Exhibit 99.1
EDGAR Online Announces Profitable Second Quarter Results
SOUTH NORWALK, Conn.--(BUSINESS WIRE)--July 29, 2003--EDGAR(R)
Online(R), Inc. (NASDAQ: EDGR) today reported its first positive
quarterly net income. Net income under generally accepted accounting
principles ("GAAP") for the quarter ended June 30, 2003 was $23,000,
or $0.00 per share, comparing favorably to a net loss of ($379,000),
or ($0.02) per share in the same quarter last year. Second quarter
EBITDA was $672,000 compared to $404,000 for the same period a year
ago. 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 $4.0 million for the quarter
ended June 30, 2003 compared to $4.1 million in the same quarter last
year. Seat-based subscription revenue increased 18% from last year and
4% from the first quarter of 2003. Corporate and institutional data
sales decreased 4% compared to the second quarter of last year, but
increased 9% from the previous quarter. Strong growth in the Company's
subscription business was offset by a decline in the Company's
technical services and advertising revenues. As announced on March 31,
2003, technical services is expected to decrease in the next two
quarters due to the loss of revenue from the Company's largest
customer, Nasdaq. The Company continues to focus its efforts on (1)
selling subscriptions to the professional business market and (2)
developing enterprise custom data solutions. At June 30, 2003 the
Company had approximately 27,500 subscribers and 210 data contracts.
"This quarter marks an important milestone for EDGAR Online as we
generated positive net income for the first time," said Susan
Strausberg, EDGAR Online's President and CEO. "Our efforts to increase
sales of our seat-based subscriptions have paid off with a
year-to-date 23% increase over last year's sales. Data revenues have
been effectively constant despite losing two significant contracts in
2002 that totaled over $1.2 million annually. We continue to focus on
the higher margin elements of our business - namely subscriptions and
data sales - and are making significant headway in providing custom
solutions for our core market. As always our brand recognition is a
strong driver in our corporate and institutional sales efforts."
For the second quarter of 2003, gross margins increased to 87%
from 83% for the same quarter last year primarily due to cost
reductions from employee terminations related to anticipated decreases
in the Company's technical services business. Second quarter EBITDA
(earnings before interest, taxes, depreciation and amortization)
improved to $672,000 compared to $404,000 for the same quarter last
year. Operating income was $47,000, or $0.00 per share, for the second
quarter of 2003, compared to an operating loss of ($324,000), or
($0.02) per share, for the same quarter last year. Net income for the
second quarter of 2003 was $23,000 compared to a net loss of
($379,000) in the same period a year ago. Net income per share for the
second quarter of 2003 was $0.00 based on 16,978,000 basic weighted
average shares outstanding compared to a net loss of ($0.02) per
share, based on 16,956,000 basic weighted average shares outstanding
in the same period a year ago.
Revenues for the six months ended June 30, 2003 were $7.8 million
compared to $8.2 million last year. Gross margins increased to 87% for
the six months ended June 30, 2003 from 83% in the same period last
year. Net loss excluding restructuring charges was ($309,000), or
($0.02) per share for the six months ended June 30, 2003 compared to a
net loss before cumulative effect of accounting change of ($687,000),
or ($0.04) per share, excluding restructuring charge reversals, in the
same period a year ago. The current year restructuring charges are
comprised of employee severance costs incurred in late March 2003.
In the six months ended June 30, 2003, the Company generated net
cash of $890,000 from operating activities and repaid $1.9 million in
promissory notes. At June 30, 2003, cash totaled $4.2 million, current
assets $5.8 million and total assets were $20.2 million.
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
Quarters Ended Six Months Ended
2Q'03 2Q'02 2Q'03 2Q'02
----- ----- ----- -----
Seat-based Subscriptions $ 1,485 $ 1,255 $ 2,908 $ 2,363
Data Sales 1,301 1,360 2,493 2,803
Technical Services 1,015 1,102 2,035 2,245
Advertising and E-commerce 193 398 394 790
------- ------- ------- -------
Total Revenues $ 3,994 $ 4,115 $ 7,830 $ 8,201
Net Income/(Loss) $ 23 $ (379) $(1,093)$ (587)(*)
Interest Expense, net 24 55 77 149
------- ------- ------- -------
Operating Income/(Loss) $ 47 $ (324) $(1,016)$ (438)
Amortization and Depreciation 625 728 1,287 1,453
------- ------- ------- -------
EBITDA $ 672 $ 404 $ 271 $ 1,015
(*) Before $9.3 million cumulative effect of accounting change for
write-down of goodwill in the six months ended June 30, 2002.
