Interactive Data Corporation Reports 12.1% Increase in EBITDA to $33.4 Million for the Third Quarter of 2002
(posters note: I've seen worse! Over 10% of mkt cap in cash and a growing business! I wonder if they've received any buyout offers?)
BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 24, 2002--Interactive Data Corporation (Nasdaq NM: IDCO)
Earnings Per Share Rise to $0.17 from $0.04 in the Third Quarter of 2001
Interactive Data Corporation (Nasdaq NM: IDCO) today announced results for the third quarter ended September 30, 2002.
Revenues increased 12.2% to $95.7 million from $85.3 million in the third quarter of 2001. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased 12.1% to $33.4 million, or $0.36 per diluted share, from $29.8 million, or $0.32 per diluted share, in the same
quarter last year. Net income rose to $15.8 million, or $0.17 per diluted share, from $3.8 million, or $0.04 per diluted share, in last year's same
period.
On January 1, 2002, the company adopted Financial Accounting Standard No. 142, "Goodwill and Other Intangible Assets" ("FAS 142"). As a
result, the company did not record any goodwill amortization expense in the third quarter of 2002 as compared to $9.7 million in the same
period last year. For the nine month period in 2001, the company recorded $28.3 million in goodwill amortization expense, whereas for the
same period this year, the company did not record any goodwill amortization expense.
Stuart Clark, president and chief executive officer, commented, "We are pleased to report such strong results in light of the difficult economic
environment that continues to affect many of our customers. Our institutional business increased 14.9% (or 13.2% before the effects of foreign
exchange), with most of that growth being driven by our data content business, FT Interactive Data. This division grew 16.2% with just under
half that growth coming from the Securities Pricing Service (SPS) business that we acquired from Merrill Lynch at the end of January 2002.
"Excluding the SPS revenues, our data content business grew 8.7% compared to last year's third quarter. Retail revenues declined 6.9%, or
$0.7 million, primarily due to the continued and expected decline in broadcast revenues. As a result of these trends, institutional revenues
accounted for just under 90% of the company's total revenues compared to just under 88% of revenues in last year's third quarter.
"Our overall operating expenses rose 12.2% in the third quarter of 2002 compared to the same period in 2001 due to the inclusion of SPS
related costs. Excluding those costs, our operating expenses rose just 7.6%. As a result of all the above, our EBITDA increased 12.1%, from
$29.8 million in the third quarter of 2001 to $33.4 million in this quarter. Driven by the profitability improvement and the elimination of goodwill
expense, our earnings per share grew to $0.17 for the third quarter of 2002 versus $0.04 in the same quarter a year ago."
Clark continued, "While market conditions remain difficult, we have concentrated on enhancing the value of our products, which has helped us
maintain our 95% plus contract renewal rates for our core institutional business. In addition, we have made very good progress on the
integration of the SPS business, which has continued to deliver the benefits we expected.
"In terms of new products, a key milestone in the third quarter was the implementation of our Fair Value Information Service which is primarily
aimed at mutual funds. That service went live in early July and we have now signed up our first two customers. We continue to anticipate this
product will live up to our original expectations, although, in this environment, customers are taking longer to make purchase decisions."
Nine Month Results
For the nine months ended September 30, 2002, Interactive Data reported revenues of $278.6 million versus $253.5 million for the comparable
period in 2001, an increase of 9.9%. Operating expenses rose 6.2% or $10.6 million during the same period. As a result, EBITDA rose 17.6%
from $82.1 million, or $0.89 per diluted share, to $96.5 million, or $1.03 per diluted share. For the first nine months of 2002, net income totaled
$43.7 million, or $0.47 per diluted share, versus $5.4 million, or $0.06 per diluted share, in the first nine months of 2001.
As of September 30, 2002, Interactive Data Corporation had no outstanding debt and had cash of $133.8 million. |
