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INT MEDIA GROUP REPORTS RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2001
(New York, NY - February 5, 2002) -- INT Media Group, Incorporated (Nasdaq: INTM) today reported results for the quarter ended December 31, 2001. Revenues for the fourth quarter of 2001 were $10.9 million compared to revenues of $15.6 million for the same period last year. Net loss for the fourth quarter, excluding amortization and impairment of intangibles and loss on venture investments, was $511,000, or $0.02 per share, compared to net income of $850,000, or $0.03 per share, for the same period last year. Adjusted EBITDA(1) for the quarter was $22,000 compared to adjusted EBITDA of $319,000 for the same period last year.
For the year ended December 31, 2001, revenues were $44.0 million, a 15.6% decrease from revenues of $52.1 million for the comparable period in 2000. Net loss for the year ended December 31, 2001, excluding amortization and impairment of intangibles, workforce redundancy costs and losses on venture investments, was $8.5 million, or $0.34 per share, compared to a net income of $3.3 million, or $0.13 per share, for the same period in the prior year. Adjusted EBITDA loss for the year was $7.2 million compared to adjusted EBITDA of $666,000 for the same period last year.
"We aggressively reshaped INT Media Group in 2001 to reflect marketplace realities. This has resulted in improved operational efficiencies, reduced operating costs and new revenue streams. We have continued to stay focused on our strategy of building a leading business-to-business media company for Internet industry and IT professionals," stated INT Media Group's Chairman and CEO Alan M. Meckler. "Our strong balance sheet, with $25.1 million in cash, $22.9 million in working capital and no debt, combined with our lower operating cost structure and the growth that we are experiencing in new revenue lines, gives us great optimism for 2002 and beyond."
New Content Areas and Services
During the fourth quarter, INT Media Group continued to expand and strengthen its world-class proprietary content offerings and services with the launch of the following internally developed sites and services:
- In October, INT Media Group launched an enhanced VC Buzz (www.vcbuzz.com) focused on venture capital investments. Published daily and free, VC Buzz alerts users to all the venture capital deals by industry, investor, size and region. VC Buzz delivers breaking news on venture funds and venture backed firms, while providing a comprehensive database and search capability.
- In November, INT Media Group announced the launch of VoiceXMLPlanet.com (www.voicexmlplanet.com), which provides up-to-date news, information resources and discussion forums covering the important new VoiceXML programming language.
- In November, INT Media Group also announced the launch of InstantMessagingPlanet.com (www.instantmessagingplanet.com), which focuses on the enterprise side of the instant messaging (IM) world with daily news, features, case studies and corporate profiles of companies in the field.
- In January, INT Media Group announced the launch of premium services for NanotechPlanet.com (www.nanotechplanet.com) and WinDrivers.com (www.windrivers.com) that are available on a paid subscription basis. These new paid subscription services complement the free content on the NanotechPlanet.com and WinDrivers.com Web sites.
- In January, INT Media Group also announced the launch of GridComputingPlanet.com (www.gridcomputingplanet.com), a Web site devoted to in-depth coverage of the grid computing industry.
- In January, INT Media Group also announced that it acquired the online and offline assets of Small Business Computing, which includes DestinationSmallBiz.com (www.destinationsmallbiz.com), from Freedom Technology Media Group. INT Media Group has redesigned and relaunched the site as SmallBusinessComputing.com (www.smallbusinesscomputing.com), which features a product testing and review section, a buyer's guide, business tools, daily news for e-marketers and Webmasters and a free e-mail newsletter. The print magazine will no longer be published.
- In January, INT Media Group also announced that it acquired ecomSecurity.com (www.ecomsecurity.com) from King Content, and has redesigned and relaunched the site and companion e-mail newsletter as eSecurityPlanet.com (www.esecurityplanet.com).