In addition to disclosing financial results prepared in accordance
with GAAP, the Company discloses information regarding EBITDA. EBITDA
is a non-GAAP financial measure defined as earnings before interest,
taxes, depreciation and amortization. The Securities and Exchange
Commission ("SEC") recently adopted new rules concerning the use of
non-GAAP financial measures. As required by the SEC, the Company
provides the above reconciliation to net income/(loss) which is the
most directly comparable GAAP measure. The Company presents EBITDA as
it is a common alternative measure of performance which is used by
management as well as investors when analyzing the financial position
and operating performance of the Company. As EBITDA is a non-GAAP
financial measure, it should not be considered in isolation or as a
substitute for net income (loss) or any other GAAP measure. Because
EBITDA is not calculated in the same manner by all companies, the
Company's definition of EBITDA may not be consistent with that of
other companies.
Second Quarter Conference Call Reminder
EDGAR Online, Inc. will hold its quarterly conference call to
review results for the second quarter on Tuesday July 29th, at 5:00
p.m. Eastern Time. Susan Strausberg, President and CEO, and Greg D.
Adams, COO and CFO 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), or 706-645-9291
(Int'l.), passcode 1763190 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 and law firms.
"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, (iii) obtain additional financing, (iv)
changes in general economic and business conditions (including in the
online business and financial information industry), (v) actions of
our competitors, (vi) the extent to which we are able to develop new
services and markets for our services, (vii) risks in connection with
acquisitions, (viii) the time and expense involved in such development
activities, (ix) the level of demand and market acceptance of our
services and (x) 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.
FINANCIAL TABLES FOLLOW
EDGAR Online, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
(unaudited) (unaudited)
2003 2002 2003 2002
------- ------- ------- -------
Revenues:
Seat-based subscriptions $ 1,485 $ 1,255 $ 2,908 $ 2,363
Data sales 1,301 1,360 2,493 2,803
Technical services 1,015 1,102 2,035 2,245
Advertising and e-commerce 193 398 394 790
------- ------- ------- -------
Total revenues 3,994 4,115 7,830 8,201
Total cost of sales 502 695 1,051 1,388
------- ------- ------- -------
Gross profit 3,492 3,420 6,779 6,813
Sales and marketing 560 644 1,096 1,237
Product development 403 588 928 1,076
General and administrative 1,857 1,784 3,700 3,585
Restructuring and severance
charges - - 784 (100)
Amortization and depreciation 625 728 1,287 1,453
------- ------- ------- -------
Total operating expenses 3,445 3,744 7,795 7,251
Operating income/(loss) 47 (324) (1,016) (438)
Interest expense, net (24) (55) (77) (149)
------- ------- ------- -------
Income/(loss) before
cumulative effect of
accounting change 23 (379) (1,093) (587)
Cumulative effect of
accounting change - - - (9,317)
------- ------- ------- -------
Net income/(loss) $ 23 $ (379) $(1,093) $(9,904)
======= ======= ======= =======
Weighted average shares
outstanding - basic 16,978 16,956 16,911 16,872
Weighted average shares
outstanding - diluted 17,271 16,956 16,911 16,872
Income/(loss) before
cumulative effect of
accounting change per share-
basic and diluted $ 0.00 $ (0.02) $ (0.06) $ (0.03)
Cumulative effect of
accounting change per share-
basic and diluted $ - $ - $ - $ (0.55)
Net income/(loss) per share -
basic and diluted $ 0.00 $ (0.02) $ (0.06) $ (0.59)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2003 December 31,
(unaudited) 2002
----------- ----
Assets
Cash $ 4,179 $ 5,550
Accounts receivable, net 1,180 1,562
Other assets 428 316
------------- -------------
Total current assets 5,787 7,428
Property and equipment, net 1,624 1,693
Goodwill 2,189 2,189
Intangible assets, net 10,300 11,135
Other assets 280 774
------------- -------------
Total assets $ 20,180 $ 23,219
============= =============
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 825 $ 1,271
Deferred revenues 2,109 1,744
Notes payable and accrued interest 1,913 1,949
Capital lease payable, current portion - 7
------------- -------------
Total current liabilities 4,847 4,971
Notes payable - 1,878
Other long term payables 244 -
------------- -------------
Total liabilities 5,091 6,849
------------- -------------
Stockholders' equity:
Common stock 170 170
Treasury stock (200) -
Additional paid-in capital 58,189 58,177
Accumulated deficit (43,070) (41,977)
------------- -------------
Total stockholders' equity 15,089 16,370
Total liabilities and stockholders'
equity $ 20,180 $ 23,219
============= =============
CONTACT: EDGAR(R) Online(R), Inc.
Greg Adams, 203-852-5666
gadams@edgar-online.com