NEW YORK, July 22 /PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE) today announced preliminary financial results for the second quarter of fiscal 2009 ended June 30, 2009.
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Total revenue for the second quarter is expected to be $31.0 million compared to $40.2 million reported in the second quarter of 2008, a decrease of 23%. Net income is expected to be $1.9 million or $0.10 per fully diluted share in the second quarter of 2009, compared to $4.1 million, or $0.21 per fully diluted share in the second quarter of 2008. Earnings per fully diluted share, excluding share-based compensation expense ("Adjusted EPS"), is expected to be $0.19 for the second quarter of 2009, compared to Adjusted EPS of $0.33 for the second quarter of 2008.
Earnings before interest, taxes, depreciation, and amortization, excluding share-based compensation expense ("Adjusted EBITDA"), are expected to be $9.4 million in the second quarter of 2009 compared to $12.8 million in the second quarter of 2008, a decline of 26%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of 2009, including share-based compensation expense are expected to be $6.7 million compared to the $9.0 million reported in the second quarter of 2008.
"Macroeconomic conditions have continued to impact financial advertising, particularly in our banking, mortgage and credit card channels," said Thomas R. Evans, President and CEO of Bankrate, Inc. "The softness in the financial service advertising sector has been a major contributor to our recent results. Consequently, we believe that revenue and EBITDA for the year will be well below the current consensus estimates," Mr. Evans added.
The second quarter 2009 estimated results are preliminary and subject to completion of the Company's quarterly closing process and the customary review by its external auditors. Accordingly, such estimated results are subject to change. Bankrate will release its full financial second quarter 2009 results on July 30, 2009.
In a separate press release also issued today, Bankrate announced that it has agreed to be acquired by funds advised by Apax Partners for $28.50 per share in cash.
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.
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 the United States economy in general, and risks to the consummation of Bankrate's pending acquisition by affiliates of Apax Partners, L.P., including the risk that a condition to closing of such transaction may not be satisfied. These and additional important factors to be considered are set forth under "Introductory Note," "Item 1A. Risk Factors," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the other sections of our Annual Report on Form 10-K for the year ended December 31, 2007, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
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), America Online (NYSE: TWX), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.
- Financial Statements Follow -
For more information contact: Bruce J. Zanca
Senior Vice President, Chief Marketing and Communications Officer
bzanca@bankrate.com
(917) 368-8648
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share data)
June 30, December 31,
2009 2008
---- ----
Assets
Cash and cash
equivalents $55,089 $46,055
Accounts receivable, net
of allowance
for doubtful accounts
of approximately
$964 and $1,566
at June 30, 2009
and December 31,
2008, respectively 15,181 22,567
Deferred income
taxes, current
portion 816 816
Prepaid expenses
and other current
assets 1,614 1,608
----- -----
Total current
assets 72,700 71,046
Furniture,
fixtures and
equipment, net 6,939 2,521
Deferred income
taxes 7,413 7,413
Intangible
assets, net 78,077 83,347
Goodwill 101,886 101,856
Other assets 712 4,567
--- -----
Total assets $267,727 $270,750
======== ========
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $2,993 $3,723
Accrued expenses 4,371 5,665
Acquisition earn-out
liability - 11,750
Deferred revenue 953 1,018
Other current
liabilities 5 16
--- ---
Total current
liabilities 8,322 22,172
Other liabilities 153 148
--- ---
Total liabilities 8,475 22,320
----- ------
Stockholders' equity:
Preferred stock,
10,000,000 shares
authorized and
undesignated - -
Common stock, par value
$.01 per share --
100,000,000 shares
authorized;
18,885,504 and
18,816,986 shares
issued and
outstanding at
June 30, 2009 and
December 31,
2008, respectively 189 188
Additional-paid
in capital 224,122 219,294
Retained
earnings 34,941 28,948
------ ------
Total
stockholders'
equity 259,252 248,430
------- -------
Total
liabilities and
