CoStar Group, Inc. Announces First Quarter 2002 Results; Company Reports Upturn in Sequential Quarterly Revenue Growth.Business Editors BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md.--(BUSINESS WIRE)--April 23, 2002 CoStar Group CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of information services to commercial real estate professionals in the United States and the United Kingdom. CoStar's suite of services offers customers access via the Internet to the most comprehensive database of , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSGP CSGP Combat Support Group (USAF squadron type) CSGP Computer Systems Group ), the leading provider of information services See Information Systems. to the U.S. commercial real estate industry, announced today that it achieved continued revenue and earnings growth for the first quarter of 2002 compared to the first quarter of 2001. In addition, the company reported an increase in sequential One after the other in some consecutive order such as by name or number. quarterly revenue growth from the fourth quarter of 2001. Revenues for the first quarter were $19.1 million, an increase of $1.7 million or 9.8 percent when compared to the first quarter of 2001. Revenues increased sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen by 2.3 percent over the fourth quarter of 2001, more than double that quarter's 1.0 percent sequential growth rate over the third quarter of 2001. The pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the first quarter of 2002, which excludes purchase amortization and the related income tax benefit, was $225,000, or $0.01 per share, an improvement over pro forma losses of $(4.6) million or $(0.29) per share in the first quarter of 2001. As of March 31, 2002, the Company had $41.6 million in cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, nearly unchanged from December December: see month. 31, 2001.
Year 2001-2002 Quarterly Results
(in millions, except per share data)
2001 2002
-----------------------------------------
Q1 Q2 Q3 Q4 Q1
-----------------------------------------
Revenues $17.4 $18.1 $18.4 $18.6 $19.1
EBITDA (3.7) (1.4) 0.2 1.3 1.3
Pro forma net income (loss) (4.6) (2.7) (0.9) 0.2 0.2
Pro forma net income (loss)
per share (0.29) (0.17) (0.06) 0.01 0.01
Net income (loss) (7.6) (5.9) (4.0) (2.6) (1.6)
Net income (loss) per share (0.49) (0.38) (0.26) (0.17) (0.10)
"We continued to achieve growth in revenue and earnings, notwithstanding the difficult economic climate experienced by our client industry over the last several quarters," stated CoStar Group president & 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. Andrew C. Florance. "One of the most important attributes of our business model is our ability to grow revenues over a relatively fixed cost structure. We are now seeing the benefits of that model. During the past three quarters, we achieved three of the four key measures of profitability--cash flow, pro forma profits and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become . We are looking forward to achieving the fourth measure --GAAP-basis earnings." The Company has now achieved positive EBITDA (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"We believe that our market leading position has never been stronger," Florance stated. "The real estate industry's largest and most influential firms have committed to CoStar as the data standard for their U.S. operations." Between July July: see month. 2001 and April 2002, CoStar secured long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , national renewal agreements with CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. , Cushman Cushman is a manufacturer of industrial vehicles, personal vehicles, and other custom vehicles, including parking patrol auto rickshaws. Models Haulster (Small industrial multi-purpose truck) Bellhop Series (Golf Carts) Tug(Large Truck) & Wakefield Wakefield, estate, United States Wakefield, family estate of George Washington, on the Potomac River, E Va.; part of the George Washington Birthplace National Monument (see National Parks and Monuments, table). , Grubb & Ellis ELLIS - EuLisp LInda System. An object-oriented Linda system written for EuLisp. "Using Object-Oriented Mechanisms to Describe Linda", P. Broadbery <pab@maths.bath.ac.uk> et al, in Linda-Like Systems and Their Implementation, G. Wilson ed, U Edinburgh TR 91-13, 1991. , Marcus Marcus, in the Bible: see Mark, Saint. & Millichap and The Staubach Stau·bach , Roger Thomas Born 1942. American football player. As quarterback for the Dallas Cowboys (1969-1979), he led the National Football League in passing five times and guided his team to two Super Bowl victories. Co. In addition, CoStar is in discussions with two other large national customers on multi-year renewal agreements. "We're we're Contraction of we are. we're we are pleased to have the endorsement and continued support of the industry's leading players," Florance added. "For the second quarter, we continue to expect our revenues to grow approximately 2 percent sequentially and we expect pro forma