SAN FRANCISCO, May 16, 2011 /PRNewswire/ -- Banks.com, Inc.
(NYSE Amex: BNX), operator of leading financial services focused
online media properties, today announced results for the three
months ended March 31, 2011.
Financial Highlights
For the first quarter of 2011, Banks.com, Inc. (the "Company",
"Banks.com") reported revenue of $1.9
million compared to revenue of $4.2
million reported for first quarter 2010. GAAP(i) net income
was $61 thousand or break even per
diluted share versus GAAP net income of $297
thousand or $0.01 per diluted
share reported for the first quarter of 2010. Adjusted EBITDA(ii)
was $562 thousand for the first
quarter of 2011 compared to Adjusted EBITDA of $1.4 million for the first quarter of 2010. Cash
flow generated from operations was $96
thousand compared to $1
million in the first quarter of 2010.
"Revenue from our tax related business accounted for 33% of
our top line last quarter versus just 20% in the first quarter of
2010 driving an increase in our year over year gross margins from
64% to 72%. We've also reduced our overall cash related expenses by
37% from what they were in the first quarter of 2010." said Dan
O'Donnell, Chief Executive Officer of Banks.com. "The wisdom of our
decision to continue to pursue a strategy of focusing on the
finance vertical was unfortunately reinforced when we were informed
of search engine marketing related revenue charge backs late in the
quarter of approximately $200
thousand that diluted our first quarter results and caused
us to fall below the guidance we provided for the first quarter."
O'Donnell continued, "That said, our acquisition of FileLater
helped contribute to a strong close to the tax season and we
anticipate continuing to expand our presence in new tax related
lines of business as the year progresses."
Select Business Highlights
- Launched the online tax extension business of
FileLater.com
- Doubled the year over year business tax extension revenue of
FileLater.com
- Increased year over year gross margins from 64% to 72%
- Reduced year over year cash related operational expenses by
37%
Conference Call
Banks.com will host a conference call today at 2:00 PM PT / 5:00 PM
ET to discuss its first quarter 2011 results. To listen to
the call, dial 866-730-5767 (domestic) or 857-350-1591
(international), passcode 63799482. Questions may be asked during
the call, or submitted via email at: stockwatch@banks.com any time
prior to the conference call's starting time. For a replay of the
call, dial 888-286-8010 (domestic) or 617-801-6888 (international),
passcode 51725523. Investors may also listen to the conference call
and the replay on the Investor Relations section of the Banks.com
website at: http://www.banks.com/corp/investor/webcasts/.
Forward Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. Such forward-looking
statements are made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and may include
statements regarding acquisitions, business estimates, future
contracts, future financial performance and results of operations,
including cost of revenues, operating expenses, interest expense,
net loss and cash flow. Unless otherwise required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise after the date of this press release.
Additional information concerning risks and uncertainties that may
cause actual results to differ materially from those projected or
suggested in the forward-looking statements may be found in
Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K
filed with the U.S. Securities and Exchange Commission.
Non-GAAP Financial Measures
This press release includes the following financial measure
defined as a non-GAAP financial measure by the Securities and
Exchange Commission: Adjusted EBITDA. This supplemental
financial measure is not required or defined by GAAP, nor is the
presentation of this financial information intended to be a measure
of Banks.com's profitability to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP, such as net earnings and other consolidated
earnings data.
Management recognizes that non-GAAP financial measures have
limitations and do not reflect all of the items associated with
Banks.com's earnings results as determined in accordance with GAAP.
However, for the reasons described below, management uses
this non-GAAP measure to evaluate the performance of Banks.com's
business. Banks.com's management believes that it's important
to provide investors with these same tools, together with a
reconciliation to GAAP, for evaluating the performance of
Banks.com's business, as it may provide additional insight into
Banks.com's financial results. See "Reconciliation of
GAAP Net Earnings to Adjusted Earnings Before Interest, Taxes,
Depreciation, Amortization and Stock Compensation Expense (Adjusted
EBITDA)" table included in this press release for further
information regarding these non-GAAP financial measures. Adjusted
EBITDA is presented because management believes it is frequently
used by securities analysts, investors and others in the evaluation
of companies.
Adjusted EBITDA is calculated by adding income taxes,
interest expense, depreciation and amortization to net
earnings, adjusted for certain items management believes
should be excluded in order to reflect a more meaningful
representation of Banks.com's financial performance, including
stock compensation expense. Banks.com's management
excludes the impact of equity-based compensation to eliminate the
effects of this non-cash item, which, because it is based upon
estimates on the grant dates, may bear little resemblance to the
actual values realized upon the future exercise, expiration,
termination or forfeiture of the stock-based compensation.
About Banks.com
Banks.com, Inc. owns and operates internet media properties
including: banks.com, irs.com, filelater.com and
mystockfund.com. Our properties provide users
with finance-related content and services and vendors with targeted
online advertising opportunities.
Through banks.com, we provide access to current
financial content, including financial news, business articles,
interest rates, stock quotes and financial calculators. We
also provide users access to tax related services including online
tax preparation through irs.com, online tax
extensions through filelater.com, and online
stock brokerage services through mystockfund.com.
