Internet Capital Group Announces Fourth Quarter and Year-End Financial Results
Thursday February 17, 8:30 am ET
Quarterly Net Loss, Excluding Unusual Items, Decreases By 65%
WAYNE, Pa.--(BUSINESS WIRE)--Feb. 17, 2005--Internet Capital Group, Inc. (Nasdaq:ICGE - News) today reported its results for the fourth quarter and fiscal year ended December 31, 2004.
"2004 was a pivotal year for ICG. We are pleased with the progress that a number of our partner companies have made and the improvement of our financial position at the corporate level," said Walter Buckley, ICG's Chairman and Chief Executive Officer. "We concluded 2004 with good momentum and entered 2005 with growing sales pipelines at our partner companies. Furthermore, our net loss, excluding unusual items, declined in the fourth quarter by 65%, year over year. With a tight focus on driving partner company performance, we believe we are well-positioned to continue on the path to profitability and building stockholder value throughout 2005."
ICG Financial Results
ICG reported consolidated revenue of $15.0 million and a net loss of $(2.6) million, or $(0.07) per share, for the fourth quarter of 2004. Consolidated revenue was $16.5 million and net loss was $(56.4) million, or $(2.95) per share, for the comparable 2003 period. The fourth quarter of 2003 includes $3.0 million of revenue related to a customer that was lost at the end of 2003.
ICG reported consolidated revenue of $52.4 million and a net loss of $(135.3) million, or $(3.78) per share, for the full year of 2004. Consolidated revenue was $70.0 million and net loss was $(135.9) million, or $(8.98) per share, for the comparable 2003 period. Full year 2003 includes $12.0 million of revenue relating to the aforementioned lost customer.
Results for the fourth quarter of 2004 include $1.9 million in net gains primarily related to asset dispositions compared to $43.4 million in net charges in the 2003 period principally related to debt-for-equity exchanges and losses related to dispositions. Excluding unusual items, net loss for the fourth quarter of 2004 was $(4.5) million versus $(13.0) million for the 2003 period, a reduction of 65%.
Results for the full year of 2004 include $103.7 million in net unusual charges principally related to debt-for-equity exchanges offset by gains primarily related to asset dispositions compared to $66.5 million in net charges in the 2003 period principally related to debt-for-equity exchanges and losses related to dispositions. Excluding unusual items, net loss for the full year of 2004 was $(31.6) million versus $(69.4) million for the 2003 period, a reduction in excess of 50%.
ICG has ownership interests in ten private companies that are classified as Core companies. Two of these companies are consolidated, ICG Commerce and CommerceQuest. The other eight companies are accounted for under the equity method and include CreditTrade, eCredit.com, Freeborders, GoIndustry, Investor Force, LinkShare, Marketron and StarCite. The comparative operating results of the ten Core companies, based on ICG's current accounting methods for their results, are summarized below:
Three months ended December 31,
(in thousands)
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Consolidated Equity Method
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Revenue $ 15,003 $ 16,510 $ 43,594 $ 41,548
EBITDA (a) 2,184 (1,107) (1,286) 1,762
Net income/(loss) 1,459 (4,778) (6,106) (3,301)
Year Ended December 31,
(in thousands)
-------------------------------------------
Consolidated Equity Method
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Revenue $ 52,400 $ 66,084 $ 167,472 $ 142,385
EBITDA (a) (4,593) (10,487) 353 (7,927)
Net income/(loss) (8,536) (21,654) (16,695) (24,825)
(a) EBITDA represents earnings/(losses) before interest, tax,
depreciation, and amortization of intangibles. A reconciliation of
EBITDA to GAAP net income is included as an attachment to this
release.
ICG's corporate cash and short-term investment balance at December 31, 2004 was $67.3 million and the value of its marketable securities was $54.1 million.
ICG will host a webcast at 10:00 a.m. ET today to discuss results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to internetcapital.com and click on the link for the fourth quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 877-407-8289. The international dial in number is 201-689-8341.
For those unable to participate in the conference call, a replay will be available beginning February 17, 2005 at 11:00 a.m. until February 24, 2005 at 11:59 p.m. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code, 1628, followed by the conference ID number 137359. The replay and slide presentation can also be accessed on the Internet Capital Group web site at internetcapital.com.
About Internet Capital Group
Internet Capital Group (www.internetcapital.com) builds and owns Internet software companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies that are delivering on-demand software and service applications to customers worldwide. |
