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
2009 includes $130 million in cash, cash equivalents and marketable
securities and no long-term debt.
Business Outlook
Today,
Guidance |
|
Revenue |
$124-$130 million |
Adjusted-EBITDA |
$31-$33 million |
GAAP diluted net income per common share |
$0.13-$0.14 |
Non-GAAP diluted net income per common share |
$0.19-$0.20 |
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
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
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
(888) 203-1112 and (719) 457-0820 (pass code: 8914545). An archive of
the Webcast will also be available through
About
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,
Media,
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
Commission made from time to time by
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.
to any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
|
|||||||
March 31, |
December 31, |
||||||
2009 |
2008 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ |
104,488 |
$ |
122,487 |
|||
Marketable securities |
-- |
2,175 |
|||||
Accounts receivable, net |
86,959 |
108,611 |
|||||
Other current assets |
16,299 |
20,515 |
|||||
Total current assets |
207,746 |
253,788 |
|||||
Marketable securities, less current portion |
25,750 |
25,750 |
|||||
Property and equipment, net |
13,999 |
15,514 |
|||||
Goodwill |
171,604 |
172,583 |
|||||
Intangible assets, net |
73,299 |
80,042 |
|||||
Other assets |
55,727 |
55,602 |
|||||
TOTAL ASSETS |
$ |
548,125 |
$ |
603,279 |
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities |
$ |
105,966 |
$ |
176,605 |
|||
Non-current liabilities |
74,309 |
73,195 |
|||||
Total liabilities |
180,275 |
249,800 |
|||||
Total stockholders’ equity |
367,850 |
353,479 |
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
548,125 |
$ |
603,279 |
|||
|
||||||||
Three-month Period Ended March 31, |
||||||||
2009 |
2008 |
|||||||
(Unaudited) |
||||||||
Revenue |
$ |
135,041 |
$ |
169,126 |
||||
Cost of revenue |
43,947 |
51,252 |
||||||
Gross profit |
91,094 |
117,874 |
||||||
Operating expenses: |
||||||||
Sales and marketing (Note 1) |
36,990 |
49,970 |
||||||
General and administrative (Note 1) |
16,494 |
20,880 |
||||||
Technology (Note 1) |
7,666 |
9,442 |
||||||
Amortization of intangible assets acquired in business combinations |
6,252 |
7,657 |
||||||
Total operating expenses |
67,402 |
87,949 |
||||||
Income from operations |
23,692 |
29,925 |
||||||
Interest income and other, net |
(166 |
) |
3,047 |
|||||
Income before income taxes |
23,526 |
32,972 |
||||||
Income tax expense |
10,309 |
13,759 |
||||||
Net income from continuing operations |
13,217 |
19,213 |
||||||
Loss from discontinued operations, net of tax impact |
-- |
(46 |
) |
|||||
Net income |
$ |
13,217 |
$ |
19,167 |
||||
Basic net income from continuing operations per common share |
$ |
0.15 |
$ |
0.20 |
||||
Diluted net income from continuing operations per common share |
$ |
0.15 |
$ |
0.19 |
||||
Basic net income per common share |
$ |
0.15 |
$ |
0.20 |
||||
Diluted net income per common share |
$ |
0.15 |
$ |
0.19 |
||||
Weighted-average shares used to compute basic net income per common share |
86,825 |
97,722 |
||||||
Weighted-average shares used to compute diluted net income per common share |
87,022 |
98,557 |
||||||
Note 1 – Includes stock-based compensation as follows: |
Three-month Period Ended March 31, |
|||||
2009 |
2008 |
|||||
(Unaudited) |
||||||
Sales and marketing |
$ |
610 |
$ |
1,614 |
||
General and administrative |
1,598 |
3,455 |
||||
Technology |
392 |
637 |
||||
Total stock-based compensation |
$ |
2,600 |
$ |
5,706 |
||
|
|||||||
Three-month Period
|
|||||||
2009 |
2008 |
||||||
(Unaudited) |
|||||||
Net income from continuing operations |
$ |
13,217 |
$ |
19,213 |
|||
Interest income and other, net |
166 |
(3,047 |
) |
||||
Provision for income taxes |
10,309 |
13,759 |
|||||
Amortization of intangible assets acquired in business combinations |
6,252 |
7,657 |
|||||
Depreciation and leasehold amortization |
2,186 |
2,438 |
|||||
Stock-based compensation |
2,600 |
5,706 |
|||||
Adjusted-EBITDA |
$ |
34,730 |
$ |
45,726 |
|||
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.
|
||||||
Three-month Period
|
||||||
2009 |
2008 |
|||||
GAAP net income from continuing operations |
$ |
13,217 |
$ |
19,213 |
||
Stock-based compensation |
2,600 |
5,706 |
||||
Amortization of intangible assets acquired in business combinations |
6,252 |
7,657 |
||||
Tax impact of above items |
(3,307 |
) |
(5,037 |
) |
||
Non-GAAP net income |
18,762 |
$ |
27,539 |
|||
Non-GAAP diluted net income per common share |
$ |
0.22 |
$ |
0.28 |
||
Weighted-average shares used to compute non-GAAP diluted net income per
|
87,022 |
98,557 |
||||
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.
|
||||||
|
||||||
2009 |
2008 |
|||||
(Unaudited) |
||||||
Media: |
||||||
Revenue |
$ |
63,526 |
$ |
74,694 |
||
Cost of revenue |
29,752 |
33,140 |
||||
Gross profit |
33,774 |
41,554 |
||||
Operating expenses |
18,867 |
25,269 |
||||
Segment income from operations |
$ |
14,907 |
$ |
16,285 |
||
Comparison Shopping: |
||||||
Revenue |
$ |
37,517 |
$ |
57,072 |
||
Cost of revenue |
9,591 |
13,787 |
||||
Gross profit |
27,926 |
43,285 |
||||
Operating expenses |
21,148 |
28,084 |
||||
Segment income from operations |
$ |
6,778 |
$ |
15,201 |
||
Affiliate Marketing: |
||||||
Revenue |
$ |
27,958 |
$ |
31,200 |
||
Cost of revenue |
3,886 |
4,199 |
||||
Gross profit |
24,072 |
27,001 |
||||
Operating expenses |
9,673 |
11,283 |
||||
Segment income from operations |
$ |
14,399 |
$ |
15,718 |
||
Technology: |
||||||
Revenue |
$ |
6,416 |
$ |
7,006 |
||
Cost of revenue |
949 |
866 |
||||
Gross profit |
5,467 |
6,140 |
||||
Operating expenses |
2,683 |
2,751 |
||||
Segment income from operations |
$ |
2,784 |
$ |
3,389 |
||
Total segment income from operations |
$ |
38,868 |
$ |
50,593 |
||
Corporate expenses |
(6,324 |
) |
(7,305 |
) |
||
Stock-based compensation |
(2,600 |
) |
(5,706 |
) |
||
Amortization of intangible assets |
(6,252 |
) |
(7,657 |
) |
||
Consolidated income from operations |
$ |
23,692 |
$ |
29,925 |
||
Reconciliation of segment revenue to consolidated revenue: |
||||||
Media |
$ |
63,526 |
$ |
74,694 |
||
Comparison Shopping |
37,517 |
57,072 |
||||
Affiliate Marketing |
27,958 |
31,200 |
||||
Technology |
6,416 |
7,006 |
||||
Inter-segment eliminations |
(376 |
) |
(846 |
) |
||
Consolidated revenue |
$ |
135,041 |
$ |
169,126 |
||
Note 1 – On
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:
Gary J. Fuges, CFA
ValueClick, Inc.
1.818.575.4677