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NORTH PALM BEACH, FLA. -- Oct. 30, 2001 -- Bankrate, Inc.
(OTCBB: RATE), the Internet's leading source of consumer financial news
and information, today reported net income of $438,000, or $0.03 per share,
for the quarter ended Sept. 30, 2001 (excluding non-cash charges of $817,000)
compared to a net loss of $2,404,000, or $0.17 per share, in the comparable
quarter in 2000. Including the non-cash charges, the company reported
a net loss of $379,000, or $0.03 per share, for the quarter ended Sept.30,
2001 compared to a net loss of $2,940,000, or $0.21 per share, for the
same quarter in 2000.
Excluding non-cash charges of $1,927,000 and $2,371,000,
respectively, the company reported net income of $674,000, or $0.05 per
share, for the nine months ended Sept. 30, 2001 compared to a net loss
of $13,630,000, or $0.99 per share for the comparable period in 2000.
Including the non-cash charges, the company reported a net loss of $1,253,000,
or $0.09 per share, for the nine months ended Sept. 30, 2001 compared
to a net loss of $16,001,000, or $1.16 per share, for the same period
in 2000. The non-cash charges in both periods consist of depreciation
and amortization, interest, stock compensation expense, barter expense
net of barter revenue, and a one-time charge of $481,000 in the quarter
ended Sept. 30, 2001 related to the company's stock option exchange program.
For the second consecutive quarter, the company generated positive cash
flow, and cash increased from $8,356,000 at June 30, 2001 to $8,459,000
at Sept. 30, 2001.
"With focus, attention to detail and a sharp pencil,
we have now generated positive cash flow for a second consecutive quarter,
despite adverse conditions that were compounded by the terrorist attacks,"
stated Elisabeth DeMarse, president and CEO of Bankrate Inc. "Our
resilience and ability to grow during this time speaks to our serious
commitment to execute our strategy while maintaining operational excellence.
As we continue to build on our previous quarters' achievements -- including
dramatically reducing our expense base and then achieving cash-flow positive
status -- we believe our future is promising indeed. Going forward, we
expect to leverage our operations and improve our bottom line with increased
velocity."
Online revenue for the nine months ended Sept. 30, 2001
of $10,725,000 was $1,652,000, or 18 percent, higher than the $9,073,000
reported in the comparable period in 2000. Online revenue for the quarter
ended Sept. 30, 2001 of $3,371,000 was $358,000, or 12 percent, higher
than the $3,012,000 reported for the same quarter in 2000. Total revenue
for the nine months ended Sept. 30, 2001 of $13,136,000 was $1,860,000,
or 16 percent, higher than the $11,276,000 reported in the comparable
period in 2000. Total revenue for the quarter ended Sept. 30, 2001 of
$4,189,000 was $465,000, or 12 percent, higher than the $3,724,000 reported
in the comparable quarter in 2000.
"Across the board, we are exceeding our goals for the
year. We have maintained our 300+ advertiser base, while adding or expanding
relationships with numerous customers, including LendingTree, Priceline,
VirtualBank, MortgageExpo, Wells Fargo and Washington Mutual. In our cobranded
partner group, we have added the Los Angeles Times and The Boston
Herald. This group now contributes over 40 percent of our traffic,
and it includes AOL, MSN, USA Today, Yahoo! and AT&T. Our new e-mail
newsletters have enjoyed 186 percent growth in subscribers year-to-date,
and have shown strong growth in traffic and revenue as well. In spite
of this tumultuous ad market, Bankrate continues to shine and outpace
other Internet businesses."
Operating expenses 53 percent lower
Total operating expenses of $8,183,000 for the nine months ended Sept.
30, 2001 were $9,216,000, or 53 percent, lower than the $17,398,000 reported
in the comparable period in 2000 (excluding barter expenses of $2,115,000
and $87,000 in 2001 and 2000, respectively). Total operating expenses
for the quarter ended Sept. 30, 2001 of $2,778,000 were $2,308,000, or
45 percent, lower the $5,086,000 reported in the same quarter in 2000
(excluding barter expenses of $450,000 and $87,000 in 2001 and 2000, respectively).
Gross margin continues improvement
Bankrate's gross margin almost doubled from 34 percent during the first
nine months of 2000 to 65 percent for the first nine months of 2001.
Traffic levels remain strong after
record first and second quarters
Page views for the nine months ended Sept. 30, 2001 grew 66.9 million,
or 65 percent, to 170.0 million compared to the 103.2 million page views
reported in the same period in 2000. Third quarter page views were 47.3
million, an increase of 16.7 million, or 55 percent, over the 30.5 million
page views reported for the same quarter in 2000.
Unique visitors
During September 2001, Bankrate.com had over 6 million unique visitors,
up more than 200 percent from the previous year.
Newsletters
Bankrate re-launched its e-mail newsletters during the quarter, enhancing
the look and feel, and creating greater value for advertisers. With over
450,000 subscriptions, our e-mail newsletters are an important new product
for Bankrate. Ten newsletters offer very focused personal finance content
and tools. This focus means that the information conveyed is of great
importance to the subscriber. Consequently, Bankrate enjoys "open"
rates that greatly exceed the industry average. While creating branding
and demand for Bankrate, the newsletters also offer advertisers focused
customers with excellent metrics. Based on this and our strong subscriber
growth, we believe that our newsletters are positioned to become a significant
revenue and traffic driver for Bankrate.
"Going forward, our clarion call is 'smart growth,'"
summarizes DeMarse. "While focusing on our bottom line, we will take
a hard look at our execution strategies, new business initiatives and
cost-cutting measures. While the economy ebbs and flows, Bankrate continues
to ride out these storms with the strongest of tools - a terrific brand,
our tremendous group of dedicated employees and a loyal group of national
and local advertisers. Our customer base is large and growing, our audience
increases on a daily basis and our employees are the glue that keep it
all together."
About Bankrate.com
Bankrate.com is owned and operated by Bankrate, Inc. (OTCBB:RATE). Bankrate.com
is the Internet's leading consumer banking marketplace, with an average
of 3 million unique visitors per month connecting with over 4,500 financial
institutions in 173 markets in 50 states. Bankrate.com is a destination
site of personal finance channels, including banking, investing, taxes
and small business finance. It is the leading aggregator of over 100 financial
products, including mortgages, credit cards, new and used auto loans,
money market accounts and CD's, checking and ATM fees, home equity loans
and online banking fees.
Bankrate.com provides financial applications and information
to a network of over 100 partners including MSN (NASDAQ: MSFT), Yahoo!
(NASDAQ: YHOO), America Online (NYSE: AOL), CNN and Smart Money. Bankrate.com's
information is also distributed through more than 100 national and state
publications.
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