Revenue Increases 34% Year-Over-Year
EBITDA and EPS Expand on Higher Gross Profit
Full Year Business Outlook Raised
NEW YORK, Aug. 10, 2011 (GLOBE NEWSWIRE) -- interclick, inc. (Nasdaq:ICLK) announced today its financial results for the second quarter ended June 30, 2011.
| Summary Results | ||||
| $ in millions (except per share amounts); Unaudited | ||||
| Q2 2011 | Q2 2010 | Growth | ||
| Revenue | $ 29.0 | $ 21.7 | 34% | |
| Gross profit | $ 11.9 | $ 9.6 | 24% | |
| EBITDA | $ 2.6 | $ 2.4 | 7% | |
| Operating expenses | $ 10.8 | $ 8.4 | 29% | |
| Operating income | $ 1.1 | $ 1.2 | -8% | |
| Net income (loss) | $ 0.6 | $ (0.1) | nm | |
| Earnings per share - diluted | $ 0.02 | $ -- | nm | |
| See reconciliation of non-GAAP measure on attached tables. | ||||
Q2 financial highlights include the following:
- Revenue was $29.0 million, an increase of 34% year-over-year, meeting the Company's most recent guidance.
- Growth was driven by strong demand for interclick's proprietary OSM platform and data valuation capabilities, resulting in an increase in the number of advertisers and higher average revenue per campaign.
- EBITDA was $2.6 million, up 7% year-over-year, exceeding guidance.
- Operating expenses increased only 1% sequentially from Q1 2011, comparing favorably to sequential revenue growth of 22%.
"interclick continues to set the pace with innovation around data valuation enabling us to continue to expand market share in an increasingly competitive landscape," said Michael Katz, CEO of interclick. "The recent launch of Genome extends that innovation and positions us quite nicely for a successful second half of 2011."
The Company capitalized approximately $0.5 million of Technology Support costs attributable to the development of internal-use software, including Genome powered by OSM™, in each of Q2 2011 and Q1 2011, as compared to $0 in the prior year period. Q2 2011 operating expenses included legal litigation costs of $0.2 million.
interclick recorded net income of $0.6 million, or $0.02 per diluted share in Q2 2011, compared to a net loss of ($0.1 million), or $0.00 per diluted share in Q2 2010. Prior year period results were adversely impacted by a cease-use liability charge of $0.4 million and tax expense of $1.2 million.
The Company ended the quarter with $13.5 million in cash and cash equivalents, of which $0.8 million is restricted. As of June 30, 2011, interclick had 24.7 million shares outstanding and 31.1 million fully-diluted shares outstanding. Dilutive securities included 5.6 million stock options at an average exercise price of $3.17, and approximately 815,000 warrants at an average exercise price of $3.65.
Business Outlook
For 2011, the Company estimates revenue will be approximately $142 million and EBITDA will range between $19 million and $20 million. This would approximate year-over-year revenue growth of 40% and EBITDA growth of between 46% and 54%. The Company's previous guidance for 2011 was $140 million and $19 million, respectively. For Q3 2011, the Company estimates revenue and EBITDA will be approximately $36 million and $4.2 million, respectively.
Conference Call
interclick will host a conference call to discuss its first quarter financial results and business outlook on Wednesday, August 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 August 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
Powered by OSM, interclick, inc. (Nasdaq:ICLK) offers proprietary data-valuation capabilities combining analytical expertise and media fulfillment to help marketers navigate the complex data ecosystem to drive successful online display and video campaigns. OSM is a powerful solution which aggregates and organizes billions of data points from 3rd party providers — delivering actionable consumer insights, scalable audiences and the most effective campaign execution. 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.
