Bankrate's First Quarter Net Income Surges to $2 Million or $0.13 Per Share on a 52% Revenue Increase to $8.5 Million; Company Has First 2 Million Page View Day.Business Editors NEW YORK--(BUSINESS WIRE)--April 30, 2003 Reminder -- Conference Call Today at 2:00 p.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time; Interactive Dial-In: 1-877-261-8992 (10 minutes before the call) Bankrate, Inc. (Nasdaq:RATE), the Internet's leading consumer banking marketplace, today reported an increase in net income to a record $2.0 million, or $0.13 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, for the quarter ended March 31, 2003, from $690,000, or $0.05 per share on a diluted basis, excluding the non-cash gain on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of $2.0 million in the quarter ended March 31, 2002. (Net income for the quarter ended March 31, 2002 was $2.7 million or $0.19 per share on a diluted basis). These results reflect Bankrate's sixth consecutive profitable quarter as a result of increased advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase demand and traffic patterns. Total revenue for the first quarter rose 52% to a record $8.5 million from $5.6 million in the first quarter of 2002. Commenting on Bankrate's first quarter performance, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Elisabeth Elisabeth. For persons thus named, use Elizabeth. DeMarse said, "We are very pleased with across the board growth for what is traditionally our strongest quarter of the year. Our results exceeded the exceptionally robust results in the third and fourth quarters in 2002. In fact, our net income in the first quarter was 24% above the previous all time record of $1.6 million, or $0.11 per share on a diluted basis, in the third quarter last year. These results reflect Bankrate's ability to generate strong top and bottom line growth on a stable fixed expense base." For the eighth consecutive quarter, the Company generated cash from operations. Cash increased $1.8 million from $11.0 million at December December: see month. 31, 2002 to $12.8 million at March 31, 2003, and Bankrate remains virtually debt-free. "Our strong balance sheet and cash flow represent a solid base for future growth, enabling us to extend our product lines either through internal expansion or by acquisition," explained Bob DeFranco, Senior Vice President-Chief Financial Officer. First Quarter Highlights Bankrate continued to experience unprecedented strength in revenue in all categories, resulting in higher year-over-year and consecutive quarter revenue for the three-month period: -- Total revenue of $8.5 million was $2.9 million, or 52% higher, than the first quarter a year earlier, and was $1.1 million, or 14%, higher than the fourth quarter of 2002. -- Online publishing revenue of $7.3 million was up $2.6 million, or 56%, over the 2002 first quarter, and was $930,000, or 14%, higher than the fourth quarter of 2002. -- Graphic ad revenue was up $1.7 million, or 80%, over the first quarter of 2002, and was 12% higher than the fourth quarter of 2002. -- Hyperlink A predefined linkage between one object and another. See hypertext. hyperlink - anchor (rate table listings) revenue increased $1.1 million, or 63%, over the same quarter of 2002, and was 12% higher than the fourth quarter of 2002. -- Print publishing and licensing revenue of $1.2 million was up $288,000, or 31%, over the 2002 first quarter and was 12% above the $1.1 million reported in the fourth quarter of 2002. -- Excluding barter barter: see exchange. barter Direct exchange of goods or services without the use of money or any other intervening medium of exchange. Barter is conducted either according to established rates of exchange or by bargaining. , other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of total revenue declined from 53% for the three months ended March 31, 2002 to 46% for the current quarter, while total expenses as a percentage of total revenue dropped from 85% in the first quarter of 2002 to 75% in the same quarter in 2003. -- Page views for the first quarter of 2003 of 107 million were up 83% over the 58 million reported in the same quarter in 2002, and were 27 million, or 35%, higher than page views in the fourth quarter of 2002. -- On January January: see month. 9, 2003 the Company's stock began trading on the Nasdaq SmallCap Market under its existing stock symbol RATE. Online publishing revenue for the three months ended March 31, 2003 and 2002 included barter revenue of $750,000 and $855,000, representing 9% and 15% of total revenue, respectively. "Consumer demand for our objective rate information and personal financial advice continued to build despite war jitters jitters 'Butterflies' Psychology An episode of nervousness or anxiety that often precedes a public event; jitters is a type of performance anxiety which may affect actors in a stage production–stage fright or soloist musicians; it may respond to anxiolytics . Our first two million page view day came on the heels of initiatives taken in March. These initiatives include making Bankrate data available to subscribers of The Wall Street Journal Online, the Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Radio Network's launch of Bankrate.com's `The Personal Finance Minute,' and the release of our Financial Literacy Financial literacy is the ability of individuals to make appropriate decisions in managing their personal finances. Raising levels of financial literacy is now a focus of government programmes in countries including[1] Australia, Japan, the United States and the UK. benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. survey conducted by RoperASW. Working with leading partners has helped us to continue to build recognition of the Bankrate brand as the gold standard for consumers seeking objective data and education for their most important banking needs," Ms. DeMarse concluded. April 30, 2003 Conference Call & Replay Information The Company has scheduled a teleconference on its