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INT MEDIA GROUP REPORTS RESULTS FOR THE QUARTER ENDED MARCH 31, 2002
(New York, NY - May 7, 2002) -- INT Media Group, Incorporated (Nasdaq: INTM) today reported results for the quarter ended March 31, 2002. Revenues for the first quarter of 2002 were $8.7 million compared to revenues of $12.0 million for the same period last year. Net loss for the first quarter, excluding amortization of intangibles and losses on venture investments, was $524,000, or $0.02 per share, compared to a net loss of $3.9 million, or $0.15 per share, for the same period last year. Adjusted EBITDA(1) for the quarter was $34,000 compared to adjusted EBITDA loss of $3.9 million for the same period last year.
"We have continued to effectively control our operating costs and this has resulted in positive adjusted EBITDA for the quarter. At the same, we are one of the few technology media companies that is launching new technology content areas and companion trade shows such as 802.11, Grid computing, Nanotechnology and enterprise instant messaging, among others," stated INT Media Group's Chairman and CEO Alan M. Meckler. "We have also seen an expansion of revenue from our online paid services. Our strong balance sheet, with $25.1 million in cash, $22.8 in working capital and no debt, combined with our cash flow positive operating model, leaves us well positioned to capitalize on market opportunities and to maximize shareholder value. We are optimistic about the remainder of the year," added Meckler.
New Content Areas and Services
During the first quarter, INT Media Group continued to expand and strengthen its world-class proprietary content offerings and services with the launch of the following internally developed sites and services:
- In January, INT Media Group launched its GridComputingPlanet.com Web site (www.gridcomputingplanet.com), devoted to in-depth coverage of the grid computing industry, and its companion trade show, Grid Computing Planet Spring 2002 Conference & Expo, slated for June 17-18 at the DoubleTree Hotel in San Jose, California.
- In January, INT Media Group announced the launch of premium services for NanotechPlanet.com (www.nanotechplanet.com) and WinDrivers.com (www.windrivers.com) that are available on a paid subscription basis. These new paid subscription services complement the free content on the NanotechPlanet.com and WinDrivers.com Web sites.
- In January, INT Media Group also announced that it acquired the online and offline assets of Small Business Computing, including DestinationSmallBiz.com (www.destinationsmallbiz.com), from Freedom Technology Media Group. INT Media Group redesigned and relaunched the site as SmallBusinessComputing.com (www.smallbusinesscomputing.com), which features a product testing and review section, a buyer's guide, business tools, daily news for e-marketers and Webmasters and a free e-mail newsletter. The print magazine was discontinued.
- In January, INT Media Group also announced that it acquired ecomSecurity.com (www.ecomsecurity.com) from King Content, and has redesigned and relaunched the site and companion e-mail newsletter as eSecurityPlanet.com (www.esecurityplanet.com).
- In March, INT Media Group announced its ClickZ E-Mail Strategies Conference & Expo to be held May 20-21 in New York City.
- In May, INT Media Group launched 80211HotSpots.com (www.80211hotspots.com), an online directory for connection points or "Hot Spots" for users of Wi-Fi or 802.11-enabled devices that connect wirelessly to the Internet.
- INT Media Research, a division of INT Media Group, released seven research reports and briefings during the quarter:
- 2002 ASP Industry Insight: The Rise Of The Provider Web
Search Engine Submission Essentials
Enterprise Instant Messaging: A Baseline Study of Business Trends
ISP Evolution: Providing Services for the 21st Century
VoiceXML How-to For Developers
VoiceXML For Business Managers
Dissecting the .NET Framework
Conferences and Trade Shows
INT Media Events, a division of INT Media Group, produces paid conferences and trade shows on Internet and IT-specific topics worldwide that are aligned with the content on our Web sites. INT Media Events offered six paid conferences and trade shows in the first quarter, each focusing on a different issue pertaining to the Internet industry and IT. Events included: Search Engine Strategies 2002, Instant Messaging Planet Spring 2002 Conference & Expo, E-Media Marketer Conference 2002, Commercial High Performance Computing Conference & Expo, VoiceXML Planet Spring 2002 Conference & Expo and .Net Developer Spring 2002 Conference & Expo.
