EXHIBIT 99.1
ICG Announces Fourth Quarter and Full-Year Financial Results
WAYNE, Pa., Feb. 23, 2012 (GLOBE NEWSWIRE) -- ICG Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the quarter and year ended December 31, 2011.
"2011 was an important year for ICG, as we continued to execute against our strategic goal to refine our holdings and transition our operating model," said Walter Buckley, ICG's Chief Executive Officer. "We achieved strong EBITDA results in 2011 and successfully completed the sale of two core equity companies, Metastorm and StarCite. At the same time, our companies made strategic acquisitions, including GovDelivery's acquisition of GovInteract, and Procurian's (formerly ICG Commerce's) acquisition of Neuwing Energy Ventures. Finally, Procurian signed three new important contracts during the fourth quarter."
"As we look to 2012, growth in the first half of the year will be impacted by reduced spend at a limited number of clients. That said, we are encouraged by the later stage opportunities within our companies' pipelines, which we expect will drive accelerating growth in the second half of the year," added Buckley. "We are also excited about potential M&A activity for both ICG and our companies, as well as the investments our companies will continue to make for growth throughout 2012. We are confident we will build on this momentum to enhance value for our stockholders."
GAAP Financial Results
ICG's GAAP revenue increased to $36.1 million for the fourth quarter of 2011, up from $33.1 million in the comparable 2010 period. GAAP net income for the fourth quarter of 2011 was $17.9 million, or $0.49 per diluted share, compared to net income of $0.3 million, or $0.01 per diluted share, in the comparable 2010 period.
ICG's GAAP revenue increased to $140.5 million for the full year 2011, up from $115.7 million for 2010. GAAP net income for the full year 2011 was $27.6 million, or $0.74 per diluted share, compared to $46.6 million, or $1.26 per diluted share, for 2010.
Results for all periods noted include non-recurring gains and losses detailed later in this release.
Core Consolidated Companies
Core consolidated revenue totaled $36.1 million for the fourth quarter of 2011, a 9% increase from the comparable 2010 period. Core consolidated EBITDA totaled $5.6 million for the fourth quarter of 2011, consistent with $5.6 million for the comparable 2010 period.
Core consolidated revenue totaled $140.5 million for the full year 2011, a 19% increase from 2010. Core consolidated EBITDA totaled $17.7 million for the year ended December 31, 2011, as compared to $13.7 million for 2010.
Full-year revenue grew 28% at GovDelivery and 9% at InvestorForce from their respective prior year periods.
Procurian reported $31.1 million of revenue for the fourth quarter of 2011, representing a 19% increase from the comparable 2010 period. Procurian reported $120.6 million of revenue for 2011, representing an increase of 19% over 2010. Procurian's EBITDA, excluding stock-based compensation and unusual items, for the quarter ended December 31, 2011 was $6.6 million, as compared to $6.4 million in the comparable 2010 period. Procurian's EBITDA, excluding stock-based compensation and unusual items, for 2011 increased to $22.2 million, up from $17.1 million in 2010.
As announced last week, ICG Commerce changed its name to Procurian and sharpened its strategic focus around an elevated standard of excellence called "The New Procurement." This new name better projects a specialized focus on its long-standing commitment to procurement. This broader evolution of the company's focus reflects the market's growing demand for a proven approach to realizing sustainable cost savings in order to fuel growth and innovation. Go to www.procurian.com to view the Procurian web site and click here http://www.procurian.com/Virtual_Tour/home.html?page=video for a virtual tour of Procurian's specialized procurement infrastructure.
StarCite Sale
On December 30, 2011, the sale of StarCite to The Active Network was completed. ICG's portion of the sale proceeds, valued at the sale date, consisted of approximately $24.9 million, approximately $1.5 million of which has been placed in escrow in connection with a customary indemnification holdback. Subject to any indemnification claims, the escrowed sale proceeds will be released to ICG one year following the closing of the transaction.
2012 Guidance
In 2012, ICG expects to achieve core consolidated revenue in the range of $150 million to $160 million and core consolidated EBITDA in the range of $16 million to $18 million.
For information related to ICG's core equity companies, Channel Intelligence, Freeborders 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 fourth quarter and full year 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 fourth 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 866-788-0542. The international dial-in number is 857-350-1680. The pass code is 52024769. For those unable to participate in the conference call, a replay will be available from February 23, 2012 at 1:00 p.m. ET until March 1, 2012 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 69350886. 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 cloud-based software and services 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 profitable businesses in these sectors by providing them with access to management expertise and strategic and operational guidance, as well as growth capital.
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.
