| NORTH PALM BEACH, FLA. -- April 30, 2001 -- Bankrate
Inc. (OTCBB: RATE) today announced that online publishing revenue for the
quarter ended March 31, 2001, increased 31 percent, or $947,000, to $3,961,000
over the $3,014,000 reported in the same period in 2000. Total revenue of
$4,746,000 for the quarter ended March 31, 2001 was $990,000, or 26 percent
higher than the $3,756,000 reported in the comparable period in 2000. Excluding
barter revenue, total revenue for the quarter ended March 31, 2001, of $3,873,000
was the highest in company history.
The company reported a net loss of $625,000, or $0.04 per
share, in the quarter ended March 31, 2001, compared to a net loss of
$7,113,000, or $0.53 per share, in the comparable quarter in 2000, and
a net loss of $920,000, or $0.07 per share in the quarter ended December
31, 2000. Excluding non-cash charges of approximately $598,000, the company
would have reported a net loss of $27,000 for the quarter ended March
31, 2001. Non-cash charges consist primarily of depreciation and amortization,
non-cash stock compensation expense, interest and barter expenses net
of barter revenue.
Record traffic
"Our traffic growth has been phenomenal," stated Elisabeth DeMarse,
President and CEO of Bankrate Inc. "Year over year, our traffic has
grown 165 percent. This astronomical increase demonstrates the power of
our content. Users want more and come back to the site repeatedly. Both
PC Data Online and Media Metrix have recognized Bankrate.com as a leading
destination site in the personal finance space. Numerous prestigious publications
have lauded us for our award-winning content and tools. Over 130 best
of breed partners use our research and articles.
"Our continued success in very difficult times
reflects the versatility of our model. Bankrate becomes even more valuable
in a slow economy as stock market returns dwindle, and consumers look
to refinance their homes and invest in money markets as a safe haven.
As a trusted source in volatile times, our audience looks to us to provide
them with financial literacy and wisdom. We believe Bankrate can profit
in both fat and lean times, and the shift in our traffic and our advertisers
occurs automatically.
Record revenues
"We exceeded our estimates for top line growth
this quarter. Even in this challenging economic climate, amidst the dot.com
failures and in a depressed advertising market, Bankrate has prevailed,"
noted DeMarse. "The difficult decisions made in the past year to
put us on the path to profitability have been validated. It has not been
an easy process, yet the determination of our team combined with the fabulous
reputation of our brand has allowed us to succeed. However, it is important
to note that instead of declaring victory, we are redoubling our efforts
to increase sales, grow our revenues and reinforce our value to the consumer."
Benefits of expense control and reduction
Excluding barter expenses of $986,000 in the quarter ended March 31, 2001,
total operating expenses of $2,902,000 were $3,563,000, or 55 percent
below the $6,465,000 reported in the comparable quarter in 2000. "We
are controlling our expenses without compromising our growth strategy
and will continue to do so," said Bob DeFranco, CFO. "Dramatic
improvement in our cost structure allows us to conserve our cash and will
strengthen our balance sheet going forward. Bankrate is now in a position
to see the benefits of growing our top line against a stabilized expense
base."
Growth metrics
Bankrate experienced positive usage metrics versus a year ago. Page views
for the quarter ended March 31, 2001, grew from 26.5 million in 2000 to
70.3 million, a 165 percent increase.
Gross margin, excluding barter revenue, was 62 percent for
the quarter ended March 31, 2001, compared to 22 percent in the comparable
quarter in 2000, and 33 percent, 41 percent and 55 percent for the second,
third and fourth quarters in 2000, respectively, reflecting steady improvement
since the restructuring efforts began in June 2000.
Renewed Focus
"During the past 10 months we have introduced a variety of initiatives
that have led to a very positive quarter," stated Jeff Cunningham,
chairman of the board for Bankrate Inc. "We have added three new
board members, a new CEO, and a chief revenue officer. We launched a new
look and feel to our site, streamlining navigation and adding additional
content and tools for our users. Our expenses were significantly reduced
through our restructuring efforts, which included reducing employment
levels and divesting of non-core assets and Web sites. While we are pleased
with our efforts to date, we do have significant work ahead of us. Nonetheless,
it has been a very successful period for Bankrate."
About Bankrate.com
Bankrate.com is owned and operated by Bankrate Inc. (OTCBB: RATE). Bankrate.com
is the Internet's leading consumer finance marketplace, with an average
of 3 million unique visitors per month connecting with more than 4,800
financial institutions in 158 markets in 50 states. Bankrate operates
a portfolio of personal finance channels, including banking, investing,
taxes and small business finance. It is the leading aggregator of more
than 100 financial products, including mortgages, credit cards, new and
used auto loans, money market accounts and CDs, checking and ATM fees,
home equity loans and online banking fees.
Bankrate.com provides financial applications and information
to a network of more than 130 partners including MSN (NASDAQ: MSFT), Yahoo!
(NASDAQ: YHOO), America Online (NYSE: AOL), CNN and Smart Money. The company's
information is also distributed through more than 100 national and state
publications.
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