INT Media Events has announced the launch of the following conferences and trade shows for the remainder of 2002:
- Nanotech Planet Spring 2002 Conference & Expo (May 13-15, 2002, San Jose, CA)
- ClickZ E-Mail Strategies 2002 Conference & Expo (May 20-21, 2002, New York, NY)
- Enterprise Web & Corporate Portal Conference & Expo (May 23-24, 2002, Boston, MA)
- eSecurity Conference & Expo (May 29-30, 2002, Vienna, VA)
- Enterprise Storage Strategies Conference & Expo (May 29-30, 2002, Vienna, VA)
- 802.11 Planet Spring 2002 Conference & Expo (June 10-12, 2002, Philadelphia, PA)
- Search Engine Strategies 2002 (June 11-12, 2002, Sydney, Australia)
- Nanotech Planet Asia 2002 Conference & Expo (June 11-12, 2002, Singapore)
- Search Engine Strategies Forum Asia 2002 (June 16, 2002, Singapore)
- Grid Computing Planet Spring 2002 Conference & Expo (June 17-18, 2002, San Jose, CA)
- Nanotech Planet Europe 2002 Conference & Expo (June 17-18, 2002, Munich, Germany)
- Instant Messaging Planet Asia 2002 Conference & Expo (July 11, 2002, Singapore)
- Search Engine Strategies 2002 Conference & Expo (August 12-13, 2002, San Jose, CA)
- Enterprise Web & Corporate Portal Conference & Expo (Sept.18-19, 2002, Santa Clara, CA)
- International IT Service Management Summit (September 23-25, 2002, Boston, MA)
- Search Engine Strategies 2002 (October 17-18, 2002, Munich, Germany)
- Enterprise Wireless Forum Conference & Expo (October 29-30, 2002, Boston, MA)
- 802.11 Planet Europe 2002 Conference & Expo (November 5-6, 2002, Munich, Germany)
- Enterprise Linux Forum Conference & Expo (December 3-4, 2002, Boston, MA)
- 802.11 Planet Fall 2002 Conference & Expo (December 3-5, 2002, Santa Clara, CA)
- Search Engine Strategies 2002 Conference & Expo (December 11-12, 2002, Dallas, TX)
E-Commerce Agreements, Licensing and Alliances
INT Media Group continued to expand its e-commerce relationships, adding new agreements with many of the Internet's well-known brands. Additional partners added during the first quarter included: Netline Trellian, 3d3.com, Monitors Direct/Cornerstone, IMICI, Impact Builder, Caution Media, Atlantic.net, Global Reports and KnowledgeStorm. INT Media Group works with each of its commerce partners to increase their traffic, generate additional revenue and support their brands by promoting their brands, products and services to our audience of over 22.0 million unique users worldwide.
Venture Fund Investments
INT Media Group is the portfolio manager of internet.com Venture Fund I LLC (April '99), internet.com Venture Fund II LLC (November '99) and internet.com Venture Partners III LLC (June '00), which have invested in over 40 Internet properties to date. No new investments were made in the fourth quarter. internet.com Venture Funds I and II and internet.com Venture Partners III were formed to invest in early-stage online content providers serving targeted business-to-business markets that follow the strategy of, but are not competitive with, INT Media Group. INT Media Group is an investor in all three funds.
Stock Repurchase Program
In October 2001, INT Media Group announced that its Board of Directors had authorized the expenditure of up to $1.0 million to repurchase the Company's outstanding common stock. Any purchases under INT Media Group's stock repurchase program may be made, from time-to-time, in the open market, through block trades or otherwise, at the discretion of Company management. Depending on market conditions and other factors, these purchases may be commenced or suspended at any time or from time-to-time without prior notice. To date, no repurchases have been made under this program.
