Revenue Increases 67% Year-Over-Year
EBITDA Grows 158% on Higher Gross Margins and Operating Income
NEW YORK, May 10, 2011 (GLOBE NEWSWIRE) -- interclick, inc. (Nasdaq:ICLK) announced today its financial results for the first quarter ended March 31, 2011.
| Summary Results | |||
| $ in millions (except per share amounts); Unaudited | |||
| Q1 2011 | Q1 2010 | Growth | |
| Revenue | $ 23.8 | $ 14.2 | 67% |
| Gross profit | $ 11.1 | $ 6.4 | 74% |
| EBITDA | $ 1.8 | $ 0.7 | 158% |
| Operating expenses | $ 10.7 | $ 6.7 | 60% |
| Operating income (loss) | $ 0.4 | $ (0.3) | nm |
| Other expense | $ (0.2) | $ (0.5) | 66% |
| Income tax (expense) benefit | $ (0.1) | $ 1.1 | nm |
| Net income | $ 0.1 | $ 0.2 | -47% |
| Earnings per share - diluted | $ 0.00 | $ 0.01 | -100% |
| See reconciliation of non-GAAP measure on attached tables. | |||
Q1 financial highlights include the following:
- Results exceeded the Company's most recent guidance.
- Revenue was $23.8 million, an increase of 67% year-over-year.
- Growth was driven by an increase in the number of clients seeking interclick's solution and higher average revenue per advertising campaign.
- Gross profit margin was 46.7%, versus 44.9% in Q1 2010, due to effective supply chain management and favorable market conditions.
- EBITDA was $1.8 million, up 158% year-over-year.
- EBITDA margin was 7.5%, versus 4.8% in Q1 2010.
- Operating income was $0.4 million, versus a loss of ($0.3 million) in Q1 2010.
"We're very encouraged by what we were able to accomplish in Q1," said Michael Katz, CEO of interclick, "From a sales, operating, and tech perspective, we are confident in our ability to deliver on the promise of an exceptional 2011."
The Company capitalized approximately $0.5 million of Technology Support costs attributable to the development of internal-use software in Q1 2011, as compared to $0 in the prior year period. Operating expenses included $0.7 million in legal litigation costs in Q1 2011. Such legal costs were not incurred in the year-ago period and are not part of the Company's normal cost structure.
interclick recorded net income of $0.1 million, or $0.00 per diluted share in Q1 2011, compared to $0.2 million, or $0.01 per diluted share in Q1 2010. The prior year period was favorably impacted by a tax benefit of $1.1 million.
The Company ended the quarter with $12.2 million in cash and cash equivalents, of which $0.8 million is restricted. As of March 31, 2011, interclick had 24.5 million shares outstanding and 31.1 million fully-diluted shares outstanding. Dilutive securities included 5.7 million stock options at an average exercise price of $3.10, and approximately 870,000 warrants at an average exercise price of $3.67.
Business Outlook
The Company estimates 2011 revenue and EBITDA will be approximately $140 million and $19 million, growing year-over-year by 38% and 40% respectively. For Q2 20111, the Company estimates revenue and EBITDA will be approximately $29 million and $2.5 million, respectively.
Conference Call
interclick will host a conference call to discuss its first quarter financial results and business outlook on Tuesday, May 10, 2011, at 4:30 p.m. (Eastern Time). The conference call can be accessed by dialing toll-free (877) 638-4561 (U.S.) or (720) 545-0002 (international). A live audiocast of the conference call can be accessed from the Company's website at http://ir.interclick.com/events.cfm. A replay of the audiocast will be available through May 10, 2012.
Non-GAAP Financial Measure
interclick uses a non-GAAP financial measure in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. Management believes that the non-GAAP financial measure provides meaningful supplemental information regarding performance and liquidity by excluding certain expenses that may not be indicative of the performance of our core cash operations. interclick believes that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting and analyzing future periods. interclick believes this non-GAAP financial measure is useful to investors because it allows for greater transparency with respect to key metrics used by management.
EBITDA. As is common in the industry, interclick uses EBITDA as a measure of performance to demonstrate operating income exclusive of interest, taxes, depreciation, amortization (including stock-based compensation), and other income and expense of a non-operating nature. interclick, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes certain of its decisions based on EBITDA. Since an outside investor may base its evaluation of interclick's performance on interclick's net income or loss, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations or any other measure for determining operating performance or liquidity, as determined under GAAP.
