ValueClick Reports Record First Quarter 2004 and Raises Guidance for Full Year 2004
Profitability Net of Non-Recurring Gain Exceeds Guidance
WESTLAKE VILLAGE, Calif.--April 27, 2004--ValueClick, Inc. (Nasdaq:VCLK), the single-source provider of media, technology and services across all major interactive marketing channels, today reported financial results for the first quarter ended March 31, 2004. Performance in the quarter exceeded the Company`s previously issued guidance for revenue, net income per share and EBITDA(1), on both a reported basis and net of the non-recurring $8.0 million gain associated with the Company`s sale of its ownership interest in ValueClick Japan.
For the quarter ended March 31, 2004, ValueClick reported revenue of $36.7 million, which was an increase of $17.2 million, or 89 percent, from revenue of $19.5 million for the first quarter of 2003. First quarter 2004 results include a full quarter of operations from Search123, Commission Junction and Hi-Speed Media, acquired in late May 2003, early December 2003 and late December 2003, respectively.
First quarter 2004 income before taxes and minority interest was $15.0 million compared to $1.6 million for the first quarter of 2003. Net income for the first quarter of 2004 was $13.4 million, or $0.16 per diluted common share, compared to net income of $1.2 million, or $0.02 per diluted common share, for the first quarter of 2003. First quarter 2004 net income before interest, taxes, depreciation, and amortization (EBITDA) was $16.9 million compared to $2.1 million for the first quarter of 2003.
First quarter 2004 financial results included a non-recurring $8.0 million, or $0.10 per fully diluted share, gain on the sale of the Company`s equity interest in ValueClick Japan, which closed on March 29, 2004. Excluding this non-recurring gain, ValueClick`s first quarter 2004 net income per fully diluted share and EBITDA exceeded the Company`s previously issued guidance.
The March 31, 2004 consolidated balance sheet remained strong with $230.5 million in cash, cash equivalents and marketable securities, $222.5 million in working capital and $292.5 million in total stockholders` equity. Cash provided by operations for the first quarter of 2004 was approximately $10.3 million, and as of March 31, 2004 the cash, cash equivalents and marketable securities balance represented $2.92 per outstanding common share.
2004 Guidance
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 first quarter results and outlook for the remainder of 2004, ValueClick is raising its fiscal year 2004 guidance. Please note that previously issued guidance included a full year`s expected contribution from ValueClick Japan, while the Company`s new guidance does not include any contribution from ValueClick Japan after the first quarter of 2004.
For the second quarter of 2004, ValueClick anticipates revenue in the range of $35.0 million to $36.0 million, an approximate 77 percent increase in revenue from the second quarter of 2003. The Company expects diluted net income per share of approximately $0.06 in the second quarter of 2004. EBITDA for the second quarter of 2004 is expected to be in the range of $8.5 million to $9.5 million.
"While we realized a significant non-recurring gain from the ValueClick Japan transaction, the performance of our ongoing operations exceeded our expectations," said James Zarley, chairman and chief executive officer of ValueClick. "The momentum in our collective businesses enables us to raise our 2004 revenue guidance from its original level, in spite of removing Japan`s contribution from the remaining three quarters of 2004. We are off to a good start in 2004, and we are working hard to build upon our strong first quarter operating performance."
First Quarter 2004 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 April 27, 2004 at 1:30 p.m. 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 407430.
About ValueClick
ValueClick, Inc. (Nasdaq:VCLK) is the single-source provider of media, technology and related services that enable advertisers, agencies and publishers to reach consumers in all major online marketing channels, through our four business units:
ValueClick Media (http://media.valueclick.com) provides a wide range of online marketing solutions -- including Web Marketing, Email Marketing, Lead Generation Marketing and Search Marketing -- to create awareness, build brands, deliver targeted visitors, generate leads, drive sales, and grow customer relationships.
Commission Junction (www.cj.com) provides advanced performance marketing solutions that help marketers increase online leads and sales. By facilitating strategic relationships between advertisers and publishers, Commission Junction leverages its proven expertise in affiliate marketing and search marketing to drive measurable results for its clients.
Mediaplex (www.mediaplex.com) provides technology and services that help advertisers, agencies and Web site publishers manage their online advertising and permission-based email campaigns.
AdWare (www.adware.com) provides software and services that help advertising agencies and other companies operate their businesses more efficiently, through effective agency management, media management, and content management.
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, trends in online advertising spending and estimates of future online performance-based advertising. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including its Annual Report on Form 10-K filed on March 15, 2004, recent quarterly reports on Form 10-Q and current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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