ValueClick announces first quarter 2009 results

ValueClick Announces First Quarter 2009 Results

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--May. 5, 2009--

ValueClick, Inc. (Nasdaq:VCLK) today reported financial results for the

first quarter ended March 31, 2009.

“Our multiple performance-based online marketing solutions and

relentless focus on margins and expense management helped drive strong

first quarter results,” said Tom Vadnais, chief executive officer of

ValueClick. “While advertising spending and budget visibility remain

challenged in this macroeconomic environment, our large scale

performance-based offerings differentiate us competitively and allow us

to add value for our advertisers and publishers regardless of market

conditions.”

First Quarter 2009 Financial Results

Revenue for the first quarter of 2009 was $135.0 million. The Company’s

Comparison Shopping and Search segment and its Media segment’s display

advertising business performed above expectations. Adjusted-EBITDA¹

for the first quarter of 2009 was $34.7 million and adjusted-EBITDA

margin was 25.7 percent.

GAAP net income for the first quarter of 2009 was $13.2 million, or

$0.15 per diluted common share. Non-GAAP net income for the first

quarter of 2009, which excludes discontinued operations, stock-based

compensation, and amortization of intangible assets was $18.8 million,

or $0.22 per diluted common share. A table reconciling GAAP net income

from continuing operations to non-GAAP diluted net income per common

share is included in this press release.

In the first quarter of 2009, the Company generated approximately $40

million in free cash flow, defined as net cash from operations less

capital expenditures. The consolidated balance sheet as of March 31,

2009 includes $130 million in cash, cash equivalents and marketable

securities and no long-term debt.

Business Outlook

Today, ValueClick is announcing guidance for the second quarter of 2009:

Second quarter 2009 non-GAAP and GAAP diluted net income per common

share guidance assume a 42 percent effective tax rate.

Conference Call Today at 4:30 p.m. ET

Tom Vadnais, chief executive officer, and John Pitstick, chief financial

officer, will present an overview of the results and other factors

affecting ValueClick’s financial performance for the first quarter

during a conference call and webcast on May 5 at 4:30 p.m. ET. Investors

and analysts may obtain the dial-in information through StreetEvents (www.streetevents.com).

The live Webcast of the conference call will be available on the

Investor Relations section of www.valueclick.com.

A replay of the conference call will be available through May 12 at

(888) 203-1112 and (719) 457-0820 (pass code: 8914545). An archive of

the Webcast will also be available through May 12.

About ValueClick

ValueClick, Inc. (Nasdaq:VCLK) is one of the world’s largest integrated

online marketing services companies, offering comprehensive and scalable

solutions to deliver cost-effective customer acquisition for advertisers

and transparent revenue streams for publishers. ValueClick’s

performance-based solutions allow its customers to reach their potential

through multiple online marketing channels, including affiliate

and search marketing, display

advertising, lead

generation, ad

serving and related technologies, and comparison

shopping. ValueClick brands include Commission Junction, ValueClick

Media, Mediaplex, Smarter.com, CouponMountain.com, and PriceRunner. For

more information, please visit www.valueclick.com.

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 in general, and performance based on-line

advertising in particular, 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 Securities and Exchange

Commission made from time to time by ValueClick, including, but not

limited to: its annual report on Form 10-K filed on March 2, 2009;

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.

ValueClick 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.

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 marketable securities 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 base-line 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.

Note 1 – “Non-GAAP diluted net income per common share” (GAAP diluted

net income from continuing operations per common share before the impact

of stock-based compensation, amortization of intangibles, and other

non-recurring events) included in this press release is a non-GAAP

financial measure.

Non-GAAP diluted net income per common share, as defined above, may not

be similar to non-GAAP diluted net income per common share measures used

by other companies and is not a measurement under GAAP. Management

believes that non-GAAP diluted net income per 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 diluted net income per common share in

evaluating the overall performance of the Company's business operations.

Though management finds non-GAAP diluted net income per 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

diluted net income per common share in conjunction with GAAP earnings

and earnings per common share measures. The Company believes that

non-GAAP diluted net income per 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

base-line 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.

Note 1 – On October 20, 2008, the Company announced the divestiture of

two non-core businesses. The Company has presented these divested

businesses as discontinued operations and restated its historical

statements of operations and segment operating results to reflect this

change. The information in this table excludes the divested businesses

for all periods presented. A PDF file containing historical consolidated

statements of operations and segment operating results information is

available for download on the Investor Relations page of www.valueclick.com.

¹ Adjusted-EBITDA is defined as GAAP (Generally Accepted

Accounting Principles) net income from continuing operations before

interest, income taxes, depreciation, amortization, and stock-based

compensation. Please see the attached schedule for a reconciliation of

GAAP net income to adjusted-EBITDA, and a discussion of why the Company

believes adjusted-EBITDA is a useful financial measure to investors and

how Company management uses this financial measure.

Source: ValueClick, Inc.

Gary J. Fuges, CFA
ValueClick, Inc.
1.818.575.4677