2007 Press
JUPITERMEDIA CORPORATION REPORTS RESULTS FOR ITS FIRST QUARTER ENDED MARCH 31, 2007
(New York, NY - May 9, 2007) - Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the quarter ended March 31, 2007.Highlights for the first quarter of 2007 include:
- Revenues for the first quarter of 2007 were $34.8 million compared to revenues of $33.9 million for the same period last year.
- Loss per diluted share from continuing operations was $0.03 and included non-cash stock-based compensation expense, and legal and other fees associated with discussions with Getty Images, Inc. regarding a potential transaction which were terminated on March 7, 2007 which totaled $0.04 per diluted share.
"Our revenues for the first quarter year of 2007 showed improvement over the same quarter of the prior year due to progress made with our Jupiterimages business. Jupitermedia continues to grow as a powerful creator and distributor of a wide range of commercial images and digital content. In addition to the expansion of our image offerings, we increased our wholly-owned royalty-free music offerings during the quarter," stated Jupitermedia's Chairman and CEO Alan M. Meckler. "We have also made additional investments to reinvigorate our Online Media business, with the launch of several new IT Web sites and companion trade shows. In the first quarter we announced the acquisition of the remaining 50.1% interest in the ISPCON trade shows and the acquisition of JustTechJobs.com, which is a natural e-commerce offering for our Online Media business audience of over 15 million unique users," added Meckler.
Jupitermedia Corporation 1st Quarter 2007 Financial Results Conference Call Alert
Jupitermedia Corporation invites you to participate in its conference call reviewing 2007 first quarter results on Thursday, May 10, 2007 at 11:00 am EST.
The conference call number is (800) 289-0518 for domestic participants and (913) 981-5532 for international participants; pass code "356 4367". Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Thursday, May 24, 2007. Replay call numbers are (888) 203-1112 for domestic participants and (719) 457-0820 for international participants: pass code: "356 4367."
Acquisitions
- In January 2007, Jupitermedia announced that its Jupiterimages division acquired the assets of StudioCutz.com (www.studiocutz.com) and BlueFuseMusic.com (www.bluefusemusic.com) from Mediatone Music, Inc. Also included in the transaction were the assets of NoiseFuel.com (imaging elements & sound effects, www.noisefuel.com) and MediaMusicLoops.com (www.mediamusicloops.com). These sites include a music library of over 2,600 wholly-owned tracks of high quality royalty free music and 5,500 sound effects. Terms of this acquisition were not disclosed.
- In January 2007, Jupitermedia announced that it acquired the remaining 50.1% interest in the two annual ISPCON trade shows as well as 100% of the INBOX trade shows from The Golden Group I, Inc. Jupitermedia now owns 100% of these properties, up from the 49.9% interest in ISPCON held prior to the transaction. Financial terms of this transaction were not disclosed.
New Online Images Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary Jupiterimages offerings with the addition of the following:
In February 2007, Jupitermedia announced the launch of RoyaltyFreeMusic.com's (www.royaltyfreemusic.com) subscription service, which provides subscribers with access to its entire wholly-owned library of over 7,000 music tracks and more than 10,000 sound effects. Subscriptions are available for one month and one year, allowing subscribers to download up to 90 tracks and 300 sound effects per month. Benefits to subscribers include access to brand new tracks and sound effects added monthly, and the convenience of never having to deal with ongoing licensing fees for their projects.
In May 2007, Jupitermedia announced the launch of AnimationFactory.com's Pro Edition (www.animationfactory.com), a new subscription-based version that offers one of the world's most comprehensive collections of 3D motion designs and FlashTM animations and is the largest royalty-free resource for all types of animations ranging from highly compressed 3D animations for Web and mobile to studio quality high definition motion graphics. Subscriptions also include high definition backgrounds, special video elements with alpha channels for compositing in video or FlashTM, FlashTM Web site templates, and a library of sound effects and music loops.
New Online Media Offerings
Jupitermedia continued to expand and strengthen its world-class proprietary content and advertising opportunities with the addition of the following:
In February 2007, Jupitermedia announced its new Web Video Summit tradeshow (www.webvideosummit.com) will be held June 27-28, 2007 at the San Jose Marriott in San Jose, California. The conference will serve those who create and distribute video over the Web, with industry expert Dave Burstein chairing the program.
