Here is yesterdays news:
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Thursday September 9, 6:59 am Eastern Time
Company Press Release
Leapnet, Inc. Reports $0.04 Profit for Second Quarter
Internet Revenue Growth of 132% for First Six Months
CHICAGO--(BUSINESS WIRE)--Sept. 9, 1999--Leapnet, Inc. (Nasdaq: LEAP - news), today reported results for its
fiscal second quarter and six months ended July 31, 1999.
For the quarter, revenues increased 9.3% to $9.8 million, compared to revenues of $9.0 million in the same period last year.
On a pro forma basis, excluding revenues from One World Communications (One World) and the AT&T revenue from YAR
Communications (YAR), revenues increased 110% from $4.7 million. (Leapnet sold the assets of One World and the AT&T
account at YAR to Young & Rubicam in October 1998.) Net income increased 680%, to $576,326 or $0.04 per diluted
share, compared to net income of $73,894, or $0.01 per diluted share in the same period last year.
For the six-month period, revenues were $17.7 million, compared to $19.4 million for the year-ago period. On a pro forma
basis, excluding revenues from One World and AT&T revenue from YAR, revenues increased 67% from $10.6 million. Net
income for the six-month period was $364,640 or $0.03 per diluted share, compared to net income of $88,880, or $0.01 per
share, for the comparable year-ago period.
Internet revenues at Quantum Leap Communications, Leapnet's Internet advertising and development company, increased
132% for the six months ended July 31, 1999 compared to the same time period one year ago. The increase was due
primarily to greater business activity from Microsoft, a Quantum Leap client now in its third year. Microsoft's business at
Quantum Leap has increased from the initial agency of record assignment on MSNBC.com, to include MSN Slate, which
joined Quantum Leap's client roster in March 1999.
Frederick A. Smith, Chairman and Chief Executive Officer of Leapnet, Inc., commented, ``We are pleased to have surpassed
the goal of 100% Internet revenue growth for the year in our first six months. We expect continued Internet revenue growth as
we begin to realize revenue from new clients, such as Morningstar, in the third and fourth quarters, and as we continue to
pursue new e-business opportunities.'
Mr. Smith further noted, ``Our goal for fiscal 2000 is for Leapnet revenues to grow 50% on a pro forma basis, excluding the
revenues for One World and the AT&T account at YAR. We will continue to pursue overall revenue growth, including 100%
Internet revenue growth, and break-even or better performance on the bottom line as we grow our business. We are pleased
to work with top clients such as American Airlines and Microsoft, both of which are in their third year with us, as well as Ernst
& Young, Hardee's, Anheuser-Busch and Morningstar.'
Leapnet, Inc. (Nasdaq: LEAP - news), develops creative and technology solutions for the wired world by combining expertise
in Internet advertising and development, global marketing communications and traditional brand advertising. Its subsidiaries are
Quantum Leap Communications, The Leap Partnership and YAR Communications. Headquartered in Chicago, the Company
has offices in New York, Los Angeles and San Francisco. More information on Leapnet can be found at
http//:www.leapnet.com.
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of
1995) that involve risks and uncertainties. A number of important factors could cause the Company's actual results,
performance or achievements for fiscal 2000 and beyond to differ materially from that expressed in such forward-looking
statements. These factors are set forth in the Company's filings with the Securities and Exchange Commission and include,
without limitation, material changes in economic conditions in the markets served by the Company's clients, competition in the
Company's industry, uncertainties relating to the developing market for new media, changing technologies, seasonality and the
Company's dependence on key clients and projects and key personnel. Loss of a key client or a significant reduction in
business from a key client could have a significant adverse effect on the Company's business and results of operations.
Financial Information to Follow
LEAPNET, INC. AND SUBSIDIARIES
Summary Quarterly Financial Data
Unaudited Condensed Consolidated Statement of Operations
(In thousands - 000's)
Three Months Six Months
Ended July 31 Ended July 31
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1999 1998 1999 1998
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Revenues $ 9,825 $ 8,991 $ 17,734 $ 19,366
Total Operating Expenses (9,358) (9,989) (17,658) (20,235)
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Operating Income/(Loss) 467 (998) 76 (869)
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Net other income (expense) 109 1,133 289 1,036
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Net Income/(Loss) before
Income Taxes 576 135 365 167
Income tax (expense)/benefit 0 (61) 0 (78)
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Net Income/(Loss) $ 576 $ 74 $ 365 $ 89
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Net income/(loss) per share
Basic $ 0.04 $ 0.01 $ 0.03 $ 0.01
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Diluted $ 0.04 $ 0.01 $ 0.03 $ 0.01
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Shares used in per
share calculations
Basic 14,138,877 13,640,866 14,135,331 13,644,866
========================== ======================
Diluted 14,191,251 13,989,668 14,187,704 13,993,668
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Note: The results of operations have been included for each subsidiary
since its inception or acquisition date. On October 22, 1998, the
Company sold the assets of its wholly-owned subsidiary, One World
Communications, Inc. ("One World") and the AT&T account of YAR
Communications, Inc. to Young & Rubicam. See below for a Pro Forma
disclosure of revenues excluding, for the 1998 periods, both the
revenue from One World and the AT&T account of YAR.
Unaudited Pro Forma Disclosure: Three Months Six Months
Ended July 31 Ended July 31
----------------- -------------------
(In thousands - 000's) 1999 1998 1999 1998
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Revenues $ 9,825 $ 4,676 $ 17,734 $ 10,611
For the Three Months ended July 31, 1998, $4,315 of the $8,991 in
revenue was due to YAR's AT&T account and One World.
For the Six Months ended July 31, 1998, $8,755 of the $19,366 in
total revenue was due to YAR's AT&T account and One World.
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Alo check out the last 10 trades yesterday, almost all buys.
Tom B. |
