Exhibit 99.1
www.bankrate.com
For more information contact:
Edward J. DiMaria
SVP, Chief Financial Officer
edimaria@bankrate.com
(917) 368-8608
Bruce J. Zanca
SVP, Chief Communications/Marketing Officer
bzanca@bankrate.com
(917) 368-8648
FOR IMMEDIATE RELEASE
Reminder -- Conference Call and Webcast Today at 11:00 A.M. Eastern Time
Interactive Dial-In: (800) 565-5442 International Callers (913) 312-1298
(10 minutes before the call)
BANKRATE ANNOUNCES SECOND QUARTER 2007 FINANCIAL RESULTS
Total Revenue of $23.3 Million
Net Income Increased by 107%
Adjusted EBITDA Increased 44% to $10.3 Million
Raising Annual EBITDA Guidance
NEW YORK, NY - August 2, 2007 - Bankrate, Inc. (NASDAQ: RATE), today reported financial results for the second fiscal quarter ended June 30, 2007. Total revenue increased by 18% to $23.3 million over the $19.7 million reported in the second quarter of 2006. Net income increased by 107% to $5.2 million, or $0.28 per fully diluted share, in the second quarter of 2007 compared to $2.5 million, or $0.14 per fully diluted share, in the second quarter 2006. Earnings per fully diluted share (“EPS”) excluding stock compensation expense, increased by 48% to $0.34 for the second quarter 2007 compared to $0.23 for the second quarter 2006.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted to exclude $2.5 million in stock compensation expense, were $10.3 million, an increase of 44% over the $7.1 million reported in the second quarter 2006. EBITDA for the second quarter, including stock compensation expense, were $7.7 million, an increase of 96% over the $3.9 million reported in the second quarter 2006.
“We are pleased to report another quarter of solid results,” stated Thomas R. Evans, President and CEO of Bankrate, Inc. “Our core online business continues to gain momentum, and the component pieces of consumer traffic, advertising demand and pricing leverage remain strong,” Mr. Evans added.
Total revenue for the six months ended June 30, 2007 was $45.5 million, an increase of $6.0 million, or 15%, over the $39.5 million reported in the first half of 2006. Net income increased by 118% to $10.6 million, or $0.56 per fully diluted share, in the first half of 2007, compared to $4.9 million, or $0.28 per fully diluted share, in the first half of 2006. Earnings per fully diluted share, excluding stock compensation expense, increased by 52% to $0.67 for the six months ended June 30, 2007, compared to $0.44 for the same period in 2006. Earnings per diluted share, including stock compensation expenses, increased by 100% to $0.56 for the six months ended July 30, 2007, compared to $0.28 for the same period in 2006.
EBITDA for the first half of 2007, adjusted to exclude $4.2 million in stock compensation expense, were $20.3 million, an increase of 47% over the $13.8 million reported in the second quarter 2006. EBITDA for the first half of 2007, including stock compensation expenses, were $16.1 million, an increase of 83% over the $8.8 million reported for the first half of 2006.
Second Quarter 2007 Financial Results
| · | Total revenue for the quarter was $23.3 million, an increase of 18%, or $3.6 million, over the $19.7 million reported in the same period last year. |
| · | Online revenue for the second quarter increased by 31% to $20.2 million, an increase of $4.7 million over the $15.5 million reported in the second quarter of 2006. |
| · | Graphic advertising increased 31% to $12.0 million in the second quarter of 2007, compared to $9.2 million reported in the second quarter of 2006. Excluding lead aggregation revenue, (FastFind & Bankrate Select), graphic revenue increased by 51% over Q2 2006. |
| · | Hyperlink revenue increased 31% to $8.2 million in the second quarter of 2007 compared to $6.2 million reported for the same quarter last year. The company raised hyperlink rates in the third quarter of 2006. |
| · | Print publishing and licensing revenue for the second quarter was $3.0 million, a decrease of $1.2 million or 28%, compared to the $4.2 million reported in the second quarter of 2006. |
| · | The gross margin on revenue in the second quarter of 2007 was 75%, compared to 67% during the same period last year. |
| · | The EBITDA margin, adjusted to exclude stock compensation expense was 44%, compared 36% during the same period last year. |
| · | The company reported $135 million in cash and cash equivalents, an increase of $14 million over the March 31, 2007 balances of cash and short-term investments. |
| · | Page views for the second quarter of 2007 increased by 17% to 136.1 million, compared to the 116.0 million reported in the second quarter of 2006. |
“The leverage in our business model is clearly evident in our results,” stated Mr. Evans. “Our business continues to grow and our margins are expanding nicely,” added Mr. Evans.
