Exhibit 99.1
EDGAR Online Announces First Quarter Results Subscription Revenue
Increases 28%
SOUTH NORWALK, Conn.--(BUSINESS WIRE)--April 29, 2003--EDGAR(R)
Online(R), Inc (NASDAQ: EDGR) today reported subscription growth of
28%, over $600,000 in operating cash flow for the quarter ended March
31, 2003 and positive EBITDA of $383,000 before restructuring charges.
EDGAR Online is a leader in the business information industry,
specializing in the extraction, packaging and distribution of public
company information contained in SEC filings.
EDGAR Online reported revenue of $3.8 million for the quarter
ended March 31, 2003, a decrease of 6% compared to last year. Strong
growth in the Company's subscription business was offset by a $123,000
or 11%, decline in the Company's technical services revenue and a
$251,000 or 17% decline in the Company's data sales primarily due to
reductions from two major customers. Seat-based subscription revenue
increased 28% from last year primarily due to the sale of over 5,100
seats to its professional EDGAR(R)pro service. At March 31, 2003 the
Company has approximately 27,000 subscribers and 200 data contracts.
Since inception, the Company's subscription revenues have grown each
quarter.
"We continue to increase our efforts in selling seat-based
subscriptions, which can be successful even in a difficult environment
in the financial services industry," said Susan Strausberg, EDGAR
Online's President and CEO. "Our pipeline of new business is strong
and we see indications that the sales cycle is improving. We expect to
grow our brand and increase our revenues by adding more subscriptions
and data contracts. In addition, we are leveraging our world class
technology facility and multiple delivery vehicles to win new
business."
During the first quarter of 2003, gross margins improved to 86%
compared to 83% in the same quarter last year. Operating loss,
excluding $784,000 of restructuring charges, was ($278,000), or
($0.02) per share for the first quarter of 2003, compared to an
operating loss, excluding $100,000 of restructuring charge reversals,
of ($214,000), or ($0.01) per share, for the same quarter last year.
Net loss excluding restructuring charges was ($332,000), or ($0.02)
per share for the first quarter of 2003 compared to ($308,000), or
($0.02) per share, in the same period a year ago. The restructuring
charges are comprised of employee severance associated with a 17% work
force reduction in late March and the Separation and Release Agreement
with the Company's former President and Chief Operating Officer.
"This quarter we have made important adjustments in our cost
structure to assure that we have continued positive operating cash
flow and the ability to support and grow our core businesses," said
Greg D. Adams, EDGAR Online's Chief Operating Officer and CFO. "Our
customer base is now well diversified and regulatory trends are
opening large pockets of demand for EDGAR data in financial
organizations, law firms and corporations."
At March 31, 2003, cash totaled $6.0 million, current assets $7.5
million, total assets $22.8 million and shareholders' equity totaled
$15.3 million. In the quarter ended March 31, 2003, the Company
generated $616,000 in operating cash flow.
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
Three Months Ended
1Q'03 1Q'02
----- -----
Seat-based Subscriptions $ 1,423 $1,108
Data Sales 1,192 1,443
Technical Services 1,020 1,143
Advertising and E-commerce 201 392
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Total Revenues $ 3,836 $4,086
Loss from Operations $(1,062) $ (114)
Amortization and Depreciation 661 725
------- ------
EBITDA (401) 611
Restructuring Charges 784 (100)
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Pro-forma EBITDA $ 383 $ 511
Pro-forma EBITDA per share $ 0.02 $ 0.03
EBITDA is defined as earnings before interest, taxes, depreciation
and amortization. Pro-forma EBITDA is adjusted to exclude certain
non-recurring or unusual impacts on EBITDA. The Company has presented
EBITDA because it is a common alternative measure of performance. The
Company's definition of EBITDA may not be consistent with that of
other companies. EBITDA is not a measure of financial performance
under generally accepted accounting principles and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with generally accepted accounting principles.
