Exhibit 99.3
FINANCIAL GUIDANCE SUMMARY
2009 Preliminary Financial Guidance
(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.