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| ICG Group, Inc. |
| Consolidated Statements of Operations |
| (In thousands, except per share data) |
| | | | | |
| | Three Months Ended | Year Ended |
| | December 31, | December 31, |
| | 2011 | 2010 | 2011 | 2010 |
| | | | | |
| Revenue | $ 36,103 | $ 33,076 | $ 140,527 | $ 115,710 |
| | | | | |
| Operating Expenses | | | | |
| Cost of revenue | 21,679 | 18,669 | 85,572 | 71,050 |
| Selling, general and administrative | 11,010 | 10,995 | 45,099 | 42,206 |
| Research and development | 2,891 | 2,846 | 12,436 | 10,644 |
| Amortization of intangibles | 399 | 337 | 1,412 | 1,357 |
| Impairment related and other | 367 | 10 | 970 | 1,182 |
| Total operating expenses | 36,346 | 32,857 | 145,489 | 126,439 |
| | | | | |
| Operating income (loss) | (243) | 219 | (4,962) | (10,729) |
| | | | | |
| Other income (loss), net | 16,440 | 28 | 42,624 | 74,147 |
| Interest income | 95 | 75 | 393 | 330 |
| Interest expense | (100) | (174) | (577) | (366) |
| Income (loss) before income taxes and equity loss | 16,192 | 148 | 37,478 | 63,382 |
| | | | | |
| Income tax benefit (expense) | 4,926 | 2,811 | 4,287 | (254) |
| Equity loss | (1,958) | (2,155) | (11,964) | (16,022) |
| Income (loss) from continuing operations | 19,160 | 804 | 29,801 | 47,106 |
| Income (loss) on discontinued operations | -- | -- | -- | 802 |
| Net income (loss) | 19,160 | 804 | 29,801 | 47,908 |
| Less: Net income (loss) attributable to the noncontrolling interest | 1,294 | 538 | 2,235 | 1,319 |
| Net income (loss) attributable to ICG | $ 17,866 | $ 266 | $ 27,566 | $ 46,589 |
| | | | | |
| Amounts attributable to ICG common shareholders: | | | | |
| Net income (loss) from continuing operations | $ 17,866 | $ 266 | $ 27,566 | $ 45,977 |
| Net income (loss) on discontinued operations | -- | -- | -- | 612 |
| Net income (loss) attributable to ICG common shareholders | $ 17,866 | $ 266 | $ 27,566 | $ 46,589 |
| | | | | |
| Basic net income (loss) per share: | | | | |
| Income (loss) from continuing operations attributable to ICG common shareholders | $ 0.49 | $ 0.01 | $ 0.75 | $ 1.26 |
| Income (loss) on discontinued operations attributable to ICG common shareholders | -- | -- | -- | 0.02 |
| | $ 0.49 | $ 0.01 | $ 0.75 | $ 1.28 |
| | | | | |
| Shares used in computation of basic net income (loss) per common share attributable to ICG common shareholders | 36,170 | 36,684 | 36,656 | 36,427 |
| | | | | |
| Diluted net income (loss) per share: | | | | |
| Income (loss) from continuing operations attributable to ICG common shareholders | $ 0.49 | $ 0.01 | $ 0.74 | $ 1.24 |
| Income (loss) on discontinued operations attributable to ICG common shareholders | -- | -- | -- | 0.02 |
| Income (loss) attributable to ICG common shareholders | $ 0.49 | $ 0.01 | $ 0.74 | $ 1.26 |
| | | | | |
| Shares used in computation of diluted net income (loss) per common share attributable to ICG common shareholders | 36,633 | 37,875 | 37,460 | 37,064 |
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| |
| ICG Group, Inc. |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
| | | |
| | December 31, | December 31, |
| | 2011 | 2010 |
| | | |
| ASSETS | | |
| Cash and cash equivalents | $ 121,909 | $ 92,438 |
| Restricted cash | 133 | 201 |
| Other receivables | 22,679 | -- |
| Accounts receivable, net | 33,034 | 25,832 |
| Deferred tax asset | 5,176 | 4,830 |
| Income tax receivable | -- | 6,314 |
| Prepaid expenses and other current assets | 2,916 | 2,528 |
| Total current assets | 185,847 | 132,143 |
| Fixed assets, net | 6,029 | 5,991 |
| Ownership interests | 39,052 | 83,829 |
| Goodwill | 22,267 | 20,317 |
| Intangibles, net | 14,464 | 13,832 |
| Deferred tax asset | 27,377 | 22,973 |
| Cost method investments | 10,820 | 1,317 |
| Other assets, net | 821 | 587 |
| Total assets | $ 306,677 | $ 280,989 |
