TheStreet.com Reports Second-Quarter Financial Results.Advertising Revenue up 48% -- Drives Record Revenue 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 -- TheStreet.com, Inc. (Nasdaq: TSCM TSCM technical surveillance countermeasures (US DoD) TSCM Tactical Strike Coordination Manager TSCM Tactical Strike Coordination Module TSCM Temperature Scram Circuit Monitor TSCM Tomahawk Strike Coordination Module ), a leading provider of financial commentary, analysis, research, news and financial ratings, today reported financial results for its second quarter ended June 30, 2007. Second-Quarter 2007 Results: For the quarter ended June 30, 2007, TheStreet.com reported record revenue of $14.9 million, an increase of 20% over revenue of $12.4 million for the second quarter of 2006. The Company's three revenue streams contributed to the increase, with advertising revenue up 48% over the prior year, while subscription revenue rose by 2% and other revenue, comprised primarily of syndication revenue, increased by 197% over the prior year. "This quarter further positioned TheStreet.com as a leader in the creation and distribution of a broadening category of financial content," said Thomas J. Clarke Jr., chairman and chief executive officer of TheStreet.com. "Looking forward our customers and advertisers can expect to see ongoing innovations at Stockpickr.com and TheStreet.com Ratings, the continued evolution of our multimedia offerings, and the launch of a completely redesigned TheStreet.com Web site in early 2008. All of these content initiatives reflect our commitment to create additional premium advertising inventory and sponsorship opportunities." TheStreet.com reported second-quarter net income of $3.6 million, or $0.12 per basic and 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. share, as compared to $3.2 million, or $0.12 per basic and diluted share, reported in the second quarter of 2006. Non-GAAP earnings per share for the quarter, excluding stock compensation expense of $0.5 million, were $0.14 per basic and diluted share, compared to $0.14 per basic and $0.13 per diluted share in the second quarter of 2006, exclusive of $0.5 million of stock compensation. 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 June 30, 2007, cash and cash equivalents and restricted cash stood at $50.1 million. The Company has no bank debt. Recent Company Highlights * Former CNBC CNBC Center for the Neural Basis of Cognition (artificial intelligence) CNBC Consumer News and Business Channel CNBC Congress of National Black Churches, Inc. Producer and National Emmy Award Emmy award Annual presentation for outstanding achievement in U.S. television. Its name is taken from the nickname “immy” for the image orthicon, a television camera tube. winner, Bill McCandless joined the Company's management team as its first Executive Editor of Multimedia. McCandless brings with him more than 15 years of local and network experience. * TheStreet.com reported a 206% year-over-year increase in non-financial advertising revenue in the quarter. Non-financial advertising revenue represents 39% of total advertising revenue in the quarter, up from 19% in the second quarter of 2006. * The Company acquired the URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. www.mainstreet.com, to function as a "sister" site to www.thestreet.com. The interactive site, currently under development, will have an advertising sponsored revenue model with a lead generation component, and will provide main stream news in the context of its impact on one's financial life. The site, expected to launch in early 2008, will utilize a combination of evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. content and current news, leveraging cross-promotion from TheStreet.com and TheStreet.com sales infrastructure. * The Company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Stockpickr.com, was named as one of 50 Best Websites 2007 by Time.com, the online site of Time Magazine. Of 11 Websites in the News and Information category, Stockpickr.com is the only investing site featured on the list. * The Company entered into an exclusive proprietary licensing agreement with Charles Schwab Charles Schwab can refer to:
* The Company expanded its reach among the nation's college students, a demographic that is highly attractive to advertisers. The Company entered a deal with The University Network to provide and distribute Educational and Personal Finance related video content across a network of High Definition televisions located throughout major University campuses. The University Network reaches more than 4.3 million viewers nationwide. * The Company entered into an agreement with Quattro Wireless, under which Quattro will develop and power TheStreet.com's upcoming mobile Web site, located via Internet enabled phone, at www.thestreet.com. The mobile site will provide users with TheStreet.com content including video and market updates throughout the day. * The Company expanded its agreement with Entrepreneur.com to share content across each respective site. TheStreet.com will provide Entrepreneur with market and finance related content, while Entrepreneur.com will provide Small Business content to be hosted at TheStreet.com. * The Company has launched three new features on the Stockpickr.com site since it acquired the Company in April: [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] * The board of directors declared the Company's quarterly cash dividend, payable to all shareholders of record at the close of business on June 15, 2007. The cash dividend of $0.025 per share was paid on June 29, 2007. TheStreet.com will conduct a conference call today July 26, 2007, at 11:00 a.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 discuss these results. To participate in the call, dial 888.713.4205, passcode 49334661. A replay of the call will be available until August 2, 2007 at: 888-286-8010, passcode: 19814072. Or, to access the Web cast of the call please visit: https://www.theconferencingservice.com/prereg/ key.process?key=PPRDU7UXX (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM) is a leading multimedia provider of business, investment and ratings content, available through its proprietary properties, which include Web sites, email subscription services, syndication and audio and video programming. Founded in 1996, TheStreet.com, Inc. pioneered the electronic publishing An umbrella term for non-paper publishing, which includes publishing online or on media such as CDs and DVDs. of financial information on the Internet. Today, the Company offers proprietary information on stocks, mutual funds, exchange-traded funds Exchange-traded funds (or ETFs) are Open Ended investment companies that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 (e.g. (ETFs) and financial institutions, including various insurers, HMOs, Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. plans, banks and savings and loans savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. . The Company's breadth of top-grade services empowers a wide audience of retail and professional investors, by delivering information they can rely upon to make sound, informed financial decisions. [TABLE OMITTED] [TABLE OMITTED] To supplement the Company's financial statements presented 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 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 ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "), TheStreet.com uses non-GAAP measures of certain components of financial performance, including "EBITDA." EBITDA is adjusted from results based on GAAP to exclude interest, taxes, depreciation and amortization. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes the non-GAAP EBITDA results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. In addition, because the Company has previously reported this non-GAAP result to investors, the Company believes that its inclusion provides consistency in its financial reporting. The non-GAAP measure "EBITDA" included in this press release has been reconciled to the nearest GAAP measure below: [TABLE OMITTED] The presentation of this non-GAAP financial measure should be considered in addition to TheStreet.com's GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Statements contained in this news release not related to historical facts may be deemed 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. as that term is defined in 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. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings) that could cause actual results to differ. |
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