TheStreet.com, Inc. (Nasdaq: TSCM), a leading financial media company,
reported financial results for its quarter ended March 31, 2008.
First-Quarter 2008 Results:
Total revenue for the quarter was $18.9 million, an increase of 31% over
revenue of $14.5 million reported for the first quarter of 2007. Net
income decreased by 19% to $2.4 million, or $0.07 per fully diluted
share, in the first quarter of 2008, compared to $3.0 million, or $0.11
per fully diluted share, in the first quarter of 2007. Net income
attributable to common stockholders for the first quarter of 2008 was
$2.4 million, or $0.07 per fully diluted share, after deducting
preferred stock dividends of $0.1 million.
EBITDA, excluding stock compensation expense (“Adjusted
EBITDA”), was $3.9 million, an increase of 11%
over Adjusted EBITDA of $3.5 million for the first quarter of 2007.
“We began 2008 delivering on key strategic
initiatives – the launch of the new
TheStreet.com Web site and the launch of MainStreet.com –
to strengthen our position as the leading destination for 'all things
money,'” said Thomas J. Clarke Jr., chairman
and chief executive officer of TheStreet.com. “These
initiatives have allowed us to capitalize on the growing opportunity in
online advertising and enabled us to achieve record first-quarter
revenue. While the initiatives had a short-term effect on our quarterly
earnings, we are encouraged by the strong demand from advertisers across
TheStreet.com’s network of sites and services.”
First-Quarter Financial Highlights
- Advertising revenue totaled $6.0 million for the current
quarter, an increase of 18% over revenue of $5.1 million in the
quarter one year ago.
- Syndication, licensing and information services revenue totaled
$2.7 million for the current quarter, an increase of 290% over
revenue of $0.7 million in the quarter one year ago, primarily
resulting from the acquisition of Bankers Financial Products Corp.
in November, 2007.
Recent Company Highlights
TheStreet.com will conduct a conference call today April 29, 2008, at
11:00 a.m. EST to discuss these results. To participate in the call,
dial 800.561.2813 (domestic) or 617.614.3529 (international).
The passcode for the call is 56901294.
To access the Web cast of the call please visit:
65508&eventID=1826404 (Due to its length, this URL may need to
be copied/pasted into your Internet browser's address field. Remove the
extra space if one exists.)
About TheStreet.com, Inc.
TheStreet.com is a leading financial media company. It engages audiences
on video and digital platforms through some of the Web’s
best known sites: TheStreet.com, RealMoney.com, Stockpickr.com,
BankingMyWay.com, MainStreet.com, Rate-Watch.com and Promotions.com.
Through this network, the company produces and distributes content in
all areas where life and money intersect to inform, engage and activate
one of the most affluent, influential audiences on the Web today.
December 31, 2007
for doubtful accounts of $242,807 at
March 31, 2008 and December 31, 2007
amortization of $18,054,276 at
March 31, 2008 and $17,493,847 at
December 31, 2007
$55,000,000 as of March 31, 2008 and
$55,096,424 as of December 31, 2007
30,445,107 shares outstanding at
March 31, 2008, and 36,006,137
outstanding at December 31, 2007
shares at December 31, 2007
Note: The Company has pledged cash as a security deposit
leases. Accordingly, this cash is classified as restricted cash,
our cash is classified in several places on the above balance
For the Three Months Ended March 31,
Total net revenue
To supplement the Company's financial statements presented in accordance
with generally accepted accounting principles ("GAAP"), TheStreet.com
uses non-GAAP measures of certain components of financial performance,
including "EBITDA" and "free cash flow". EBITDA is adjusted from results
based on GAAP to exclude interest, taxes, depreciation and amortization.
This non-GAAP measure is provided to enhance investors' overall
understanding of the Company's current financial performance and its
prospects for the future. Specifically, the Company believes that the
non-GAAP EBITDA results are an important indicator of the operational
strength of the Company’s business and provide
an indication of the Company’s ability to
service debt and fund capital expenditures. EBITDA eliminates the uneven
effect of considerable amounts of noncash depreciation of tangible
assets and amortization of certain intangible assets that were
recognized in business combinations. A limitation of this measure,
however, is that it does not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating revenues
in the Company’s businesses. Management
evaluates the investments in such tangible and intangible assets through
other financial measures, such as capital expenditure budgets and
investment spending levels. This measure 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
measure included in this press release has been reconciled to the
nearest GAAP measure.
For the Three MonthsEnded March 31,
“Free cash flow”
means net income plus non-cash expenses less changes in working capital
and capital expenditures. TheStreet.com believes that this non-GAAP
financial measure is an important indicator of the Company's financial
results because it gives investors a clear view of the Company's ability
to generate cash. The presentation of this non-GAAP financial measure
should be considered in addition to TheStreet.com's GAAP results and is
not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with GAAP.
For the Three Months EndedMarch 31,
Statements contained in this news release not related to historical
facts may be deemed forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties
(described in the Company's SEC filings) that could cause actual results