InterSearch Reports Record First Quarter 2007 Financial Results.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- InterSearch Group, Inc. (AMEX AMEX See: American Stock Exchange :IGO IGO Inter-Governmental Organization IGO Inspector General's Office IGO In Good Order (verifying documents) IGO Inside Gamer Online (video game website) IGO Industrial Gas Oil ), a leading operator of industry specific destination portals such as www.Banks.com, www.IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. .com and www.Camps.com and provider of Internet search services today reported financial results for the first quarter ended March 31, 2007. First Quarter 2007 Financial Highlights * First quarter revenue was $10.8 million, up 35% from the first quarter a year ago; * First quarter 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 1 was $5.1 million, a 34% increase from $3.8 million in the first quarter of 2006; * First quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 2 net earnings rose to $2.6 million, or $0.09 per fully diluted share. Gross margins increased sequentially to 69% from 53% in the fourth quarter of 2006 and were consistent with our gross margins from the first quarter of 2006. Sales, general and administrative expense increased by $0.8 million year over year, attributable mainly to new software development hires and the expensing of certain data warehouse related salaries and expenses which had been capitalized in 2006, reflecting the launch of the Data Warehouse into production. "We're very pleased with our record-setting first quarter, which features the highest revenues and EBITDA in our Company's history and is indicative of our continuing growth," said Dan O'Donnell, Chairman and Chief Executive Officer of InterSearch Group. "Growth was driven by a combination of seasonally strong performance of our tax-related domains and the continued improvement and refinement of our aggressive internet and search engine marketing efforts which generated significant traffic to InterSearch's proprietary websites." First Quarter 2007 Business Highlights * Generated over 34.4 million paid clicks as compared to 24.7 million in the first quarter of 2006. * Rolled out the enhanced edition of www.Banks.com, an online consumer finance marketplace. * Rolled out the enhanced, content-rich edition of www.Camps.com which also reached the number #1 ranking in Google's algorithmic search results for the term "camps". * Successfully launched an automated Ad Center which allows advertisers to sign up online and manage their listings on InterSearch Group's proprietary domains. Second Quarter 2007 Business Outlook InterSearch Group provided the following guidance for the second quarter of 2007, ending June 30: * Q2 2007 Revenue Range $8.0 - $8.4 Million * Q2 2007 EBITDA Range $2.2 - $2.4 Million InterSearch Group expects to be profitable on a GAAP basis and generate positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the entire FY2007 period. Said Gary Bogatay, Chief Financial Officer of InterSearch Group, "With a strong finish to the extended 2007 tax filing season, combined with continued growth of other destination sites in our domain portfolio, we expect to achieve a 25% to 31% year-over-year growth rate for the second quarter of 2007." Conference Call Chairman and Chief Executive Officer, Dan O'Donnell, and Chief Financial Officer, Gary Bogatay, will discuss the first quarter performance along with the outlook for the second quarter, during a conference call today at 2:00 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). To listen to the call and have the opportunity to ask questions, please dial 800.591.6942 (domestic) or 617.614.4909 (International) five to ten minutes before the call and reference the passcode 81375000. A simultaneous live Webcast of the call will be available at the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the InterSearch Group website at: www.InterSearch.com. An online playback of the Webcast will be available on the InterSearch Group website for at least 90 days following the call. Forward Looking Statements This press release contains forward-looking statements within the meaning of 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 that involve substantial risks and uncertainties, including statements regarding our expected financial results for the second quarter of 2007. Forward-looking statements, which are based on management's current expectations, are generally identifiable by the use of terms, such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "possible," "potential," "predicts," "projects," "should," "would" and similar expressions. The forward-looking statements in this press release are contained principally in the section entitled "Second Quarter 2007 Business Outlook," including statements regarding: guidance for 2007 with respect to revenue and EBITDA; expectations for profitability on a GAAP basis and generation of positive cash flow from operations; and expectations regarding growth rate for second quarter 2007. The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include, among others, unanticipated slowdown in the travel and financial verticals; uncertainties related to the acceptance by customers of our enhanced versions of www.Banks.com and www.Camps.com; unexpected diversion of advertising dollars away from the Internet; slower than anticipated growth rate of InterSearch Group's advertising base; dependence on our search providers; and market development of 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. and paid search services. Further information on the factors that could affect InterSearch Group's financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006 and our Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . Except as required by law, we assume no obligation to update these forward-looking statements publicly, even if new information becomes available in the future. Non-GAAP Financial Measures This press release includes the following financial measure defined as non-GAAP financial measure by the Securities and Exchange Commission: EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. See "Reconciliation of GAAP Net Earnings to 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.
InterSearch Group's management evaluates and monitors performance for InterSearch Group primarily through EBITDA. In addition, EBITDA is presented because management believes it is frequently used by securities analysts, investors and others in the evaluation of companies. EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization to net earnings. EBITDA is not defined under GAAP and should not be considered in isolation or as a substitute for net earnings and other consolidated earnings data prepared in accordance with GAAP or as a measure of InterSearch Group's profitability. About InterSearch Group, Inc. InterSearch Group is a leading operator of industry specific destination portals and provider of Internet search services through a combination of traffic aggregation and proprietary websites, such as www.Banks.com, www.IRS.com and www.Camps.com. InterSearch Group operates in the fastest growing segments of Internet commerce including paid search, direct navigation and online marketing driving high quality traffic to advertisers and providing users with quick access to pertinent products and services. Through its corporate services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. division, InterSearch Group also provides Internet technology related professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to large corporations, predominantly in the Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. InterSearch Group is headquartered in San Francisco, California “San Francisco” redirects here. For other uses, see San Francisco (disambiguation). The City and County of San Francisco (EN IPA: [sænfrənˈsɪskoʊ] at 222 Kearny Street, Suite 550, and can be reached via telephone at 415-962-9700. More information about InterSearch Group can be found at: www.InterSearch.com. 1 EBITDA is a non-GAAP financial measure. This measure may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled "Non-GAAP Financial Measures" and to review the reconciling adjustments between the GAAP and non-GAAP measures attached to this press release. 2 Generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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