Internet Capital Group Announces Second Quarter Results
Thursday August 3, 8:30 am ET
WAYNE, Pa.--(BUSINESS WIRE)--Aug. 3, 2006--Internet Capital Group, Inc. (Nasdaq:ICGE - News) today reported its results for the second quarter ended June 30, 2006.
Second Quarter Highlights:
Achieved solid quarterly Core company revenue growth.
Revenue growth and operating results at ICG Commerce, StarCite and Metastorm were particularly strong.
Repurchased $10.4 million of debt, resulting in a balance of $26.6 million of outstanding convertible debt.
Subsequent Event:
The Core group saw significant M&A activity including Investor Force selling its database division to Morningstar for $10.0 million in cash and a licensing deal, and CreditTrade announcing its pending merger with Creditex.
"We are excited about the underlying revenue growth we are seeing at a number of our Core companies, including ICG Commerce, StarCite and Metastorm," said Walter Buckley, ICG's Chairman and Chief Executive Officer. "We are also very enthusiastic about the level of M&A activity we are seeing at our partner companies, such as CreditTrade and Investor Force. The pending merger between CreditTrade and Creditex is a great example of combining forces with a competitor - increasing functionality, scalability and market share - and emerging as a stronger, more valuable entity. Ultimately, we believe this type of M&A activity results in value creation for ICG and its stockholders."
ICG Financial Results
ICG reported consolidated revenue of $16.0 million for the second quarter of 2006 versus $9.8 million for the 2005 period. ICG reported consolidated revenue of $31.2 million for the six months ended June 30, 2006 versus $20.9 million for the comparable 2005 period. Investor Force's database division was sold in August 2006 and has been reflected as a discontinued operation for all periods presented.
ICG reported a net loss of $(7.8) million, or $(0.21) per share, for the second quarter of 2006 versus net income of $1.1 million, or $0.03 per diluted share, for the 2005 period. Results for the 2006 quarter include $1.9 million of stock based compensation versus $0.4 million in the prior year's period. Additionally, results for the 2006 quarter include $0.3 million in net charges primarily related to a loss on debt repurchases offset by other gains and an income tax benefit versus $10.0 million in net gains in 2005 primarily from sales of Blackboard shares. ICG reported a net loss of $(12.7) million, or $(0.34) per share, for the six months ended June 30, 2006 versus a net loss of $(2.0) million, or $(0.05) per share, for the prior year period.
ICG's corporate cash and short-term investment balance at June 30, 2006 was $107.4 million and the value of its public securities was $92.5 million.
ICG Core Partner Company Information
Set forth below is pro forma information relating to ICG's current nine private Core companies: CreditTrade, Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite, Vcommerce and WhiteFence. Our ownership positions in these nine companies averages 48%.
Aggregate pro forma revenue of ICG's nine private Core companies grew 12% year over year, to $55.0 million in the second quarter of 2006 from $48.9 million in the first quarter of 2005. Aggregate pro forma EBITDA (loss) for the Core companies increased to $(3.6) million in the second quarter of 2006 from $(3.1) million in the second quarter of 2005. CreditTrade had a down quarter from a very strong 2005 quarter. Excluding CreditTrade, aggregate pro forma revenue of ICG's eight other private Core companies grew 38% year over year, and aggregate pro forma EBITDA (loss) improved 58%. 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 executed against a number of its strategic objectives, both at the ICG Corporate and Core company levels," said Kirk Morgan, Chief Financial Officer at ICG. "In the past year, we repurchased more than $33 million of debt, effectively repurchasing 3.7 million shares of common stock potentially issuable upon conversion. Additionally, we've seen good momentum at a number of our partner companies this quarter and our Core companies are projected to achieve at least 20% revenue growth for the year." |