2007 Guidance
Bankrate increased EBITDA guidance and reaffirmed revenue guidance for the full fiscal year 2007 on higher than anticipated internet media revenue and lower than anticipated print revenues. EBITDA, adjusted to exclude stock compensation expense is now expected to be in the range of $39 to $43 million on revenues in the range of $95 to $100 million. Stock compensation expense is expected to be in the range of $10.5 to $11.5 million.
August 2, 2007 Conference Call Interactive Dial-In and Webcast Information:
To participate in the teleconference please call: (800) 565-5442. International participants may dial: (913) 312-1298. Please access at least 10 minutes prior to the time the conference is set to begin.
Replay Information:
A replay of the conference call will be available beginning August 2, 2007, 2:00 p.m. ET/ 11:00 a.m. PT through August 16, 2007. To listen to the replay, call (888)-203-1112 and use the passcode: 5714823. International callers should dial (719) 457-0820 and use the passcode: 5714823.
Non-GAAP Measures
To supplement Bankrate’s financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Bankrate uses non-GAAP measures of certain components of financial performance, including EBITDA, income from operations, earnings per diluted share and net income, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses.
These non-GAAP measures are provided to enhance investors’ overall understanding of the Bankrate’s current financial performance and its prospects for the future. Specifically, Bankrate believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. In addition, because Bankrate has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in its financial reporting. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.
About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) ("Bankrate") owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of more than 300 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 reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 450 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates FastFind, an internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
Certain matters included in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team. Such forward-looking statements include, without limitation, statements made with respect to future revenue, revenue growth, market acceptance of our products, and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: the willingness of our advertisers to advertise on our web site, interest rate volatility, our ability to establish and maintain distribution arrangements, our ability to integrate the operations and realize the expected benefits of businesses that we have acquired and may acquire in the future, our need and ability to obtain additional equity or debt financing, consumers’ increasing acceptance of the Internet as a medium for obtaining financial product information, the ability of consumers to access our online network through non-PC devices, our ability to maintain the confidence of our advertisers by detecting click-through fraud or unscrupulous advertisers, the effect of unexpected liabilities we assume from our acquisitions, the impact of resolution of lawsuits to which we are a party, our ability to manage traffic on our web sites and service interruptions, the effects of facing liability for content on our web sites, changes in, or interpretations of, accounting rules and regulations, changes in, monetary and fiscal policies of the United States government, the effect of changes in the stock markets and other capital markets, increased competition and its effect on traffic, advertising rates, margins and market share, our ability to protect our intellectual property, legislative and regulatory changes in Internet regulation, technological changes, changes in consumer spending and saving habits, the concentration of ownership of our common stock, the effect of provisions in our Articles of Incorporation, Bylaws and certain laws on change-in-control transactions, fluctuating results of operations , and the accuracy of our financial statement estimates and assumptions. These and additional important factors to be considered are set forth under “Introductory Note”, "Item 1A. Risk Factors,'' "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations'' and in the other sections of our Annual Report on Form 10-K for the year ended December 31, 2006, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.