stockholders'
equity $267,727 $270,750
======== ========
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenue $31,027 $40,193 $69,364 $82,656
Cost of revenue (1) 12,907 17,359 27,902 33,766
------ ------ ------ ------
Gross margin 18,120 22,834 41,462 48,890
------ ------ ------ ------
Operating expenses (1):
Sales 2,187 2,207 4,621 4,285
Marketing 2,170 3,115 4,647 5,943
Product development 1,837 1,890 3,654 3,591
General and
administrative 5,259 6,580 10,772 13,370
Depreciation and
amortization 3,344 2,246 6,327 4,043
----- ----- ----- -----
14,797 16,038 30,021 31,232
------ ------ ------ ------
Income from operations 3,323 6,796 11,441 17,658
Interest income 16 360 26 1,206
-- --- -- -----
Income before income
taxes 3,339 7,156 11,467 18,864
Income tax expense 1,409 3,077 4,822 7,951
----- ----- ----- -----
Net income $1,930 $4,079 $6,645 $10,913
====== ====== ====== =======
Basic and diluted net
income per share:
Basic $0.10 $0.22 $0.35 $0.58
===== ===== ===== =====
Diluted $0.10 $0.21 $0.34 $0.55
===== ===== ===== =====
Shares used in
computing
basic net income
per share 18,824,428 18,907,321 18,816,667 18,893,682
Shares used in computing
diluted net income per
share 19,379,325 19,557,759 19,296,985 19,678,146
Includes share-based
compensation expense
as follows:
Cost of revenue $352 $618 $724 $1,221
Other expenses:
Sales 533 525 1,112 1,020
Marketing 152 204 330 401
Product development 175 287 408 554
General and
administrative 1,547 2,105 2,196 3,959
----- ----- ----- -----
$2,759 $3,739 $4,770 $7,155
====== ====== ====== ======
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenue $31,027 $40,193 $69,364 $82,656
Cost of revenue 12,555 16,741 27,178 32,545
------ ------ ------ ------
Gross margin 18,472 23,452 42,186 50,111
------ ------ ------ ------
Operating expenses:
Sales 1,654 1,682 3,509 3,265
Marketing 2,018 2,911 4,317 5,542
Product development 1,662 1,603 3,246 3,037
General and
administrative 3,712 4,475 8,576 9,411
Share-based
compensation expense
(1) 2,759 3,739 4,770 7,155
Depreciation and
amortization 3,344 2,246 6,327 4,043
----- ----- ----- -----
15,149 16,656 30,745 32,453
------ ------ ------ ------
Income from operations 3,323 6,796 11,441 17,658
Interest income 16 360 26 1,206
-- --- -- -----
Income before income
taxes 3,339 7,156 11,467 18,864
Income tax expense 1,409 3,077 4,822 7,951
----- ----- ----- -----
Net income $1,930 $4,079 $6,645 $10,913
====== ====== ====== =======
Basic and diluted net
income per share:
Basic $0.10 $0.22 $0.35 $0.58
===== ===== ===== =====
Diluted $0.10 $0.21 $0.34 $0.55
===== ===== ===== =====
Adjusted EPS $0.19 $0.33 $0.50 $0.78
===== ===== ===== =====
Shares used in
computing basic net
income per share,
GAAP basis 18,824,428 18,907,321 18,816,667 18,893,682
Shares used in
computing diluted
net income per
share, GAAP basis 19,379,325 19,557,759 19,296,985 19,678,146
Shares used in
computing diluted
net income per
share, Non-GAAP basis 19,658,662 19,909,843 19,623,275 19,898,715
(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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
---- ---- ---- ----
EBITDA-
Income from
operations, GAAP
basis $3,323 $6,796 $11,441 $17,658
Depreciation and
amortization 3,344 2,246 6,327 4,043
----- ----- ----- -----
EBITDA $6,667 $9,042 $17,768 $21,701
====== ====== ======= =======
Adjusted EBITDA-
Income from
operations, GAAP
basis $3,323 $6,796 $11,441 $17,658
Share-based
compensation expense 2,759 3,739 4,770 7,155
Depreciation and
amortization 3,344 2,246 6,327 4,043
----- ----- ----- -----
Adjusted EBITDA $9,426 $12,781 $22,538 $28,856
====== ======= ======= =======
Adjusted EPS-
Net income, GAAP
basis $1,930 $4,079 $6,645 $10,913
Share-based
compensation expense,
net of tax 1,729 2,458 3,097 4,698
----- ----- ----- -----
Net income excluding
share-based
compensation expense $3,659 $6,537 $9,742 $15,611
====== ====== ====== =======
Adjusted EPS $0.19 $0.33 $0.50 $0.78
===== ===== ===== =====
Operating EPS-
Net income, GAAP
basis $1,930 $4,079 $6,645 $10,913
Share-based
compensation expense,
net of tax 1,729 2,458 3,097 4,698
Intangibles
amortization, net of
tax 1,571 1,173 3,163 2,045
Interest income, net
of tax (10) (216) (16) (724)
--- ---- --- ----
Net income excluding
share-based compensation
expense, intangibles
amortization and
interest income $5,221 $7,494 $12,890 $16,933
====== ====== ======= =======
Operating EPS $0.27 $0.38 $0.66 $0.85
===== ===== ===== =====
Shares used in
computing basic net
income per share,
GAAP basis 18,824,428 18,907,321 18,816,667 18,893,682
========== ========== ========== ==========
Shares used in