Metrics
- March 2002 page views were over 225 million
- March 2002 total views were 300 million (includes Web site page views, e-mail newsletter views and e-mail discussion list views)
- Nearly 5.0 million e-mail newsletter subscribers as of March 31, 2002
- Nearly 7.5 million total opt-in e-mail rental list subscribers as of March 31, 2002
- Over 730,000 unique opt-in e-mail rental list subscribers as of March 31, 2002
- March 2002 unique users were over 22 million (based on internal log files)
- 215 employees as of March 31, 2002
Business Outlook
The following forward looking-statements reflect INT Media Group's expectations as of March 31, 2002. Given the emerging nature of online advertising, potential changes in general economic conditions, and the various other risk factors discussed below and in INT Media Group's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. INT Media Group intends to continue its practice of not updating forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
Future Expectations
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Actual |
Q2 2002 |
Q3 2002 |
Q4 2002 |
Total 2002 |
|
|
Revenues ($M) |
$8.7 |
$9.0-10.0 |
$9.0-10.0 |
$9.5-10.5 |
$36.2-39.2 |
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Cash operating expenses ($M) |
$8.7 |
$8.5-9.5 |
$8.5-9.5 |
$8.5-9.5 |
$34.2-37.2 |
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Adjusted EBITDA($M) (1) |
$(0.0) |
$0.5 |
$0.5 |
$1.0 |
$2.0 |
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Depreciation ($M) |
$0.7 |
$0.6 |
$0.5 |
$0.5 |
$2.3 |
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Interest Income ($M) |
$0.1 |
$0.1 |
$0.1 |
$0.1 |
$0.4 |
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Share Count(M) |
25.3 |
25.3 |
25.3 |
25.3 |
25.3 |
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EPS excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments |
$(0.02) |
$0.00 |
$0.00 |
$0.02 |
$0.00 |
About INT Media Group
INT Media Group (Nasdaq: INTM), (www.intmediagroup.com) headquartered in Darien, CT, is a leading provider of global real-time news, information and media resources for Internet industry and information technology professionals, Web developers and experienced Internet users. INT Media Group includes the internet.com and EarthWeb.com Network of over 150 Web sites and 200 e-mail newsletters that generate over 225 million page views monthly. INT Media Events include nearly 40 offline conferences and trade shows on Internet and IT-specific topics that are aligned with our Network of Web sites and e-mail newsletters. In addition, INT Media Research publishes research reports analyzing the Internet and information technologies sectors worldwide.
INT Media Group Q1 '02 Conference Call Alert
Alan M. Meckler, Chairman and CEO, Christopher S. Cardell, President and COO, and Christopher J. Baudouin, Chief Financial Officer of INT Media Group (Nasdaq: INTM) invite you to participate in a conference call reviewing 2002 first quarter results on Wednesday May 8, 2002 at 11:00 am EST (results will be released on Tuesday, May 7, 2002 after market close).
The conference call number is (877) 807-9258 for domestic participants and (706) 634-2391 for international participants; pass code "INT Media First Quarter." Please call five minutes in advance to ensure that you are connected prior to the presentation. Instant replay will be available until May 21, 2002. Replay call numbers are (800) 642-1687 for domestic participants and (706) 645-9291 for international participants: password: 3855397.
(1)Earnings before interest, income taxes, depreciation, amortization, impairment of intangibles, workforce redundancy costs, loss on venture investments, minority interests and equity losses. There were no workforce redundancy costs during the quarter ending March 31, 2002.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which INT Media Group competes; the unpredictability of INT Media Group's future revenues (including those resulting from online advertising on INT Media Group's Network of Web sites and related Internet media properties), expenses, cash flows and stock price; INT Media Group's investments in international and venture fund investments; any material change in INT Media Group's intellectual property rights; and the continued growth and acceptance of the Internet and information technology. For a more detailed discussion of such risks and uncertainties, refer to INT Media Group's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and INT Media Group assumes no obligation to update the forward-looking statements after the date hereof.
Contact
INT Media Group, Incorporated
Mary Ann Boland
(212) 547 - 7939
[email protected]
INT Media Group, Incorporated Consolidated Balance Sheets December 31, 2001 and March 31, 2002 (in thousands, except share and per share amounts)
|
December 31, 2001 |
March 31, 2002 |
|||
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(unaudited) |
||||
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ASSETS |
||||
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Current assets: |
||||
Cash and cash equivalents |
$25,100 |
$25,139 |
||
Accounts receivable, net of allowances of $1,810 and $1,875, respectively |
6,527 |
5,283 |
||
Prepaid expenses and other |
573 |
951 |
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Total current assets |
32,200 |
31,373 |
||
Property and equipment, net of accumulated depreciation of $5,516 and $6,165, respectively |
3,767 |
3,203 |
||
Intangible assets, net of accumulated amortization of $12,140 and $12,331, respectively |
6,769 |
6,736 |
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Investments and other assets |
3,051 |
2,413 |
||
