Bankrate Reports Second Quarter 2017 Financial Results
Summary Financial Results:
In millions, except per share data |
Q2 2017 |
Q2 2016 |
% change |
YTD Q2 |
YTD Q2 |
% change |
|||||||||
Total Revenue |
$ |
115.9 |
$ |
98.3 |
18% |
$ |
234.6 |
$ |
191.8 |
22% |
|||||
GAAP and Adjusted Net Income (loss) |
|||||||||||||||
GAAP (1) |
(23.3) |
(41.0) |
NM |
(28.5) |
(40.7) |
NM |
|||||||||
Adjusted (2) |
11.8 |
9.7 |
22% |
26.7 |
20.5 |
30% |
|||||||||
Diluted earnings (loss) per share (EPS) |
|||||||||||||||
GAAP (1) |
(0.26) |
(0.47) |
NM |
(0.32) |
(0.45) |
NM |
|||||||||
Adjusted (2) |
0.13 |
0.11 |
18% |
0.30 |
0.23 |
30% |
|||||||||
Total Adjusted EBITDA (2) |
27.3 |
22.6 |
21% |
57.8 |
45.9 |
26% |
|||||||||
(1) |
GAAP Net Income and GAAP Diluted earnings (loss) per share (EPS) includes |
(2) |
See reconciliation of GAAP to non-GAAP measures at the end of this press release; supplemental information can be found in the "Q2 2017 Earnings Presentation" located in the "Investor Overview" section on http://investor.bankrate.com/. |
Management Commentary:
"I am pleased to report another quarter of strong financial performance. At the beginning of last year, we set three goals: to accelerate the growth of our leading Credit Cards marketplace, to return our Banking segment to both top and bottom line growth and to ramp Caring.com's network of senior living communities. We continued to deliver on all three of these commitments while also entering into a definitive agreement to be acquired by
Second Quarter 2017 RATE Highlights:
- Total second quarter revenue of
$115.9 million , up 18% versus second quarter of 2016. - Second quarter GAAP Net Loss of
$23.3 million , representing a loss of$0.26 per share. - Second quarter Adjusted EBITDA of
$27.3 million , up 21% versus second quarter of 2016.
Second Quarter 2017 Segment Highlights:
Credit Cards Segment:
- Second quarter segment revenue of
$78.9 million and Adjusted EBITDA of$25.1 million ; year over year increases of 13% and 2%, respectively. - Credit cards consumer inquiry revenue of
$63.9 million ; a year over year increase of 21%.
Banking Segment:
- Second quarter segment revenue of
$34.8 million and Adjusted EBITDA of$8.9 million , year over year increases of 46% and 88%, respectively; a record for Banking segment quarterly revenue. - Mortgage consumer inquiry revenue increased 20% versus second quarter of 2016, the eighth consecutive quarter of year over year growth.
Senior Care Segment:
- Second quarter segment revenue of
$6.8 million and an Adjusted EBITDA loss of$0.7 million ; a year over year increase in revenue of 13% and a decrease in Adjusted EBITDA of$1.2 million .
Red Ventures Transaction:
As previously announced, on
In light of the pending transaction,
Supplemental information, including segment metrics and non-GAAP information, can be found in the "Q2 2017 Earnings Presentation" located in the "Investor Overview" section on http://investor.bankrate.com/.
