EXHIBIT 99.1
ICG Announces Third Quarter Financial Results
WAYNE, Pa., Nov. 3, 2011 (GLOBE NEWSWIRE) -- ICG Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the quarter ended September 30, 2011.
"We are encouraged by the growth we have seen in customer pipelines and the fact that our companies continue to report solid EBITDA results," said Walter Buckley, ICG's Chief Executive Officer. "However, delays in contract signings are impacting results for the second half of 2011. As a result, we now expect our annual revenues to be in the range of $138 million to $140 million, compared to our original revenue guidance of $142 million to $148 million. We are maintaining our original EBITDA guidance of annual EBITDA in the range of $16 million to $18 million."
Buckley added, "As underscored by our stock repurchases during the third quarter, we remain optimistic about our companies' opportunities and committed to our strategy. We are confident that the strong value propositions of our companies, coupled with the strength of ICG's financial position, will continue to drive growth at our companies and enhance value for our stockholders."
GAAP Financial Results
ICG's GAAP revenue increased to $35.1 million for the quarter ended September 30, 2011, up from $30.2 million in the comparable 2010 period. GAAP net loss for the quarter ended September 30, 2011 was $(3.0) million, or $(0.08) per diluted share, compared to net income of $1.8 million, or $0.05 per diluted share, in the comparable 2010 period. Results for both quarters include non-recurring gains and losses detailed later in this release.
Under our share repurchase program, we repurchased 774,327 shares for $7.8 million in the third quarter of 2011, representing an average price of $10.17 per share. To date, we have repurchased $20.6 million of shares under our $25 million repurchase program at an average price of $6.24 per share.
Core Consolidated Companies
Core consolidated revenue totaled $35.1 million for the third quarter of 2011, an increase of 15% from the corresponding 2010 period. Core consolidated EBITDA totaled $4.4 million for the third quarter of 2011, as compared to $4.5 million for the corresponding 2010 period.
Core consolidated revenue totaled $104.4 million for the nine months ended September 30, 2011, an increase of 24% from the corresponding 2010 period. Core consolidated EBITDA totaled $12.1 million for the nine months ended September 30, 2011, as compared to $8.1 million for the corresponding 2010 period.
ICG Commerce reported $29.9 million of revenue for the third quarter of 2011, representing an increase of 14% over the comparable 2010 period. ICG Commerce's EBITDA, excluding stock-based compensation and unusual items, for the quarter ended September 30, 2011 was $5.4 million, consistent with the comparable 2010 period. During the quarter, ICG Commerce renewed a multi-year, multi-million dollar contract with Kimberly-Clark, solidifying one of its largest account relationships.
Revenue grew 31% at GovDelivery and 3% at InvestorForce for the third quarter of 2011 compared to their respective 2010 periods.
For information related to ICG's core equity companies, Channel Intelligence, Freeborders, StarCite and WhiteFence, please refer to the supplemental schedule on our website, as well as the slide presentation that will accompany today's earnings results webcast. See below for further details regarding the webcast.
Please see ICG's website at www.icg.com for more information on ICG, its companies and its third quarter 2011 results.
ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to www.icg.com and click on the investor relations tab. Then click the link for the third quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode 800-901-5231. The international dial-in number is 617-786-2961. The pass code is 81957221.
For those unable to participate in the conference call, a replay will be available from November 3, 2011 at 1:00 p.m. ET until November 10, 2011 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is21044114. The replay and slide presentation also can be accessed in the investor relations section of the ICG website at www.icg.com/investors/events-and-presentations/.
About ICG
ICG (Nasdaq:ICGE) identifies, capitalizes and grows companies in the SaaS and tech-enabled BPO sectors. These companies transform the way business is done by enabling enterprises to increase efficiencies and improve critical processes. ICG leverages its unique expertise to carefully identify companies based on their potential to become market changers and market leaders. ICG focuses on building successful businesses in the SaaS and tech-enabled BPO sectors by providing them with access to management expertise and strategic and operational guidance, as well as growth capital.
