– Revenue of $58.3 Million; EBITDA of $11.2 Million; FY 2004 EBITDA Guidance Raised –
FORT MYERS, FL – NOVEMBER 1, 2004 – FINDWHAT.COM, INC. (NASDAQ: FWHT), a global leader in developing and providing performance-based marketing and commerce enabling services, today reported record financial results for the three and nine months ended September 30, 2004. Highlights include:
• In Q3 2004 the Company generated $58.3 million in revenue, an increase of 227% versus Q3 2003, due to both recent mergers and acquisitions and growth from existing operations, and was within the range of the Company’s previously-announced revenue guidance of $55 to $60 million. FindWhat.com has increased revenue sequentially for 20 consecutive quarters.
• In Q3 2004 the Company generated $11.2 million in EBITDA and $0.32 in Adjusted Pre-tax EPS, exceeding the Company’s previously announced guidance of $8.7 to $9.7 million, and $0.23 to $0.27, respectively. EBITDA increased 129% versus Q3 2003. FindWhat.com has increased EBITDA and Adjusted Pre-tax Income sequentially for 14 consecutive quarters.
• Full year financial guidance for 2004 EBITDA has been raised.
• Completion of the Espotting Media Inc. transaction expands FindWhat.com’s global presence to three continents. Results from Espotting are included in the consolidated results of FindWhat.com from the date of the merger: July 1, 2004.
• Espotting transaction accretive to earnings in first full quarter of inclusion.
• Cash and cash equivalents at September 30, 2004 were approximately $46.2 million.
Craig Pisaris-Henderson, chairman and chief executive officer of FindWhat.com, stated, “This was truly a historic quarter for FindWhat.com as we continued to execute our global plan. In Q3 2004 we achieved record revenue and earnings, meeting and in some areas, greatly exceeding, our expectations. We completed the Espotting transaction, expanding our operations into eight European countries, and helped Mitsui launch a paid listings service in Japan, establishing one of the largest global footprints within our sector. We also are pleased to announce that Espotting’s financial results were accretive to our earnings in Q3 2004, and that both our U.S. and European divisions grew revenue sequentially in the third quarter. I believe that the results announced today demonstrate our global team’s ability to focus on building our business, while simultaneously integrating two large operations.”
Pisaris-Henderson continued,”FindWhat.com continued to lead the industry with the launch of innovative products, such as our pioneering Pay-Per-Call initiative which provides advertisers with an opportunity to receive local or national phone calls based on geographic parameters they determine in a performance-based environment. Further, we announced new relationships intended to benefit our global, national, and local clients. In summary, our worldwide team continues to execute on our collective vision, leveraging our aggregated assets and the result of their work and dedication is evident in this quarter’s financial, operating and strategic performance.”
FindWhat.com reported record revenue in Q3 2004 of $58.3 million versus Q3 2003 revenue of $17.8 million. For the nine months ended September 30, 2004, FindWhat.com reported record revenue of $110.7 million, an increase of 116% compared with revenue of $51.2 million for the same period in 2003.
FindWhat.com reported record net income in Q3 2004 of $4.8 million, or $0.15 per diluted share, an increase of 72% compared to Q3 2003 net income of $2.8 million, or $0.12 per diluted share. For the nine months ended September 30, 2004, FindWhat.com reported record net income of $12.3 million, or $0.46 per diluted share, versus net income of $8.2 million, or $0.37 per diluted share, for the same period in 2003.
EBITDA in Q3 2004 was a record $11.2 million, an increase of 129% versus Q3 2003 EBITDA of $4.9 million. For the nine months ended September 30, 2004, FindWhat.com reported record EBITDA of $25.6 million, an increase of 81% compared with EBITDA of $14.2 million for the same period in 2003.
In Q3 2004 Adjusted Pre-tax Income increased 123% to a record $10.2 million, or $0.32 per diluted share, versus Q3 2003 Adjusted Pre-tax Income of $4.6 million, or $0.20 per diluted share. For the nine months ended September 30, 2004, FindWhat.com’s Adjusted Pre-tax Income increased 78% to a record $23.7 million, or $0.88 per diluted share, compared with Adjusted Pre-tax Income of $13.3 million, or $0.60 per diluted share, for the same period in 2003.
FindWhat.com believes that “EBITDA,” “Adjusted Pre-tax Income” and “Adjusted Pre-tax EPS” can provide meaningful comparisons of the Company’s current and projected operating performance with its historical results due to a) historical and projected changes in FindWhat.com’s effective tax rate over time, and b) its significant increase in non-cash amortization expense beginning Q1 2004 primarily due to certain intangible assets resulting from acquisitions. FindWhat.com defines EBITDA as net income before interest, income taxes, depreciation, and amortization, and defines Adjusted Pre-tax Income as net income before income taxes and amortization. FindWhat.com uses EBITDA, Adjusted Pre-tax Income and Adjusted Pre-tax EPS as internal barometers of its business, and sets goals and awards bonuses in part based on performance relative to these measurements, but does not believe their use lessens the importance of GAAP measures.
FindWhat.com has acquired five businesses in the first nine months of 2004: Miva® (which recently acquired the assets of MvCool) on January 1; Comet Systems on March 22; B&B; Enterprises on June 4; and Espotting on July 1. Accordingly, FindWhat.com’s results for the three months ended September 30, 2004 include the operations of Miva, Comet, B&B; and Espotting for the entire period. FindWhat.com’s results for the nine months ended September 30, 2004 include the operations of Miva for the entire period, but only include the results of Comet, B&B;, and Espotting from the dates of their respective acquisitions. In Q1 2004, Miva and Comet contributed less than $1 million to the Company’s reported consolidated revenue; in Q2 2004, Miva, Comet and B&B; contributed less than $4 million; and in Q3 2004, Miva, Comet, and B&B; contributed approximately $5 million to the reported consolidated revenue. Espotting contributed approximately $28.3 million to the Company’s consolidated Q3 2004 revenue. In the future, the Company believes that the recognition of revenue by various divisions will not be comparable from period to period given opportunities to direct revenue from one division to another; for example, by targeting paid listings based on the Internet user’s location, rather than the home country of the distribution partner.