In March 2007, Jupitermedia announced the launch of WebVideoUniverse.com (www.webvideouniverse.com), a Web site focused on shooting, editing and distributing video over the Web. WebVideoUniverse.com includes comprehensive coverage of this emerging vertical market with sections including: Filming, Editing/Encoding, Distributing, Marketing/Promotion, Resources and Discussion, and is part of internet.com's IT channel.
In March 2007, Jupitermedia announced the launch of ITCareerPlanet.com (www.itcareerplanet.com), a Web site dedicated to helping IT professionals stay up-to-date with the latest news and resources related to their careers. ITCareerPlanet.com can be found on the EarthWeb.com network and includes IT career news and advice, job trends, salary trends and IT staff management coverage. This launch follows a recent related announcement of Jupitermedia's acquisition of JustTechJobs.com (www.justtechjobs.com), an online tech job site that brings together IT professionals and employees.
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Jupitermedia Corporation Unaudited Consolidated Condensed Statements of Operations For the Three Months Ended March 31, 2006 and 2007 (in thousands, except per share amounts) |
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Three Months Ended March 31, |
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| 2006 | 2007 | ||||||||
| Revenues | $ | 33,941 | $ | 34,771 | |||||
| Cost of revenues (exclusive of items shown separately below) | 11,925 | 14,802 | |||||||
| Advertising, promotion and selling | 7,166 | 7,100 | |||||||
| General and administrative | 6,231 | 8,390 | |||||||
| Depreciation | 653 | 1,062 | |||||||
| Amortization | 2,271 | 3,104 | |||||||
| Total operating expenses | 28,246 | 34,458 |
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| Operating income | 5,695 | 313 | |||||||
| Income (loss) on investments and other, net | 73 | (9) | |||||||
| Interest income | 117 | 40 | |||||||
| Interest expense | (1,319) | (1,473) | |||||||
| Income (loss) before income taxes, minority interests and equity income from investments, net | 4,566 | (1,129) | |||||||
| Provision (benefit) for income taxes | 1,715 | (129) | |||||||
| Minority interests | (9) | (41) | |||||||
| Equity loss from investments, net | (9) | — | |||||||
| Income (loss) from continuing operations | 2,833 | (1,041) | |||||||
| Income from discontinued operations, net of taxes | 67 | — | |||||||
| Gain on sale of discontinued operations, net of taxes | 6,291 | — | |||||||
| Net income (loss) | $ | 9,191 | $ | (1,041) | |||||
| Earnings (loss) per share: | |||||||||
| Basic | |||||||||
| Income (loss) from continuing operations | $ | 0.08 | $ | 0.03 | |||||
| Net income (loss) | $ | 0.26 | $ | (0.03) | |||||
| Diluted | |||||||||
| Income (loss) from continuing operations | $ | 0.08 | $ | (0.03) | |||||
| Net income (loss) | $ | 0.25 | $ | (0.03) | |||||
| Shares used in computing earnings (loss) per share: | |||||||||
| Basic | 35,111 | 35,804 | |||||||
| Diluted | 36,735 | 35,804 | |||||||
Segment Information
The following tables summarize the results of the segments of Jupitermedia for the three months ended March 31, 2006 and 2007. Online images consists of the Jupiterimages business that includes: BananaStock, Workbook Stock, Brand X Pictures, FoodPix, Botanica, Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Bigshot Media, Goodshoot, ITStockFree, Stock Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com, FlashFoundry.com, JupiterGreetings.com, AnimationFactory.com, RoyaltyFreeMusic.com, StudioCutz.com and Stockxpert.com. Online media includes the internet.com, EarthWeb.com, DevX.com and Graphics.com Networks. Other includes corporate overhead, depreciation and amortization.
