Internet Capital Group Announces Second Quarter Results; Solid Revenue Growth at Core Companies Demonstrates Good Progress
8/4/2005 8:30:04 AM
WAYNE, Pa., Aug 04, 2005 (BUSINESS WIRE) -- Internet Capital Group, Inc. (ICGE) today reported its results for the second quarter ended June 30, 2005.
ICG Financial Results
ICG reported consolidated revenue of $13.0 million and net income of $1.1 million, or $0.03 per share, for the second quarter of 2005. During the second quarter of 2004, consolidated revenue was $12.5 million and net loss was $(1.9) million, or $(0.05) per share. ICG Commerce and CommerceQuest were consolidated during both periods and Investor Force was consolidated commencing January 1, 2005.
Results for the second quarters of 2005 and 2004 include $9.8 million and $6.9 million, respectively, in net gains primarily related to our sales of marketable securities and asset dispositions.
ICG's corporate cash and short-term investment balance at June 30, 2005 was $60.7 million and the value of its marketable securities and a receivable from a sale of marketable securities was $59.1 million.
ICG Core Partner Company Operations
Set forth below is information relating to our nine Core companies, which include the three consolidated companies discussed above and six equity method companies. Our ownership positions in these nine companies averages 54%.
Aggregate revenue of ICG's nine Core companies grew 29% year over year, to $68.0 million, in the second quarter of 2005 from $52.8 million in the second quarter of 2004, led by strong revenue growth at CreditTrade, LinkShare and StarCite. Disappointing performance at CommerceQuest adversely impacted revenues for this group. Aggregate EBITDA for the Core companies grew to $1.2 million from breakeven in the second quarter of 2004. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to the nearest comparable GAAP measures.
During the quarter, ICG increased its ownership in StarCite to 61%. StarCite's balance sheet was consolidated as of June 30, 2005 and beginning July 1, 2005 its operating results will be consolidated into ICG's statement of operations.
"We are pleased with the progress that our companies made in the second quarter of 2005," said Walter Buckley, ICG's Chairman and Chief Executive Officer. "Given the strong Core company revenue growth that we experienced in the first half of the year, we currently expect to meet or exceed the upper range of our previously issued revenue growth guidance of 15% to 20% for 2005. Among our key goals for 2005 are revenue growth, earnings improvement and increased ownership stakes in some of our existing partner companies."
ICG will host a webcast at 10:00 am 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 second 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 877-407-8035. The international dial in number is 201-689-8035.
For those unable to participate in the conference call, a replay will be available beginning August 4, 2005 at 11:00 am until August 11, 2005 at 11:59 pm. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code, 286, followed by the conference ID number 161510. 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. |
