GAAP net income per diluted common share, as defined above, may not
be similar to non-GAAP net income per diluted common share measures used
by other companies and is not a measurement under GAAP. Management
believes that non-GAAP net income per diluted common share provides
useful information to investors about the Company's performance because
it eliminates the effects of items which are not directly attributable
to the underlying performance of the Company's business operations.
Management uses non-GAAP net income per diluted common share in
evaluating the overall performance of the Company's business operations.
Though management finds non-GAAP net income per diluted common share
useful for evaluating aspects of the Company's business, its reliance on
this measure is limited because excluded items often have a material
effect on the Company's earnings and earnings per common share
calculated in accordance with GAAP. Therefore, management uses non-GAAP
net income per diluted common share in conjunction with GAAP earnings
and earnings per common share measures. The Company believes that
non-GAAP net income per diluted common share provides investors with an
additional tool for evaluating the Company's core performance, which
management uses in its own evaluation of overall performance, and a
baseline for assessing the future earnings potential of the Company.
While the GAAP results are more complete, the Company prefers to allow
investors to have this supplemental metric since, with a reconciliation
to GAAP, it may provide greater insight into the Company's financial
results.
|
|
|||||||||||||||
|
||||||||||||||||
SEGMENT OPERATING RESULTS |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
||||||||||||||||
Three Months |
Six Months |
|||||||||||||||
Ended |
Ended |
|||||||||||||||
2014 |
|
2013 |
2014 |
|
2013 |
|||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||
Affiliate Marketing: |
||||||||||||||||
Revenue |
$ |
40,632 |
$ |
36,622 |
$ |
83,096 |
$ |
74,933 |
||||||||
Cost of revenue |
4,593 |
|
4,526 |
|
9,136 |
|
9,088 |
|
||||||||
Gross profit |
36,039 |
32,096 |
73,960 |
65,845 |
||||||||||||
Operating expenses |
11,284 |
|
9,512 |
|
23,093 |
|
20,336 |
|
||||||||
Segment income from operations |
$ |
24,755 |
|
$ |
22,584 |
|
$ |
50,867 |
|
$ |
45,509 |
|
||||
|
||||||||||||||||
Media: |
||||||||||||||||
Revenue |
$ |
96,748 |
$ |
91,490 |
$ |
200,210 |
$ |
187,746 |
||||||||
Cost of revenue |
40,263 |
|
35,377 |
|
80,626 |
|
71,216 |
|
||||||||
Gross profit |
56,485 |
56,113 |
119,584 |
116,530 |
||||||||||||
Operating expenses |
34,406 |
|
28,141 |
|
68,376 |
|
57,235 |
|
||||||||
Segment income from operations |
$ |
22,079 |
|
$ |
27,972 |
|
$ |
51,208 |
|
$ |
59,295 |
|
||||
|
||||||||||||||||
Reconciliation of segment income from operations to consolidated income from operations: |
||||||||||||||||
Total segment income from operations |
$ |
46,834 |
$ |
50,556 |
$ |
102,075 |
$ |
104,804 |
||||||||
Corporate expenses |
(8,208 |
) |
(6,760 |
) |
(18,055 |
) |
(13,632 |
) |
||||||||
Stock-based compensation |
(4,828 |
) |
(4,833 |
) |
(9,577 |
) |
(9,350 |
) |
||||||||
Amortization of acquired intangible assets included in cost of revenue |
(2,478 |
) |
(1,986 |
) |
(4,787 |
) |
(3,971 |
) |
||||||||
Amortization of acquired intangible assets included in operating expenses |
(3,606 |
) |
(3,549 |
) |
(8,144 |
) |
(7,100 |
) |
||||||||
Consolidated income from operations |
$ |
27,714 |
|
$ |
33,428 |
|
$ |
61,512 |
|
$ |
70,751 |
|
||||
|
||||||||||||||||
Reconciliation of segment revenue to consolidated revenue: |
||||||||||||||||
Affiliate Marketing |
$ |
40,632 |
$ |
36,622 |
$ |
83,096 |
$ |
74,933 |
||||||||
Media |
96,748 |
91,490 |
200,210 |
187,746 |
||||||||||||
Inter-segment eliminations |
— |
|
(18 |
) |
(13 |
) |
(102 |
) |
||||||||
Consolidated revenue |
$ |
137,380 |
|
$ |
128,094 |
|
$ |
283,293 |
|
$ |
262,577 |
|
||||
|
Investor Contact:
818-575-4540
eranderson@conversantmedia.com
Source:
News Provided by Acquire Media