###
-Financial Statements Follow-
Bankrate, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| | | June 30, | | December 31, | |
| | | 2007 | | 2006 | |
| Assets | | | | | |
| | | | | | |
| Cash and cash equivalents | | $ | 134,729,660 | | $ | 13,125,360 | |
| Short-term investments | | | - | | | 96,800,000 | |
| Accounts and notes receivable, net of allowance for doubtful accounts of approximately | | | | | | | |
| $2,587,000 at June 30, 2007 and $2,155,000 at December 31, 2006 | | | 13,667,647 | | | 15,801,403 | |
| Deferred income taxes, current portion | | | 1,703,747 | | | 1,703,747 | |
| Prepaid expenses and other current assets | | | 900,822 | | | 1,032,423 | |
| Total current assets | | | 151,001,876 | | | 128,462,933 | |
| | | | | | | | |
| Furniture, fixtures and equipment, net | | | 1,644,793 | | | 1,703,680 | |
| Deferred income taxes | | | 1,262,279 | | | 1,262,279 | |
| Intangible assets, net | | | 13,594,502 | | | 14,441,162 | |
| Goodwill | | | 30,039,425 | | | 30,039,425 | |
| Other assets | | | 644,734 | | | 774,117 | |
| | | | | | | | |
| Total assets | | $ | 198,187,609 | | $ | 176,683,596 | |
| | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | |
| | | | | | | | |
| Liabilities: | | | | | | | |
| Accounts payable | | $ | 144,596 | | $ | 312,489 | |
| Accrued expenses | | | 8,947,530 | | | 5,237,222 | |
| Deferred revenue | | | 255,950 | | | 729,019 | |
| Other current liabilities | | | 53,110 | | | 27,427 | |
| Total current liabilities | | | 9,401,186 | | | 6,306,157 | |
| | | | | | | | |
| Other liabilities | | | 253,647 | | | 222,920 | |
| | | | | | | | |
| Total liabilities | | | 9,654,833 | | | 6,529,077 | |
| | | | | | | | |
| Stockholders' equity: | | | | | | | |
| Preferred stock, 10,000,000 shares authorized and undesignated | | | - | | | - | |
Common stock, par value $.01 per share-- 100,000,000 shares authorized; 18,385,755 and 18,224,620 shares issued and outstanding at June 30, 2007 and December 31, 2006, respectively | | | 183,858 | | | 182,246 | |
| Additional paid in capital | | | 186,034,198 | | | 178,255,314 | |
| Retained earnings (deficit) | | | 2,314,720 | | | (8,283,041 | ) |
| Total stockholders' equity | | | 188,532,776 | | | 170,154,519 | |
| | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 198,187,609 | | $ | 176,683,596 | |
| | | | | | | | |
Bankrate, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
| | | | | | | Three Months Ended | | Six Months Ended | |
| | | | | | | June 30, | | June 30, | |
| Revenue: | | 2007 | | 2006 | | 2007 | | 2006 | |
| Online publishing | | | | | | | | $ | 20,239,876 | | $ | 15,464,987 | | $ | 39,291,900 | | $ | 31,080,986 | |
| Print publishing and licensing | | | | | | | | | 3,039,296 | | | 4,201,383 | | | 6,215,202 | | | 8,373,816 | |
| Total revenue | | | | | | | | | 23,279,172 | | | 19,666,370 | | | 45,507,102 | | | 39,454,802 | |
| Cost of revenue (1): | | | | | | | | | | | | | | |
| Online publishing | | | | | | | | | 3,048,958 | | | 2,806,868 | | | 6,190,985 | | | 5,707,452 | |
| Print publishing and licensing | | | | | | | | | 2,713,430 | | | 3,773,258 | | | 5,541,097 | | | 7,315,368 | |
| Total cost of revenue | | | | | | | | | 5,762,388 | | | 6,580,126 | | | 11,732,082 | | | 13,022,820 | |
| | | | | | | | | | | | | | | | | | | | |
| Gross margin | | | | 17,516,784 | | | 13,086,244 | | | 33,775,020 | | | 26,431,982 | |
| | | | | | | | | | | | | | | | | | | | |
| Operating expenses (1): | | | | | | | | | | | | | | |
| Sales | | | | | | | | | 1,640,024 | | | 1,247,916 | | | 2,926,797 | | | 2,336,191 | |
| Marketing | | | | | | | | | 2,121,387 | | | 1,188,918 | | | 3,576,611 | | | 2,040,261 | |
| Product development | | | | | | | | | 1,157,774 | | | 805,193 | | | 2,110,655 | | | 1,829,696 | |
| General and administrative | | | | | | | | | 4,877,320 | | | 5,896,743 | | | 9,104,803 | | | 11,434,567 | |
| Depreciation and amortization | | | | | | | | | 649,071 | | | 564,653 | | | 1,293,786 | | | 1,122,415 | |
