Interactive Data Corporation Reports 26.2% Increase In EBITDA To $31 Million For The First Quarter Of 2002
BEDFORD, Mass.--(BUSINESS WIRE)--April 25, 2002--Interactive Data Corporation (Nasdaq NM: IDCO) today announced results for the
first quarter ended March 31, 2002.
Revenues increased 6.8% to $89.4 million from $83.8 million in the first quarter of 2001. EBITDA increased 26.2% to $31.0 million, or $0.33
per diluted share, from $24.5 million, or $0.27 per diluted share, in the same period last year. Net income rose to $13.4 million, or $0.14 per
diluted share, from $157,000 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 of adopting FAS 142, the company ceased recording amortization expense associated with its acquired goodwill. In the first three
months of 2001, the company recorded $9.3 million before tax of goodwill amortization in its results.
Stuart Clark, president and chief executive officer, commented, "We got off to a strong start in this first quarter of 2002 despite the difficult
economic environment that continues to affect many of our customers. Our institutional business increased by 11.6% before the effects of
foreign exchange, with almost all of that growth being driven by our data content business, FT Interactive Data. This division grew by 8.3%,
boosted by two months of revenue from the Securities Pricing Service (SPS) business that we acquired from Merrill Lynch at the end of
January. Retail revenues fell 18.8% from the first quarter of 2001 due to the continued and expected decline in broadcast revenues.
"The company's underlying costs grew only 2.2% after adding back the $2 million reserve taken last year against amounts owed to us by
Bridge Information Systems, Inc. This reflects the strong control of costs across our businesses, particularly within our retail segment. Our
26.2% growth in EBITDA to $31.0 million was very strong, with underlying growth being 16.7% if last year's Bridge provision is factored out.
"With the impact of the FAS 142 changes that took effect on January 1, 2002, we are now pleased to report a significant increase in net
income. Of the $0.14 per diluted share reported, $0.06 results from the accounting changes."
Mr. Clark continued, "In the first quarter we have put in place some significant growth initiatives that we expect will benefit our business as
the year progresses. On the institutional side, the SPS acquisition, whose integration process is off to a good start, will increase growth
relative to last year. We are already achieving some early sales through our institutionally oriented real-time feed product, TurboFeed(TM),
and we expect these to be boosted by our recently announced strategic alliance with Advent Software (Nasdaq NM: ADVS) that will fully
integrate our real-time data offering with the Advent Office(TM) platform. The Fair Value Evaluation Service, designed to support the mutual
fund industry in the valuation of international equities, has been well received and we are enthusiastic about the prospects for new business
from this product starting in the second half of the year. At eSignal, the launch of version 7.0, with its high end charting capabilities, has
already generated new sales. These developments will help us continue to grow in 2002."
As of March 31, 2002, Interactive Data Corporation had no outstanding debt and had cash of $85.7 million.
Conference Call Information
Interactive Data Corporation's management will conduct a conference call Thursday (April 25th) at 11:00 a.m. Eastern Time to discuss the
first quarter 2002 results and additional matters. The dial-in number for the call is 212-896-6108; 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 Thursday, May 2, 2002. To access the replay, please dial 800-633-8284 and request reservation #20497039.
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 1,500 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, 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
March 31,
----------------------------------------------
2002 2001 Change
----------------------------------------------
REVENUES
Institutional $ 79,140 $ 71,085 11.3%
Retail
-eSignal 8,818 9,257 -4.7%
-Broadcast 1,484 3,433 -56.8%
----------------------------------------------
Total $ 89,442 $ 83,775 6.8%
COSTS & EXPENSES
Cost of Services 27,014 26,551 1.7%
Selling, general
& administrative 31,461 32,693 -3.8%
----------------------------------------------
EBITDA $ 30,967 $ 24,531 26.2%
Depreciation 3,403 3,087 10.2%
Amortization 6,204 21,465 -71.1%
----------------------------------------------
Total costs
& expenses $ 68,082 $ 83,796 -18.8%
----------------------------------------------
INCOME (LOSS)
FROM OPERATIONS $ 21,360 $ (21) N/A
Other income, net 392 658 -40.4%
----------------------------------------------
INCOME BEFORE INCOME TAXES $ 21,752 $ 637 3314.8%
Provision for Income Taxes 8,380 480 1645.8%
----------------------------------------------
NET INCOME $ 13,372 $ 157 N/A
NET INCOME PER SHARE
Basic $ 0.15 $ 0.00 N/A
Diluted $ 0.14 $ 0.00 N/A
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic 90,571 91,211 -0.7%
Diluted 93,947 91,604 2.6% |
