CoStar Group, Inc. Announces First Quarter 2003 Results; U.K. Operations and Core Business Contribute to 18.3% Revenue Growth Over First Quarter of 2002.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, 2003 The addition of a strong U.K. operation and continued organic growth of the core business contributed to revenue growth of 18.3% for the first quarter of 2003 over the first quarter of 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: CSGP CSGP Combat Support Group (USAF squadron type) CSGP Computer Systems Group ) announced today. CoStar Group, the leading provider of information services See Information Systems. to the commercial real estate industry in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , entered the U.K. market in January January: see month. 2003 with the acquisition of London-based Property Intelligence plc, a leading provider of commercial real estate information in the United Kingdom.
Year 2002-2003 Quarterly Results
($'s in millions, except per share data)
2002 2003
------------------------ ------
Q1 Q2 Q3 Q4 Q1
------------------------ ------
Revenues $19.1 $19.5 $20.1 $20.7 $22.6
EBITDA 1.3 1.4 1.6 2.0 2.4
Pro forma net income 0.2 0.3 0.4 0.8 1.0
Pro forma net income per share 0.01 0.02 0.03 0.05 0.06
Net income (loss) (1.6) (1.3) (1.1) (0.8) (0.8)
Net income (loss) per share (0.10)(0.08)(0.07)(0.05) (0.05)
Weighted average common shares 15.7 15.7 15.8 15.8 15.8
Revenues for the first quarter of 2003 were $22.6 million, compared to $19.1 million in the first quarter of 2002. In addition, 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 9% for the first quarter of 2003 over the fourth quarter of 2002. The U.K. operation contributed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 7% of the revenue for the first quarter of 2003, with income from operations equal to approximately 10% of U.K. revenue, before corporate charges. "We believe several factors contributed to the steady progress we have achieved," said CoStar 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. "We continue to post sequential One after the other in some consecutive order such as by name or number. increases in revenue and earnings as a result of steady organic growth in our U.S. operations, while our new U.K. operation provides additional opportunities for growth. We believe the commercial real estate industry will soon begin to stabilize stabilize See peg. , which may also help us to achieve higher growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. later in the year." For the quarter ended March 31, 2003, 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, which excludes purchase amortization, improved to $972,000 versus pro forma net income of $225,000 for the same quarter in 2002. On a per share basis, pro forma net income improved to $0.06 per share for the first quarter of 2003 versus pro forma net income of $0.01 per share for the first quarter of 2002. 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 (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.
As of March 31, 2003, the Company had $26.3 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, and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . "For the second quarter of 2003, we expect overall sequential quarterly revenue growth of approximately 2% over the first quarter of 2003, and pro forma net income of approximately $0.08 per share" said Frank Carchedi, CoStar's Chief Financial Officer. "In addition, we continue to expect to reach our stated goal of approximately $0.40 of pro forma net income per share for 2003. Adjusting these pro forma amounts for purchase amortization, which we anticipate to be consistent with the charges for the first quarter of 2003, we expect a GAAP-basis net loss of approximately $(0.03) per share for the second quarter of 2003 and a GAAP-basis total net loss of approximately $(0.05) per share for the year 2003. We continue to expect to reach GAAP-basis net income during 2003."
CoStar Group, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
For the Three
Months
Ended March 31,
2003 2002
-------- --------
(unaudited)
Revenues $22,553 $19,061
Cost of revenues 7,603 7,096
-------- --------
Gross margin 14,950 11,965
Operating expenses:
Selling and marketing 6,569 5,669
Software development 1,700 1,397
General and administrative 6,489 5,867
Purchase amortization 1,112 893
-------- --------
15,870 13,826
-------- --------
Loss from operations (920) (1,861)
Other income, net 77 239
-------- --------
Net loss before income taxes (843) (1,622)
Income tax benefit 0 0
-------- --------
Net loss $(843) $(1,622)
======== ========
Net loss per share $(0.05) $(0.10)
======== ========
Pro forma net income $972 $225
======== ========
Pro forma net income per share $0.06 $0.01
======== ========
Weighted average common shares 15,814 15,720
======== ========
Reconciliation of Non-GAAP Financial Measures with Net Loss
Net loss $(843) $(1,622)
Purchase amortization in cost of revenues 703 954
Purchase amortization in operating expenses 1,112 893
-------- --------
Pro forma net income $972 $225
======== ========
Pro forma net income $972 $225
Depreciation and other amortization 1,456 1,351
Interest income, net (78) (239)
-------- --------
EBITDA $2,350 $1,337
======== ========
Costar Group, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2003 2002
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $24,910 $25,546
Cash held for acquisition 0 16,386
Short-term investments 1,405 1,598
Accounts receivable, net 7,123 6,786
Prepaid and other current assets 1,723 1,567
------------ ------------
Total current assets 35,161 51,883
Property and equipment, net 10,689 11,048
Intangible and other assets, net 72,755 55,704
Deposits 280 272
------------ ------------
Total assets $118,885 $118,907
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $9,050 $10,124
Deferred revenue 6,505 4,766
------------ ------------
Total current liabilities 15,555 14,890
Stockholders' equity 103,330 104,017
------------ ------------
Total liabilities and stockholders' equity $118,885 $118,907
============ ============
Reconciliation of Non-GAAP Financial Measures for Year 2002-2003
Quarterly Results
($'s in millions)
2002 2003
------------------------ ------
Q1 Q2 Q3 Q4 Q1
------------------------ ------
Net Loss $(1.6)$(1.3)$(1.1)$(0.8) $(0.8)
Purchase amortization 1.8 1.6 1.5 1.6 1.8
------------------------ ------
Pro forma net income 0.2 0.3 0.4 0.8 1.0
Depreciation and other amortization 1.3 1.3 1.3 1.3 1.5
Interest income, net (0.2) (0.2) (0.1) (0.1) (0.1)
------------------------ ------
EBITDA $1.3 $1.4 $1.6 $2.0 $2.4
======================== ======
Management will conduct a conference call to discuss earnings results for the quarter ended March 31, 2003 and financial outlook for 2003, at 11:00 am ET, Thursday Thursday: see week. , April 24, 2003. This conference call will be broadcast live over 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 at www.costar.com/corporate/investor. If you would like to join by telephone, please call (800) 329-4405 within the United States or (706) 634-0964 outside the United States. A telephonic replay of the conference call will be available two hours after the live call concludes through midnight on May 1, 2003. The replay telephone number is (800) 642-1687 within the United States or (706) 645-9291 outside the United States. Refer to Conference ID 9586040. The replay will also be available over the Internet at www.costar.com/corporate/investor for a period of time following the call. About CoStar Group, Inc. CoStar Group, Inc., (NASDAQ: CSGP) is the leading provider of information services to commercial real estate professionals in the United States and the United Kingdom. CoStar's suite of products offers customers access via the Internet 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 on 50 U.S. markets, London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. and the United Kingdom. Based in Bethesda, MD, the company has approximately 850 employees in 34 offices throughout the United States and the United Kingdom, including the largest professional research organization in the industry. 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. More information about potential factors that could cause actual results to differ materially include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including 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 December: see month. 31, 2002 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 spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. herein, that CoStar's pro forma net income for the second quarter of 2003 or for the year ended December 31, 2003 will be as stated in this press release, that CoStar's GAAP-basis net loss for the second quarter of 2003 or for the year ended December 31, 2003 will be as stated in this press release, that CoStar's estimated purchase amortization will be as stated in this press release, that CoStar's sequential quarterly growth rate or earnings will continue to improve, or that CoStar will reach GAAP-basis net income during 2003. 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion