Amigos and All, more info on MDLK
NEW YORK--(BUSINESS WIRE)--Feb. 17, 1998
Propelled by surging growth in its production and live broadcast services, Medialink Worldwide
Incorporated (Nasdaq: MDLK), the global leader in communicating corporate news to the public
via television and radio newscasts, today reported record revenues, net income and net income
per share for the fourth quarter and fiscal year ended December 31, 1997.
Revenues for the fourth quarter of 1997 increased 82% to $8.5 million, from $4.7 million for the
same quarter ended December 31, 1996. The Company realized net income for the quarter of
$837,000, up 212% over net income of $268,000 for the comparable 1996 quarter. Earnings
before interest, taxes, depreciation and amortization (EBITDA) were up 149% to $1.5 million
from $594,000 in the year-ago quarter. Diluted earnings per share were 15 cents on a weighted
average of 5,690,000 shares outstanding in the 1997 period versus 8 cents in the 1996 period on
a weighted average of 3,455,000 shares outstanding, an increase of 84%.
For the fiscal year ended December 31, 1997, revenues totaled $27 million, 69 percent over
revenues of $16 million recorded in 1996. The Company realized net income of $2.4 million in
fiscal 1997, an increase of 181 percent over the $844,000 recorded for fiscal 1996. EBITDA
grew 142 percent to $4.3 million from $1.8 million in 1996. Diluted earnings per share for the
1997 fiscal year rose 76 percent to 44 cents on a weighted average of 5,390,000 shares
outstanding, over pro forma net income per share of 25 cents on a weighted average of 3,327,000
shares outstanding in the prior fiscal year.
"Performance of our production and live broadcast services was outstanding, particularly in the
fourth quarter," said Laurence Moskowitz, Chairman, President and Chief Executive Officer of
Medialink. "The demand for our video public relations services was repeatedly demonstrated as
the Company garnered impressive television and radio news exposure for clients ranging from
Burger King to IBM and from General Mills to Lockheed Martin."
"Revenues from our core distribution service, Medialink's most mature business line, grew by 39
percent versus the year before," Moskowitz said. "While our research division recorded
impressive 76 percent revenue growth for the year, we experienced a flattening in the fourth
quarter. We reassigned sales responsibility directly to the research division mid-way through the
period, an action which began to improve performance as the year drew to a close."
"We are most excited by clients' positive response to our introduction of live video 'streaming' via
the Internet," Moskowitz continued. "We have long provided professional videoconferencing to
clients such as Johnson & Johnson and Boeing, which use the service to transmit video of major
announcements and events from an origination site to various venues, such as board rooms and
hotels, worldwide via satellite. Now we can simultaneously 'stream' video of events to equity
analysts, employees and customers who can participate from their desktop computers. The
business units created by our acquisitions of Corporate Television Group (CTV) and On-Line
Broadcasting are particularly well-suited to employ this technology for their client projects."
"During the fourth quarter, we invested in the adaptation of new technology aimed at enhancing our
international distribution capabilities as well as supporting the development of new services for our
research division," said J. Graeme McWhirter, Medialink's Executive Vice President and Chief
Financial Officer. "While this caused general and administrative costs to increase, we believe these
investments will begin to generate additional revenues in 1998 and beyond and position the
Company for future growth."
"As we conclude our first year as a public company, we are exceedingly proud of the
achievements of Medialink professionals around the world," Moskowitz continued. "We have
grown the Company both externally -- through the acquisition of CTV and On-Line Broadcasting
-- and internally by developing new services, opening new sales offices, and establishing additional
strategic alliances with organizations such as ABC Newswire and ABC Radio International. Our
performance reflects both the success of our strategic growth initiatives and the prudence with
which we have executed those plans to become the professional one-stop shop for the public
relations and marketing communications industries."
Medialink is the world leader in providing video and audio production and satellite distribution
services to thousands of television and radio stations for corporations and other organizations
seeking to communicate their news to the public. Medialink also provides corporate consultation
and production through its Medialink Corporate Television division. In addition to broadcast
media services, the Company also provides press release distribution services as well as tracking
and analysis of print and broadcast news coverage to help its more than 1,300 clients understand
how they are perceived in the media, including the Internet, and to gauge the effectiveness of their
public relations efforts.
Medialink, founded in 1986, is based in New York and maintains offices in Los Angeles,
Washington, DC, Chicago, Dallas, Atlanta, San Francisco and Norwalk, CT; international
headquarters in London with a regional office in Birmingham, England; and a network of affiliates
in more than 18 countries in Europe, Asia, the Pacific Rim and Latin America. The New York
office can be reached at 212-682-8300 and via the Internet at www.medialink.com. With the
exception of the historical information contained in the release, the matters described herein contain
forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve various risks that may cause
actual results to differ materially. These risks include, but are not limited to, the ability of the
Company to grow internally or by acquisition, and to integrate acquired businesses, changing
industry and competitive conditions, significant fluctuations in exchange rates, and other risks
outside the control of the company referred to in the Company's registration statement and
periodic reports filed with the Securities and Exchange Commission.
To receive more information on Medialink Worldwide: via fax at no charge, dial
1-800-PRO-INFO and enter ticker symbol
MDLK,
or visit Medialink's web site at www.medialink.com
MEDIALINK WORLDWIDE INCORPORATED
Summary Financial Information
Year Ended
December 31
1997 1996 Percentage
Change
In thousands except per share data
Revenue $26,777 $15,831 69% Direct Costs 10,199 6,382 60% Gross Profit 16,578 9,449
75% General and administrative costs 13,264 7,953 67%
Operating income 3,314 1,496 122% Interest income/(expense), net 439 (7)
Net income before income taxes 3,753 1,489 152% Income tax expense 1 ,378 645 114%
Net income $2,375 $844 181%
Diluted earnings per share $0.44 $0.25 76%
Weighted average number of
common outstanding and
dilutive potential common
shares 5,390 3,327 Supplemental financial information EBITDA(a) $4,258 $1,758 142%
Depreciation and amortization $944 $262 260% Revenue Detail
Distribution $12,226 $8,798 39%
Production 6,037 2,721 122%
Live Broadcast 7,038 3,475 103%
Other 1,476 837 76%
$26,777 $15,831 69% (a) EBITDA is defined as earnings before interest, taxes,
depreciation and amortization.
MEDIALINK WORLDWIDE INCORPORATED
Summary Financial Information
Three Months Ended
December 31,
1997 1996 Percentage
Change In thousands except per share data Revenue $8,528 $4,673 82% Direct costs 3,199
1,775 80%
Gross Profit 5,329 2,898 84% General and administrative costs 4,193 2,405 74%
Operating income 1,136 493 130% Interest income/(expense), net 123 (11)
Net income before income taxes 1,259 482 161% Income tax expense 422 214 97%
Net income $837 $268 212%
Diluted earnings per share $0.15 $0.08 84%
Weighted average number of common
shares outstanding and dilutive
potential common shares 5,690 3,455 Supplemental Financial Information EBITDA(a) $1,479
$594 149% Depreciation and amortization $343 $101 240% Revenue Detail
Distribution $3,830 $2,619 46%
Production 1,949 618 215%
Live Broadcast 2,441 1,129 116%
Other 308 307 --
$8,528 $4,673 82%
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