- INT Media Research, a division of INT Media Group, released four research reports during the quarter:
- Plugging Wi-Fi Security Gaps: A Briefing from 802.11-Planet.com
Understanding Nanotechnology for Investors: A Briefing from Nanotech-Planet.com
IT/IS Industry Forecast 2002: U.S. and Europe
2002 ASP Industry Insight: The Rise of the Provider Web
Conferences and Trade Shows
INT Media Events, a division of INT Media Group, produces paid conferences and trade shows on Internet and IT-specific topics worldwide that are aligned with the content on our Web sites. INT Media Events offered nine paid conferences and trade shows in the fourth quarter, each focusing on a different issue pertaining to the Internet industry and IT. Events included: Flash Kit Fall 2001 - Los Angeles and Singapore, Search Engine Strategies 2001 - Dallas and Denmark, 802.11 Planet Fall 2001, Nanotech Planet Fall 2001, Enterprise Storage Strategies, E-Mail Marketing/Newsletter Strategies Fall 2001 and International IT Service Management Summit.
INT Media Events has announced the launch of the following conferences and trade shows for 2002:
- Search Engine Strategies 2002 Boston (March 4-5, 2002, Boston, MA)
- Instant Messaging Planet Spring 2002 (March 7-8, 2002, Boston, MA)
- E-Media Marketer Conference 2002 (March 15, 2002, Sydney, Australia)
- Commercial High Performance Computing (March 19-20, 2002, Kissimmee, FL)
- Voice XML Planet Spring 2002 (March 20-22, 2002, San Jose, CA)
- NET Developer Conference & Expo Spring 2002 (March 25-26, 2002, San Jose, CA)
- ISP Business Expo (April 2-3, 2002, Dallas, TX)
- E-Media Marketer Conference 2002 (April 9, 2002, Singapore)
- Enterprise Wireless Forum Conference & Expo 2002 (April 29-May 1, 2002, Santa Clara, CA)
- Nanotech Planet Spring 2002 Conference & Expo (May 13-15, 2002, San Jose, CA)
- Enterprise Web & Corporate Portal Conference & Expo (May 23-24, 2002, Boston, MA)
- eSecurity Conference & Expo (May 29-30, 2002, Vienna, VA)
- Enterprise Storage Strategies Conference & Expo (May 29-30, 2002, Vienna, VA)
- 802.11 Planet Spring 2002 Conference & Expo (June 10-12, 2002, Philadelphia, PA)
- Grid Computing Planet Spring 2002 Conference & Expo (June 17-18, 2002, San Jose, CA)
- 802.11 Planet Fall 2002 Conference & Expo (October 9-11, 2002, Santa Clara, CA)
E-Commerce Agreements, Licensing and Alliances
INT Media Group continued to expand its e-commerce relationships, adding new agreements with many of the Internet's well-known brands. Additional partners added during the fourth quarter included: Bertone Advertising, BroadBand Buyer, Buy Request Corporation/Logorilla, Cyber Industries, DomainAppraisals.com, EMS Computing, Fatbrain, Highstream.net, iPence Incorporated, Mamma.com, Netline, New.net, Proxyconn, RFP Market, Roving Software, UltraDNS.com and X10. INT Media Group works with each of its commerce partners to increase their traffic, generate additional revenue and support their brands by promoting their brands, products and services to our audience of over 20.0 million unique users worldwide.
Venture Fund Investments
INT Media Group is the portfolio manager of internet.com Venture Fund I LLC (April '99), internet.com Venture Fund II LLC (November '99) and internet.com Venture Partners III LLC (June '00), which have invested in over 40 Internet properties to date. No new investments were made in the fourth quarter. internet.com Venture Funds I and II and internet.com Venture Partners III were formed to invest in early-stage online content providers serving targeted business-to-business markets that follow the strategy of, but are not competitive with, INT Media Group. INT Media Group is an investor in all three funds.
Stock Repurchase Program
In October, INT Media Group announced that its Board of Directors had authorized the expenditure of up to $1.0 million to repurchase the Company's outstanding common stock. Any purchases under INT Media Group's stock repurchase program may be made, from time-to-time, in the open market, through block trades or otherwise, at the discretion of Company management. Depending on market conditions and other factors, these purchases may be commenced or suspended at any time or from time-to-time without prior notice. To date, no repurchases have been made under this program.
Insider Stock Purchases
In November, INT Media Group announced that Alan M. Meckler, Chairman and CEO, purchased a total of 32,400 shares of INT Media Group common stock during the month of November 2001. Prices for these shares ranged from $1.10 to $1.25. Meckler also announced that he will continue to make purchases in the open market for his own account and the accounts of various trusts and foundations that he controls. The purchases are in keeping with Meckler's previous purchases since the Company's IPO in June of 1999. Meckler, individually and through various trusts for which he acts as trustee or co-trustee and foundations over which he exercises investment control, has purchased a total of 331,750 shares in the open market since June 1999.
Metrics
- December 2001 page views were over 200 million
- December 2001 total views were 275 million (includes Web site page views, e-mail newsletter views and e-mail discussion list views)
- Over 5.0 million e-mail newsletter subscribers as of December 31, 2001
- Nearly 7.8 million total opt-in e-mail rental list subscribers as of December 31, 2001
- Over 785,000 unique opt-in e-mail rental list subscribers as of December 31, 2001
- December 2001 unique users were over 20 million (based on internal log files)
- Over 100 new advertisers during the fourth quarter
- 220 employees as of December 31, 2001
Business Outlook
The following forward looking-statements reflect INT Media Group's expectations as of February 5, 2002. Given the emerging nature of online advertising, potential changes in general economic conditions, and the various other risk factors discussed below and in INT Media Group's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. INT Media Group intends to continue its practice of not updating forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
Future Expectations
|
Actual Total 2001 |
Q1 2002 |
Q2 2002 |
Q3 2002 |
Q4 2002 |
Total 2002 |
|
|
Revenues ($M) |
$44.0 |
$9.0-10.0 |
$9.5-10.5 |
$9.6-10.6 |
$10.0-11.0 |
$38.1-42.1 |
|
Cash operating expenses ($M) |
$51.2 |
$9.3-10.3 |
$9.2-10.2 |
$9.1-10.1 |
$9.1-10.1 |
$36.7-40.7 |
|
Adjusted EBITDA($M) (1) |
$(7.2) |
$(0.3) |
$0.3 |
$0.5 |
$0.9 |
$1.4 |
|
Depreciation ($M) |
$2.7 |
$0.7 |
$0.6 |
$0.5 |
$0.5 |
$2.3 |
|
Interest Income ($M) |
$1.4 |
$0.2 |
$0.2 |
$0.2 |
$0.2 |
$0.8 |
|
Share Count(M) |
25.3 |
25.3 |
25.3 |
25.3 |
25.3 |
25.3 |
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EPS excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments |
$(0.34) |
$(0.03) |
$(0.00) |
$(0.01) |
$(0.02) |
$(0.00) |
About INT Media Group
INT Media Group (Nasdaq: INTM), headquartered in Darien, CT, is a leading provider of global real-time news, information and media resources for Internet industry and information technology professionals, Web developers and experienced Internet users. INT Media Group includes the internet.com and EarthWeb.com Network of 160 Web sites and 225 e-mail newsletters that generate over 225 million page views monthly. INT Media Events encompass nearly 40 offline conferences and trade shows on Internet and IT-specific topics that are aligned with our Network of Web sites and e-mail newsletters. In addition, INT Media Research publishes research reports analyzing the Internet and information technologies sectors worldwide.
INT Media Group Q4 '01 Conference Call Alert
Alan M. Meckler, Chairman and CEO, Christopher S. Cardell, President and COO, and Christopher J. Baudouin, Chief Financial Officer of INT Media Group (Nasdaq: INTM) invite you to participate in a conference call reviewing 2001 fourth quarter results on Wednesday, February 6, 2002 at 11:00 am EST.
The conference call number is (877) 807-9258 for domestic participants and (706) 634-2391 for international participants; pass code "INT Media Fourth Quarter." Please call five minutes in advance to ensure that you are connected prior to the presentation. Instant replay will be available until February 20, 2002. Replay call numbers are (800) 642-1687 for domestic participants and (706) 645-9291 for international participants: password: 2828471.