computing diluted net
income per share,
GAAP basis 19,379,325 19,557,759 19,296,985 19,678,146
Impact of applying
SFAS No. 123R 279,337 352,084 326,290 220,569
------- ------- ------- -------
Shares used in
computing diluted net
income per share,
excluding the
impact of applying
SFAS No. 123R 19,658,662 19,909,843 19,623,275 19,898,715
========== ========== ========== ==========
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
June 30, 2009
GAAP Adjustments (1) Non-GAAP
---- --------------- --------
Revenue $31,027 $- $31,027
Cost of revenue: 12,907 (352) 12,555
------ ---- ------
Gross margin 18,120 352 18,472
------ --- ------
Operating expenses:
Sales 2,187 (533) 1,654
Marketing 2,170 (152) 2,018
Product development 1,837 (175) 1,662
General and
administrative 5,259 (1,547) 3,712
Share-based
compensation expense - 2,759 2,759
Depreciation and
amortization 3,344 - 3,344
------ --- ------
14,797 352 15,149
------ ---- ------
Income from operations 3,323 - 3,323
Interest income, net 16 - 16
----- ---- -----
Income before income
taxes 3,339 - 3,339
Provision for income
taxes 1,409 - 1,409
------ ---- ------
Net income $1,930 $- $1,930
====== ==== ======
Basic and diluted net income per share:
Basic $0.10 $- $0.10
===== ==== =====
Diluted $0.10 $- $0.10
===== ==== =====
Shares used in
computing basic net
income per share 18,824,428 - 18,824,428
Shares used in
computing diluted net
income per share 19,379,325 279,337 19,658,662
Three Months Ended
June 30, 2008
GAAP Adjustments (1) Non-GAAP
---- --------------- --------
Revenue $40,193 $- $40,193
Cost of revenue: 17,359 (618) 16,741
------ ---- ------
Gross margin 22,834 618 23,452
------ --- ------
Operating expenses:
Sales 2,207 (525) 1,682
Marketing 3,115 (204) 2,911
Product development 1,890 (287) 1,603
General and
administrative 6,580 (2,105) 4,475
Share-based
compensation expense - 3,739 3,739
Depreciation and
amortization 2,246 - 2,246
----- - -----
16,038 618 16,656
------ --- ------
Income from operations 6,796 - 6,796
Interest income, net 360 - 360
--- - ---
Income before income
taxes 7,156 - 7,156
Provision for income
taxes 3,077 - 3,077
----- - -----
Net income $4,079 $- $4,079
====== == ======
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 18,907,321 - 18,907,321
Shares used in
computing diluted net
income per share 19,557,759 352,084 19,909,843
Six Months Ended
June 30, 2009
GAAP Adjustments (1) Non-GAAP
---- --------------- --------
Revenue $69,364 $- $69,364
Cost of revenue: 27,902 (724) 27,178
------ ---- ------
Gross margin 41,462 724 42,186
------ --- ------
Operating expenses:
Sales 4,621 (1,112) 3,509
Marketing 4,647 (330) 4,317
Product development 3,654 (408) 3,246
General and
administrative 10,772 (2,196) 8,576
Share-based
compensation expense - 4,770 4,770
Depreciation and
amortization 6,327 - 6,327
----- - -----
30,021 724 30,745
------ --- ------
Income from operations 11,441 - 11,441
Interest income, net 26 - 26
-- - --
Income before income
taxes 11,467 - 11,467
Provision for income
taxes 4,822 - 4,822
----- - -----
Net income $6,645 $- $6,645
====== == ======
Basic and diluted net income per share:
Basic $0.35 $- $0.35
===== == =====
Diluted $0.34 $- $0.34
===== == =====
Shares used in
computing basic net
income per share 18,816,667 - 18,816,667
Shares used in
computing diluted net
income per share 19,296,985 326,290 19,623,275
Six Months Ended
June 30, 2008
GAAP Adjustments (1) Non-GAAP
---- --------------- --------
Revenue $82,656 $- $82,656
Cost of revenue: 33,766 (1,221) 32,545
------ ------ ------
Gross margin 48,890 1,221 50,111
------ ----- ------
Operating expenses:
Sales 4,285 (1,020) 3,265
Marketing 5,943 (401) 5,542
Product development 3,591 (554) 3,037
General and
administrative 13,370 (3,959) 9,411
Share-based
compensation expense - 7,155 7,155
Depreciation and
amortization 4,043 - 4,043
----- - -----
31,232 1,221 32,453
------ ----- ------
Income from operations 17,658 - 17,658
Interest income, net 1,206 - 1,206
----- - -----
Income before income
taxes 18,864 - 18,864
Provision for income
taxes 7,951 - 7,951
----- - -----
Net income $10,913 $- $10,913
======= == =======
Basic and diluted net income per share:
Basic $0.58 $- $0.58
===== == =====
Diluted $0.55 $- $0.55
===== == =====
Shares used in
computing basic net
income per share 18,893,682 - 18,893,682
Shares used in
computing diluted net
income per share 19,678,146 220,569 19,898,715
(1) Adjustments for the impact of applying SFAS No. 123R
For more information contact:
Bruce J. Zanca
Senior Vice President, Chief Marketing and Communications Officer
bzanca@bankrate.com
(917) 368-8648
SOURCE Bankrate, Inc.