Exhibit 99.2
THESTREET.COM REPORTS FIRST POSITIVE CASH FLOW QUARTER
NEW YORK, July 18, 2003 --TheStreet.com, Inc. (Nasdaq: TSCM), a leading
multimedia provider of financial commentary, analysis, research and news, today
announced its financial results for the second quarter 2003, which includes the
Company's first quarterly positive cash flow. In addition, net revenue,
subscription revenue and deferred revenue for the quarter set new historical
highs.
The Company's net revenue was $6.4 million in the second quarter 2003, a 17
percent increase over the second quarter 2002 and a 13 percent increase from the
previous quarter. Net loss under generally accepted accounting principles was
($1.3) million, or ($0.05) per share for the quarter, an improvement of 36
percent over the same period last year of ($2.0) million. This represents a
sequential improvement of 38 percent or ($0.8) million from the previous
quarter. Total cash flow in the second quarter 2003 was $0.3 million.
Subscription bookings for the second quarter 2003 totaled $4.7 million, a 6
percent increase year-over-year and a 14 percent decrease from the first
quarter. Deferred revenue was $6.9 million, a 21 percent increase over the same
period last year and a 2 percent increase from the previous quarter.
"We are very pleased to report our first quarter of positive cash flow," said
Thomas J. Clarke Jr., Chairman and Chief Executive Officer, TheStreet.com. "The
investment we have made in Independent Research Group LLC (IRG), our broker
dealer-subsidiary, is beginning to reward us. Since IRG was cleared to receive
trading commissions in mid-May, we can now include commission revenue as part of
our mosaic of revenue streams. With the commission payments IRG receives from
both hedge funds and money management firms, we can now view both subscription
and commission revenue as compensation for our premium content."
Revenue Streams
Subscription revenue for the second quarter 2003 was $4.3 million, an increase
of 19 percent over the same period last year and up 2 percent from the first
quarter 2003. Commission revenue for the period covering May 13, 2003 - June 30,
2003 was $0.2 million. Advertising revenue reached $1.5 million for the second
quarter 2003, an increase of 19 percent over the same period last year and an
increase of 23 percent from the first quarter 2003.
Expenses
Total expenses for the second quarter totaled $7.8 million, a 2 percent increase
over the same period last year and a 1 percent decrease from the first quarter
2003. The sequential decrease in expenses was achieved while continuing to
invest in the development of IRG.
Cash flow for the quarter was $0.3 million, an improvement of 138 percent over
the same period last year's burn of ($0.7) million and a 123 percent improvement
from the previous quarter's burn of ($1.1) million. Cash, restricted cash and
short-term investments as of June 30, 2003, increased 1 percent from the
previous quarter and stands at approximately $28 million.
"Our second quarter results demonstrate our ability to grow our existing
business as well as transition into new business lines quickly and effectively,"
added Clarke. "With this in mind, the transformation of our professional
business into one in which brokerage commissions are an integral part of the
revenue stream, validates our broker-dealer initiative. We will continue to
invest in the business in ways that will bring maximum long-term return."
SECOND QUARTER 2003 BUSINESS HIGHLIGHTS
Some of the Company's accomplishments during the quarter include:
Independent Research Group LLC (IRG), a wholly owned subsidiary of
TheStreet.com, was approved by the SEC and admitted for membership in the
NASD as a registered broker-dealer.
IRG released its first institutional research report on April 15, 2003. As
of June 30, 2003, IRG has initiated coverage on 11 stocks and issued 23
reports. IRG began receiving trading commissions from its institutional
clients on May 13, 2003.
"TheStreet.com's Second Annual Hedge Fund Event 2003" took place in May at
the Doral Golf Resort and Spa in Miami. The Conference provided hedge fund
managers, fund of funds managers and senior executives in the alternative
investment industry with proprietary investment ideas and insight into the
latest market trends.
TheStreet.com's advertising platform continues to attract advertisers
looking to reach the most affluent, self-directed investors online and a
critical advertising outlet for non-endemic companies attracted to our
strong demographics. Year-to-date, we have launched 75 new advertising
programs, 38 of which are from companies that have not advertised with us
in the past.
The Company launched a membership program designed to enhance one of
TheStreet.com's most proprietary assets; its extensive database of email
addresses of consumers and professionals interested in financial
information and services. The core components of this initiative include
the latest "TSC Membership" program which includes the introduction of four
new free newsletters and the newly redesigned TheStreet.com bulletin.
