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NORTH PALM BEACH, FLA. April 25, 2000 – Bankrate
Inc. (NASDAQ: ILIF) today announced record revenue of $3,931,000 in the
first quarter of 2000, up 77% from $2,226,000 in the first quarter of
1999. Online publishing revenue grew 120% from the comparable quarter
last year and represented 77% of total revenues in the recent first quarter,
compared to 62% in the first quarter of 1999.
The company reported a net loss applicable to common stock
of $7,113,000 or $0.53 per share for the first quarter of 2000, compared
with a net loss applicable to common stock of $7,879,000 or $1.92 per
share for the first quarter of last year, and $13,037,000 or $0.96 per
share for the fourth quarter of 1999. Included in the results for 2000
were non-cash stock based compensation charges of $918,000 ($860,000 of
which relates to a non-cash charge for the continued vesting of stock
options through November 15, 2000 for William P. Anderson, the former
CEO) and goodwill amortization of $458,000. The first quarter of 1999
included non-cash stock based compensation expense of $1,908,000, a non-cash
financing charge of $2,656,000 and a $1,852,000 charge to accrete preferred
stock to redemption value. The fourth quarter of 1999 included non-cash
stock based compensation expense of $335,000 and goodwill amortization
of $458,000. Excluding non-cash charges, the net loss for the recent quarter
was $5,737,000 or $0.42 per share and was 53% less than the fourth quarter
of 1999.
"These financial results are an encouraging first step
in the strategic direction of Bankrate Inc.’s business," said
Jeff Cunningham, chairman of the board of Bankrate Inc. "Rapid revenue
growth combined with our curtailed expenses supports my strong belief
that Bankrate Inc. will soon enhance its position among superior infrastructure
providers in the category of Internet financial services. My enthusiasm
for this company increases as we discover new markets for our content
and products among a wide variety of top Internet partners, while we work
to continue to reduce expenses and increase cash flow."
"I am particularly pleased with the increasing portion
of our revenues derived from online publishing. This reflects the strength
of the editorial products we produce," said Cotter Cunningham, interim
CEO of Bankrate Inc. "Bankrate Inc. continues to supply the best
financial news and information on the Internet today."
About Bankrate Inc.
Based in North Palm Beach, Fla., Bankrate Inc. (NASDAQ: ILIF)
is an industry leader in providing and syndicating personal finance infrastructure
for the online consumer public through a broad portfolio of demographically
targeted Web sites, print publications and broadcast segments. The company's
leading personal finance site, bankrate.com, features original content
that deals with financial planning, taxes, insurance, investing and banking.
Our gateway site, www.Bankrate Inc. serves as an introduction to Bankrate
Inc.'s family of Web sites, including the award-winning bankrate.com,
Pivot.com (insurance e-commerce – www.pivot.com), theWhiz.com (planning
content – www.thewhiz.com), Bankrate.com Taxes (tax planning –
www.intelligenttaxes.com), Consejero.com, (Spanish-language personal finance
–) CPNet.com (college lifestyle – www.cpnet.com) and GreenMagazine.com
(investing – www.greenmagazine.com). Content from Bankrate Inc. is
published on co-branded Internet sites through more than 120 distributors,
including Snap (NASDAQ: NBCI), Yahoo! (NASDAQ: YHOO), America Online (NYSE:
AOL), CNN and Smart Money. The company's original research is also distributed
through more than 120 national and state publications. Bankrate Inc. sites
have approximately one million unique visitors per month, according to
Media Metrix.