Non-GAAP Measures:
To supplement
Management defines "Adjusted EBITDA" as income from continuing operations before depreciation and amortization; interest; income taxes; changes in fair value of contingent acquisition consideration; stock-based compensation and other items such as loss on extinguishment of debt, legal settlements, acquisition, disposition and related expenses; restructuring charges; any impairment charges; NextAdvisor contingent deferred compensation for the acquisition; costs related to the Restatement, the Internal Review, the
About
Cautionary Statement Regarding Forward Looking Statements
Certain matters included in this press release may be "forward-looking statements" which involve risks and uncertainties. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team. Such forward-looking statements include, without limitation, statements made with respect to future revenue, revenue growth, market acceptance of our products, our strategy and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known or unknown factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: the failure to obtain
-Financial Statements Follow-
For more information contact:
[email protected]
(917) 438-9558
|
|||||||
Condensed Balance Sheet |
|||||||
(Unaudited) |
|||||||
(In thousands, except share and per share data) |
|||||||
|
|
||||||
2017 |
2016 |
||||||
Assets |
|||||||
Cash and cash equivalents |
$ |
188,624 |
$ |
176,680 |
|||
Accounts receivable, net of allowance for doubtful accounts of |
|||||||
|
66,714 |
52,211 |
|||||
Prepaid expenses and other current assets |
38,033 |
42,041 |
|||||
Total current assets |
293,371 |
270,932 |
|||||
Deferred income taxes |
11,040 |
- |
|||||
Furniture, fixtures and equipment, net of accumulated depreciation of |
|||||||
|
18,228 |
15,440 |
|||||
Intangible assets, net of accumulated amortization of |
|||||||
|
173,629 |
192,119 |
|||||
|
599,805 |
599,805 |
|||||
Other assets |
4,560 |
5,564 |
|||||
Total assets |
$ |
1,100,633 |
$ |
1,083,860 |
|||
Liabilities and stockholders' equity |
|||||||
Liabilities |
|||||||
Accounts payable |
$ |
9,290 |
$ |
11,191 |
|||
Accrued expenses |
29,171 |
27,887 |
|||||
Deferred revenue and customer deposits |
762 |
1,369 |
|||||
Accrued interest payable |
6,891 |
6,887 |
|||||
Other current liabilities |
76,650 |
6,511 |
|||||
Total current liabilities |
122,764 |
53,845 |
|||||
Deferred income taxes |
- |
5,118 |
|||||
Long term debt, net of unamortized discount |
296,999 |
295,721 |
|||||
Other liabilities |
8,894 |
39,798 |
|||||
Total liabilities |
428,657 |
394,482 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity |
|||||||
Preferred stock, par value |
- |
- |
|||||
Common stock, par value |
|||||||
300,000,000 shares authorized; |
|||||||
102,228,527 and 103,132,289 shares issued, respectively; |
|||||||
89,701,738 and 90,072,482 shares outstanding, respectively |
1,023 |
1,032 |
|||||
Additional paid-in capital |
906,359 |
903,177 |
|||||
Accumulated deficit |
(100,014) |
(71,119) |
|||||
Less: |
(137,093) |
(142,983) |
|||||
Accumulated other comprehensive income (loss) |
1,701 |
(729) |
|||||
Total stockholders' equity |
671,976 |
689,378 |
|||||
Total liabilities and stockholders' equity |
$ |
1,100,633 |
$ |
1,083,860 |
Condensed Statements of Income (Loss) (Unaudited) (In thousands, except share and per share data) |
|||||||||||||
Three months ended |
Six months ended |
||||||||||||
|
|
|
|
||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||
Revenue |
$ |
115,924 |
$ |
98,302 |
$ |
234,583 |
$ |
191,780 |
|||||
Costs and expenses: |
|||||||||||||
Cost of revenue |
64,400 |
52,828 |
127,594 |
100,372 |
|||||||||
Sales and marketing |
5,304 |
4,037 |
10,530 |
8,565 |
|||||||||
Product development and technology |
