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BEDFORD, Mass.--(BUSINESS WIRE)--July 26, 2001--Interactive
Data Corporation (Nasdaq NM: IDCO), formerly Data
Broadcasting Corporation (Nasdaq NM: DBCC), today
announced results for the second quarter ended June
30, 2001.
This is the company's fifth full reporting period
since the completion of the Interactive Data (now
known as FT Interactive Data) merger with Data Broadcasting
on March 1, 2000.
On a pro forma basis, reported as if the merged
businesses had been combined on January 1, 2000 and
excluding the financial results from the Federal News
Service and MarketWatch.com businesses that were sold
in January 2001, revenues for the second quarter of
2001 increased by 5.5% to $84.4 million from $80.1
million in the comparable period in 2000. Pro forma
EBITDA for the second quarter of 2001 increased by
32.2% to $27.7 million, or $0.30 per share, from $21.0
million, or $0.23 per share, in the same period in
2000. Pro forma net income for the quarter totaled
$1.4 million, or $0.01 per share, compared to a loss
of $7.0 million, or $0.08 per share, in last year's
second quarter.
Stuart Clark, president and chief executive officer,
commented, "We are very pleased to report our second
quarter of strong performance in 2001. Our institutional
business, which represents 86% of our revenues, had
a particularly strong quarter, growing 11.1% before
the effect of foreign exchange. All three of the geographic
business areas for our institutional business - North
America, Europe and Asia - contributed double digit
growth through a combination of increased business
with existing customers and the attainment of new
customers."
Mr. Clark continued, "The growth of our institutional
business is being driven by a number of positive factors.
The stronger product and content set we have built
as we integrated the TFSM businesses acquired from
Thompson Financial has been a factor in North America.
In Europe and Asia, our ability to provide "mark to
market" pricing and related data for traded and illiquid
securities has helped differentiate our service and
allowed customers in some markets to meet new regulatory
requirements. These factors, combined with the long-term
trends of growth in funds under management and securitization
of assets, help underpin our future and are reflected
in our healthy pipeline of new business."
Mr. Clark added, "At CMS, we have established alliances
with two electronic communications networks (ECNs)
that will give BondEdge customers access to online
fixed income trading. In addition, we are about to
launch the multi-currency version of BondEdge, which
will be attractive to international bond portfolio
managers around the world."
Mr. Clark concluded, "Although Interactive Data's
retail segment, which provides 14% of our revenues,
continued to feel the effect of the downturn in online
trading, the business is being managed very effectively
through this difficult period. eSignal is not only
EBITDA positive, but actually exceeded its EBITDA
target for the first half of 2001. This business is
the leader in its market segment and is well positioned
to take advantage of an upturn when it eventually
occurs. In the meantime, it will benefit from the
recent launch of eSignal Turbofeed, a real time service
that offers companies and web sites access to speedy
and reliable market data and is already winning new
customers for Interactive Data." Financial Results
Actual
For the quarter ended June 30, 2001, Interactive
Data reported revenues of $84.4 million versus $81.1
million for the second quarter of 2000. EBITDA totaled
$27.7 million, or $0.30 per share, for the second
quarter of 2001 versus $21.1 million, or $0.23 per
share, for the same period in 2000. Net income totaled
$1.4 million, or $0.01 per share, versus a loss of
$18.8 million, or $0.21 per share, in the second quarter
of 2000.
For the six months ended June 30, 2001, Interactive
Data reported revenues totaling $168.2 million versus
$145.6 million for the first six months of 2000. EBITDA
totaled $52.3 million compared to $39.8 million for
the same period last year. Net income totaled $1.5
million, or $0.02 per share, versus a loss of $24.1
million, or $0.30 per share, for the first half of
2000. Pro Forma
On a pro forma basis, for the six months ended June
30, 2001, revenues increased 5.2% to $168.2 million
from $159.8 million in the same period in 2000. EBITDA
increased by 29.1% to $52.3 million from $40.5 million
for the same period last year. Net income for the
period totaled $1.5 million, compared to a loss of
$13 million for the first six months of 2000.
As of June 30, 2001, the company had no outstanding
debt and had cash of $83.2 million. Conference Call
Information
Interactive Data Corporation's management will conduct
a conference call today at 11:00 a.m. Eastern Time
to discuss the second quarter 2001 results. The dial-in
number for the call is 212-346-6456; no access code
is required. Investors and interested parties may
also listen to the call via a live web broadcast available
through the Investor Relations section of the Company's
web site at www.interactivedatacorp.com and through
www.StreetEvents.com. To listen, please register and
download audio software at the site at least 15 minutes
prior to the call. A replay will be available on both
web sites shortly after the call. In addition, a telephone
replay will be available for seven days beginning
at 1:00 p.m. ET on July 26, 2001. To access the replay,
please dial 800-633-8284 or 858-812-6440 and request
reservation #19212344. Forward-looking and cautionary
statements
This press release contains certain forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995, and is subject to the
safe-harbor created by such Act. These statements
involve known and unknown risks, uncertainties and
other factors that may cause the actual results to
be materially different from those contemplated in
the forward-looking statements. Such factors include,
but are not limited to: (i) the presence of competitors
with greater financial resources than the Company's
and their strategic response to the Company's services
and products; (ii) changes in technology, which could
affect the competitiveness of the Company's products
and services; (iii) a decline in activity levels in
the securities markets, which could lower demand for
the Company's products and services; (iv) consolidation
of financial services, both within an industry and
across industries, which could lower demand for the
Company's products and services; (v) the loss of key
employees assigned to work associated with the integration
of the recently acquired businesses of the Company
and other delays in integration; (vi) prolonged outage
at one of the Company's data centers; (vii) the acceptance
of the Internet as a reliable real-time distribution
platform by institutional customers; (viii) the ability
of the Company to broaden its subscriber base by adding
more individual investors outside of the Company's
traditional "active-trader" market; (ix) the potential
obsolescence of the Company's services due to the
introduction of new technologies; and (x) other trends
in competitive or economic conditions affecting the
Company's financial condition or results of operations
not presently contemplated. The Company undertakes
no obligation to update these forward-looking statements.
