Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
2009 Preliminary Financial Guidance
(in millions, except per share amounts)
(in millions, except per share amounts)
Year Ending | ||||||||
December 31, 2009 | ||||||||
Range | ||||||||
Revenue | $ | 420.0 | $ | 450.0 | ||||
Earnings before interest, taxes, non-cash and other items (“Adjusted EBITDA”) (a) | $ | 107.0 | $ | 122.0 | ||||
Adjusted EBITDA per diluted common share | $ | 1.73 | $ | 1.97 | ||||
Interest, taxes, non-cash and other items (b) | ||||||||
Interest income | 4.0 | 5.0 | ||||||
Depreciation and amortization | (33.0 | ) | (30.0 | ) | ||||
Non-cash advertising | (1.5 | ) | (1.5 | ) | ||||
Non-cash stock-based compensation | (26.0 | ) | (23.0 | ) | ||||
Income tax provision | (20.6 | ) | (29.5 | ) | ||||
Net income | $ | 29.9 | $ | 43.0 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.51 | $ | 0.73 | ||||
Diluted | $ | 0.48 | $ | 0.69 | ||||
Weighted-average shares outstanding used in computing net income per common share: | ||||||||
Basic | 59.0 | 59.0 | ||||||
Diluted | 62.0 | 62.0 |
(a) | See Annex A — Explanation of Non-GAAP Financial Measures | |
(b) | Reconciliation of Adjusted EBITDA to net income |
Additional information regarding forecast for first quarter of 2009:
- Revenue is forecasted to be approximately $90 to $92 in quarter ending March 31, 2009
- Adjusted EBITDA as a percentage of revenue is forecasted to be approximately 19% in quarter ending March 31, 2009
- Net Income as a percentage of revenue is forecasted to be approximately 2% to 3% in quarter ending March 31, 2009
Additional information regarding full year forecast:
- Income tax rate for 2009 is forecasted to be approximately 41% of pretax income. The income tax provision excludes any benefit relating to any reversal in 2009 of the valuation allowance against deferred tax assets.
- The distribution of the annual revenue is expected to be approximately 75% advertising and sponsorship, 21% licensing and 4% publishing and other. Quarterly revenue distributions may vary from this annual estimate.