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Interactive
Data Corporation (ticker: IDCO, exchange: NASDAQ) News Release
- 26-Oct-2001
Interactive
Data Reports 14.5% Increase in Pro Forma EBITDA to $29.8 Million
for the Third Quarter
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Pro Forma Net Income of $0.04 Per Share Compared to
Pro Forma Loss of $0.06 Per Share in 2000
BEDFORD, Mass., Oct 26, 2001 (BUSINESS WIRE) --Interactive
Data Corporation (Nasdaq NM: IDCO) today announced results
for the third quarter ended September 30, 2001. This
is the company's sixth 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 third quarter of 2001 increased
by 4.2% to $85.3 million from $81.9 million in the
comparable period in 2000. Excluding the effects of
foreign exchange, revenues increased by 6.0%. Pro
forma EBITDA for the third quarter of 2001 increased
by 14.5% to $29.8 million, or $0.32 per diluted share,
from $26.0 million, or $0.29 per share, in the same
period in 2000. Pro forma net income for the quarter
totaled $3.8 million, or $0.04 per share, compared
to a loss of $5.7 million, or $0.06 per share, in
last year's third quarter.
Stuart Clark, president and chief executive officer,
commented, "This has been another quarter of strong
performance for Interactive Data. Our institutional
business continues to be the main driver of our revenue,
accounting for 87.5% of the company's third quarter
revenues. This segment grew by 11.6% before the effects
of foreign exchange, illustrating the resilience of
our business even under today's very difficult economic
conditions. In fact, despite the slower economy worldwide,
our institutional business continued to grow in all
three of its geographic business areas - North America,
Europe and Asia - primarily by winning new customers
and expanding our relationships with existing clients."
"Revenues
from our retail segment decreased by 22% for the quarter,
driven by the continuing and expected decline in broadcast
customers. The business is being managed very effectively
in this difficult market environment and, as in the
first half of 2001, was EBITDA positive in the third
quarter. In fact, the business actually exceeded the
target we had set for it for this period."
"Our
outlook for the remainder of the year continues to
be positive," Mr. Clark said. "We continue to work
toward our goal of achieving underlying double digit
growth across our core institutional business. Our
expansion in Europe, which represents an important
market for us going forward, is making good progress.
In mid-October we launched the multi-currency version
of CMS BondEdge, our fixed income portfolio analytics
system, which is offered in Europe under the FT Interactive
Data brand. The reception for this new product has
been very encouraging."
Mr. Clark concluded, "We want to extend our appreciation
and thanks to our employees for their dedication and
outstanding performance after the terrible national
tragedy that took place on September 11. Although
some of our data collection and distribution facilities
are based in lower Manhattan, our staff's skill and
commitment enabled us to operate continuously during
this very difficult period. Many of our customers,
who depend on Interactive Data for some of their most
critical functions, have expressed their appreciation
of our employees' resourcefulness and commitment to
client service."
Financial Results
Actual
For the quarter ended September 30, 2001, Interactive
Data reported revenues of $85.3 million versus $82.9
million for the third quarter of 2000. EBITDA totaled
$29.8 million, or $0.32 per diluted share, for the third
quarter of 2001 versus $26.2 million, or $0.29 per share,
for the same period in 2000. Net income totaled $3.8
million, or $0.04 per share, versus a loss of $17.2
million, or $0.19 per share, in the third quarter of
2000.
For the nine months ended September 30, 2001, Interactive
Data reported revenues totaling $253.5 million versus
$228.5 million for the first nine months of 2000.
EBITDA totaled $82.1 million compared to $66.0 million
for the same period last year. Net income totaled
$5.4 million, or $0.06 per share, versus a loss of
$41.2 million, or $0.49 per share, for the first nine
months of 2000.
Pro Forma
On a pro forma basis, for the nine months ended September
30, 2001, revenues increased 4.9% to $253.5 million
from $241.7 million in the same period in 2000. EBITDA
increased by 23.4% to $82.1 million from $66.5 million
for the same period last year. Net income for the period
totaled $5.35 million, compared to a loss of $18.7 million
for the first nine months of 2000.
As of September 30, 2001, the company had no outstanding
debt and had cash of $92.2 million.
Conference Call Information
Interactive Data Corporation's management will conduct
a conference call today at 10:00 a.m. Eastern Time to
discuss the third quarter 2001 results. The dial-in
number for the call is 212-896-6065; 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 until Friday, November 2, 2001.
To access the replay, please dial 800-633-8284 and request
reservation #19789129.
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
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| Australia. Pearson plc (NYSE: PSO), an international
media company, whose businesses include the Financial
Times Group, Pearson Education, and the Penguin Group,
owns approximately 60 percent of Interactive Data
Corporation.
INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share data)
Three Months Ended Nine Months Ended
September September
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2001 2000 2001 2000
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REVENUES
Institutional 74,618 69,210 218,350 196,777
Retail
-eSignal 8,474 8,795 26,742 18,366
-Broadcast 2,195 4,881 8,409 13,336
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Total 85,287 82,886 253,501 228,479
COSTS & EXPENSES
Cost of Services 25,433 27,452 77,689 78,562
Selling, general
& administrative 30,041 29,237 93,747 83,926
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EBITDA 29,813 26,197 82,065 65,991
Depreciation 3,105 3,516 9,207 9,065
Amortization 17,793 21,156 60,133 57,670
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Total costs
& expenses 76,372 81,361 240,776 229,223
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INCOME (LOSS)
FROM OPERATIONS 8,915 1,525 12,725 (744)
Equity in loss from
Marketwatch.com, Inc. - (19,376) - (45,776)
Other income, net 934 228 2,383 591
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INCOME (LOSS) BEFORE
INCOME TAXES 9,849 (17,623) 15,108 (45,929)
Provision (Benefit)
for Income Taxes 6,011 (434) 9,758 (4,685)
---------------------- ----------------------
NET INCOME (LOSS) 3,838 (17,189) 5,350 (41,244)
NET INCOME
(LOSS) PER SHARE
Basic 0.04 (0.19) 0.06 (0.49)
Diluted 0.04 (0.19) 0.06 (0.49)
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING
Basic 91,085 91,202 91,183 83,679
Diluted 93,537 91,202 92,391 83,679
INTERACTIVE DATA CORPORATION AND SUBSIDIARIES
PROFORMA SELECTED FINANCIAL DATA
(Unaudited)
(In thousands except per share data)
Three Months Ended Nine Months Ended
September September
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2001 2000 Change 2001 2000 Change
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REVENUES
Institutional 74,618 68,180 9.4% 218,350 200,087 9.1%
Retail
-eSignal 8,474 8,795 -3.6% 26,742 23,490 13.8%
-Broadcast 2,195 4,881 -55.0% 8,409 18,116 -53.6%
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Total 85,287 81,856 4.2% 253,501 241,693 4.9%
COSTS & EXPENSES
Cost of
Services 25,433 26,834 -5.2%
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(Benefit) for
Income Taxes 6,011 7,313 -17.8% 9,758 12,437 -21.5%
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NET INCOME
(LOSS) 3,838 (5,700) 167.3% 5,350 (18,659) 128.7%
NET INCOME (LOSS)
PER SHARE
Basic 0.04 (0.06) 0.06 (0.20)
Diluted 0.04 (0.06 |
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