| | | | | | | | | | 10,445,576 | | | 9,703,423 | | | 19,012,652 | | | 18,763,130 | |
| Income from operations | | | | | | | | | 7,071,208 | | | 3,382,821 | | | 14,762,368 | | | 7,668,852 | |
| | | | | | | | | | | | | | | | | | | | |
| Interest income | | | | 1,675,488 | | | 624,975 | | | 3,137,658 | | | 645,305 | |
| | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | | | | | | | 8,746,696 | | | 4,007,796 | | | 17,900,026 | | | 8,314,157 | |
| Income tax expense | | | | 3,521,607 | | | 1,481,815 | | | 7,302,265 | | | 3,446,349 | |
| Net income | | | | | | | | $ | 5,225,089 | | $ | 2,525,981 | | $ | 10,597,761 | | $ | 4,867,808 | |
| | | | | | | | | | | | | | | | | | | | |
| Basic and diluted net income per share: | | | | | | | | | | | | | | |
| Basic | | | | | | | | $ | 0.29 | | $ | 0.15 | | $ | 0.58 | | $ | 0.29 | |
| Diluted | | | | | | | | $ | 0.28 | | $ | 0.14 | | $ | 0.56 | | $ | 0.28 | |
| | | | | | | | | | | | | | | | | | | | |
| Shares used in computing basic net income per share | | | | | | | | | 18,325,404 | | | 17,138,053 | | | 18,288,323 | | | 16,509,989 | |
| Shares used in computing diluted net income per share | | | | | | | | | 18,959,646 | | | 17,876,380 | | | 18,832,388 | | | 17,183,295 | |
| | | | | | | | | | | | | | | | | | | | |
| (1) Includes stock compensation expense as follows: | | | | | | | | | | | | | |
| Cost of revenue: | | | | | | | | | | | | | | | | | | | |
| Online publishing | | | | | | | | $ | 481,008 | | $ | 288,500 | | $ | 850,150 | | $ | 496,996 | |
| Print publishing and licensing | | | | | | | | | 39,032 | | | 57,691 | | | 80,615 | | | 67,822 | |
| Other expenses: | | | | | | | | | | | | | | | | | | | |
| Sales | | | | | | | | | 313,806 | | | 170,152 | | | 374,010 | | | 327,038 | |
| Marketing | | | | | | | | | 158,695 | | | - | | | 241,380 | | | - | |
| Product development | | | | | | | | | 206,056 | | | 133,101 | | | 320,098 | | | 246,632 | |
| General and administrative | | | | | | | | | 1,333,926 | | | 2,535,428 | | | 2,346,993 | | | 3,824,007 | |
| | | | | | | | | $ | 2,532,523 | | $ | 3,184,872 | | $ | 4,213,246 | | $ | 4,962,495 | |
| | | | | | | | | | | | | | | | | | | | |
Bankrate, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(Unaudited)
| | | | | Three Months Ended | | Six Months Ended | |
| | | | | June 30, | | June 30, | |
| Revenue: | | 2007 | | 2006 | | 2007 | | 2006 | |
| Online publishing | | | | | $ | 20,239,876 | | $ | 15,464,987 | | $ | 39,291,900 | | $ | 31,080,986 | |
| Print publishing and licensing | | | | | | 3,039,296 | | | 4,201,383 | | | 6,215,202 | | | 8,373,816 | |
| Total revenue | | | | | | 23,279,172 | | | 19,666,370 | | | 45,507,102 | | | 39,454,802 | |
| Cost of revenue: | | | | | | | | | | | | | | | | |
| Online publishing | | | | | | 2,567,950 | | | 2,518,368 | | | 5,340,835 | | | 5,210,456 | |
| Print publishing and licensing | | | | | | 2,674,398 | | | 3,715,567 | | | 5,460,482 | | | 7,247,546 | |
| Total cost of revenue | | | | | | 5,242,348 | | | 6,233,935 | | | 10,801,317 | | | 12,458,002 | |
| | | | | | | | | | | | | | | | | |
| Gross margin | | | | | | 18,036,824 | | | 13,432,435 | | | 34,705,785 | | | 26,996,800 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Sales | | | | | | 1,326,218 | | | 1,077,764 | | | 2,552,787 | | | 2,009,153 | |
| Marketing | | | | | | 1,962,692 | | | 1,188,918 | | | 3,335,231 | | | 2,040,261 | |
| Product development | | | | | | 951,718 | | | 672,092 | | | 1,790,557 | | | 1,583,064 | |
| General and administrative | | | | | | 3,543,394 | | | 3,361,315 | | | 6,757,810 | | | 7,610,560 | |
| Stock compensation expense (1) | | | | | | 2,532,523 | | | 3,184,872 | | | 4,213,246 | | | 4,962,495 | |
| Depreciation and amortization | | | | | | 649,071 | | | 564,653 | | | 1,293,786 | | | 1,122,415 | |
| | | | | | | 10,965,616 | | | 10,049,614 | | | 19,943,417 | | | 19,327,948 | |
| Income from operations | | | | | | 7,071,208 | | | 3,382,821 | | | 14,762,368 | | | 7,668,852 | |
