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P R E S S R E L E A S E S |
Corporate Information
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INT MEDIA GROUP REPORTS RESULTS FOR ITS SECOND QUARTER ENDED JUNE 30, 2002
(New York, NY - August 6, 2002) -- INT Media Group, Incorporated (Nasdaq: INTM) today reported results for the quarter ended June 30, 2002. Revenues for the second quarter of 2002 were $9.9 million compared to revenues of $10.8 million for the same period last year. Net income for the second quarter, excluding amortization of intangibles and losses on venture investments, was $259,000, or $0.01 per share, compared to a net loss of $2.7 million, or $0.11 per share, for the same period last year. Net loss for the second quarter was $182,000 compared to a net loss of $14.7 million for the same period last year. Adjusted EBITDA_ for the quarter was $764,000 compared to adjusted EBITDA loss of $2.3 million for the same period last year.
"We are pleased with the progress in our operations this quarter, with increases in both revenues and EBITDA compared to our first quarter. The acquisition of the Jupiter Research and Events businesses provides us with an outstanding opportunity to further expand and diversify our revenue sources. We also envision significant marketing synergies among the Jupiter properties and our internet.com and EarthWeb.com Network with over 20 million unique business users. We are preparing to change our name from INT Media Group, Incorporated to Jupitermedia Corporation, which further emphasizes the importance of the Jupiter brand in our overall strategy," stated INT Media Group's Chairman and CEO Alan M. Meckler. "Our strong balance sheet, with $26 million in cash, $23 million in working capital and no debt, combined with our cash flow positive operating model, leaves us well positioned to continue to capitalize on market opportunities and maximize shareholder value," added Meckler.
INT Media Group Q2 2002 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 second quarter results on Wednesday, August 7, 2002 at 11:00 am EST.
The conference call number is (877) 807-9258 for domestic participants and (706) 634-2391 for international participants; pass code "INT Media Second Quarter." Please call five minutes in advance to ensure that you are connected prior to the presentation. Instant replay will be available until Wednesday, August 21, 2002. Replay call numbers are (800) 642-1687 for domestic participants and (706) 645-9291 for international participants: pass code: 3855397.
Acquisition
On August 1, 2002, INT Media Group announced the closing of the acquisition of certain assets of the Jupiter Research and Events businesses from Jupiter Media Metrix, Inc. (Nasdaq: JMXI) for $250,000 and the assumption of certain liabilities. As a result, approximately 90 employees have joined INT Media Group, with the majority of these employees holding research analysis and sales positions.
Jupiter Research, founded in 1986, is a leading international research advisory organization specializing in business and technology market research in 17 business areas and 9 vertical markets. Jupiter Research analysts are widely quoted in the trade and financial press and Jupiter Events are well known for attracting industry leaders and professional attendees.
New Content Areas and Services
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 June, INT Media Group announced the launch of its UltraWidebandPlanet.com Web site (www.ultrawidebandplanet.com), the Source for Ultra Wideband Business and Technology.
- In July, INT Media Group announced the launch of its SEMList.com Web site (www.semlist.com), the Definitive Search Engine Marketing Service Buyer's Guide. SEMList.com is the only comprehensive guide for business marketers to the various providers of search engine marketing services, including cloaking services, directory submission services, paid-inclusion search engines, paid-listing management and link-building services.
Conferences and Trade Shows
INT Media and Jupiter 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 fifteen paid conferences and trade shows in the second quarter, each focusing on a different issue pertaining to the Internet industry and IT. Events included: ISP Business Expo, e-Media Marketer Asia Conference 2002, Search Engine Strategies London 2002 Conference & Expo, Enterprise Wireless Forum Conference & Expo 2002, Nanotech Planet Spring 2002 Conference & Expo, ClickZ E-Mail Strategies Conference & Expo, Enterprise Web & Corporate Portal Conference & Expo, Enterprise Storage Strategies Conference & Expo, eSecurity Conference & Expo, Search Engine Strategies Sydney 2002 Conference & Expo, Nanotech Planet Asia 2002 Conference & Expo, 802.11 Planet Spring 2002 Conference & Expo, Search Engine Strategies Forum Asia 2002, Nanotech Planet Europe 2002 Conference & Expo and Grid Computing Planet 2002 Conference & Expo.