| | | |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| Current maturities of other long-term debt | $ 4,216 | $ 4,623 |
| Accounts payable | 5,008 | 1,973 |
| Accrued expenses | 4,576 | 2,777 |
| Accrued compensation and benefits | 12,033 | 15,327 |
| Deferred revenue | 13,546 | 10,293 |
| Total current liabilities | 39,379 | 34,993 |
| Long-term debt | 11,081 | 15,458 |
| Other non-current liabilities | 1,501 | 927 |
| Total liabilities | 51,961 | 51,378 |
| Redeemable noncontrolling interest | 1,378 | 1,182 |
| Equity: | | |
| Controlling (ICG) equity | 245,726 | 223,807 |
| Noncontrolling interest | 7,612 | 4,622 |
| Total stockholders' equity | 253,338 | 228,429 |
| Total liabilities and stockholders' equity | $ 306,677 | $ 280,989 |
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| ICG |
| Non-GAAP Reconciliation | | | | |
| (In thousands) | | | | |
| | | | | |
| The following table is a reconciliation of non-GAAP financial measures to GAAP results. |
| | | | | |
| | Quarter Ended December 31, | Year Ended December 31, |
| | 2011 | 2010 | 2011 | 2010 |
| | | | | |
| Reconciliation of GAAP revenue to core consolidated revenue (A) | | | | |
| | | | | |
| GAAP revenue | $ 36,103 | $ 33,076 | $ 140,527 | $ 115,710 |
| | | | | |
| Deferred revenue not recorded in purchase accounting | -- | 38 | -- | 1,955 |
| | | | | |
| Core consolidated revenue | $ 36,103 | $ 33,114 | $ 140,527 | $ 117,665 |
| | | | | |
| | | | | |
| 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: | $ 17,866 | $ 266 | $ 27,566 | $ 46,589 |
| | | | | |
| Net income attributable to non-controlling interests | 1,294 | 538 | 2,235 | 1,319 |
| Discontinued operations | -- | -- | -- | (802) |
| Equity loss | 1,958 | 2,155 | 11,964 | 16,022 |
| Income tax expense (benefit) | (4,926) | (2,811) | (4,287) | 254 |
| Interest (income) expense, net | 5 | 99 | 184 | 36 |
| Other (income) loss, net (B) | (16,440) | (28) | (42,624) | (74,147) |
| | | | | |
| Consolidated operating income (loss) | (243) | 219 | (4,962) | (10,729) |
| | | | | |
| Deferred revenue not recorded in purchase accounting | -- | 38 | -- | 1,955 |
| Amortization of intangibles (resulting from acquisitions) - corporate | 338 | 337 | 1,351 | 1,357 |
| Depreciation and amortization - core consolidated | 921 | 721 | 3,323 | 2,490 |
| Depreciation - corporate | 14 | 13 | 50 | 58 |
| Stock-based compensation - corporate | 1,452 | 582 | 3,787 | 2,345 |
| Stock-based compensation - core consolidated | 145 | 147 | 495 | 682 |
| Impairment related and other - corporate | (26) | -- | (26) | 796 |
| Impairment related and other - core consolidated | 393 | 10 | 996 | 386 |
| | | | | |
| Adjusted operating income (loss) | 2,994 | 2,067 | 5,014 | (660) |
| | | | | |
| Corporate: | | | | |
| Operating expenses | 2,844 | 3,631 | 13,248 | 14,766 |
| | | | | |
| Core Consolidated Companies: | | | | |
| Other income (loss), net | (263) | (100) | (583) | (360) |
| | | | | |
| Core consolidated EBITDA | $ 5,575 | $ 5,598 | $ 17,679 | $ 13,746 |
| | | | | |
| (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. |
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| (B) Other (income) loss, net, as reflected in reconciliation above, relates to net gains as follows: | Quarter Ended December 31, | Year Ended December 31, |
| | 2011 | 2010 | 2011 | 2010 |
| | (in millions) |
| | | | | |
| Gains on sales of marketable securities | $ -- | $ -- | $ -- | $ 67.0 |
| Gain on Metastorm sale | 1.1 | -- | 26.0 | -- |
| Gain on StarCite sale | 14.1 | -- | 14.1 | -- |
| Gain on distribution | 0.4 | -- | 1.9 | -- |
| Net gains (losses) on sales of companies | 1.1 | -- | 1.3 | 7.0 |
| Other, net | (0.3) | -- | (0.7) | 0.1 |
| Other income (loss), net on Consolidated Statements of Operations | $ 16.4 | $ -- | $ 42.6 | $ 74.1 |
CONTACT: Investor inquiries:
Karen Greene
ICG
Investor Relations
610-727-6900
IR@icg.com