--Financial tables to follow-
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Bankrate Inc. and subsidiary
|
|
Condensed Consolidated Statements of
Operations
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
| Revenue: |
|
|
|
2000
|
1999
|
|
Online
publishing |
|
|
$ 3,014,399
|
$ 1,369,836
|
|
Print
publishing and licensing |
|
741,889 |
856,432 |
|
Insurance commissions |
|
|
|
175,016
|
- |
|
|
Total
revenue |
|
3,931,304
|
2,226,268
|
| Cost
of operations: |
|
|
|
|
|
Online
publishing |
|
|
2,327,234 |
672,161 |
|
Print
publishing and licensing |
|
483,829 |
582,556 |
|
Sales |
|
|
|
845,236 |
511,410 |
|
Marketing |
|
|
|
2,105,200 |
714,080 |
|
Product
research |
|
|
769,192 |
569,162 |
|
General
and administrative expenses |
|
2,978,601 |
576,598 |
|
Depreciation
and amortization |
|
284,989 |
67,990 |
|
Goodwill
amortization |
|
|
457,677 |
3,335 |
|
Noncash
stock based compensation |
|
918,040
|
1,907,782
|
|
|
Total
cost of operations |
|
11,169,998
|
5,605,074
|
|
|
Loss
from operations |
|
(7,238,694) |
(3,378,806) |
| Other
income (expense): |
|
|
|
|
|
Interest
income |
|
|
249,397 |
16,746 |
|
Interest
expense |
|
|
(123,569) |
(15,396) |
|
Noncash
financing charge |
|
- |
(2,656,000) |
|
Other |
|
|
|
- |
6,132 |
|
|
Other
income (expense), net |
125,828
|
(2,648,518) |
|
Loss
before income taxes |
|
(7,112,866) |
(6,027,324) |
| Income
taxes |
|
|
|
- |
- |
| Net
loss |
|
|
|
(7,112,866) |
(6,027,324) |
| Accretion
of Convertible Series A and |
|
|
|
| Series
B preferred stock to redemption value |
- |
(1,852,000) |
| Net
loss applicable to common stock |
|
$ (7,112,866) |
$ (7,879,324) |
|
|
|
|
|
|
|
| Basic
and diluted net loss per share |
|
$ (0.53) |
$ (1.92) |
|
|
|
|
|
|
|
| Weighted
average shares outstanding used in |
|
|
| basic
and diluted per-share calculation |
|
13,543,678
|
4,099,458
|
|
Bankrate Inc. and Subsidiary
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
December 31,
|
|
|
|
|
|
|
|
2000
|
1999
|
|
Assets |
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
| Cash
and cash equivalents |
|
|
|
|
$ 12,828,385
|
$ 22,503,540
|
| Accounts
receivable, net |
|
|
|
|
1,717,942 |
1,480,904 |
| Other
current assets |
|
|
|
|
|
267,444
|
383,292
|
|
Total
current assets |
|
|
|
|
14,813,771
|
24,367,736
|
|
|
|
|
|
|
|
|
|
| Furniture,
fixtures and equipment, net |
|
|
|
2,501,072 |
2,488,394 |
| Intangible
assets, net |
|
|
|
|
4,602,145 |
5,051,373 |
| Other
assets |
|
|
|
|
|
1,600,835
|
1,554,254
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
|
$ 23,517,823
|
$ 33,461,757
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Accounts
payable |
|
|
|
|
|
$ 2,005,261
|
$ 2,758,166
|
| Accrued
stock compensation expense |
|
|
|
2,032,489 |
1,159,309 |
| Other
accrued expenses |
|
|
|
|
3,039,911 |
6,170,267 |
| Deferred
revenue |
|
|
|
|
|
737,929 |
659,392 |
| Current
portion of obligations under capital leases |
|
|
233,853 |
229,740 |
| Other
current liabilities |
|
|
|
|
237,104
|
246,895
|
|
Total
current liabilities |
|
|
|
8,286,547 |
11,223,769
|
|
|
|
|
|
|
|
|
|
| 10%
Convertible subordinated note payable |
|
|
|
4,350,000 |
4,350,000 |
| Other
liabilities |
|
|
|
|
|
494,194
|
442,543
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
|
|
|
13,130,741
|
16,016,312
|
|
|
|
|
|
|
|
|
|
| Stockholders'
equity : |
|
|
|
|
|
|
| Preferred
stock, 10,000,000 shares authorized and undesignated |
|
- |
- |
| Common
stock, par value $.01 per share—100,000,000 shares authorized;
13,548,405 and |
|
| 13,540,988
shares issued and outstanding at March 31, 2000 and |
|
|
|
| December
31, 1999, respectively |
|
|
|
|
135,484 |
135,410 |
| Additional
paid in capital |
|
|
|
|
|
59,597,540
|
59,543,111
|
| Accumulated
deficit |
|
|
|
|
|
(49,345,942) |
(42,233,076) |
|
Total
stockholders' equity |
|
|
10,387,082
|
17,445,445
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities stockholders' equity |
|
|
$ 23,517,823
|
$ 33,461,757
|
|
|
|
|
|
|
|
|
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