INT Media and Jupiter Events has announced the launch of the following conferences and trade shows for the remainder of 2002 and into 2003:
- ClickZ E-Mail Strategies Chicago 2002 (August 8, 2002, Chicago, IL)
- Search Engine Strategies 2002 Conference & Expo (August 12-13, 2002, San Jose, CA)
- FlashKit Summer 2002 Conference & Expo (August 15-16, 2002, San Jose, CA)
- Instant Messaging Planet Fall 2002 Conference & Expo (Sept. 9-10, 2002, San Francisco, CA)
- 802.11 Planet Australia 2002 Conference & Expo (Sept. 19-20, 2002, Sydney, Australia)
- International IT Service Management Summit (September 23-25, 2002, Boston, MA)
- VoiceXML Planet Fall 2002 Conference & Expo (September 26-27, 2002, Boston, MA)
- 802.11 Planet Asia 2002 Conference & Expo (October 2-3, 2002, Singapore)
- Search Engine Strategies 2002 (October 17-18, 2002, Munich, Germany)
- Jupiter / IAB Online Advertising Forum (October 22-23, 2002, New York, NY)
- Grid Computing Planet Fall 2002 Conference & Expo (October 28-29, 2002, Boston, MA)
- Enterprise Wireless Forum Conference & Expo (October 28-30, 2002, Boston, MA)
- 802.11 Planet Europe 2002 Conference & Expo (November 5-6, 2002, Munich, Germany)
- Enterprise Web & Corporate Portal Conference & Expo (November 7-8, 2002, Washington, D.C.)
- ClickZ E-Mail Strategies Fall 2002 Conference & Expo (Nov. 18-19, 2002, San Francisco, CA)
- Nanotech Planet Fall 2002 Conference & Expo (November 18-19, 2002, New York, NY)
- IT Infrastructure & Management Services Conference & Expo (Nov. 18-19, 2002, Boston, MA)
- Enterprise Linux Forum Conference & Expo (December 3-4, 2002, Boston, MA)
- Enterprise Storage Strategies Fall 2002 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)
- Ultrawideband Planet Conference & Expo 2003 (January 28-29, 2003, Boston, MA)
- 802.11 Planet Spring 2003 Conference & Expo (June 3-5, 2003, Boston, MA)
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 second quarter included: BizRate, Perlcoders, Kaspersky Lab International, Revquest Technologies, Dealtime, Magnet Media, Rawhide Internet Services, Business.com, Access USA, PriceGrabber.com, Information Today and CyberNetworks. 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 20 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. One follow-on investment was made in the second quarter of 2002. 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
- June 2002 page views were over 200 million
- June 2002 total views were 260 million (includes Web site page views, e-mail newsletter views and e-mail discussion list views)
- Nearly 4.6 million e-mail newsletter subscribers as of June 30, 2002
- Over 7.3 million total opt-in e-mail rental list subscribers as of June 30, 2002
- Over 700,000 unique opt-in e-mail rental list subscribers as of June 30, 2002
- June 2002 unique users were over 20 million
- 202 employees as of June 30, 2002
Segment Information
The following tables summarize the results of the significant segments of INT Media Group for the three and six months ended June 30, 2001 and 2002. Online Media consists of the internet.com and EarthWeb.com Network. Events include the INT Media Events Division. Other includes corporate overhead, depreciation, amortization and venture fund related activities. The following amounts are presented in thousands.
For the Three Months Ended June 30, 2001
|
Online Media |
Events |
Other |
Total |
Revenues |
$9,246 |
$1,221 |
$316 |
$10,783 |
Operating Expenses |
$9,806 |
$1,964 |
$13,005 |
$24,775 |
Operating income (loss) |
$(560) |
$(743) |
$(12,685) |
$(13,992) |
For the Three Months Ended June 30, 2002
|
Online Media |
Events |
Other |
Total |
Revenues |
$7,617 |
$1,945 |
$324 |
$9,886 |
Operating Expenses |
$5,668 |
$1,838 |
$2,399 |
$9,905 |
Operating income (loss) |
$1,949 |
$107 |
$(2,075) |
$(19) |
For the Six Months Ended June 30, 2001
|
Online Media |
Events |
Other |
Total |
Revenues |
$19,892 |
$2,267 |
$637 |
$22,796 |
Operating Expenses |
$23,581 |
$3,092 |
$24,653 |
$51,326 |
Operating income (loss) |
$(3,689) |
$(825) |
$(24,016) |
$(28,530) |
For the Six Months Ended June 30, 2002
|
Online Media |
Events |
Other |
Total |
Revenues |
$14,962 |
$2,951 |
$649 |