The ICG logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7794
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties, including, but not limited to, risks associated with the effect of economic conditions generally, capital spending by our companies' customers, our companies' collective ability to retain existing customer relationships and secure new ones, our companies' ability to compete successfully against their respective competitors, our companies' ability to timely and effectively respond to technological developments, our and our companies' collective ability to retain key personnel, our ability to have continued access to capital and to deploy capital effectively and on acceptable terms, our ability to maximize value in connection with divestitures, and other risks and uncertainties detailed in ICG's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
| ICG Group, Inc. |
| Consolidated Statements of Operations |
| (In thousands, except per share data) |
| | | | | |
| | | | | |
| | Three Months Ended | Nine Months Ended |
| | September 30, | September 30, |
| | 2011 | 2010 | 2011 | 2010 |
| | | | | |
| | | | | |
| Revenue | $ 35,142 | $ 30,222 | $ 104,424 | $ 82,634 |
| | | | | |
| Operating Expenses | | | | |
| Cost of revenue | 21,128 | 18,056 | 63,893 | 52,381 |
| Selling, general and administrative | 10,387 | 9,989 | 34,089 | 31,211 |
| Research and development | 3,091 | 2,729 | 9,545 | 7,798 |
| Amortization of intangibles | 338 | 342 | 1,013 | 1,020 |
| Impairment related and other | 484 | 1,004 | 603 | 1,172 |
| Total operating expenses | 35,428 | 32,120 | 109,143 | 93,582 |
| | | | | |
| Operating income (loss) | (286) | (1,898) | (4,719) | (10,948) |
| | | | | |
| Other income (loss), net | (374) | 9,196 | 26,184 | 74,119 |
| Interest income | 90 | 56 | 298 | 255 |
| Interest expense | (145) | (123) | (477) | (192) |
| Income (loss) before income taxes and equity loss | (715) | 7,231 | 21,286 | 63,234 |
| | | | | |
| Income tax benefit (expense) | 1,338 | (2,860) | (639) | (3,065) |
| Equity loss | (3,245) | (2,952) | (10,006) | (13,867) |
| Income (loss) from continuing operations | (2,622) | 1,419 | 10,641 | 46,302 |
| Income (loss) on discontinued operations | -- | 601 | -- | 802 |
| Net income (loss) | (2,622) | 2,020 | 10,641 | 47,104 |
| Less: Net income (loss) attributable to the noncontrolling interest | 335 | 229 | 941 | 781 |
| Net income (loss) attributable to ICG | $ (2,957) | $ 1,791 | $ 9,700 | $ 46,323 |
| | | | | |
| Amounts attributable to ICG common shareholders: | | | | |
| Net income (loss) from continuing operations | $ (2,957) | $ 1,339 | $ 9,700 | $ 45,711 |
| Net income (loss) on discontinued operations | -- | 452 | -- | 612 |
| Net income (loss) attributable to ICG common shareholders | $ (2,957) | $ 1,791 | $ 9,700 | $ 46,323 |
| | | | | |
| Basic net income (loss) per share: | | | | |
| Income (loss) from continuing operations attributable to ICG common shareholders | $ (0.08) | $ 0.04 | $ 0.26 | $ 1.25 |
| Income (loss) on discontinued operations attributable to ICG common shareholders | -- | 0.01 | -- | 0.02 |
| | $ (0.08) | $ 0.05 | $ 0.26 | $ 1.27 |
| | | | | |
Shares used in computation of basic net income (loss) per
common share attributable to ICG common shareholders | 36,556 | 36,368 | 36,819 | 36,340 |
| | | | | |
| Diluted net income (loss) per share: | | | | |
| Income (loss) from continuing operations attributable to ICG common shareholders | $ (0.08) | $ 0.04 | $ 0.26 | $ 1.24 |
| Income (loss) on discontinued operations attributable to ICG common shareholders | -- | 0.01 | -- | 0.02 |
| Income (loss) attributable to ICG common shareholders | $ (0.08) | $ 0.05 | $ 0.26 | $ 1.26 |
| | | | | |
Shares used in computation of diluted net income (loss) per
common share attributable to ICG common shareholders | 36,556 | 36,956 | 37,738 | 36,679 |
| | | | | |
| |
| ICG Group, Inc. |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
| | | |
| | | |
| | September 30, | December 31, |
| | 2011 | 2010 |
| | | |
| ASSETS | | |
| Cash and cash equivalents | $ 117,817 | $ 92,438 |
| Restricted cash | 140 | 201 |
| Accounts receivable, net | 31,233 | 25,832 |
| Deferred tax asset | 804 | 4,830 |
| Income tax receivable | -- | 6,314 |
| Prepaid expenses and other current assets | 3,534 | 2,528 |
| Total current assets | 153,528 | 132,143 |
| Fixed assets, net | 6,154 | 5,991 |
| Ownership interests in partner companies | 49,635 | 83,829 |
| Goodwill | 22,279 | 20,317 |
| Intangibles, net | 12,819 | 13,832 |
| Deferred tax asset | 26,432 | 22,973 |
| Cost method investments | 9,680 | 1,317 |
| Other assets, net | 879 | 587 |
| Total assets | $ 281,406 | $ 280,989 |
| | | |
| | | |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| Current maturities of other long-term debt | $ 4,230 | $ 4,623 |