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Three Months Ended March 31, |
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| 2006 | 2007 | ||||||||
| (unaudited) | |||||||||
| Revenues: | |||||||||
| Online images | $ | 26,565 | $ | 27,914 | |||||
| Online media | 7,370 | 6,857 | |||||||
| Other | 6 | — | |||||||
| 33,941 | 34,771 | ||||||||
| Cost of revenues and operating expenses:(A) | |||||||||
| Online images | 16,222 | 19,292 | |||||||
| Online media | 5,181 | 4,741 | |||||||
| Depreciation and amortization | 2,924 | 4,166 | |||||||
| Other(C) | 3,919 | 6,259 | |||||||
| 28,246 | 34,458 | ||||||||
| Operating income (loss): | |||||||||
| Online images | 10,343 | 8,622 | |||||||
| Online media | 2,189 | 2,116 | |||||||
| Other (B) | (6,837) | (10,425) | |||||||
| $ | 5,695 | $ | 313 | ||||||
(A) Cost of revenues and operating expenses include non-cash, stock-based compensation expense of $761,000 and $855,000 for the three months ended March 31, 2006 and 2007, respectively.
(B) Includes depreciation and amortization expense.
(C) The three months ended March 31, 2007 includes $1.9 million in legal and other fees associated with discussions with Getty Images, Inc. regarding a potential transaction which were terminated on March 7, 2007.
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Jupitermedia Corporation Consolidated Condensed Balance Sheets December 31, 2006 and March 31, 2007 (in thousands, except share and per share amounts) |
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December 31, 2006 |
March 31,
2007 |
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| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 8,891 | $ | 7,030 | |
| Accounts receivable, net of allowances of $2,114 and $2,110, respectively | 25,296 | 26,610 | |||
| Prepaid expenses and other | 2,601 | 3,287 | |||
| Deferred income taxes | 3,350 | 3,253 | |||
| Total current assets | 40,138 | 40,180 | |||
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Property and equipment, net of accumulated depreciation of $13,996 and $14,974, respectively |
11,691 | 12,032 | |||
| Intangible assets, net | 77,923 | 75,916 | |||
| Goodwill | 199,010 | 204,724 | |||
| Deferred income taxes | 2,147 | 1,924 | |||
| Investments and other assets | 1,281 | 1,175 | |||
| Total assets | $ | 332,190 | $ | 335,951 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 5,269 | $ | 8,799 | |
| Accrued payroll and related expenses | 3,188 | 3,794 | |||
| Accrued expenses and other | 14,469 | 14,282 | |||
| Current portion of long-term debt | 16,000 | 16,000 | |||
| Deferred revenues | 13,362 | 14,250 | |||
| Total current liabilities | 52,288 | 57,125 | |||
| Long-term debt | 49,899 | 47,899 | |||
| Deferred revenues | 181 | 208 | |||
| Total liabilities | 102,368 | 105,232 | |||
| Commitments and contingencies (see notes): | |||||
| 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, 35,713,327 and 35,966,383 shares issued at December 31, 2006 and March 31, 2007, respectively | 357 | 360 | |||
| Additional paid-in capital | 261,666 | 263,654 | |||
| Accumulated deficit | (33,888) | (34,929) | |||
| Treasury stock, 65,000 shares at cost | (106) | (106) | |||
| Accumulated other comprehensive income | 1,793 | 1,740 | |||
| Total stockholders’ equity | 229,822 | 230,719 | |||
| Total liabilities and stockholders’ equity | $ | 332,190 | $ | 335,951 | |
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Jupitermedia Corporation Unaudited Consolidated Condensed Statements of Cash Flows Three Months Ended March 31, 2006 and 2007 (in thousands) |
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Three Months Ended
March 31, |
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| 2006 | 2007 | |||
| Cash flows from operating activities: | ||||
| Income (loss) from continuing operations | $ | 2,833 | $ | (1,041) |
| Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities: | ||||
| Depreciation and amortization | 2,924 | 4,166 | ||
| Stock-based compensation | 761 | 855 | ||
| Provision (benefit) for losses on accounts receivable | (9) | (4) | ||
| Minority interests | 9 | 41 | ||
| Equity loss from investments, net | 9 | — | ||
| (Income) loss on investments and other, net | (73) | 9 | ||
| Deferred income taxes | 589 | 383 | ||
| Excess tax benefit from stock-based compensation | (636) | (146) | ||
| Changes in current assets and liabilities (net of businesses acquired): | ||||
| Accounts receivable, net | (3,000) | (1,310) | ||
