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NEW YORK, N.Y. -- July 30, 2002 -- Bankrate Inc. (OTC BB:
RATE), the Internet's leading source of consumer financial news and information,
today reported record net income of $1,002,000, or $0.07 per share, for
the quarter ended June 30, 2002, compared to a net loss of $249,000, or
$0.02 per share, in the comparable quarter in 2001.
The company reported net income of $3,714,000, or $0.26
per share on a diluted basis, for the six months ended June 30, 2002,
compared to a net loss of $873,000, or $0.06 per share, for the comparable
period in 2001. Excluding the noncash gain on early extinguishment of
debt of $2,022,000, or $0.14 per share, in the quarter ended March 31,
2002, the company would have reported net income of $1,692,000, or $0.12
per share on a diluted basis, for the six months ended June 30, 2002.
"A number of very positive factors were in play during
the second quarter that enabled us to exceed our plan and achieve these
impressive earnings," said President and CEO Elisabeth DeMarse. "Bankrate's
strong brand recognition and quality lead generation for our advertisers
has increased the value of our site. Additionally, our effective sales
initiatives have attracted new advertisers as well as expanded the commitments
of our partners. As a result, the sales uptick in the first quarter has
continued into the second, with high demand across each of our revenue
streams.
For the fifth consecutive quarter, the company generated
cash from operations. Cash increased from $6,510,000 on March 31, 2002,
to $7,310,000 on June 30, 2002, and the company remains virtually debt
free. "As reported in the first quarter, we negotiated the early
payoff of our subordinated debt, putting the company in excellent financial
condition and preparing for opportunities that may present themselves,"
said Bankrate Chief Financial Officer Bob DeFranco.
Second quarter highlights
Bankrate experienced unprecedented strength in revenue in all categories,
resulting in both year-over-year and consecutive quarter revenue growth
for the three-month period:
• Total revenue for the quarter of $6,202,000 was
48 percent higher than the same quarter in 2001, and 10 percent over
the first quarter of 2002.
• Online revenue of $5,267,000 was up $1,874,000, or 55 percent,
over 2001, and 12 percent over the first quarter of 2002.
• Hyperlinks (rate table listings) revenue increased 105 percent
over the same quarter of 2001 and 28 percent over the first quarter
of 2002.
• Print publishing and licensing revenue of $934,000 was up $126,000,
or 16 percent, over 2001 and slightly above the $924,000 in the first
quarter of 2002.
Online publishing revenue for the three months ended June
30, 2002, and 2001 included barter revenue of $906,000 and $592,000, representing
approximately 15 percent and 14 percent of total revenue, respectively.
Hyperlink revenue accounted for 51 percent of online publishing revenue
excluding barter revenue for the three months ended June 30, 2002, up
from 45 percent for the quarter ended March 31, 2002 and 39 percent for
the quarter ended June 30, 2001.
First half highlights
• Total revenue for the six months ended June 30, 2002, of $11,839,000
was $2,892,000, or 32 percent , higher than the $8,947,000 reported for
the same period in 2001.
• Online revenue of $9,981,000 was 36 percent above first half of
2001.
• Hyperlink revenue increased 95 percent over the same period in
2001.
• Print publishing and licensing revenue of $1,858,000 was 17 percent
higher than the $1,593,000 reported for the first half of 2001.
Online publishing revenue for the six months ended June
30, 2002, and 2001 included barter revenue of $1,761,000 and $1,465,000,
representing approximately 15 percent and 16 percent of total revenue,
respectively. Hyperlink revenue accounted for 48 percent of online publishing
revenue excluding barter in the 2002 period compared to 34 percent in
the 2001 period.
Excluding barter expense, operating expenses for the six
months ended June 30, 2002, of $5,241,000 were $163,000, or 3 percent
, lower than the $5,404,000 reported for the six months ended June 30,
2001. Barter expense was $1,769,000 and $1,665,000 for the six months
ended June 30, 2002 and 2001, respectively. Excluding barter revenue gross
margin improved from 64 percent for the six months ended Jun 30, 2001
to 69 percent for the same period in 2002.
Visitors generate high-quality leads for advertisers
"The percentage of visitors who come directly to Bankrate increased
in the second quarter of 2002 to 70 percent from 60 percent in the prior
quarter," said DeMarse. The remainder was contributed by the company's
vast partnership network, which includes AOL, Yahoo!, MSN, Netscape and
more than 70 other best-of-breed sites. "In addition to the growing
brand recognition, the quality of our leads for advertisers has allowed
us to generate increased per page rates. As a result, we have been able
to generate increased revenues on a modest decrease in the total amount
of viewers to our site since the first quarter."
"For the second half of the year, our aggressive sales
and marketing team will continue to review new products and associations
with partners that should increase both our revenue stream and our eye-share.
At the same time we remain vigilant in controlling the cost side of the
business. While we have historically experienced a slowdown in traffic
during our third and fourth quarters, if traffic patterns and advertiser
demand remain strong, we look forward to a profitable second half,"
DeMarse concluded.
About Bankrate Inc.
Bankrate, Inc. (OTC BB:RATE) owns and operates Bankrate.com, the Internet's
leading consumer banking marketplace. Averaging 4 million unique visitors
per month, comScore Media Metrix ranked Bankrate.com first in unique visitors
in the "Financial Information and Advice" category in June,
2002. Bankrate.com reviews more than 4,800 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 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 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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