Jim Cramer's RealMoney financial radio program began airing every weekday
on WOR 710 AM (New York) on June 16, 2003. A 50,000 watt heritage station,
WOR's signal reaches listeners in New York, New Jersey, Connecticut and
Pennsylvania, enabling the Company to reach listeners and potential
subscribers more cost effectively. The program now reaches approximately
1.5 million listeners daily.
TheStreet.com will conduct a conference call today, July 18, 2003, at 11:00 a.m.
EDT to discuss these results. The Company welcomes all interested parties to
listen to the Web cast of its call at http://www.thestreet.com/earnings .
About TheStreet.com, Inc.
TheStreet.com, Inc. (Nasdaq: TSCM), a registered investment advisor, is a
leading provider of independent and insightful investment commentary, advice,
research and news. Founded in 1996, the Company completed its initial public
offering in May 1999. On the Internet, its premium, subscription-based website,
"RealMoney.com" is accompanied by the professionally oriented subscription
sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site,
"TheStreet.com." The Company also produces a suite of subscription services for
use by professionals and self-directed investors, each designed to help a
specific segment of the investing public make better-informed investing and
trading decisions.
Statements contained in this news release not related to historical facts may be
deemed forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties (described in the Company's SEC filings),
which could cause actual results to differ.
THESTREET.COM, INC.
BALANCE SHEETS
($ in thousands)
June 30, Dec. 31,
2003 2002
-------- --------
ASSETS
Current Assets:
Cash, restricted cash and short-term investments $25,924 $26,749
Accounts receivable - net 1,449 1,677
Other receivables 436 197
Prepaid expenses and other current assets 1,464 1,020
-------- --------
Total current assets 29,273 29,643
Property and equipment - net 2,761 3,643
Other assets 461 698
Goodwill and intangibles - net 2,814 3,144
Restricted cash 2,300 2,300
-------- --------
Total assets $37,609 $39,428
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 3,887 $ 4,393
Deferred revenue 6,907 5,513
Note payable 87 84
Other current liabilities 19 18
-------- --------
Total current liabilities 10,900 10,008
Note payable 267 311
-------- --------
Total liabilities 11,167 10,319
-------- --------
Stockholders' Equity:
Stockholders' equity 26,442 29,109
-------- --------
Total liabilities and stockholders' equity $37,609 $39,428
======== ========
Note: The Company has pledged certain cash amounts as security deposits for
operating leases. Accordingly, a portion of this cash is classified as a
noncurrent asset, and our cash is classified in two places on the above balance
sheet.
Cash, restricted cash, and short-term investments $25,924 $26,749
Restricted cash 2,300 2,300
-------- --------
Total cash, current and noncurrent restricted cash
and short-term investments $28,224 $29,049
======== ========
THESTREET.COM, INC.
STATEMENTS OF OPERATIONS
($ in thousands, except per share data)
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Net revenues:
Subscription revenues $4,350 $3,652 $8,622 $6,653
Advertising revenues 1,476 1,236 2,677 1,946
Commission revenues 167 - 167 -
Other revenues 401 599 584 961
-------- -------- -------- --------
Total net revenues 6,394 5,487 12,050 9,560
Operating expenses:
Cost of services 3,582 3,019 6,993 6,368
Sales and marketing expenses 1,694 1,473 3,353 2,930
General and administrative
expenses 1,860 1,870 3,616 3,849
Depreciation and amortization 607 1,006 1,373 2,195
Noncash compensation expense 33 236 271 480
Restructuring expense - 50 - 19
-------- -------- -------- --------
Total operating expenses 7,776 7,654 15,606 15,841
-------- -------- -------- --------
Interest income, net 109 184 227 404
-------- -------- -------- --------
Net loss from continuing
operations (1,273) (1,983) (3,329) (5,877)
Gain on disposal of discontinued
operations - 5 - 198
-------- -------- -------- --------
Net loss $(1,273) $(1,978) $(3,329) $(5,679)
======== ======== ======== ========
Net (loss) gain per share - basic
and diluted:
Continuing operations $(0.05) $(0.08) $(0.14) $(0.25)
Discontinued operations - - - 0.01
-------- -------- -------- --------
Net loss $(0.05) $(0.08) $(0.14) $(0.24)
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Weighted average basic and diluted
shares outstanding 23,853 23,581 23,753 23,554
======== ======== ======== ========
CONTACT: TheStreet.com, Inc., New York
Wendy Tullo, 212-321-5493
wendy.tullo@thestreet.com
SOURCE: TheStreet.com, Inc.
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