Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
2008 Financial Guidance
(in millions, except per share amounts)
| | | | | | | | | |
| | | Year Ended | |
| | | December 31, 2008 | |
| | | Range | |
| Revenue | | $ | 380.0 | | | $ | 395.0 | |
| | | | | | | | | |
| Earnings before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a) | | $ | 97.5 | | | $ | 107.5 | |
| | | | | | | | | |
| Adjusted EBITDA per diluted common share | | $ | 1.57 | | | $ | 1.73 | |
| | | | | | | |
| | | | | | | | | |
| Interest, taxes, depreciation, amortization and other non-cash items (b) | | | | | | | | |
| Interest income | | $ | 10.0 | | | $ | 11.0 | |
| Depreciation and amortization | | $ | (31.0 | ) | | $ | (29.0 | ) |
| Non-cash advertising | | $ | (5.0 | ) | | $ | (5.0 | ) |
| Non-cash stock-based compensation | | $ | (22.0 | ) | | $ | (21.0 | ) |
| Impairment of auction rate securities | | | (27.4 | ) | | | (27.4 | ) |
| Income tax provision ( c ) | | $ | (20.0 | ) | | $ | (26.0 | ) |
| | | | | | | | | |
| Net income | | $ | 2.1 | | | $ | 10.1 | |
| | | | | | | |
| | | | | | | | | |
| Net income per common share: | | | | | | | | |
| Basic | | $ | 0.04 | | | $ | 0.17 | |
| | | | | | | |
| | | | | | | | | |
| Diluted | | $ | 0.03 | | | $ | 0.16 | |
| | | | | | | |
| | | | | | | | | |
| Net income, excluding impairment of auction rate securities of ($27.4)(d) | | $ | 29.5 | | | $ | 37.5 | |
| | | | | | | |
| Net income per common share, excluding impairment of auction rate securities | | | | | | | | |
| Basic | | $ | 0.50 | | | $ | 0.64 | |
| | | | | | | |
| Diluted | | $ | 0.48 | | | $ | 0.60 | |
| | | | | | | |
| Weighted-average shares outstanding used in computing net income per common share: | | | | | | | | |
| Basic | | | 59.0 | | | | 59.0 | |
| Diluted | | | 62.0 | | | | 62.0 | |
| | |
| Notes: | | |
| |
| (a) | | See Annex A — Explanation of Non-GAAP Financial Measures |
| |
| (b) | | Reconciliation of Adjusted EBITDA to net income |
| |
| (c) | | Income tax rate for Q2 to Q4 2008 is estimated to be approximately 41% of pretax income. The income tax provision excludes any benefit relating to any reversal in 2008 of the valuation allowance against deferred tax assets. |
| |
| (d) | | Impairment of auction rate securities recorded in Q1 2008. |
Additional Information
- Quarterly distribution of revenue is estimated to be approximately $81.7 in Q1, $88 to $90 in Q2, $100 to $104 in Q3 and $110 to $119 in Q4
- Adjusted EBITDA as a percentage of revenue is estimated to be approximately 19% in Q1, 22% to 23% in Q2, 27% to 28% in Q3 and 32% to
35% in Q4
- Net Income (Loss) as a percentage of revenue is estimated to be approximately (29.0%) in Q1, 6.0% to 7.0% in Q2, 9.0% to 11.0% in Q3 and 10.0% to 14.0% in Q4