| interclick, inc. and Subsidiary | For the Three | For the Three | For the Six | For the Six |
| Condensed Consolidated Statements of Operations | Months Ended | Months Ended | Months Ended | Months Ended |
| Unaudited | June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 |
| Revenues | $ 29,031,119 | $ 21,659,883 | $ 52,817,270 | $ 35,861,740 |
| Cost of revenues | 17,097,653 | 12,034,487 | 29,779,098 | 19,853,668 |
| Gross profit | 11,933,466 | 9,625,396 | 23,038,172 | 16,008,072 |
| Operating expenses: | ||||
| General and administrative | 4,985,318 | 3,873,745 | 10,503,214 | 7,104,273 |
| Sales and marketing | 4,164,583 | 3,087,183 | 7,963,771 | 5,203,897 |
| Technology support | 1,596,462 | 1,419,362 | 2,971,448 | 2,758,940 |
| Amortization of intangible assets | 83,186 | 39,500 | 132,801 | 79,000 |
| Total operating expenses | 10,829,549 | 8,419,790 | 21,571,234 | 15,146,110 |
| Operating income | 1,103,917 | 1,205,606 | 1,466,938 | 861,962 |
| Other income (expense): | ||||
| Interest income | 1,909 | 8,151 | 4,260 | 17,019 |
| Warrant derivative liability income (expense) | -- | (272) | -- | 21,413 |
| Other than temporary impairment of available-for-sale securities | -- | -- | -- | (458,538) |
| Interest expense | (134,133) | (74,537) | (316,334) | (176,946) |
| Total other expense, net | (132,224) | (66,658) | (312,074) | (597,052) |
| Income before income taxes | 971,693 | 1,138,948 | 1,154,864 | 264,910 |
| Income tax expense | (335,601) | (1,218,234) | (409,219) | (139,126) |
| Net income (loss) | 636,092 | (79,286) | 745,645 | 125,784 |
| Other comprehensive income (loss): | ||||
| Unrealized loss on available-for-sale-securities | -- | (20,427) | -- | (20,427) |
| Total comprehensive income (loss) | $ 636,092 | $ (99,713) | $ 745,645 | $ 105,357 |
| Earnings per share: | ||||
| Basic | $ 0.03 | $ -- | $ 0.03 | $ 0.01 |
| Diluted | $ 0.02 | $ -- | $ 0.03 | $ 0.01 |
| Weighted average number of common shares: | ||||
| Basic | 24,151,081 | 23,683,252 | 24,093,739 | 23,646,178 |
| Diluted | 26,545,822 | 23,683,252 | 26,233,038 | 24,820,111 |
| Reconciliation of GAAP to non-GAAP measure: | ||||
| Operating income | $ 1,103,917 | $ 1,205,606 | $ 1,466,938 | $ 861,962 |
| Stock-based compensation | 1,122,228 | 972,488 | 2,283,611 | 1,822,070 |
| Amortization of intangible assets | 83,186 | 39,500 | 132,801 | 79,000 |
| Depreciation | 254,568 | 177,394 | 455,876 | 320,356 |
| EBITDA | $ 2,563,899 | $ 2,394,988 | $ 4,339,226 | $ 3,083,388 |
| interclick, inc. and Subsidiary | ||
| Condensed Consolidated Balance Sheets | ||
| Unaudited | June 30, 2011 | December 31, 2010 |
| Current assets: | ||
| Cash and cash equivalents | $ 12,723,559 | $ 12,450,650 |
| Short-term investment | 499,508 | 498,132 |
| Restricted cash | 500,815 | 500,388 |
| Accounts receivable, net of allowance | 31,561,892 | 44,517,434 |
| Deferred taxes, current portion | 463,975 | 457,185 |
| Prepaid expenses and other current assets | 3,840,955 | 763,680 |
| Total current assets | 49,590,704 | 59,187,469 |
| Restricted cash | 297,633 | 296,610 |
| Property and equipment, net | 3,582,216 | 2,283,721 |
| Intangible assets, net | 1,140,026 | 263,333 |
| Goodwill | 7,909,571 | 7,909,571 |
| Deferred line of credit costs, net | 75,573 | 106,732 |
| Deferred taxes, net of current portion | 2,915,809 | 2,715,655 |
| Other assets | 567,588 | 208,182 |
| Total assets | $ 66,079,120 | $ 72,971,273 |
| Current liabilities: | ||
| Accounts payable | $ 13,606,940 | $ 20,147,129 |
| Accrued expenses | 3,830,003 | 4,772,188 |
| Line of credit payable | 4,000,000 | 8,500,000 |
| Obligations under capital leases, current portion | 939,985 | 483,583 |