| Accounts payable | 2,049 | 1,973 |
| Accrued expenses | 2,652 | 2,777 |
| Accrued compensation and benefits | 11,242 | 15,327 |
| Deferred revenue | 14,151 | 10,293 |
| Total current liabilities | 34,324 | 34,993 |
| Long-term debt | 11,685 | 15,458 |
| Other non-current liabilities | 1,740 | 927 |
| Total liabilities | 47,749 | 51,378 |
| Redeemable noncontrolling interest | 1,326 | 1,182 |
| Equity: | | |
| Controlling (ICG) equity | 226,194 | 223,807 |
| Noncontrolling interest | 6,137 | 4,622 |
| Total stockholders' equity | 232,331 | 228,429 |
| Total liabilities and stockholders' equity | $ 281,406 | $ 280,989 |
| |
| |
| ICG |
| Non-GAAP Reconciliation |
| (In thousands) |
| | | | | |
| The following table is a reconciliation of non-GAAP financial measures to GAAP results. | | | | |
| | | | | |
| | Quarter Ended September 30, | Year to Date Ended September 30, |
| | 2011 | 2010 | 2011 | 2010 |
| | | | | |
| Reconciliation of GAAP revenue to core consolidated revenue (A) |
| | | | | |
| GAAP revenue | $ 35,142 | $ 30,222 | $ 104,424 | $ 82,634 |
| | | | | |
| Deferred revenue not recorded in purchase accounting | -- | 416 | -- | 1,917 |
| | | | | |
| Core consolidated revenue | $ 35,142 | $ 30,638 | $ 104,424 | $ 84,551 |
| | | | | |
| | | | | |
| Reconciliation of GAAP Net income (loss) attributable to ICG to adjusted operating income (loss) and core consolidated EBITDA (A) |
| | | | | |
| GAAP Net income (loss) attributable to ICG: | $ (2,957) | $ 1,791 | $ 9,700 | $ 46,323 |
| | | | | |
| Net income attributable to non-controlling interests | 335 | 229 | 941 | 781 |
| Discontinued operations | -- | (601) | -- | (802) |
| Equity loss | 3,245 | 2,952 | 10,006 | 13,867 |
| Income tax expense (benefit) | (1,338) | 2,860 | 639 | 3,065 |
| Interest (income) expense, net | 55 | 67 | 179 | (63) |
| Other (income) loss, net (B) | 374 | (9,196) | (26,184) | (74,119) |
| | | | | |
| Consolidated operating income (loss) | (286) | (1,898) | (4,719) | (10,948) |
| | | | | |
| Deferred revenue not recorded in purchase accounting | -- | 416 | -- | 1,917 |
| Amortization of intangibles (resulting from acquisitions) - corporate | 338 | 342 | 1,013 | 1,020 |
| Depreciation and amortization - core consolidated | 830 | 635 | 2,402 | 1,769 |
| Depreciation - corporate | 12 | 15 | 36 | 45 |
| Stock-based compensation - corporate | 871 | 546 | 2,335 | 1,763 |
| Stock-based compensation - core consolidated | 54 | 162 | 350 | 535 |
| Impairment related and other - corporate | -- | 796 | -- | 796 |
| Impairment related and other - core consolidated | 484 | 208 | 603 | 376 |
| | | | | |
| Adjusted operating income (loss) | 2,303 | 1,222 | 2,020 | (2,727) |
| | | | | |
| Corporate: | | | | |
| Operating expenses | 2,502 | 3,061 | 10,404 | 11,135 |
| | | | | |
| Core Consolidated Companies: | | | | |
| Other income (loss), net | (413) | 218 | (320) | (260) |
| | | | | |
| Core consolidated EBITDA | $ 4,392 | $ 4,501 | $ 12,104 | $ 8,148 |
| | | | | |
| (A) Core consolidated revenue, core consolidated EBITDA and adjusted operating income (loss) are non-GAAP financial measures and have no standardized measurement prescribed by GAAP. Core consolidated revenue is the sum of the revenue of ICG's three core consolidated companies. Core consolidated EBITDA is the sum of the earnings (losses) before interest, taxes, depreciation and amortization, stock-based compensation and unusual items of ICG's three core consolidated companies. ICG's management considers charges unusual when they are transactional-driven or non-recurring. Adjusted operating income (loss) is consolidated operating income (loss), adjusted for depreciation and amortization, stock-based compensation, and impairment related and other amounts of ICG and its three core consolidated companies. ICG's management believes these non-GAAP financial measures provide useful information to investors, potential investors, securities analysts and others that enables each such group to evaluate core consolidated companies' current and future prospects in a similar manner as ICG's management and to review results on a comparable basis for all periods presented. |
| | | | | |
| (B) Other (income) loss, net, as reflected in reconciliation above, relates to net gains as follows: | Quarter Ended September 30, | Year to Date Ended September 30, |
| | 2011 | 2010 | 2011 | 2010 |
| | (in millions) |
| | | | | |
| Gains on sales of marketable securities | $ -- | $ 9.2 | $ -- | $ 67.0 |
| Gain on Metastorm sale | -- | -- | 24.9 | -- |
| Gain on distribution | -- | -- | 1.4 | -- |
| Net gains (losses) on sales of companies | -- | -- | 0.2 | 6.7 |
| Other, net | (0.4) | -- | (0.3) | 0.4 |
| Other income (loss), net on Consolidated Statements of Operations | $ (0.4) | $ 9.2 | $ 26.2 | $ 74.1 |
| | | | | |
CONTACT: Karen Greene
ICG
Investor Relations
610-727-6900
IR@icg.com