net income of $.01 per share, consistent with the previous two quarters," Florance stated. "As we continue to grow and mature our sales force, and when conditions in the commercial real estate industry ultimately improve, we believe we will see a return to higher sequential quarterly growth." About CoStar Group, Inc. Headquartered in Bethesda, MD, CoStar Group, Inc. (NASDAQ:CSGP), is the leading provider of information services to the U.S. commercial real estate industry. CoStar's suite of products offers customers access to the most comprehensive, verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. database of commercial real estate information in 50 U.S. markets. The company has approximately 800 employees and contractors in 28 offices nationally. This news release includes "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. ," which involve many risks and uncertainties that could cause actual results to differ materially from these statements. Factors that could cause or contribute to such differences include, but are not limited to, successful adoption of the Company's products, competition, changes or consolidations in the commercial real estate industry, the economy, managerial execution, development of CoStar's sales force, renewal rates, data quality, employee retention, and the Company's ability to control costs. More information about potential factors that could cause actual results to differ materially include, but are not limited to, those stated in CoStar's 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, 2001 under the heading "Risk Factors". In addition to these statements, there can be no assurance that CoStar's revenues will grow at the rates specified herein, that CoStar will grow during the current economic climate, that CoStar will achieve GAAP-basis earnings, that CoStar's second quarter pro forma net income will be as stated in this press release, or that CoStar will experience a return to higher rates of sequential quarterly growth. All forward-looking statements are based on information available to CoStar on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and CoStar assumes no obligation to update such statements.
CoStar Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
For the Three Months
Ended March 31,
2002 2001
(unaudited)
Revenues $ 19,061 $ 17,354
Cost of revenues (a) 7,096 7,990
-------- --------
Gross Margin 11,965 9,364
Operating expenses:
Selling and marketing 5,669 6,909
Software development 1,397 1,229
General and administrative 5,867 7,701
Purchase amortization 893 1,790
-------- --------
13,826 17,629
-------- --------
Loss from operations (b) (1,861) (8,265)
Other income, net 239 575
-------- --------
Net loss before income taxes (1,622) (7,690)
Income tax benefit 0 41
-------- --------
Net loss $ (1,622) $ (7,649)
======== ========
Net loss per share $ (0.10) $ (0.49)
======== ========
Pro forma net income (loss) (c) $ 225 $ (4,566)
======== ========
Pro forma net income (loss) per share $ 0.01 $ (0.29)
======== ========
Weighted average common shares 15,720 15,575
======== ========
(a) Includes purchase amortization of $954 and $1,334 for the three
month periods ended March 31, 2002 and 2001, respectively
(b) Includes depreciation and other amortization of $1,351 and $1,452
for the three-month periods ended March 31, 2002 and 2001,
respectively
(c) Pro forma net income (loss) excludes purchase amortization and the
related income tax benefit
CoStar Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2002 2001
(unaudited)
-------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 31,154 $ 30,746
Short-term investments 10,489 11,256
Accounts receivable, net 6,282 5,983
Prepaid and other current assets 530 957
-------------- -------------
Total current assets 48,455 48,942
Property and equipment, net 11,085 11,876
Intangible and other assets, net 60,340 62,471
Deposits 325 357
-------------- -------------
Total assets $ 120,205 $ 123,646
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 8,884 $ 11,095
Deferred revenue 4,843 4,532
-------------- -------------
Total current liabilities 13,727 15,627
Deferred taxes 0 0
Stockholders' equity 106,478 108,019
-------------- -------------
Total liabilities and stockholders'
equity $ 120,205 $ 123,646
============== =============
Management will conduct a conference call to discuss earnings
results for the quarter ended March 31, 2002, at 11:00 am ET,
Wednesday, April 24, 2002. This conference call will be broadcast live
over the Internet at www.costar.com/corporate/investor. If you would
like to join by telephone, please call (888) 688-0419 within the
United States or (706) 634-0964 outside the United States. A replay of
the conference call will be available two hours after the live call
concludes through midnight on May 1, 2002. The replay telephone number
is (800) 642-1687 within the United States or (706) 645-9291 outside
the United States. Refer to conference ID 3727630. The replay will
also be available over the Internet through midnight on May 1, 2002.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion