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JUPITERMEDIA REVISES 2005 FINANCIAL GUIDANCE TO REFLECT SALE OF ASSETS, DISCONTINUANCE OF EVENTS SEGMENT AND TERMINATION OF DISTRIBUTION AGREEMENT. JUPITERMEDIA ALSO ANNOUNCES FINANCIAL GUIDANCE FOR 2006
(New York, NY - August 25, 2005) - Jupitermedia Corporation (Nasdaq: JUPM) today announced revised 2005 financial guidance due to the sale of its Search Engine Strategies events and Clickz.com Network (the "Assets") on August 5, 2005, discontinuance of its Events segment, and the termination of an image distribution agreement between PictureArts Corporation, an indirect wholly-owned subsidiary of Jupitermedia and Getty Images (US) Inc. Jupitermedia also announced financial guidance for 2006.
Business Outlook
Jupitermedia's financial guidance is prepared in accordance with accounting principles generally accepted in the United States of America. The amounts in the financial guidance below reflect the following:
- the closing of the sale of the Assets to Incisive Media plc for $43 million on August 5, 2005;
- the utilization of Jupitermedia's available net operating loss carry forwards as a result of the gain on the sale of the Assets; and
- the termination by Getty Images (US) Inc. of an image distribution agreement with PictureArts Corporation, an indirect wholly-owned subsidiary of Jupitermedia, effective December 16, 2005.
As a result of the sale of the Search Engine Strategies events, this guidance reflects Jupitermedia's Events segment as a discontinued operation in accordance with Statement of Financial Accounting Standards No. 144.
The following forward looking-statements reflect Jupitermedia's expectations as of August 24, 2005. Due to potential changes in general economic conditions and the various other risk factors discussed below and in Jupitermedia's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. Jupitermedia 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
| (in millions, except for earnings per diluted share) |
Actual Q1 2005
(A) |
Actual Q2 2005
(A) |
Q3 2005 |
Total 2005 |
Total 2006 |
|
|
Revenues |
$22.3 |
$31.9 |
$35.5-36.5 |
$128.0-130.0 |
$163.0-165.0 |
|
|
Cost of revenues, advertising, promotion & selling, and G & A expenses |
$15.4 |
$22.6 |
$25.5-26.5 |
$89.0-91.0 |
$109.0-111.0 |
|
|
EBITDA (Earnings before interest,
taxes, depreciation and
amortization) |
$6.9 |
$9.3 |
$9.5-10.5 |
$38.5-40.0 |
$53.0-55.0 |
|
|
Depreciation and amortization |
$1.1 |
$1.3 |
$1.9 |
$6.5 |
$9.0 |
|
|
Gain on sale of assets, net (B) |
$- |
$- |
$13.3 |
$13.3 |
$- |
|
|
Interest expense, net |
$- |
$0.1 |
$0.8 |
$1.5 |
$2.0 |
|
|
Provision for income taxes (C) |
$0.7 |
$0.9 |
$4.3 |
$10.5 |
$17.5-18.5 |
|
|
Equity income |
$- |
$0.1 |
$- |
$0.1 |
$- |
|
|
Income from continuing operations |
$5.1 |
$7.1 |
$16.3 |
$33.9 |
$24.0-26.0 |
|
|
Income (loss) from discontinued operations, net of taxes (A) |
$0.4 |
$(0.1) |
$0.9 |
$1.2 |
$- |
|
|
Gain on sale of discontinued operations, net of taxes (B) |
$- |
$- |
$24.3 |
$24.3 |
$- |
|
|
Net income |
$5.5 |
$7.0 |
$41.0-42.0 |
$59.0-60.0 |
$24.0-26.0 |
|
|
Diluted share count |
35.7 |
36.8 |
37.0 |
36.8 |
37.3 |
|
|
Earnings per diluted share: |
|
|
|
|
|
|
Continuing operations |
$0.15 |
$0.19 |
$0.44 |
$0.91-0.94 |
$0.64-0.69 |
|
|
Discontinued operations |
$0.01 |
$- |
$0.68 |
$0.69 |
$- |
|
|
Net income |
$0.16 |
$0.19 |
$1.12 |
$1.60-1.63 |
$0.64-0.69 |
|
|
NOTES:
(A) The results of our Events segment will be classified as part of discontinued operations. Historical results
have been adjusted to reflect the Events segment as part of discontinued operations.
(B) The total gain related to the sale of our Search Engine Strategies events and ClickZ.com Network was
approximately $37.6 million, net of income taxes, or approximately $1.02 per diluted share. The gain related to the sale of ClickZ.com is recorded as part of continuing operations. The gain related to the sale of the Search Engine Strategies events is recorded as part of our discontinued operations.
(C) Due to the gain resulting from the sale of our Search Engine Strategies events and ClickZ.com Network, we
will fully utilize our remaining net operating loss carryforwards and therefore we expect to record an
income tax provision for both federal and state income taxes prospectively.
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About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com)
headquartered in Darien, CT, is a leading global provider of original information, images, research and events for information technology, business and creative professionals. Jupitermedia includes JupiterImages, one of the leading images companies in the world with over 7.0 million images online serving creative professionals with brands like Brand X, FoodPix, Botanica, Nonstock, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Goodshoot Images, Photos.com, HemeraImages.com, Ablestock.com, PhotoObjects.net, Clipart.com and Animations.com; and JupiterWeb, the online media division of Jupitermedia which operates four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. JupiterWeb properties include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 18 million users and generate over 290 million page views monthly. Jupitermedia also includes: JupiterResearch, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 14 vertical markets.
"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 Jupitermedia competes; the unpredictability of Jupitermedia's future revenues, expenses, cash flows and stock price; Jupitermedia's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia's dependence on a limited number of advertisers; and Jupitermedia's ability to protect its intellectual property. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia assumes no obligation to update the forward-looking statements after the date hereof.
CONTACT:
Lisa DiGiacomo
Marketing and Public Relations Associate
212-547-7938
[email protected]
All current Jupiter Research press releases can be found online at
www.jupitermedia.com/corporate/press.html.
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