$18,562 |
Operating Expenses |
$11,958 |
$3,018 |
$4,400 |
$19,376 |
Operating income (loss) |
$3,004 |
$(67) |
$(3,751) |
$(814) |
Business Outlook
INT Media Group's financial guidance is prepared in accordance with accounting principles generally accepted in the United States of America. Historical results below have been adjusted to conform to this presentation. The following forward looking-statements reflect INT Media Group's expectations as of August 6, 2002. Given the emerging nature of online advertising, potential changes in general economic conditions, and the various other risk factors discussed below and in INT Media Group's reports filed with the Securities and Exchange Commission from time to time, actual results may differ materially. INT Media Group intends to continue its practice of not updating forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
Future Expectations
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|
Actual Q1 2002 |
Actual Q2 2002 |
Q3 2002 |
Q4 2002 |
Total 2002 |
Revenues ($M) |
|
$8.7 |
$9.9 |
$10.0-11.0 |
$11.5-12.5 |
$40.1-42.1 |
Cost of revenues, advertising, promotion & selling, and general & administrative expenses ($M) |
|
$8.7 |
$9.1 |
$9.4-10.4 |
$10.5-11.5 |
$37.7-39.7 |
Depreciation and amortization ($M) |
|
$(0.8) |
$0.8 |
$0.7 |
$0.7 |
$3.0 |
Loss on investments ($M) |
|
$0.1 |
$0.1 |
- |
- |
$0.2 |
Interest Income ($M) |
|
$0.1 |
$0.1 |
$0.1 |
$0.1 |
$0.4 |
Equity losses ($M) |
|
$0.2 |
$0.2 |
- |
- |
$0.4 |
Net income (loss) ($M) |
|
$(1.0) |
$(0.2) |
$0.0 |
$0.4 |
$(0.8) |
Share count (M) |
|
25.3 |
25.3 |
25.3 |
25.3 |
25.3 |
Earnings (loss) per share |
|
$(0.04) |
$(0.01) |
$0.00 |
$0.02 |
$(0.03) |
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 200 million page views monthly. INT Media Group also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 17 business areas and 9 vertical markets. In addition, INT Media and Jupiter 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.
_ Earnings before interest, income taxes, depreciation, amortization, workforce redundancy costs, loss on venture investments, minority interests and equity losses. There were no workforce redundancy costs during the six months ended June 30, 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 ability to integrate acquired businesses, products and personnel into its existing businesses; INT Media Group's investments in international and venture fund investments; any material change in INT Media Group's intellectual property rights and 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 June 30, 2002
(in thousands, except share and per share amounts)
|
|
December 31, 2001 |
|
June 30, 2002 |
|
|
|
|
(unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents
|
|
$25,100 |
|
$25,759 |
Accounts receivable, net of allowances of $1,810 and $1,611, respectively
|
|
6,527 |
|
5,227 |
Prepaid expenses and other
|
|
573 |
|
343 |
Total current assets |
|
32,200 |
|
31,329 |
|
|
|
|
|
Property and equipment, net of accumulated depreciation
of $5,512 and $6,792, respectively
|
|
3,767 |
|
2,913 |
Intangible assets, net of accumulated amortization
of $1,007 and $1,393, respectively
|
|
1,508 |
|
1,400 |
Goodwill
|
|
5,261 |
|
5,261 |
Investments and other assets
|
3,051 |
|
2,130 |
Total assets |
|
$45,787 |
|
$43,033 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable
|
|
1,388 |
|
$677 |
Accrued payroll & related expenses
|
|
1,533 |
|
1,422 |
Accrued expenses and other
|
|
3,374 |
|
3,619 |
Accrued Web site acquisition payments
|
|
398 |
|
250 |
Deferred revenues
|
|
2,581 |
|
2,392 |
Total current liabilities |
|
9,274 |
|
8,360 |
|
|
|
|
|
Accrued Web site acquisition payments |
|
265 |
|
- |
Deferred revenues |
|
910 |
|
455 |
Total liabilities |
|
10,449 |
|
8,815 |
|
|
|
|
|
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 June 30, 2002, respectively
|
|
|
|
|
253 |
|
253 |
Additional paid-in capital
|
|
175,418 |
|
175,478 |
Accumulated deficit
|
|
(140,298) |
|
(141,511) |
Accumulated other comprehensive income
|
|
(35) |
|
(2) |
Total stockholders' equity |
|
35,338 |
|
34,218 |
Total liabilities and stockholders' equity |
|
$45,787 |
|
$43,033 |