first quarter results today at 2:00 p.m. Eastern Daylight Time (11 a.m. Pacific Daylight Time). To participate in the teleconference please call 1-877-261-8992 10 minutes prior to the start time. A replay of the teleconference will be available through May 21 by calling 1-888-843-8996 (domestic) or 1-630-652-3044 (international) and entering the pass code 7024773#. About Bankrate, Inc. Bankrate, Inc. (NASDAQ:RATE) owns and operates Bankrate.com, the Internet's leading consumer banking marketplace. Bankrate.com averages 4 million unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. per month, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. comScore comScore is an internet marketing research company that provides marketing data and services to many of the internet's largest businesses [1]. comScore tracks all internet data on its surveyed computers in order to study online behavior. Media Metrix, which ranks Bankrate.com first in unique visitors in the "Financial information and advice" category. Bankrate.com reviews more than 4,800 financial institutions in more than 180 markets in 50 states. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes and small business finance. It is the leading aggregator of more than 190 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 provides financial applications and information to a network of more than 80 partners, including Yahoo! (NASDAQ: YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ), America Online See AOL. (NYSE NYSE See: New York Stock Exchange : AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. ), The Wall Street Journal (NYSE: DJ) and The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times (NYSE: NYT NYT New York Times NYT National Youth Theatre (UK) NYT New York Transit (New York, USA) NYT New York Tribune ). Bankrate.com's information is also distributed through more than 100 national and state publications. Certain matters discussed in this press release are or may be considered to be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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: we have a history of losses; we use barter transactions that do not generate cash; our success depends on Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. revenue, interest rate volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the , establishing and maintaining distribution arrangements, and increasing brand awareness of our Web site; our markets are highly competitive; our Web site may encounter technical problems and service interruptions; we rely on the protection of our intellectual property; we may face liability for information on our Web site; future government regulation of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the is uncertain and subject to change; our ownership is heavily concentrated; our success may depend on management and key employees; we may encounter difficulties with future acquisitions; our results of operation may fluctuate significantly; and our stock price may be volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. in the future. These and additional important factors to be considered are set forth under "Item 1. Business - Risk Factors," "Item 7. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" and in the other sections of our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002, 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.
Bankrate, Inc.
Unaudited Condensed Statements of Operations
($ in thousands except share and per share data)
Three Months Ended
March 31,
2003 2002
Revenue: ----------- -----------
Online publishing $7,334 $4,713
Print publishing and licensing 1,212 924
----------- -----------
Total revenue 8,546 5,637
----------- -----------
Cost of revenue:
Online publishing 1,240 882
Print publishing and licensing 1,008 672
----------- -----------
Total cost of revenue 2,248 1,554
----------- -----------
Gross margin 6,298 4,083
----------- -----------
Operating expenses:
Sales 1,026 851
Marketing 1,198 923
Product development 432 330
General and administrative expenses 1,470 1,134
Depreciation and amortization 191 144
----------- -----------
4,317 3,382
----------- -----------
Income from operations 1,981 701
Other income (expense), net 38 (11)
Gain on early extinguishment of debt - 2,022
----------- -----------
Income before income taxes 2,019 2,712
Income taxes - -
----------- -----------
Net income $2,019 $2,712
=========== ===========
Basic and diluted net income per share:
Basic $0.14 $0.19
=========== ===========
Diluted $0.13 $0.19
=========== ===========
Weighted average common shares outstanding:
Basic 14,162,059 13,996,950
Diluted 15,423,056 14,066,486
Bankrate, Inc.
Unaudited Condensed Balance Sheets
($ in thousands)
March 31, Dec. 31,
2003 2002
----------- -----------
Assets
Cash and cash equivalents $12,843 $11,001
Accounts receivable, net 3,011 2,378
Other current assets 385 370
----------- -----------
Total current assets 16,239 13,749
Furniture, fixtures and equipment, net 794 913
Intangible assets, net 178 207
Other assets 562 304
----------- -----------
Total assets $17,773 $15,173
=========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $1,071 $809
Other accrued expenses 2,651 3,073
Deferred revenue 265 255
Other current liabilities 241 244
----------- -----------
Total current liabilities 4,228 4,381
Other liabilities 176 142
----------- -----------
Total liabilities 4,404 4,523
----------- -----------
Stockholders' equity:
Preferred stock, 10,000,000 shares
authorized and undesignated - -
Common stock, par value $.01 per share --
100,000,000 shares authorized; 14,206,609
and 13,998,168 shares issued and
outstanding at March 31, 2003 and Dec. 31,
2002, respectively 142 139
Additional paid in capital 64,631 63,933
Accumulated deficit (51,404) (53,422)
----------- -----------
Total stockholders' equity 13,369 10,650
----------- -----------
Total liabilities and
stockholders' equity $17,773 $15,173
=========== ===========
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