8,897 |
7,470 |
17,475 |
14,049 |
|||||||||
General and administrative |
23,941 |
20,069 |
45,781 |
37,091 |
|||||||||
Legal settlements |
- |
20,000 |
- |
19,149 |
|||||||||
Acquisition, disposition and related expenses |
240 |
1,335 |
240 |
1,335 |
|||||||||
Restructuring-related expenses |
669 |
- |
669 |
(34) |
|||||||||
Changes in fair value of contingent acquisition consideration |
27,292 |
263 |
40,140 |
101 |
|||||||||
Impairment charge |
- |
25,000 |
- |
25,000 |
|||||||||
Depreciation and amortization |
10,887 |
11,079 |
21,429 |
20,706 |
|||||||||
Total costs and expenses |
141,630 |
142,081 |
263,858 |
226,334 |
|||||||||
Loss from operations |
(25,706) |
(43,779) |
(29,275) |
(34,554) |
|||||||||
Interest expense |
5,414 |
5,400 |
10,876 |
10,880 |
|||||||||
Interest (income) and other, net |
265 |
(426) |
(244) |
(1,058) |
|||||||||
Loss before taxes |
(31,385) |
(48,753) |
(39,907) |
(44,376) |
|||||||||
Income tax benefit |
(8,099) |
(7,444) |
(11,373) |
(3,788) |
|||||||||
Net loss from continuing operations |
(23,286) |
(41,309) |
(28,534) |
(40,588) |
|||||||||
Net income (loss) from discontinued operation, net of income taxes |
- |
353 |
- |
(86) |
|||||||||
Net loss |
$ |
(23,286) |
$ |
(40,956) |
$ |
(28,534) |
$ |
(40,674) |
|||||
Basic net loss per share: |
|||||||||||||
Continuing operations |
$ |
(0.26) |
$ |
(0.47) |
$ |
(0.32) |
$ |
(0.45) |
|||||
Discontinued operation |
- |
- |
- |
- |
|||||||||
Basic net loss per share |
$ |
(0.26) |
$ |
(0.47) |
$ |
(0.32) |
$ |
(0.45) |
|||||
Diluted net loss per share: |
|||||||||||||
Continuing operations |
$ |
(0.26) |
$ |
(0.47) |
$ |
(0.32) |
$ |
(0.45) |
|||||
Discontinued operation |
- |
- |
- |
- |
|||||||||
Diluted net loss per share |
$ |
(0.26) |
$ |
(0.47) |
$ |
(0.32) |
$ |
(0.45) |
|||||
Weighted average common shares outstanding: |
|||||||||||||
Basic |
88,709,404 |
88,030,655 |
88,473,325 |
90,469,093 |
|||||||||
Diluted |
88,709,404 |
88,030,655 |
88,473,325 |
90,469,093 |
|||||||||
Net loss |
$ |
(23,286) |
$ |
(40,956) |
$ |
(28,534) |
$ |
(40,674) |
|||||
Other comprehensive income (loss), net of tax |
2,367 |
94 |
2,430 |
(157) |
|||||||||
Comprehensive loss |
$ |
(20,919) |
$ |
(40,862) |
$ |
(26,104) |
$ |
(40,831) |
|||||
Non-GAAP Measures (Unaudited) (In thousands, except per share data) |
|||||||||||||
(Unaudited) |
(Unaudited) |
||||||||||||
Three months ended |
Six months ended |
||||||||||||
|
|
|
|
||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||
Revenue |
$ |
115,924 |
$ |
98,302 |
$ |
234,583 |
$ |
191,780 |
|||||
Adjusted EBITDA (1) |
$ |
27,337 |
$ |
22,616 |
$ |
57,754 |
$ |
45,925 |
|||||
Adjusted EBITDA margin |
23.6% |
23.0% |
24.6% |
23.9% |
|||||||||
Adjusted net income (2) |
$ |
11,818 |
$ |
9,653 |
$ |
26,700 |
$ |
20,500 |
|||||
Adjusted EPS |
$ |
0.13 |
$ |
0.11 |
$ |
0.30 |
$ |
0.23 |
|||||
Adjusted weighted average common shares outstanding (diluted): |
89,923,705 |
88,563,552 |
89,797,599 |
91,005,953 |
|||||||||
(1) Adjusted EBITDA adds back interest and other expense; income tax (benefit) expense; depreciation and amortization; net income (loss) from discontinued operation; changes in fair value of contingent acquisition consideration; acquisition, disposition, offering and related expenses; restructuring charges; any impairment charge; Next Advisor contingent deferred compensation for the acquisition; costs related to the restatement, the internal review, the |
|||||||||||||
Reconciliation of Adjusted EBITDA |
|||||||||||||
Net loss |
$ |
(23,286) |
$ |
(40,956) |
$ |
(28,534) |
$ |
(40,674) |
|||||
Interest expense, income and other, net |
5,679 |
4,974 |
10,632 |
9,822 |
|||||||||
Income tax benefit |
(8,099) |
(7,444) |
(11,373) |
(3,788) |
|||||||||
Depreciation and amortization |