First Quarter Conference Call Reminder
EDGAR Online, Inc. will hold its quarterly conference call to
review results for the first quarter ended March 31, 2003 today,
Tuesday April 29th, 2003, at 5:00 p.m. Eastern Time. Susan Strausberg,
President and CEO, and Greg D. Adams, Chief Financial Officer and COO
will host the call. To participate, please call: Domestic
800-404-1354, International 706-643-0825. Investors also have the
option of calling 800-642-1687 (domestic), 706-645-9291 (Int'l.),
passcode 9896056 for the teleconference replay, which will be
available for approximately one week beginning at 7:00 p.m. ET
tonight. The call will also be broadcast simultaneously over the
Internet at http://www.edgar-online.com/investor.
About EDGAR(R) Online(R), Inc.
EDGAR Online, Inc. (www.edgar-online.com) is a leader in the
business information industry, specializing in the extraction,
packaging and distribution of public company information contained in
SEC filings. Based in Norwalk, Connecticut, with offices in Maryland
and New York City, the company sells subscription products, data and
services to financial institutions, corporations, law firms and
Internet portals.
"Forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 may be included in this news release.
These statements relate to future events or our future financial
performance. These statements are only predictions and may differ
materially from actual future events or results. EDGAR Online, Inc.
disclaims any intention or obligation to revise any forward-looking
statements whether as a result of new information, future developments
or otherwise. Please refer to the documents filed by EDGAR Online,
Inc. with the Securities and Exchange Commission, which identify
important risk factors that could cause actual results to differ from
those contained in forward-looking statements, including, but not
limited to risks associated with our ability to (i) increase revenues,
(ii) obtain profitability, and (iii) obtain additional financing,
changes in general economic and business conditions (including in the
online business and financial information industry), actions of our
competitors, the extent to which we are able to develop new services
and markets for our services, risks in connection with acquisitions,
the time and expense involved in such development activities, the
level of demand and market acceptance of our services and changes in
our business strategies.
EDGAR(R) is a federally registered trademark of the U.S.
Securities and Exchange Commission (SEC). EDGAR Online is not
affiliated with or approved by the U.S. Securities and Exchange
Commission. EDGAR Online is a product of EDGAR Online, Inc.
EDGAR Online, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
(unaudited)
2003 2002
--------- --------
Revenues:
Seat-based subscriptions $ 1,423 $ 1,108
Data sales 1,192 1,443
Technical services 1,020 1,143
Advertising and e-commerce 201 392
-------- -------
Total revenues 3,836 4,086
Total cost of sales 548 693
-------- -------
Gross profit 3,288 3,393
Sales and marketing 536 593
Product development 526 488
General and administrative 1,843 1,801
Restructuring charges 784 (100)
Amortization and depreciation 661 725
-------- -------
Total operating expenses 4,350 3,507
Loss from operations (1,062) (114)
Interest and other income (expense), net (54) (94)
-------- -------
Net loss $ (1,116) $ (208)
======== =======
Weighted average shares outstanding -
basic and diluted 17,004 16,789
Net loss per share - basic and diluted $ (0.07) $ (0.01)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December
2003 31,
(unaudited) 2002
------
Assets
Cash $ 5,963 $ 5,550
Accounts receivable, net 1,260 1,562
Other assets 298 316
--------- -------
Total current assets 7,521 7,428
Property and equipment, net 1,665 1,693
Goodwill and intangible assets 12,906 13,324
Other assets 726 774
--------- --------
Total assets $ 22,818 $ 23,219
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 1,609 $ 1,271
Deferred revenues 1,845 1,744
Notes payable and accrued interest 3,833 1,949
Capital lease payable, current portion 3 7
--------- --------
Total current liabilities 7,290 4,971
Notes payable - 1,878
Other long term payables 274 -
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Total liabilities 7,564 6,849
--------- --------
Stockholders' equity:
Common stock 170 170
Additional paid-in capital 58,177 58,177
Accumulated deficit (43,093) (41,977)
--------- --------
Total stockholders' equity 15,254 16,370
Total liabilities and stockholders' equity $ 22,818 $ 23,219
CONTACT: EDGAR(R) Online(R), Inc.
Greg Adams, 203/852-5666
gadams@edgar-online.com