Data Broadcasting Reports 34% Increase in 2000 Pro Forma EBITDA to $93.4 Million; Integration of Financial Times Interactive Data and Muller Data With DBC Completed.Business Editors BEDFORD Bedford, town, England Bedford, town (1991 pop. 75,632), county seat of Bedfordshire, central England, on the Ouse River. It is an important industrial center; diesel engines, pumps, turbines, agricultural machinery, electrical equipment, and transistors , Mass.--(BUSINESS WIRE)--Feb. 8, 2001 Data Broadcasting Corporation (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 NM: DBCC DBCC Daytona Beach Community College (Florida) DBCC District Business Conduct Committee (NASD) DBCC Desert Breeze Community Church (Glendale, AZ, USA) ) (DBC See dBA. (language, parallel) DBC - A data-parallel bit-serial C based on MPL. SRC, Bowie MD. E-mail: <maya@super.org>. ), a leading source of securities pricing, financial information and analytic an·a·lyt·ic or an·a·lyt·i·cal adj. 1. Of or relating to analysis or analytics. 2. Expert in or using analysis, especially one who thinks in a logical manner. 3. Psychoanalytic. tools to global institutional, professional and individual investors, today announced results for the fourth quarter and full year ended December 31, 2000. This is the Company's third full reporting period since the completion of its merger with Financial Times Interactive Data (FTID FTID Financial Times Interactive Data , formerly Financial Times Asset Management). On a proforma Proforma A financial projection based on assumptions. basis, reported as if the DBC and FTID businesses had been combined on January 1, 1999, revenues for 2000 totaled $330.5 million, a 6% increase from 1999. Proforma 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 for the same period totaled $93.4 million, or $1.02 per share, a 34% increase from 1999. Stuart Clark Stuart Rupert Clark (born 28 September 1975, Sutherland, New South Wales) is an Australian Test cricketer who plays for the New South Wales Blues and Hampshire. He bowls right-arm fast medium deliveries. , president and chief executive officer, commented, "We are very pleased with the Company's progress in this first year of the merged business. Prior to the merger, we acquired Muller Mul·ler , Hermann Joseph 1890-1967. American geneticist. He won a 1946 Nobel Prize for the study of the hereditary effect of x-rays on genes. Mül·ler , Johannes Peter 1801-1858. Data, a leading supplier of fixed income pricing data since 1971. Seven months later, DBC merged with FTID. The past year has thus been devoted to integrating our businesses and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar their focus on the most promising areas of opportunity. Our financial results indicate how successfully this process has been proceeding. In the proxy issued in connection with the merger, we stated that we expected the newly merged company to generate revenues of over $320 million and annual cash flow (EBITDA) of over $70 million. In fact, we substantially exceeded these targets, generating 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 annual revenues of $330 million and annual EBITDA of $93.4 million. Mr. Clark continued, "These results, which reflect the Company's strength in the institutional arena, were especially impressive given the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in growth of the Company's eSignal product. The retail segment of our business, which accounts for approximately 16% of the Company's revenues, was impacted in 2000 by the sharp decline in the Nasdaq stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. and by customers who, as anticipated, have been migrating from broadcast to the internet as the platform of choice. Through new products and services, we are continuing to enhance this segment of our business and are moving closer to our goal of becoming the leading one-stop service provider to active online traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. ." Mr. Clark added, "As previously announced, our first post-merger objective, which was to streamline and simplify DBC's activities to focus on our institutional and retail businesses, has now been essentially completed with the sale of our MarketWatch position and the subsequent sale in January of Federal News Service (FNS FNS Food and Nutrition Service (USDA) FNS Fonds National Suisse (French: Swiss National Science Foundation) FNS Federated Naming Service FNS Friedrich Naumann Stiftung ). Although the MarketWatch transaction entailed a net one-time charge after tax of approximately $90 million in the fourth quarter, going forward in 2001 the sale removes the equity loss and amortization associated with that investment and, as a result, we expect the Company's income before taxes to return to profitability." Mr. Clark concluded, "During the past three months, our core institutional business, which provides the essential data and tools that the world's leading financial institutions need to value and manage their portfolios, process securities transactions and perform essential securities administration functions, contributed another strong quarter. The Company's leadership position in this marketplace helps us deliver consistent growth and excellent cash flow. Our business pipeline, a heavily qualified indicator of future business, looks very healthy as we head into 2001. Historically, our institutional business has been more resilient See resiliency. than most businesses to economic downturns." Financial Results For the year ended December 31, 2000, the Company reported revenues of $314.1 million versus $189.0 million for 1999. Results for the two periods are not comparable due to DBC's merger with FTID on March 1, 2000, which is being accounted for as a reverse merger. EBITDA totaled $92.5 million for 2000 versus $56.2 million for 1999. After giving effect to a pre-tax loss of $67.2 million from the Company's equity stake in MarketWatch.com, the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $141.8 million related to the disposal of the MarketWatch.com shares and the $4.5 million