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Total assets |
$45,787 |
$43,725 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
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Current liabilities: |
||||
Accounts payable |
$1,388 |
$860 |
||
Accrued expenses |
4,907 |
4,151 |
||
Accrued Web site acquisition payments |
398 |
341 |
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Deferred revenues |
2,581 |
3,218 |
||
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Total current liabilities |
9,274 |
8,570 |
||
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Accrued Web site acquisition payments |
265 |
115 |
||
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Deferred revenues |
910 |
683 |
||
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Total liabilities |
10,449 |
9,368 |
||
|
Commitments and contingencies |
- |
- |
||
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Stockholders' equity: |
||||
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued and outstanding |
- |
- |
||
Common stock, $.01 par value, 75,000,000 shares authorized, 25,333,077 shares issued and outstanding at December 31, 2001 and March 31, 2002, respectively |
||||
|
253 |
253 |
|||
Additional paid-in capital |
175,418 |
175,418 |
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Accumulated deficit |
(140,298) |
(141,329) |
||
Accumulated other comprehensive income |
(35) |
15 |
||
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Total stockholders' equity |
35,338 |
34,357 |
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Total liabilities and stockholders' equity |
$45,787 |
$43,725 |
INT Media Group, Incorporated
Consolidated Statements of Operations
For the Three Months and Years Ended March 31, 2001 and 2002
(unaudited)
(in thousands, except per share amounts)
|
Three Months Ended March 31, |
|||
|
2000 |
2001 |
||
|
Revenues |
$12,013 |
$8,676 |
|
|
Cost of revenues |
7,622 |
3,534 |
|
|
Gross profit |
4,391 |
5,142 |
|
|
O perating expenses: |
|||
|
Advertising, promotion and selling |
5,677 |
3,365 |
|
|
General and administrative |
2,648 |
1,743 |
|
|
Depreciation |
696 |
657 |
|
|
Amortization |
9,198 |
172 |
|
|
Workforce redundancy costs |
710 |
- |
|
|
Total operating expenses |
18,929 |
5,937 |
|
|
Operating loss |
(14,538) |
(795) |
|
|
Minority interest and equity losses from international investments |
14 |
1 |
|
|
Loss on venture investments, net |
(523) |
(335) |
|
|
Interest income, net |
716 |
104 |
|
|
Loss before income taxes |
(14,33) |
(1,025) |
|
|
Provision for income taxes |
2 |
6 |
|
|
Net loss |
$(14,333) |
$(1,031) |
|
|
Net loss, excluding amortization, workforce redundancy costs and loss on venture investments and other |
$(3,902) |
($524) |
|
|
Basic and diluted earnings (loss) per share, excluding amortization and impairment of intangibles, workforce redundancy costs and loss on venture investments and other |
$0.15 |
$(0.02) |
|
|
Basic and diluted net loss per share |
$(0.57) |
$(0.04) |
|
|
Weighted average number of common shares used in basic and diluted loss per share, excluding amortization, workforce redundancy costs and loss on venture investments and other |
25,332 |
25,333 |
|
|
Weighted average number of common shares outstanding |
25,332 |
25,333 |
|
INT Media Group, Incorporated
Consolidated Statements of Cash Flows
For the Years Ended March 31, 2001 and 2002
(unaudited)
(in thousands)
|
Years Ended March 31, |
|||
|
2001 |
2002 |
||
|
Cash flows from operating activities: |
|||
|
Net loss |
$(14,333) |
$(1,031) |
|
Adjustments to reconcile net cash used in operating activities- |
|||
|
Depreciation and amortization |
9,894 |
829 |
|
|
Non-cash barter transactions |
(688) |
(333) |
|
|
Provision for losses on accounts receivable |
544 |
280 |
|
|
Minority interest and equity losses from international investments |
(14) |
(1) |
|
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Loss on venture investments and other, net |
523 |
335 |
|
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Changes in assets and liabilities- |
|||
Accounts receivable |
1,983 |
877 |
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Prepaid expenses and other |
27 |
(231) |
|
|
Accounts payable and accrued expenses |
(233) |
(1,033) |
|
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Deferred revenues |
(129) |
726 |
|
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Net cash provided by (used in) operating activities |
(2,426) |
418 |
|
|
Cash flows from investing activities: |
|||
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Additions to property and equipment |
(1,338) |
(108) |
|
|
Acquisitions of Web sites, related Internet media properties and other |
(19,799) |
(444) |
|
Proceeds from sales of assets and other |
- |
173 |
|
Net cash used in investing activities |
(21,137) |
(379) |
|
|
Cash flows from financing activities: |
|||
|
Proceeds from exercise of stock options |
55 |
- |
|
|
Net cash provided by financing activities |
55 |
- |
|
|
Effect of exchange rates on cash |
1 |
- |
|
|
Net increase (decrease) in cash and cash equivalents |
(23,507) |
39 |
|
|
Cash and cash equivalents, beginning of period |
59,979 |
25,100 |
|
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Cash and cash equivalents, end of period |
$36,472 |
$25,139 |
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Supplemental disclosures of cash flow: |
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Cash paid for interest |
$- |
$- |
|
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Cash paid for income taxes |
$- |
$12 |
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All current INT Media Group, Inc. press releases can be found on the World Wide Web at (http://www.internet.com/corporate/press.html)