10,887 |
11,079 |
21,429 |
20,706 |
|||||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) |
(14,819) |
(32,347) |
(7,846) |
(13,934) |
|||||||||
Net (income) loss from discontinued operation, net of income taxes |
- |
(353) |
- |
86 |
|||||||||
Next Advisor contingent deferred compensation |
4,143 |
1,371 |
7,119 |
1,371 |
|||||||||
Changes in fair value of contingent acquisition consideration |
27,292 |
263 |
40,140 |
101 |
|||||||||
Acquisition, disposition and related expenses |
240 |
1,335 |
240 |
1,335 |
|||||||||
|
45 |
598 |
83 |
770 |
|||||||||
Restatement-related expenses |
2,407 |
1,995 |
3,629 |
3,422 |
|||||||||
Stock-based compensation (3) |
7,360 |
4,754 |
13,720 |
8,659 |
|||||||||
Legal settlements |
- |
20,000 |
- |
19,149 |
|||||||||
Restructuring-related expenses |
669 |
- |
669 |
(34) |
|||||||||
Impairment charge |
- |
25,000 |
- |
25,000 |
|||||||||
Adjusted EBITDA |
$ |
27,337 |
$ |
22,616 |
$ |
57,754 |
$ |
45,925 |
|||||
(2) Adjusted net income adds back net income (loss) from discontinued operation; income tax (benefit) expense; non-recurring change in fair value of contingent acquisition consideration; acquisition, disposition, offering and related expenses; restructuring charges; any impairment charge; Next Advisor contingent deferred compensation for the acquisition; costs related to the restatement, the internal review, the |
|||||||||||||
Reconciliation of Adjusted net income |
|||||||||||||
Net loss |
$ |
(23,286) |
$ |
(40,956) |
$ |
(28,534) |
$ |
(40,674) |
|||||
Net (income) loss from discontinued operation, net of income taxes |
- |
(353) |
- |
86 |
|||||||||
Next Advisor contingent deferred compensation |
4,143 |
1,371 |
7,119 |
1,371 |
|||||||||
Income tax benefit |
(8,099) |
(7,444) |
(11,373) |
(3,788) |
|||||||||
Change in fair value of contingent acquisition consideration due to change in estimate (4) |
26,486 |
95 |
38,880 |
(221) |
|||||||||
Acquisition, disposition and related expenses |
240 |
1,335 |
240 |
1,335 |
|||||||||
|
45 |
598 |
83 |
770 |
|||||||||
Restatement-related expenses |
2,407 |
1,995 |
3,629 |
3,422 |
|||||||||
Stock-based compensation (3) |
7,360 |
4,754 |
13,720 |
8,659 |
|||||||||
Legal settlements |
- |
20,000 |
- |
19,149 |
|||||||||
Amortization |
10,078 |
9,429 |
20,006 |
18,497 |
|||||||||
Impairment charge |
- |
25,000 |
- |
25,000 |
|||||||||
Adjusted income before tax |
19,374 |
15,824 |
43,770 |
33,606 |
|||||||||
Income tax (5) |
7,556 |
6,171 |
17,070 |
13,106 |
|||||||||
Adjusted net income |
$ |
11,818 |
$ |
9,653 |
$ |
26,700 |
$ |
20,500 |
|||||
(3) Stock-based compensation is recorded in the following line items: |
|||||||||||||
Cost of revenue |
$ |
770 |
$ |
481 |
$ |
1,350 |
$ |
909 |
|||||
Sales and marketing |
426 |
458 |
751 |
934 |
|||||||||
Product development and technology |
1,413 |
1,122 |
2,614 |
1,866 |
|||||||||
General and administrative |
4,751 |
2,693 |
9,005 |
4,950 |
|||||||||
Total stock-based compensation expense |
$ |
7,360 |
$ |
4,754 |
$ |
13,720 |
$ |
8,659 |
|||||
(4) Change in fair value of contingent acquisition consideration due to change in estimate represents changes in fair value attributable to changes in expected earnings of acquired businesses. |
|||||||||||||
Reconciliation of change in fair value of contingent acquisition consideration |
|||||||||||||
Change in fair value of contingent acquisition consideration |
$ |
27,292 |
$ |
263 |
$ |
40,140 |
$ |
101 |
|||||
Less: Change in fair value due to passage of time |
806 |
168 |
1,260 |
322 |
|||||||||
Change in fair value of contingent acquisition consideration due to change in estimate |
$ |
26,486 |
$ |
95 |
$ |
38,880 |
$ |
(221) |
|||||
(5) Assumes 39% income tax rate. |
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