Internet Capital Group Announces Fourth Quarter and Year-End Financial Results for 2005
Thursday February 16, 8:30 am ET
Strong Performance in 2005 Sets Stage for Continued Growth in 2006
WAYNE, Pa.--(BUSINESS WIRE)--Feb. 16, 2006--Internet Capital Group, Inc. (Nasdaq:ICGE - News) today reported its results for the fourth quarter and fiscal year ended December 31, 2005.
"2005 was an excellent year for ICG," said Walter Buckley, ICG's Chairman and Chief Executive Officer. "The list of accomplishments is long and includes proof points of the value we built for our stockholders over the past year."
2005 highlights include the following:
* Achieved strong annual Core company revenue growth;
* Ended the year with a strong balance sheet, after capturing $161 million of cash through monetizations and repurchasing $23 million of debt;
* Listed GoIndustry shares on the AIM Exchange;
* Acquired a 39% interest in WhiteFence, an on-demand internet software provider; and
* Enhanced value of CommerceQuest through merger with Metastorm, forming largest pure-play Business Process Management provider.
Looking forward to 2006, Mr. Buckley added, "Our goals for the upcoming year are to continue to work aggressively to drive revenue growth at our Core companies of at least 20% in the aggregate, effectively deploy capital to existing and new partner companies, and strategically monetize assets during the year."
ICG Financial Results
ICG reported consolidated revenue of $12.8 million for the fourth quarter of 2005 versus $12.1 million for the comparable 2004 period. ICG reported consolidated revenue of $50.6 million for the full year of 2005 versus $41.9 million for the comparable 2004 period. ICG Commerce's German subsidiary was sold in January 2006 for nominal consideration and has been reflected as a discontinued operation for all periods presented.
ICG reported a net loss of $(12.7) million, or $(0.34) per share, for the fourth quarter of 2005 versus a net loss of $(2.6) million, or $(0.07) per share, for the comparable 2004 period. Results for the fourth quarter of 2005 include $(5.8) million in net after-tax charges and $(1.4) million in stock-based compensation compared to $3.6 million in net gains and $(0.5) million in stock-based compensation in the 2004 period.
ICG reported net income of $72.5 million, or $1.73 per diluted share, for the full year of 2005 versus a net loss of $(135.3) million, or $(3.79) per share, for the comparable 2004 period. Results for the full year of 2005 include $105.5 million in net after-tax gains and $(4.3) million in stock-based compensation compared to $(103.5) million in net charges and $(1.4) million in stock-based compensation in the 2004 period. Please refer to the supplemental attachment to this release for a description of these gains/charges.
During the quarter, ICG repurchased $23.0 million face value of its 5% convertible notes due April 2009 for approximately $28.5 million in cash. The remaining principal balance of these notes at December 31, 2005 was $37.0 million.
ICG's corporate cash balance at December 31, 2005 was $129.6 million and the value of its marketable securities was $63.4 million. ICG's corporate cash balance at February 15, 2006 was $136.6 million and the quoted value of its public securities was $94.5 million.
ICG Core Partner Company Information
In the fourth quarter of 2005, CommerceQuest was merged into Metastorm and ICG acquired a 39% ownership stake in WhiteFence. Recently, GoIndustry listed its securities on the AIM Exchange and ICG Commerce sold its German subsidiary. To aid in the comparability of the ICG Core Partner Company Information, ICG is presenting pro forma financial information assuming these events occurred on January 1, 2004. Set forth below is pro forma information relating to ICG's current eight private Core companies: CreditTrade, Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite and WhiteFence. Our ownership positions in these eight companies averages 49%.
Aggregate pro forma revenue of ICG's eight private Core companies grew 15% year over year, to $46.9 million, in the fourth quarter of 2005 from $40.8 million in the fourth quarter of 2004. Annual aggregate pro forma revenue of ICG's eight Core companies grew 23% year over year, to $189.7 million in 2005 from $154.6 million in 2004. Aggregate pro forma EBITDA (loss) for the Core companies increased to $(4.1) million in the fourth quarter of 2005 from $(3.4) million in the fourth quarter of 2004. Annual aggregate pro forma EBITDA (loss) for the Core companies improved to $(11.6) million in 2005 from $(21.3) million in 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.
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 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 877-407-8035. The international dial in number is 201-689-8035.
For those unable to participate in the conference call, a replay will be available beginning February 16, 2006 at 11:00 am until February 23, 2006 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 191684. 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) owns and builds 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. |
