Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
2008 Financial Guidance
(in millions, except per share amounts)
(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
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