To comply with Regulation G of the Securities and Exchange Commission, interclick attached to this press release, and will post to its website at http://ir.interclick.com/index.cfm, a reconciliation of the non-GAAP measure to the nearest comparable GAAP measure that is presented in this release.
About interclick
interclick, inc. (Nasdaq:ICLK) is a technology company providing solutions for data-driven advertising. Combining scalable media execution capabilities with analytical expertise, interclick delivers exceptional results for marketers. The Company's proprietary Open Segment Manager (OSM) platform organizes and valuates billions of data points daily to construct the most responsive digital audiences for major digital marketers. For more information, visit http://www.interclick.com.
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including first quarter and full year 2011 revenue, EBITDA and EPS outlook and growth. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "projects," "seeks," "believes," "estimates," "expects" and similar references to future periods.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the impact of intense competition, the continuation or worsening of current economic conditions, a potential decrease in corporate advertising spending, a potential decrease in consumer spending and the condition of the domestic and global credit and capital markets.
Further information on our risk factors is contained in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2010. Any forward-looking statement speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time-to-time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
(Financial Tables Attached)
|
interclick, inc. and Subsidiary Condensed Consolidated Statements of Operations Unaudited |
For the Three Months Ended March 31, 2011 |
For the Three Months Ended March 31, 2010 |
| Revenues | $ 23,786,151 | $ 14,201,857 |
| Cost of revenues | 12,681,445 | 7,819,181 |
| Gross profit | 11,104,706 | 6,382,676 |
| Operating expenses: | ||
| General and administrative | 5,379,562 | 3,230,528 |
| Sales and marketing | 4,401,424 | 2,116,714 |
| Technology support | 911,084 | 1,339,578 |
| Amortization of intangible assets | 49,615 | 39,500 |
| Total operating expenses | 10,741,685 | 6,726,320 |
| Operating income (loss) | 363,021 | (343,644) |
| Other income (expense): | ||
| Interest income | 2,351 | 8,868 |
| Warrant derivative liability income | -- | 21,685 |
| Other than temporary impairment of available-for-sale securities | -- | (458,538) |
| Interest expense (including amortization of deferred line of credit costs) | (182,201) | (102,409) |
| Total other expense | (179,850) | (530,394) |
| Income (loss) before income taxes | 183,171 | (874,038) |
| Income tax (expense) benefit | (73,618) | 1,079,108 |
| Net income | $ 109,553 | $ 205,070 |
| Earnings per share: | ||
| Basic | $ 0.00 | $ 0.01 |
| Diluted | $ 0.00 | $ 0.01 |
| Weighted average number of common shares: | ||
| Basic | 24,036,621 | 23,608,691 |
| Diluted | 25,879,050 | 25,877,963 |
| Reconciliation of GAAP to non-GAAP measure: | ||
| Operating income | $ 363,021 | $ (343,644) |
| Stock-based compensation | 1,161,383 | 849,582 |
| Amortization of intangible assets | 49,615 | 39,500 |
| Depreciation | 201,308 | 142,962 |
| EBITDA | $ 1,775,327 | $ 688,400 |
| interclick, inc. and Subsidiary | ||
| Condensed Consolidated Balance Sheets | ||
| Unaudited | March 31, 2011 | December 31, 2010 |
| Current assets: | ||
| Cash and cash equivalents | $ 11,435,601 | $ 12,450,650 |
| Short-term investment | 498,816 | 498,132 |
| Restricted cash | 500,379 | 500,388 |
| Accounts receivable, net of allowance | 35,934,447 | 44,517,434 |
| Deferred taxes, current portion | 458,346 | 457,185 |
| Prepaid expenses and other current assets | 1,487,394 | 763,680 |
| Total current assets | 50,314,983 | 59,187,469 |
| Restricted cash | 297,119 | 296,610 |
| Property and equipment, net | 3,460,474 | 2,283,721 |
| Intangible assets, net | 669,089 | 263,333 |
| Goodwill | 7,909,571 | 7,909,571 |