| Prepaid expenses and other | (241) | (975) | ||
| Accounts payable and accrued expenses | (3,223) | 3,568 | ||
| Deferred revenues | 736 | 896 | ||
| Discontinued operations | 1,110 | — | ||
| Net cash provided by operating activities | 1,789 | 6,442 | ||
| Cash flows from investing activities: | ||||
| Purchases of property and equipment | (492) | (1,421) | ||
| Acquisitions of businesses and other | (15,591) | (6,125) | ||
| Proceeds from sales of assets and other | 152 | 47 | ||
| Proceeds from sale of discontinued operations | 9,600 | — | ||
| Discontinued operations | — | — | ||
| Net cash used in investing activities | (6,331) | (7,499) | ||
| Cash flows from financing activities: | ||||
| Borrowings under credit facilities | 15,000 | 3,000 | ||
| Debt issuance costs | (12) | — | ||
| Repayment of borrowings under credit facilities | (4,000) | (5,000) | ||
| Proceeds from exercise of stock options | 1,027 | 990 | ||
| Excess tax benefit from stock-based compensation | 636 | 146 | ||
| Discontinued operations | — | — | ||
| Net cash provided by (used in) financing activities | 12,651 | (864) | ||
| Effects of exchange rates on cash | (18) | 60 | ||
| Net increase (decrease) in cash and cash equivalents | 8,091 | (1,861) | ||
| Cash and cash equivalents, beginning of period | 18,546 | 8,891 | ||
| Cash and cash equivalents, end of period | $ | 26,637 | $ | 7,030 |
| Supplemental disclosures of cash flow: | ||||
| Cash paid for income taxes | 5,069 | 268 | ||
| Cash paid for interest | 1,201 | 1,276 | ||
Business Outlook
Jupitermedia's financial guidance is prepared in accordance with accounting principles generally accepted in the United States of America. Historical results below have been adjusted to conform to this presentation. The amounts below reflect the preliminary allocation of the purchase prices paid by Jupitermedia in connection with its recent acquisitions and are subject to change pending a final allocation of these amounts. The following forward looking-statements reflect Jupitermedia's expectations as of May 9, 2007. 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) |
Q2 2007 (A) |
| Revenues | $36.0-37.0 |
| Cost of revenues, advertising, promotion & selling, and general & administrative expenses | $28.0-29.0 |
| EBITDA (Earnings before interest, taxes, depreciation and amortization) | $8.0 |
| Depreciation and amortization | $4.3 |
| Interest expense, net | $1.4 |
| Provision for income taxes | $1.0 |
| Net income | $1.3 |
| Diluted share count | 36.1 |
| Earnings per diluted share | $0.04 |
Notes:
(A) This financial guidance does not include estimated non-cash stock-based compensation expense relating to employee stock options in the amount of $0.01 per share for Q2 2007.
About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com),
headquartered in Darien, CT, is a leading global provider of images, original information 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 BananaStock, Workbook Stock, Brand X Pictures, FoodPix, Botanica, Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images, Creatas Images, PictureQuest, Liquid Library, Thinkstock Images, Thinkstock Footage, Bigshot Media, Goodshoot, ITStockFree, Stock Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net, Clipart.com, FlashFoundry.com, JupiterGreetings.com, AnimationFactory.com, RoyaltyFreeMusic.com, StudioCutz.com and Stockxpert.com. The media segment of Jupitermedia consists of four distinct online networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Graphics.com for creative professionals. The networks include more than 150 Web sites and over 150 e-mail newsletters that are viewed by over 20 million users and generate over 400 million page views monthly. In addition, the media segment includes internet.com events, which produces offline conferences and trade shows focused on IT and business-specific topics including ISPCON, INBOX, Web Video Summit, Semantic Web Strategies and Digital Rights Management Strategies.
"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 ability to protect its intellectual property; and Jupitermedia's dependence on a limited number of advertisers. 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.
All current Jupitermedia Corporation press releases can be found on the World Wide Web at www.jupitermedia.com/corporate/press.html
CONTACT:
Michael DeMilt
VP of Marketing
Jupitermedia Corporation
203-662-2989
[email protected]