(1)Earnings before interest, income taxes, depreciation, amortization, impairment of intangibles, workforce redundancy costs, loss on venture investments, minority interests and equity losses.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which INT Media Group competes; the unpredictability of INT Media Group's future revenues (including those resulting from online advertising on INT Media Group's Network of Web sites and related Internet media properties), expenses, cash flows and stock price; INT Media Group's investments in international and venture fund investments; any material change in INT Media Group's intellectual property rights; and the continued growth and acceptance of the Internet and information technology. For a more detailed discussion of such risks and uncertainties, refer to INT Media Group's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and INT Media Group assumes no obligation to update the forward-looking statements after the date hereof.
Contact
INT Media Group, Incorporated
Mary Ann Boland
(212) 547 - 7939
[email protected]
INT Media Group, Incorporated Consolidated Balance Sheets December 31, 2000 and December 31, 2001 (in thousands, except share and per share amounts)
|
December 31, 2000 |
December 31, 2001 |
|||
|
(unaudited) |
||||
|
ASSETS |
||||
|
Current assets: |
||||
Cash and cash equivalents |
$59,979 |
$25,100 |
||
Accounts receivable, net of allowances of $2,359 and $1,810, respectively |
12,004 |
6,527 |
||
Prepaid expenses and other |
1,964 |
573 |
||
|
Total current assets |
73,947 |
32,200 |
||
Property and equipment, net of accumulated depreciation of $2,787 and $5,516, respectively |
4,837 |
3,767 |
||
Intangible assets, net of accumulated amortization of $35,282 and $38,522, respectively |
76,587 |
6,769 |
||
Investments and other assets |
6,801 |
3,051 |
||
|
Total assets |
$162,172 |
$45,787 |
||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
|
Current liabilities: |
||||
Accounts payable |
$2,163 |
$1,388 |
||
Accrued expenses |
6,295 |
4,907 |
||
Accrued Web site acquisition payments |
10,988 |
398 |
||
Deferred revenues |
2,187 |
2,581 |
||
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Total current liabilities |
21,633 |
9,274 |
||
|
Accrued Web site acquisition payments |
1,236 |
265 |
||
|
Deferred revenues |
1,820 |
910 |
||
|
Total liabilities |
24,689 |
10,449 |
||
|
Commitments and contingencies |
- |
- |
||
|
Stockholders' equity: |
||||
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued and outstanding |
- |
- |
||
Common stock, $.01 par value, 75,000,000 shares authorized, 25,323,357 and 25,333,077 shares issued and outstanding at December 31, 2000 and December 31, 2001, respectively |
||||
|
253 |
253 |
|||
Additional paid-in capital |
175,363 |
175,418 |
||
Accumulated deficit |
(38,112) |
(140,298) |
||
Accumulated other comprehensive income |
(21) |
(35) |
||
|
Total stockholders' equity |
137,483 |
35,338 |
||
|
Total liabilities and stockholders' equity |
$162,172 |
$45,787 |
INT Media Group, Incorporated
Consolidated Statements of Operations
For the Three Months and Years Ended December 31, 2000 and 2001
(unaudited)
(in thousands, except per share amounts)
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||
|
2000 |
2001 |
2000 |
2001 |
|||||
|
Revenues |
$15,560 |
$10,887 |
$52,083 |
$43,965 |
||||
|
Cost of revenues |
6,933 |
4,337 |
22,991 |
21,413 |
||||
|
Gross profit |
8,627 |
6,550 |
29,092 |
22,552 |
||||
|
O perating expenses: |
||||||||
|
Advertising, promotion and selling |
4,838 |
3,738 |
18,254 |
17,936 |
||||
|
General and administrative |
3,470 |
2,790 |
10,172 |
11,827 |
