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NORTH PALM BEACH,
Fla. -- Feb. 10, 2000 -- Bankrate
Inc. (NASDAQ: ILIF), www.Bankrate.com, a leader in producing,
broadcasting and syndicating personal finance information
through a portfolio of Web sites, today announced record financial
results for the fourth quarter and year ended December 31,
1999.
Revenue for the year of $12,118,000 was 116%
higher than the prior year. Fourth quarter revenue increased
by 99% over the fourth quarter of the prior year, to $3,746,000.
The 229% increase in online publishing revenue in 1999 is
an important measure of success for Bankrate Inc.
Bankrate Inc., Inc. reported a net loss of
$13,037,000 or $0.96 per share for the fourth quarter ended
December 31, 1999 compared to a net loss of $5,366,000 or
$1.32 per share in the same quarter of 1998. The net loss
for the year ended December 31, 1999 was $33,769,000 or $3.34
per share compared to a net loss of $8,412,000 or $2.14 per
share for the same period in 1998. Included in the results
for 1999 were non-cash stock based compensation charges of
$3,305,000, a non-cash financing charge of $2,656,000, a $2,281,000
non-cash charge to accrete preferred stock to redemption value
and goodwill amortization of $656,000. Excluding the non-cash
charges, the net loss was $24,872,000 or $2.46 per share.
At the end of the fourth quarter 1999, Bankrate Inc. had cash
and cash equivalents of $22,504,000 on its consolidated balance
sheet.
In addition:
- Online publishing revenue rose to $2,784,000
in the fourth quarter of 1999, up 181% from the same period
in 1998.
- Online publishing revenue represented
74% of total revenue in the fourth quarter of 1999 compared
to 53% in the same quarter in 1998.
- Online publishing revenue for the year
was $8,497,000, representing a 229% increase over the prior
year.
- Online publishing revenue represented 70%
of revenue for the year, up from 46% in 1998.
"These dramatically higher revenues
reflect the higher traffic rates that our sites have generated
during the year," said William P. Anderson, president and
CEO. "Ad views on our sites increased 178%, to 288.9 million
for the year. Although we have significantly reduced our level
of spending for marketing, which was over $17,000,000 in 1999,
we experienced strong growth in site traffic and the resulting
ad views in January and to date in February 2000."
During the year, Bankrate Inc. also:
- launched IntelligentTaxes.com, a premier
content site for personal and small business tax information;
- acquired Pivot.com, a leading insurance
e-commerce site;
- acquired GreenMagazine.com, a content-rich
investment site with attitude;
- expanded Consejero.com, a leading Spanish
language personal finance site;
- entered into an agreement with NBC
Internet Inc. (NASDAQ: NBCI,
to feature theWhiz.com money management site on the Snap
portal;
- launched Bankrate Inc., which integrates
information from each site into an easy-to-navigate vertical
portal.
In addition, the company’s bankrate.com
has been ranked among the top ten sites for financial information,
according to data from Media Metrix, and has received numerous
awards from publications such as Money Magazine, Forbes, Yahoo
Internet Life and others. The site was recently recommended
by Britannica.com as one of the best sites of the Web.
"All these developments expanded
our offerings as a leading provider of consumer finance information,"
Anderson said. "The family of Bankrate Inc. sites has
become a valued source of objective personal financial information
on the Web."
About Bankrate Inc.
Based in North Palm Beach, Fla., Bankrate Inc.
(Nasdaq: ILIF
- news)
is an industry leader in creating, producing and syndicating
personal finance information for the online consumer public
through a broad portfolio of Web sites, print publications
and broadcast segments. The company's personal finance portal,
www.Bankrate.com,
features original content that deals with financial planning,
taxes, insurance, investing and banking. The portal serves
as a gateway to Bankrate Inc.'s family of sites, including
the award-winning bankrate.com,
theWhiz.com,
greenmagazine.com
and newly launched IntelligentTaxes.com.
Content from Bankrate Inc. is published on co-branded Internet
sites through more than 70 distributors, including NBC Internet,
Inc., Yahoo!, CNN, America Online and Smart Money. The company's
original research is also distributed through more than 70
national and state publications.