| Investment in available-for-sale securities | 609 | 609 |
| Deferred line of credit costs, net | 91,239 | 106,732 |
| Deferred taxes, net of current portion | 2,753,966 | 2,715,655 |
| Other assets | 207,573 | 207,573 |
| Total assets | $ 65,704,623 | $ 72,971,273 |
| Current liabilities: | ||
| Accounts payable | $ 11,651,490 | $ 20,147,129 |
| Accrued expenses | 3,368,173 | 4,772,188 |
| Line of credit payable | 8,500,000 | 8,500,000 |
| Obligations under capital leases, current portion | 911,580 | 483,583 |
| Deferred rent, current portion (includes cease-use liability) | 126,204 | 89,325 |
| Total current liabilities | 24,557,447 | 33,992,225 |
| Obligations under capital leases, net of current portion | 1,716,586 | 932,451 |
| Deferred rent (includes cease-use liability) | 596,091 | 630,124 |
| Total liabilities | 26,870,124 | 35,554,800 |
| Stockholders' equity: | ||
| Preferred stock, $0.001 par value | -- | -- |
| Common stock, $0.001 par value | 24,508 | 24,065 |
| Additional paid-in capital | 47,934,314 | 46,626,284 |
| Accumulated deficit | (9,124,323) | (9,233,876) |
| Total stockholders' equity | 38,834,499 | 37,416,473 |
| Total liabilities and stockholders' equity | $ 65,704,623 | $ 72,971,273 |
|
interclick, inc. and Subsidiary Condensed Consolidated Statements of Cash Flows Unaudited |
For the Three Months Ended March 31, 2011 |
For the Three Months Ended March 31, 2010 |
| Cash flows from operating activities: | ||
| Net income | $ 109,553 | $ 205,070 |
| Adjustments to reconcile net income to net cash provided by | ||
| (used in) operating activities: | ||
| Stock-based compensation | 1,161,383 | 849,582 |
| Other than temporary impairment of available-for-sale securities | -- | 458,538 |
| Accrued interest income | (1,183) | -- |
| Depreciation and amortization of property and equipment | 201,308 | 142,962 |
| Amortization of intangible assets | 49,615 | 39,500 |
| Recovery of bad debts | -- | (93,142) |
| Amortization of deferred line of credit costs | 15,493 | -- |
| Deferred tax benefit | (24,127) | (1,684,957) |
| Change in warrant derivative liability | -- | (21,685) |
| Amortization of debt discount | -- | 3,388 |
| Excess tax benefits from stock-based compensation | (15,345) | -- |
| Changes in cash and cash equivalents attributable to | -- | |
| changes in operating assets and liabilities: | ||
| Accounts receivable | 8,582,987 | 6,451,620 |
| Prepaid expenses and other current assets | (723,714) | 105,674 |
| Other assets | -- | (15,394) |
| Accounts payable | (8,495,641) | (3,674,840) |
| Accrued expenses | (1,404,015) | (1,218,173) |
| Deferred rent | 2,846 | 18,958 |
| Net cash provided by (used in) operating activities | (540,840) | 1,567,101 |
| Cash flows from investing activities: | ||
| Proceeds from sale of available-for-sale securities | -- | 11,249 |
| Transfers to restricted cash | -- | (1,291,746) |
| Purchases of property and equipment | (69,527) | (439,219) |
| Costs incurred for development of internal use software | (455,371) | -- |
| Net cash used in investing activities | (524,898) | (1,719,716) |
| Cash flows from financing activities: | ||
| Repayments of former line of credit, net | -- | (3,248,594) |
| Proceeds from stock options exercised | 131,745 | 80,000 |
| Principal payments on capital leases | (96,401) | (7,561) |
| Excess tax benefits from stock-based compensation | 15,345 | -- |
| Net cash provided by (used in) financing activities | 50,689 | (3,176,155) |
| Net decrease in cash and cash equivalents | (1,015,049) | (3,328,770) |
| Cash and cash equivalents at beginning of period | 12,450,650 | 12,653,958 |
| Cash and cash equivalents at end of period | $ 11,435,601 | $ 9,325,188 |
| Supplemental disclosure of cash flow information: | ||
| Interest paid | $ 131,409 | $ 131,470 |
| Income taxes paid | $ 517,791 | $ 576,583 |
| Non-cash investing and financing activities: | ||
| Property and equipment acquired through capital leases | $ 1,308,533 | $ 465,600 |
| Leasehold improvements increased for deferred rent | $ -- | $ 83,070 |