| | | | | | | | | | | | | | | | | |
| Interest income | | | | | | 1,675,488 | | | 624,975 | | | 3,137,658 | | | 645,305 | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | | | | 8,746,696 | | | 4,007,796 | | | 17,900,026 | | | 8,314,157 | |
| Income tax expense | | | | | | 3,521,607 | | | 1,481,815 | | | 7,302,265 | | | 3,446,349 | |
| Net income | | | | | $ | 5,225,089 | | $ | 2,525,981 | | $ | 10,597,761 | | $ | 4,867,808 | |
| | | | | | | | | | | | | | | | | |
| Basic and diluted net income per share: | | | | | | | | | | | | | | | | |
| Basic | | | | | $ | 0.29 | | $ | 0.15 | | $ | 0.58 | | $ | 0.29 | |
| Diluted | | | | | $ | 0.28 | | $ | 0.14 | | $ | 0.56 | | $ | 0.28 | |
| Basic and diluted net income per share excluding stock compensation expense (1) | | | | | | | | | | | | | | | | |
| Basic | | | | | $ | 0.37 | | $ | 0.25 | | $ | 0.73 | | $ | 0.48 | |
| Diluted | | | | | $ | 0.34 | | $ | 0.23 | | $ | 0.67 | | $ | 0.44 | |
| | | | | | | | | | | | | | | | | |
| Shares used in computing basic net income per share | | | | | | 18,325,404 | | | 17,138,053 | | | 18,288,323 | | | 16,509,989 | |
| Shares used in computing diluted net income per share | | | | | | 18,959,646 | | | 17,876,380 | | | 18,832,388 | | | 17,183,295 | |
| | (1) | See reconciliation of GAAP to Non-GAAP Measures. |
| | | | | | | Three Months Ended | | Six Months Ended | |
| | | | | | | June 30, | | June 30, | |
| Non-GAAP Measures Reconciliation (Unaudited): | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | | | | | |
| EBITDA- | | | | | | | | | |
| Income from operations | | | | | | | | $ | 7,071,208 | | $ | 3,382,821 | | $ | 14,762,368 | | $ | 7,668,852 | |
| Depreciation and amortization | | | | | | | | | 649,071 | | | 564,653 | | | 1,293,786 | | | 1,122,415 | |
| EBITDA | | | | | | | | $ | 7,720,279 | | $ | 3,947,474 | | $ | 16,056,154 | | $ | 8,791,267 | |
| | | | | | | | | | | | | | | | | | | | |
| EBITDA excluding stock compensation expense- | | | | | | | | | | | | | | | | | | | |
| Income from operations | | | | | | | | $ | 7,071,208 | | $ | 3,382,821 | | $ | 14,762,368 | | $ | 7,668,852 | |
| Stock compensation expense | | | | | | | | | 2,532,523 | | | 3,184,872 | | | 4,213,246 | | | 4,962,495 | |
| Depreciation and amortization | | | | | | | | | 649,071 | | | 564,653 | | | 1,293,786 | | | 1,122,415 | |
| EBITDA excluding stock compensation expense | | | | | | | | $ | 10,252,802 | | $ | 7,132,346 | | $ | 20,269,400 | | $ | 13,753,762 | |
| | | | | | | | | | | | | | | | | | | | |
| Net income excluding stock compensation expense- | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | $ | 5,225,089 | | $ | 2,525,981 | | $ | 10,597,761 | | $ | 4,867,808 | |
| Stock compensation expense, net of tax | | | | | | | | | 1,542,445 | | | 1,789,620 | | | 2,670,205 | | | 3,098,183 | |
| Net income excluding stock compensation expense | | | | | | | | $ | 6,767,534 | | $ | 4,315,601 | | $ | 13,267,966 | | $ | 7,965,991 | |
| | | | | | | | | | | | | | | | | | | | |
| Per basic share | | | | | | | | $ | 0.37 | | $ | 0.25 | | $ | 0.73 | | $ | 0.48 | |
| Per diluted share | | | | | | | | $ | 0.34 | | $ | 0.23 | | $ | 0.67 | | $ | 0.44 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Shares used in computing basic net income per share | | | | | | | | | 18,325,404 | | | 17,138,053 | | | 18,288,323 | | | 16,509,989 | |
| | | | | | | | | | | | | | | | | | | | |
| Shares used in computing diluted net income per share | | | | | | | | | 18,959,646 | | | 17,876,380 | | | 18,832,388 | | | 17,183,295 | |
| Impact of applying SFAS No. 123R | | | | | | | | | 837,061 | | | 864,815 | | | 889,568 | | | 861,600 | |
| | | | | | | | | | | | | | | | | | | | |
Shares used in computing diluted net income per share, excluding the impact of applying SFAS No. 123R | | | | | | | | | 19,796,707 | | | 18,741,195 | | | 19,721,956 | | | 18,044,895 | |
| | | | | | | | | | | | | | | | | | | | |
Bankrate, Inc.