In addition to Banks.com, it operates other search related websites
including Look.com.
Get up to date information on Mortgage Rates, CD
Rates & Home Equity Rates at Banks.com.
Contact Information:
Daniel O'Donnell
President and Chief Executive Officer
Banks.com, Inc.
415-962-9700
|
|
BANKS.COM,
INC. AND SUBSIDIARIES
|
|
Condensed
Consolidated Statements of Operations
|
|
(In
thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenues
|
$
1,943
|
|
$
4,169
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Traffic acquisition
costs
|
552
|
|
1,499
|
|
|
Depreciation and
amortization
|
423
|
|
449
|
|
|
Sales and marketing
|
171
|
|
360
|
|
|
General and
administrative
|
652
|
|
1,014
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
1,798
|
|
3,322
|
|
|
|
|
|
|
|
Income from
operations
|
145
|
|
847
|
|
|
|
|
|
|
|
Interest expense
|
(35)
|
|
(319)
|
|
|
|
|
|
|
|
Income before income
taxes
|
110
|
|
528
|
|
|
|
|
|
|
|
Income tax expense
|
(49)
|
|
(231)
|
|
|
|
|
|
|
|
Net income
|
61
|
|
297
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
(7)
|
|
(7)
|
|
|
|
|
|
|
|
Net income available to common
stockholders
|
$
54
|
|
$
290
|
|
|
|
|
|
|
|
Basic net income per common
share
|
$
-
|
|
$
.01
|
|
|
|
|
|
|
|
Diluted net income per common
share
|
$
-
|
|
$
.01
|
|
|
|
|
|
|
|
|
|
|
BANKS.COM,
INC. AND SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
$
72
|
|
$
107
|
|
Accounts receivable
|
1,077
|
|
656
|
|
Prepaid expenses and
other
|
171
|
|
167
|
|
Deferred income taxes
|
317
|
|
316
|
|
|
|
|
|
|
Total current assets
|
1,637
|
|
1,246
|
|
|
|
|
|
|
Property and equipment,
net
|
192
|
|
277
|
|
Domains and other intangibles,
net
|
10,285
|
|
10,618
|
|
Other assets
|
92
|
|
88
|
|
Deferred income taxes
|
842
|
|
890
|
|
|
|
|
|
|
Total Assets
|
$
13,048
|
|
$
13,119
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
1,084
|
|
$
1,017
|
|
Accrued liabilities
|
393
|
|
461
|
|
Accrued dividends
|
67
|
|
60
|
|
Deferred revenue
|
17
|
|
16
|
|
Revolving line of
credit
|
-
|
|
106
|
|
Notes payable, current
portion
|
144
|
|
141
|
|
|
|
|
|
|
Total current
liabilities
|
1,705
|
|
1,801
|
|
|
|
|
|
|
Notes payable
|
536
|
|
559
|
|
|
|
|
|
|
Total liabilities
|
2,241
|
|
2,360
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock
|
3
|
|
3
|
|
Common stock
|
26
|
|
26
|
|
Additional paid-in
capital
|
10,818
|
|
10,824
|
|
Accumulated deficit
|
(40)
|
|
(94)
|
|
|
|
|
|
|
Total stockholders'
equity
|
10,807
|
|
10,759
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
13,048
|
|
$
13,119
|
|
|
|
|
|
|
|
|
|
BANKS.COM,
INC. AND SUBSIDIARIES
|
|
Reconciliation of GAAP Net Income to Earnings
Before
|
|
Interest,
Taxes, Depreciation, Amortization, and Stock Compensation Expense
(Adjusted EBITDA)
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Net income available to common
stockholders
|
$
54
|
|
$
290
|
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
7
|
|
7
|
|
|
|
|
|
|
Net income
|
61
|
|
297
|
|
|
|
|
|
|
|
|
Income tax expense
|
49
|
|
231
|
|
|
|
|
|
|
|
Income before income
taxes
|
110
|
|
528
|
|
|
|
|
|
|
|
|
Interest expense
|
35
|
|
319
|
|
|
|
|
|
|
|
Income from
operations
|
145
|
|
847
|
|
|
|
|
|
|
|
|
Depreciation
|
90
|
|
113
|
|
|
|
|
|
|
|
|
Amortization
|
333
|
|
336
|
|
|
|
|
|
|
|
|
Stock compensation (benefit)
expense
|
(6)
|
|
60
|
|
|
|
|
|
|
|
Adjusted earnings before
interest, taxes, depreciation, amortization, and stock compensation
expense (Adjusted EBITDA)
|
$
562
|
|
$
1,356
|
|
|
|
|
|
|
|
|
(i) Generally accepted accounting principles in the United States of America.
(ii) Adjusted EBITDA is calculated by adding income taxes,
interest expense, depreciation and amortization to net earnings,
adjusted for certain items management believes should be excluded
in order to reflect a more meaningful representation of our
financial performance, including stock compensation expense.
Adjusted 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 above
entitled "Non-GAAP Financial Measures" and to review the
reconciling adjustments between the GAAP and non-GAAP measures
attached to this press release.
SOURCE Banks.com, Inc.