write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a trademark no longer used, DBC reported a net loss of $143.5 million, or $1.68 per share. For the three months ended December 31, 2000, DBC reported total revenues of $85.7 million versus $56.1 million for the same period in 1999, which was prior to the DBC/FTID merger. EBITDA for the fourth quarter of 2000 totaled $26.5 million, or $0.29 per share, versus $13.6 million, or $0.24 per share, a year ago. After giving effect to a pre-tax loss of $21.5 million from the Company's equity stake in MarketWatch.com, the previously described impairment charge of $141.8 million and the $4.5 million trademark write-off, DBC reported a net loss of $102.2 million, or $1.12 per share, versus a net loss of $2.1 million, or $0.04 per share, for the same period in 1999. Although MarketWatch.com's losses significantly impacted DBC's earnings per share during the quarter, they did not adversely impact its cash flow. On a proforma basis, revenues rose 6% to $85.7 million for the fourth quarter ended December 31, 2000 versus $80.9 million for the same period in 1999. EBITDA rose by 59% to $26.5 million from $16.7 million a year earlier. The proforma income from operations was $2.2 million in the fourth quarter of 2000, excluding nonrecurring items, compared to a loss of $10.1 million the previous year. Per share results for the current fourth quarter are calculated on 62% more weighted average shares outstanding than in the comparable period in 1999, and per share results for the full year are calculated on 52% more weighted average shares outstanding than in 1999, primarily reflecting the issuance of 56.4 million shares in conjunction with the merger. Because DBC owned more than 20% but less than 50% of MarketWatch.com, the Company's results for the fourth quarter and full year include MarketWatch.com's net losses in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with equity accounting rules. Although these losses had a significant negative impact on DBC's earnings per share during the quarter and year, these losses did not adversely impact DBC's cash flow. The sale of the Company's interest in MarketWatch will significantly simplify DBC's income statement in 2001 and thereafter. Revenue for the quarter and the year ended December 31, 2000 reflects the application of SEC Staff Accounting Bulletin 101 (SAB SAB Spontaneous abortion. See Abortion. 101), which reduced revenue and cost of sales by $1.9 million and $7.7 million, respectively, but had no impact on net income. Conference Call Information Data Broadcasting Corporation's management will conduct a conference call today at 11:00 a.m. Eastern Time to discuss the fourth quarter 2000 and year-end results. The dial-in number for the call is 212-896-6134. Investors and interested parties may listen to the call via a live web broadcast available through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's web site at www.dbc.com and through www.StreetEvents.com. To listen, please register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. audio software at the site at least 15 minutes prior to the call. A replay will be available on both web sites shortly after the call. In addition, a telephone replay will be available for seven days beginning at 1:00 p.m. ET on February 8th. To access the replay, please dial 800-633-8284 or 858-812-6440 and request reservation #17769690. About Data Broadcasting Corporation Data Broadcasting Corporation is a leading global provider of financial and business information to institutional and individual investors. The Company supplies time sensitive pricing, dividend, corporate action and descriptive information for more than 3.5 million securities traded around the world, including hard-to-value unlisted fixed income instruments Fixed income instruments Assets that pay a fixed dollar amount, such as bonds and preferred stock. . At the core of the business are its extensive database expertise and technology resources. DBC delivers real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. , end-of-day and historically archived data to customers through a variety of products featuring Internet, dedicated line, satellite and dial-up delivery protocols. Through a broad range of partnerships and alliances, the Company provides links to most of the world's best-known financial service and software companies for trading, analysis, portfolio management and valuation. DBC, with approximately 1,700 employees, is headquartered in Bedford, Massachusetts Bedford is a town in Middlesex County, Massachusetts, United States. It is within the Greater Boston area, some 15 miles north-west of the city of Boston. The population of Bedford was 12,595 at the 2000 census. and has more than 20 offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Asia and Australia, including the world's key financial centers of 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 , London and Tokyo. Pearson plc (NYSE NYSE See: New York Stock Exchange : PSO PSO - Oracle Parallel Server ), an international media company, whose businesses include the Financial Times Group, Pearson Education Pearson Education is an international publisher of textbooks and other educational material, such as multimedia learning tools. Pearson Education is part of Pearson PLC. It is headquartered in Upper Saddle River, New Jersey. , and the Penguin penguin, originally the common name for the now extinct great auk of the N Atlantic and now used (since the 19th cent.) for the unrelated antarctic diving birds. Group, is a 60% shareholder in DBC. Forward-looking and cautionary statements Matters discussed in this release include 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. that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include the response of competitors to the Company's new services, acceptance of the Internet as a valid real-time distribution platform by institutional customers, activity levels in the securities markets and other risk factors listed in the Company's 10-K and 10-Q reports to the Securities and Exchange Commission.