Condensed Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Operating Results
(Unaudited)
| | | | Three Months Ended June 30, 2007 | | | Three Months Ended June 30, 2006 | | | Six Months Ended June 30, 2007 | | | Six Months Ended June 30, 2006 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue: | | | GAAP | | | Adjustments (1) | | | Non-GAAP | | | GAAP | | | Adjustments (1) | | | Non-GAAP | | | GAAP | | | Adjustments (1) | | | Non-GAAP | | | GAAP | | | Adjustments (1) | | | Non-GAAP | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Online publishing | | $ | 20,239,876 | | $ | - | | $ | 20,239,876 | | $ | 15,464,987 | | $ | - | | $ | 15,464,987 | | $ | 39,291,900 | | $ | - | | $ | 39,291,900 | | $ | 31,080,986 | | $ | - | | $ | 31,080,986 | |
| Print publishing and licensing | | | 3,039,296 | | | - | | | 3,039,296 | | | 4,201,383 | | | - | | | 4,201,383 | | | 6,215,202 | | | - | | | 6,215,202 | | | 8,373,816 | | | - | | | 8,373,816 | |
| Total revenue | | | 23,279,172 | | | - | | | 23,279,172 | | | 19,666,370 | | | - | | | 19,666,370 | | | 45,507,102 | | | - | | | 45,507,102 | | | 39,454,802 | | | - | | | 39,454,802 | |
| Cost of revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Online publishing | | | 3,048,958 | | | (481,008 | ) | | 2,567,950 | | | 2,806,868 | | | (288,500 | ) | | 2,518,368 | | | 6,190,985 | | | (850,150 | ) | | 5,340,835 | | | 5,707,452 | | | (496,996 | ) | | 5,210,456 | |
| Print publishing and licensing | | | 2,713,430 | | | (39,032 | ) | | 2,674,398 | | | 3,773,258 | | | (57,691 | ) | | 3,715,567 | | | 5,541,097 | | | (80,615 | ) | | 5,460,482 | | | 7,315,368 | | | (67,822 | ) | | 7,247,546 | |
| Total cost of revenue | | | 5,762,388 | | | (520,040 | ) | | 5,242,348 | | | 6,580,126 | | | (346,191 | ) | | 6,233,935 | | | 11,732,082 | | | (930,765 | ) | | 10,801,317 | | | 13,022,820 | | | (564,818 | ) | | 12,458,002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Gross margin | | | 17,516,784 | | | 520,040 | | | 18,036,824 | | | 13,086,244 | | | 346,191 | | | 13,432,435 | | | 33,775,020 | | | 930,765 | | | 34,705,785 | | | 26,431,982 | | | 564,818 | | | 26,996,800 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales | | | 1,640,024 | | | (313,806 | ) | | 1,326,218 | | | 1,247,916 | | | (170,152 | ) | | 1,077,764 | | | 2,926,797 | | | (374,010 | ) | | 2,552,787 | | | 2,336,191 | | | (327,038 | ) | | 2,009,153 | |
| Marketing | | | 2,121,387 | | | (158,695 | ) | | 1,962,692 | | | 1,188,918 | | | - | | | 1,188,918 | | | 3,576,611 | | | (241,380 | ) | | 3,335,231 | | | 2,040,261 | | | - | | | 2,040,261 | |
| Product development | | | 1,157,774 | | | (206,056 | ) | | 951,718 | | | 805,193 | | | (133,101 | ) | | 672,092 | | | 2,110,655 | | | (320,098 | ) | | 1,790,557 | | | 1,829,696 | | | (246,632 | ) | | 1,583,064 | |