| Deferred rent, current portion (includes cease-use liability) | 130,192 | 89,325 |
| Total current liabilities | 22,507,120 | 33,992,225 |
| Obligations under capital leases, net of current portion | 1,584,486 | 932,451 |
| Deferred rent (includes cease-use liability) | 569,363 | 630,124 |
| Other liabilities | 348,915 | -- |
| Total liabilities | 25,009,884 | 35,554,800 |
| Stockholders' equity: | ||
| Preferred stock, $0.001 par value | -- | -- |
| Common stock, $0.001 par value | 24,699 | 24,065 |
| Additional paid-in capital | 49,532,768 | 46,626,284 |
| Accumulated deficit | (8,488,231) | (9,233,876) |
| Total stockholders' equity | 41,069,236 | 37,416,473 |
| Total liabilities and stockholders' equity | $ 66,079,120 | $ 72,971,273 |
| interclick, inc. and Subsidiary | For the Six | For the Six |
| Condensed Consolidated Statements of Cash Flows | Months Ended | Months Ended |
| Unaudited | June 30, 2011 | June 30, 2010 |
| Cash flows from operating activities: | ||
| Net income | $ 745,645 | $ 125,784 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Stock-based compensation | 2,283,611 | 1,822,070 |
| Other than temporary impairment of available-for-sale securities | -- | 458,538 |
| Accrued interest income | (2,826) | -- |
| Depreciation and amortization of property and equipment | 455,876 | 320,356 |
| Amortization of intangible assets | 132,801 | 79,000 |
| Recovery of bad debts | -- | (140,077) |
| Amortization of deferred line of credit costs | 31,159 | -- |
| Deferred tax benefit | (146,405) | (594,417) |
| Change in warrant derivative liability | -- | (21,413) |
| Amortization of debt discount | -- | 4,972 |
| Excess tax benefits from stock-based compensation | (60,539) | -- |
|
Changes in cash and cash equivalents attributable to changes in operating assets and liabilities: |
||
| Accounts receivable | 12,955,542 | (35,613) |
| Prepaid expenses and other current assets | (2,717,563) | 45,402 |
| Other assets | -- | (15,394) |
| Accounts payable | (6,540,189) | (442,026) |
| Accrued expenses | (1,312,388) | (672,039) |
| Income taxes payable | -- | (515,306) |
| Deferred rent | (19,894) | 525,302 |
| Net cash provided by operating activities | 5,804,830 | 945,139 |
| Cash flows from investing activities: | ||
| Proceeds from sale of available-for-sale securities | -- | 11,250 |
| Transfers to restricted cash | -- | (1,292,960) |
| Purchases of property and equipment | (286,810) | (573,929) |
| Costs incurred for development of internal use software | (1,009,494) | -- |
| Net cash used in investing activities | (1,296,304) | (1,855,639) |
| Cash flows from financing activities: | ||
| Repayments of current line of credit, net | (4,500,000) | -- |
| Repayments of former line of credit, net | -- | (1,981,113) |
| Proceeds from stock options and warrants exercised | 562,968 | 228,732 |
| Principal payments on capital leases | (359,124) | (68,307) |
| Excess tax benefits from stock-based compensation | 60,539 | -- |
| Net cash used in financing activities | (4,235,617) | (1,820,688) |
| Net increase (decrease) in cash and cash equivalents | 272,909 | (2,731,188) |
| Cash and cash equivalents at beginning of period | 12,450,650 | 12,653,958 |
| Cash and cash equivalents at end of period | $ 12,723,559 | $ 9,922,770 |
| Supplemental disclosure of cash flow information: | ||
| Interest paid | $ 286,657 | $ 203,191 |
| Income taxes paid | $ 3,000,211 | $ 1,219,583 |
| Non-cash investing and financing activities: | ||
| Property and equipment acquired through capital leases | $ 1,467,560 | $ 495,600 |
| Leasehold improvements increased for deferred rent | $ -- | $ 83,070 |