About Interactive Data Corporation
Interactive Data Corporation is a leading global
provider of securities pricing, financial information,
and analytic tools to institutional and individual
investors. The company supplies time-sensitive pricing,
dividend, corporate action, and descriptive information
for more than 3.5 million securities traded around
the world, including hard-to-value, unlisted fixed
income instruments. The company links to most of the
world's best-known financial service and software
companies for trading, analysis, portfolio management,
and valuation.
Interactive Data Corporation is headquartered in
Bedford, Massachusetts. Through its branded businesses,
FT Interactive Data, CMS BondEdge, and eSignal, Interactive
Data Corporation has approximately 1,600 employees
in 22 offices in North America, Europe, Asia, and
Australia. Pearson plc (NYSE: PSO), an international
media company, whose businesses include the Financial
Times Group, Pearson Education, and the Penguin Group,
is a majority shareholder of Interactive Data Corporation.
INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands expect per share data)
Three Months Ended Six Months Ended
June June
2001 2000 2001 2000
REVENUES
Institutional 72,647 67,547 143,732 127,567
Retail
-eSignal 9,011 7,877 18,268 9,571
-Broadcast 2,781 5,724 6,214 8,455
Total 84,439 81,148 168,214 145,593
COSTS & EXPENSES
Cost of Services 25,705 29,183 52,256 51,110
Selling, general
& administrative 31,013 30,856 63,706 54,689
EBITDA 27,721 21,109 52,252 39,794
Depreciation 3,015 3,386 6,102 5,549
Amortization 20,875 21,246 42,340 36,514
Total costs &
expenses 80,608 84,671 164,404 147,862
INCOME (LOSS) FROM
OPERATIONS 3,831 (3,523) 3,810 (2,269)
Equity in loss from
Marketwatch.com, Inc. - (20,018) - (26,400)
Other income, net 791 230 1,449 363
INCOME (LOSS) BEFORE
INCOME TAXES 4,622 (23,311) 5,259 (28,306)
Provision (Benefit)
for Income Taxes 3,267 (4,478) 3,747 (4,251)
NET INCOME (LOSS) 1,355 (18,833) 1,512 (24,055)
NET INCOME (LOSS)
PER SHARE
Basic 0.01 (0.21) 0.02 (0.30)
Diluted 0.01 (0.21) 0.02 (0.30)
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING
Basic 91,253 91,200 91,232 79,917
Diluted 92,032 91,200 91,818 79,917
INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
PROFORMA SELECTED FINANCIAL DATA
(Unaudited)
(In thousands expect per share data)
Three Months Ended
June
2001 2000 Change
REVENUES
Institutional 72,647 66,467 9.3%
Retail
-eSignal 9,011 7,877 14.4%
-Broadcast 2,781 5,725 -51.4%
Total 84,439 80,069 5.5%
COSTS & EXPENSES
Cost of Services 25,705 28,448 -9.6%
Selling, general &
administrative 31,013 30,651 1.2%
EBITDA 27,721 20,970 32.2%
Depreciation 3,015 3,446 -12.5%
Amortization 20,875 21,246 -1.7%
Total costs & expenses 80,608 83,791 -3.8%
INCOME (LOSS) FROM OPERATIONS 3,831 (3,722) 202.9%
Equity in loss from
Marketwatch.com, Inc. - -
Other income, net 791 230 243.9%
INCOME (LOSS) BEFORE INCOME TAXES 4,622 (3,492) 232.4%
Provision (Benefit) for Income Taxes 3,267 3,495 6.5%
NET INCOME (LOSS) 1,355 (6,987) 119.4%
NET INCOME (LOSS) PER SHARE
Basic 0.01 (0.08)
Diluted 0.01 (0.08)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic 91,253 91,200
Diluted 92,032 91,200
Six Months Ended
June
2001 2000 Change
REVENUES
Institutional 143,732 131,907 9.0%
Retail
-eSignal 18,268 14,695 24.3%
-Broadcast 6,214 13,235 -53.0%
Total 168,214 159,837 5.2%
COSTS & EXPENSES
Cost of Services 52,256 57,732 -9.5%
Selling, general &
administrative 63,706 61,634 3.4%
EBITDA 52,252 40,471 29.1%
Depreciation 6,102 6,549 -6.8%
Amortization 42,340 42,488 0.3%
Total costs & expenses 164,404 168,403 -2.4%
INCOME (LOSS) FROM OPERATIONS 3,810 (8,566) 144.5%
Equity in loss from
Marketwatch.com, Inc. - -
Other income, net 1,449 731 98.2%
INCOME (LOSS) BEFORE INCOME TAXES 5,259 (7,835) 167.1%
Provision (Benefit) for Income Taxes 3,747 5,124 26.9%
NET INCOME (LOSS) 1,512 (12,959) 111.7%
NET INCOME (LOSS) PER SHARE
Basic 0.02 (0.14)
Diluted 0.02 (0.14)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic 91,232 91,200
Diluted 91,818 91,200
| CONTACT: |
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Investor Relations Contact: |
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Harriet Fried/John Nesbett |
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Hfried@lhai.com |
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Chenoa Taitt |
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Ctaitt@lhai.com |
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212/838-3777 |
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