||||
|
Depreciation |
653 |
684 |
2,099 |
2,730 |
||||
|
Amortization |
8,477 |
3,276 |
24,854 |
33,785 |
||||
|
Impairment of intangibles |
- |
287 |
- |
54,184 |
||||
|
Workforce redundancy costs |
- |
- |
- |
1,352 |
||||
|
Total operating expenses |
17,438 |
10,775 |
55,379 |
121,814 |
||||
|
Operating loss |
(8,811) |
(4,225) |
(26,287) |
(99,262) |
||||
|
Minority interest and equity losses from international investments |
102 |
(12) |
83 |
49 |
||||
|
Loss on venture investments, net |
(881) |
(902) |
(1,382) |
(4,347) |
||||
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Interest income, net |
1,139 |
163 |
4,814 |
1,376 |
||||
|
Loss before income taxes |
(8,451) |
(4,976) |
(22,772) |
(102,184) |
||||
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Provision for income taxes |
57 |
- |
205 |
2 |
||||
|
Net loss |
$(8,508) |
$(4,976) |
$(22,977) |
$(102,186) |
||||
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Net income (loss), excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments |
$850 |
($511) |
3,259 |
(8,518) |
||||
|
Basic and diluted earnings (loss) per share, excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments |
$0.03 |
$(0.02) |
$0.13 |
$(0.34) |
||||
|
Basic and diluted net loss per share |
$(0.33) |
$(0.20) |
$(0.92) |
$(4.03) |
||||
|
Weighted average number of common shares used in diluted earnings (loss) per share, excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments |
|
26,147 |
25,333 |
25,953 |
25,333 |
|||
|
Weighted average number of common shares |
25,323 |
25,333 |
25,014 |
25,333 |
||||
INT Media Group, Incorporated
Consolidated Statements of Cash Flows
For the Years Ended December 31,2000 and 2001
(unaudited)
(in thousands)
|
Years Ended December 31, |
|||
|
2000 |
2001 |
||
|
Cash flows from operating activities: |
|||
|
Net loss |
$(22,977) |
$(102,186) |
|
Adjustments to reconcile net cash used in operating activities- |
|||
|
Depreciation and amortization |
26,953 |
36,515 |
|
|
Impairment of Intangibles |
- |
54,184 |
|
|
Provision for losses on accounts receivable |
2,776 |
4,383 |
|
|
Minority interest and equity losses from international investments |
(83) |
(49) |
|
|
Loss on venture investments, net |
1,382 |
4,347 |
|
|
Changes in assets and liabilities- |
|||
Accounts receivable, net |
(9,085) |
1,263 |
|
|
Prepaid expenses and other |
(2,030) |
(1,353) |
|
|
Accounts payable and accrued expenses |
3,495 |
(2,450) |
|
|
Deferred revenues |
122 |
(1,912) |
|
|
Net cash used in operating activities |
553 |
(4,552) |
|
|
Cash flows from investing activities: |
|||
|
Additions to property and equipment |
(3,701) |
(1,880) |
|
|
Acquisitions of Web sites, related Internet media properties and other |
(47,654) |
(27,668) |
|
Investments in internet.com venture funds and other |
(5,861) |
(835) |
|
Net cash used in investing activities |
(57,216) |
(30,383) |
|
|
Cash flows from financing activities: |
|||
|
Proceeds from issuance of common stock, net |
98,330 |
- |
|
|
Proceeds from exercise of stock options |
363 |
55 |
|
|
Net cash provided by financing activities |
98,693 |
55 |
|
|
Effect of exchange rates on cash |
6 |
1 |
|
|
Net increase (decrease) in cash and cash equivalents |
42,036 |
(34,879) |
|
|
Cash and cash equivalents, beginning of period |
17,943 |
59,979 |
|
|
Cash and cash equivalents, end of period |
$59,979 |
$25,100 |
|
|
Supplemental disclosures of cash flow: |
|||
|
Cash paid for interest |
$- |
$- |
|
|
Cash paid for income taxes |
$25 |
$38 |
|
All current INT Media Group, Inc. press releases can be found on the World Wide Web at (http://www.internet.com/corporate/press.html)