Quarter`s Net Income per Share Exceeds Guidance by 75 Percent
WESTLAKE VILLAGE, Calif.--Feb. 12, 2004--ValueClick, Inc. (Nasdaq:VCLK), the single-source provider of digital marketing media, technology and services across all major online marketing channels, today reported financial results for the fourth quarter and fiscal year ended December 31, 2003. Performance in the fourth quarter of 2003 exceeded the Company`s previously issued guidance for revenue, net income per share and EBITDA(a), and was ValueClick`s fifth consecutive quarter of operating income and net income growth.
For the quarter ended December 31, 2003, ValueClick reported revenue of $30.3 million, which was an increase of $11.5 million, or 61 percent, from revenue of $18.8 million for the fourth quarter of 2002. Fourth quarter 2003 results include a full quarter of the Search123 operations, acquired in late May 2003, and one month of the Commission Junction operations, acquired in December 2003. The operations of Hi-Speed Media, acquired in late December 2003, are not included in the Company`s results.
Fourth quarter 2003 income before taxes and minority interest was $5.3 million compared to $1.8 million for the fourth quarter of 2002. Net income for the fourth quarter of 2003 of $5.3 million, or $0.07 per diluted common share, and was an improvement compared to net income of $1.8 million, or $0.02 per diluted common share, for the fourth quarter of 2002. Fourth quarter 2003 net income before interest, taxes, depreciation, and amortization (EBITDA) of $6.7 million was an improvement compared to EBITDA of $1.9 million for the fourth quarter of 2002.
For the fiscal year ended December 31, 2003, ValueClick reported revenue of $92.5 million, an increase of approximately $30.0 million, or 48 percent, from revenue of $62.6 million for fiscal year 2002. Fiscal year 2003 results include seven months of the Search123 operations and one month of the Commission Junction operations. Fiscal year 2003 income before taxes and minority interest was $10.6 million compared to a loss before taxes, minority interest and cumulative effect of a change in accounting principle of $2.7 million for fiscal year 2002. Net income for fiscal year 2003 of $9.8 million, or $0.13 per diluted common share, was an improvement compared to a net loss of $10.6 million, or $0.14 per diluted common share, for fiscal year 2002. EBITDA was $14.8 million for fiscal year 2003 compared to a negative EBITDA of $3.3 million for fiscal year 2002.
The December 31, 2003 consolidated balance sheet remained strong with $220.1 million in cash, cash equivalents and marketable securities, $213.8 million in working capital and $274.2 million in total stockholders` equity. Cash provided by operations for the fourth quarter of 2003 was approximately $6.4 million, and as of December 31, 2003 the cash, cash equivalents and marketable securities balance represented $2.82 per outstanding common share.
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release.
Based on its fourth quarter results and outlook for the first quarter of 2004, ValueClick is raising its fiscal year 2004 guidance. For the first quarter of 2004, ValueClick anticipates revenue in the range of $32.0 million to $33.0 million, an approximate 67 percent increase in revenue from the first quarter of 2003. The Company expects diluted net income per share of approximately $0.04 in the first quarter of 2004. EBITDA for the first quarter of 2004 is expected to be in the range of $6.0 million to $6.5 million.
For fiscal year 2004, ValueClick is raising its guidance as follows (previous guidance vs. new guidance):
Revenue: $142-$146 million; $145-$148 million
Diluted net income: $0.20 to $0.25; $0.21 to $0.27 per share
EBITDA: $34-$37 million; $36-$38 million
"ValueClick`s strong fourth quarter was a fitting conclusion to a highly successful year," said James Zarley, chairman and chief executive officer of ValueClick. "In addition to completing three accretive acquisitions that extended the Company`s position as the single-source provider of digital marketing solutions, ValueClick delivered organic revenue growth of 46 percent and operating margin improvement that drove more of our revenue to the bottom line for our shareholders. We hold an optimistic view for 2004, and believe that the focus and discipline we applied to our businesses in 2003 will serve us well in 2004 and beyond."
Fourth Quarter 2003 Conference Call Today
James Zarley, chairman and chief executive officer, and Sam Paisley, chief financial officer, will present an overview of the results and other factors affecting financial performance for the quarter during a webcast on February 12, 2004 at 1:00PM PT. Investors and analysts may obtain dial-in information through StreetEvents (www.streetevents.com).
The live webcast and other information of potential interest to investors will be available to the public in the Investor Relations section of the Company`s website (www.valueclick.com). Please allow 15 minutes prior to the call to download and install any necessary audio software. An archive of the webcast will be available in the Investor Relations section of the Company`s website for seven days after the call. An archived audio replay will be available for seven days after the call and may be accessed at 888-203-1112 for domestic and 719-457-0820 for international callers. The passcode is 661652.
Webcast participants are encouraged to submit questions on financial results and business operations to management prior to the call. Please call 818-575-4677 to leave your question on our Investor Relations voice message system. Questions will be addressed on the live call and should be received no later than 11:00AM PT on Thursday, February 12, 2004.