| General and administrative | | | 4,877,320 | | | (1,333,926 | ) | | 3,543,394 | | | 5,896,743 | | | (2,535,428 | ) | | 3,361,315 | | | 9,104,803 | | | (2,346,993 | ) | | 6,757,810 | | | 11,434,567 | | | (3,824,007 | ) | | 7,610,560 | |
| Stock compensation expense | | | - | | | 2,532,523 | | | 2,532,523 | | | - | | | 3,184,872 | | | 3,184,872 | | | - | | | 4,213,246 | | | 4,213,246 | | | - | | | 4,962,495 | | | 4,962,495 | |
| Depreciation and amortization | | | 649,071 | | | - | | | 649,071 | | | 564,653 | | | - | | | 564,653 | | | 1,293,786 | | | - | | | 1,293,786 | | | 1,122,415 | | | - | | | 1,122,415 | |
| | | | 10,445,576 | | | 520,040 | | | 10,965,616 | | | 9,703,423 | | | 346,191 | | | 10,049,614 | | | 19,012,652 | | | 930,765 | | | 19,943,417 | | | 18,763,130 | | | 564,818 | | | 19,327,948 | |
| Income from operations | | | 7,071,208 | | | - | | | 7,071,208 | | | 3,382,821 | | | - | | | 3,382,821 | | | 14,762,368 | | | - | | | 14,762,368 | | | 7,668,852 | | | - | | | 7,668,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income, net | | | 1,675,488 | | | - | | | 1,675,488 | | | 624,975 | | | - | | | 624,975 | | | 3,137,658 | | | - | | | 3,137,658 | | | 645,305 | | | - | | | 645,305 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 8,746,696 | | | - | | | 8,746,696 | | | 4,007,796 | | | - | | | 4,007,796 | | | 17,900,026 | | | - | | | 17,900,026 | | | 8,314,157 | | | - | | | 8,314,157 | |
| Provision for income taxes | | | 3,521,607 | | | - | | | 3,521,607 | | | 1,481,815 | | | - | | | 1,481,815 | | | 7,302,265 | | | - | | | 7,302,265 | | | 3,446,349 | | | - | | | 3,446,349 | |
| Net income | | $ | 5,225,089 | | $ | - | | $ | 5,225,089 | | $ | 2,525,981 | | $ | - | | $ | 2,525,981 | | $ | 10,597,761 | | $ | - | | $ | 10,597,761 | | $ | 4,867,808 | | $ | - | | $ | 4,867,808 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic and diluted net income per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.29 | | $ | - | | $ | 0.29 | | $ | 0.15 | | $ | - | | $ | 0.15 | | $ | 0.58 | | $ | - | | $ | 0.58 | | $ | 0.29 | | $ | - | | $ | 0.29 | |
| Diluted | | $ | 0.28 | | $ | - | | $ | 0.28 | | $ | 0.14 | | $ | - | | $ | 0.14 | | $ | 0.56 | | $ | - | | $ | 0.56 | | $ | 0.28 | | $ | - | | $ | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares used in computing basic net income per share | | | 18,325,404 | | | - | | | 18,325,404 | | | 17,138,053 | | | - | | | 17,138,053 | | | 18,288,323 | | | - | | | 18,288,323 | | | 16,509,989 | | | - | | | 16,509,989 | |
| Shares used in computing diluted net income per share | | | 18,959,646 | | | 837,061 | | | 19,796,707 | | | 17,876,380 | | | 864,815 | | | 18,741,195 | | | 18,832,388 | | | 889,568 | | | 19,721,956 | | | 17,183,295 | | | 861,600 | | | 18,044,895 | |
| | (1) | Adjustments for the impact of applying SFAS No. 123R | | |