--Financial tables follow--
Bankrate Inc. and Subsidiary
Consolidated Balance Sheets
December 31, December 31,
1999 1998
Assets
Cash and cash equivalents $22,503,540 $1,633,100
Accounts receivable, net of allowance for
doubtful accounts of $235,000 and $24,847
at December 31, 1999 and 1998, respectively 1,480,904 538,536
Other current assets 383,292 109,488
Total current assets 24,367,736 2,281,124
Furniture, fixtures and equipment, net 3,422,394 813,659
Intangible assets, net of accumulated
amortization of $837,429 and $152,976
at December 31, 1999 and 1998, respectively 5,051,373 4,569
Other assets 620,254 ---
Total assets $33,461,757 $3,099,352
Liabilities, Redeemable Stock and
Stockholders' Equity (Deficit)
Liabilities:
Accounts payable $2,758,166 $308,667
Accrued stock compensation expense 1,159,309 ---
Other accrued expenses 6,170,267 588,212
Deferred revenue 659,392 612,660
Current portion of obligations
under capital leases 229,740 113,405
Other current liabilities 246,895 --
Total current liabilities 11,223,769 1,622,944
10% Convertible subordinated note payable 4,350,000 ---
Other liabilities 442,543 263,009
Total liabilities 16,016,312 1,885,953
Commitments and contingencies
Redeemable Convertible Series A preferred
stock, non-cumulative, par value $.01 per
share, Liquidation value $65 per share,
stated at redemption value -- 90,000
shares authorized; no Shares issued or
outstanding at December 31, 1999 and
89,612 shares issued and outstanding at
December 31, 1998 --- 10,215,768
Redeemable Convertible Series B preferred
stock, non-cumulative, par value $.01 per
share, Liquidation value $114 per share,
stated at redemption value -- 30,000 shares
authorized; no shares issued or outstanding
at December 31, 1999 and 17,575 shares
issued and outstanding at December 31, 1998 --- 1,982,535
Redeemable Common Stock:
Redeemable common stock, par value $.01 per
share, redemption value $0.52 per share --
no shares issued or outstanding at
December 31, 1999 and 454,170 shares issued
and outstanding at December 31, 1998 --- 236,168
Loan receivable for redeemable common stock --- (236,168)
Stockholders' equity (deficit):
Preferred stock, 10,000,000 shares
authorized and undesignated --- ---
Common stock, par value $.01 per share --
100,000,000 shares authorized; 13,540,988 and
4,053,200 shares issued and outstanding
at December 31, 1999 and 1998, respectively 135,410 40,532
Additional paid in capital 59,543,111 ---
Unamortized stock compensation expense --- (280,690)
Accumulated deficit (42,233,076) (10,744,746)
Total stockholders' equity (deficit) 17,445,445 (10,984,904)
Total liabilities stockholders'
equity (deficit) $33,461,757 $3,099,352
Bankrate Inc. and Subsidiary
Consolidated Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
Revenue: 1999 1998 1999 1998 1997
Online
publish-
ing $2,784,435 $992,064 $8,496,905 $2,582,444 $846,545
Print
publishing
and
licensing 850,192 894,415 3,472,780 3,039,085 2,260,471
Other 111,394 --- 147,827 --- ---
Total
revenue 3,746,021 1,886,479 12,117,512 5,621,529 3,107,016
Cost of
operations:
Online
publishing 1,933,625 520,166 4,785,889 1,519,755 670,763
Print
publishing
and
licensing 611,539 605,563 2,387,229 2,104,960 1,578,421
Sales 818,740 376,375 2,850,669 1,365,110 158,999
Marketing 8,104,123 257,449 17,078,673 432,427 19,153
Product
research 946,247 481,218 2,984,283 1,638,592 854,767
General and
administrative
expenses 3,585,373 444,984 7,181,551 1,839,594 1,277,815
Depreciation
and amortize-
nation 244,580 54,588 598,237 140,069 67,429
Goodwill
amortization 457,677 --- 655,665 --- ---
Monkish stock
based
compensation 335,085 260,723 3,305,104 757,563 ---
17,036,989 3,001,066 41,827,300 9,798,070 4,627,347
Loss from
opera-
tins (13,290,968) (1,114,587) (29,709,788) (4,176,541) (1,520,331)
Other income
(expense):
Interest
income 375,333 10,461 1,090,409 36,006 34,139
Interest
expense (125,440) (8,953) (232,504) (18,649) (51,851)
Noncash
financing
charge --- --- (2,656,000) --- ---
Other 4,557 185,586 19,546 185,588 7,473
Other income
(expense),
net 254,450 187,094 (1,778,549) 202,945 (10,239)
Loss before
income
taxes (13,036,518) (927,493) (31,488,337) (3,973,596) (1,530,570)
Income taxes --- --- --- --- ---
Net loss (13,036,518) (927,493) (31,488,337) (3,973,596) (1,530,570)
Accretion
of Convertible
Series A and
Series B
preferred
stock to
redemption
value --- (4,438,141) (2,281,000) (4,438,141) ---
Net loss
applicable
to common
stock $(13,036,518) $(5,365,634)$(33,769,337)$(8,411,737)$(1,530,570)
Basic and
diluted
net loss
per share $(0.96) $(1.32) $(3.34) $(2.14) $ (0.35)
Weighted
average
shares
outstanding
used in
Basic and
diluted per-
share
calcula-
tion 13,540,988 4,053,200 10,113,928 3,925,597 4,383,586
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