DATA BROADCASTING CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(POST SAB 101 ADJUSTMENT)
(Unaudited)
(In thousands except per share data)
Three Months Ended Twelve Months Ended
Dec 31 Dec 31
2000 1999 2000 1999
REVENUES
Institutional 73,166 56,145 269,943 188,956
Retail
- eSignal 9,062 27,427
- Broadcast 3,432 16,768
---------------- -----------------
Total 85,660 56,145 314,138 188,956
COSTS & EXPENSES
Cost of Services 26,963 17,068 105,524 55,031
Selling, general
& administrative 32,165 25,480 116,091 77,743
---------------- -----------------
EBITDA 26,532 13,597 92,523 56,182
Depreciation 3,606 2,380 12,671 6,681
Amortization 20,745 11,762 78,415 31,897
---------------- ----------------
Total costs &
expenses 83,479 56,690 312,701 171,352
---------------- -----------------
INCOME (LOSS) FROM OPERATIONS 2,181 (545) 1,437 17,604
Equity in loss from
MarketWatch.com, Inc.
(21,453) (67,229)
Loss on disposal of
stake of
MarketWatch.com, Inc. (141,844) (141,844)
Write off of Trademark (4,528) (4,528)
Other income, net 579 (299) 1,170 241
------------------ -----------------
INCOME (LOSS) BEFORE INCOME
TAXES (165,065) (844) (210,994) 17,845
Provision (Benefit) for Income
Taxes (62,837) 1,269 (67,522) 11,648
---------------- -----------------
NET INCOME (LOSS) (102,228) (2,113) (143,472) 6,197
================== ===================
NET INCOME (LOSS) PER
SHARE
Basic (1.12) (0.04) (1.68) 0.11
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING
Basic 91,202 56,424 85,560 56,424
DATA BROADCASTING CORPORATION AND SUBSIDIARIES
PRO FORMA SELECTED FINANCIAL DATA
(POST SAB 101 ADJUSTMENT)
(Unaudited)
(In thousands except per share data)
Three Months Ended Twelve Months Ended
Dec 31 % Dec 31 %
2000 1999 Change 2000 1999 Change
REVENUES
Institutional 73,166 69,020 6% 276,361 258,217 7%
Retail
- eSignal 9,062 4,123 120% 32,551 13,400 143%
- Broadcast 3,432 7,791 -56% 21,547 39,641 -46%
----------------------- ----------------------
Total 85,660 80,934 6% 330,459 311,258 6%
COSTS & EXPENSES
Cost of
Services 26,963 26,532 2% 113,592 105,466 8%
Selling,
general &
administrative 32,165 37,686 -15% 123,472 136,226 -9%
---------------------- -----------------------
EBITDA 26,532 16,716 59% 93,395 69,566 34%
Depreciation 3,606 3,199 13% 13,739 13,924 -1%
Amortization 20,745 23,570 -12% 84,389 88,539 -5%
---------------------- ----------------------
Total costs &
expenses 83,479 90,987 -8% 335,192 344,155 -3%
---------------------- -----------------------
INCOME (LOSS) FROM
OPERATIONS 2,181 (10,053) 122% (4,733) (32,897) 86%
Equity in operating
loss from
MarketWatch.com,
Inc. (21,453) (19,402) -11% (79,543) (69,041) -15%
Loss on disposal of
stake of
MarketWatch.com,
Inc. (141,844) (141,844)
Write off of
Trademark (4,528) (4,528)
Other income, net 579 (193) -400% 1,538 1,450 6%
------------------------ ------------------------
INCOME (LOSS) BEFORE
INCOME TAXES (165,065) (29,648) -457% (229,110)(100,488) -128%
Provision (Benefit)
for
Income Taxes (62,837) (14,976) -320% (73,623) (27,624) -167%
------------------------ ------------------------
NET INCOME (LOSS) (102,228) (14,672) -597% (155,487) (72,864)
======================== ========================
NET INCOME (LOSS) PER
SHARE
Basic (1.12) (0.16) (1.70) (0.80)
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING
Basic 91,202 91,202 91,202 91,202
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