INT Media Group, Incorporated
Consolidated Statements of Operations
For the Three Months and Six Months Ended June 30, 2001 and 2002
(unaudited)
(in thousands, except per share amounts)
|
Three Months Ended
June 30, |
|
Sxi Months Ended
June 30, |
|
2001 |
|
2002 |
|
2001 |
|
2002 |
Revenues |
$10,783 |
|
$9,886 |
|
$22,796 |
|
$18,562 |
Cost of revenues |
5,169 |
|
3,890 |
|
12,791 |
|
7,424 |
|
|
|
|
|
|
|
|
Gross profit |
5,614 |
|
5,996 |
|
10,005 |
|
11,138 |
|
|
|
|
|
|
|
|
O perating expenses: |
|
|
|
|
|
|
|
Advertising, promotion and selling |
4,686 |
|
3,614 |
|
10,363 |
|
6,979 |
General and administrative |
3,260 |
|
1,618 |
|
5,908 |
|
3,361 |
Depreciation |
646 |
|
588 |
|
1,342 |
|
1,245 |
Amortization |
10,628 |
|
195 |
|
19,826 |
|
367 |
Workforce redundancy costs |
386 |
|
- |
|
1,096 |
|
- |
Total operating expenses |
19,606 |
|
6,015 |
|
38,535 |
|
11,952 |
|
|
|
|
|
|
|
|
Operating loss |
(13,992) |
|
(19) |
|
(28,530) |
|
(814) |
|
|
|
|
|
|
|
|
Minority interest and equity losses from international investments |
36 |
|
(2) |
|
50 |
|
(1) |
Loss on venture investments, net |
(1,030) |
|
(246) |
|
(1,553) |
|
(581) |
Interest income, net |
259 |
|
98 |
|
975 |
|
202 |
|
|
|
|
|
|
|
|
Loss before income taxes |
(14,727) |
|
(169) |
|
(29,058) |
|
(1,194) |
Provision for income taxes |
- |
|
13 |
|
2 |
|
19 |
Net loss |
$(14,727) |
|
$(182) |
|
$(29,060) |
|
$(1,213) |
|
|
|
|
|
|
|
|
Net income (loss), excluding amortization,
workforce redundancy costs and
loss on venture investments and other |
$(2,683) |
|
$259 |
|
$(6,585) |
|
$(265) |
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per share,
excluding amortization,
workforce redundancy costs and loss on venture investments and other
|
$0.01 |
|
$(0.00) |
|
$0.2 |
|
$(0.00) |
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$(0.5) |
|
$(0.0) |
|
$(1.1) |
|
$(0.0) |
|
|
|
|
|
|
|
|
Weighted average number of common shares
used in basic and diluted net income (loss) per share, excluding
amortization, workforce redundancy costs
and loss on venture investments and other |
|
25,333 |
|
25,579 |
|
25,333 |
|
25,475 |
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
25,333 |
|
25,333 |
|
25,333 |
|
25,333 |
INT Media Group, Incorporated
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2001 and 2002
(unaudited)
(in thousands)
|
Six Months Ended
June 30, |
|
2001 |
|
2002 |
Cash flows from operating activities: |
|
|
|
Net loss |
$(29,060) |
|
$(1,213) |
Adjustments to reconcile net cash used in operating activities:
|
|
|
|
Depreciation and amortization |
21,168 |
|
1,612 |
Non-cash barter transactions |
(1,500) |
|
(649) |
Provision for losses on accounts receivable |
1,551 |
|
88 |
Minority interests and equity losses from international investments
|
(50) |
|
1 |
Loss on venture investments and other, net
|
1,553 |
|
581 |
Changes in assets and liabilities- |
|
|
|
Accounts receivable
|
1,961 |
|
1,124 |
Prepaid expenses and other |
(195) |
|
384 |
Accounts payable and accrued expenses |
(228) |
|
(620) |
Deferred revenues |
(399) |
|
(12) |
Net cash used in operating activities |
(5,199) |
|
(1,296) |
|
|
|
|
Cash flows from investing activities: |
|
|
|
Additions to property and equipment |
(1,717) |
|
(131) |
Acquisitions of Web sites, related Internet media properties and other |
(25,382) |
|
(769) |
Proceeds from sales of assets and other
|
- |
|
263 |
Net cash used in investing activities
|
(27,099) |
|
(637) |
|
|
|
|
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 decrease (increase) in cash and cash equivalents |
(32,242) |
|
659 |
|
|
|
|
Cash and cash equivalents, beginning of period |
59,979 |
|
25,100 |
|
|
|
|
Cash and cash equivalents, end of period |
$27,737 |
|
$25,759 |
|
|
|
|
Supplemental disclosures of cash flow: |
|
|
|
Cash paid for interest |
$- |
|
$- |
Cash paid for income taxes |
$ - |
|
$25 |
All current INT Media Group, Inc. press releases can be found on the World Wide Web at (http://www.internet.com/corporate/press.html)
INT Media Group, Incorporated, 23 Old Kings Highway South, Darien, CT 06820; (203)662-2800; fax: (203) 655-4686; [email protected]
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