Exhibit 99.1
EDGAR Online Reports Positive EBITDA;
Professional Subscription Revenue Continues to Increase
SOUTH NORWALK, Conn.--(BUSINESS WIRE)--Oct. 28, 2003--EDGAR(R)
Online(R), Inc (NASDAQ: EDGR) today reported continued positive EBITDA
and an EPS loss of ($0.03) for the quarter ended September 30, 2003.
EDGAR Online is a financial information company specializing in making
complex regulatory reporting by public companies actionable and
easy-to-use.
EDGAR Online reported revenue of $3.3 million for the quarter
ended September 30, 2003, a decrease of 19% compared to the same
period last year. Revenue growth in the Company's core subscription
business has been offset by a 59% decrease in technical services
revenue. This decrease resulted from the loss of approximately $2.2
million in annual consulting revenues from Nasdaq as previously
reported in the second quarter of 2003. Seat-based subscription
revenue increased 9% from last year primarily due to the sale of over
2,500 seats to its professional EDGAR(R)Online (R) Pro services. At
September 30, 2003, the Company had over 27,250 total subscribers.
Since inception, the Company's subscription revenues have grown each
quarter.
"During the third quarter, we made substantial progress in
shifting our focus toward growing annual subscriptions to
professionals in the financial services market," said Susan
Strausberg, CEO and President of EDGAR Online. "As outlined in our
recent product release, we have made extensive additions to our
premium EDGAR Online Pro service which we believe will enable us to
increase customer acquisition and retention. We are very optimistic
that growing this important recurring revenue stream is key to our
future as we remain steadfastly focused on our long-term objective of
consistent and sustainable growth with high profitability."
Operating Results
Third quarter gross margins remained strong at 85%. Third quarter
EBITDA (earnings before interest, taxes, depreciation and
amortization) was a positive $128,000 or $0.01 per share, compared to
$432,000 or $0.03 per share, for the same quarter last year. The
Company's earnings were impacted by the loss of technical services
revenue resulting from internal consolidations by Nasdaq. Net loss for
the third quarter of 2003 was ($519,000), or ($0.03) per share,
compared to a net loss of ($348,000), or ($0.02) per share, in the
same period a year ago.
For the nine months ended September 30, 2003, EDGAR Online
reported revenue of $11.1 million, a decrease of 9% compared to the
same period last year primarily due to a ($807,000) decline in
technical service revenues. Gross margins increased to 86% for the
nine months ended September 30, 2003 from 83% in the same period last
year. EBITDA excluding severance charges for the nine months ended
September 30, 2003 was a positive $1.2 million, or $0.07 per share,
compared to an EBITDA of $1.4 million or $0.09 per share, for the same
nine-month period last year. Severance charges totaling $784,000 were
incurred in the first quarter of 2003. The net loss before severance
charges for the nine months ended September 30, 2003 was ($828,000),
or ($0.05) per share, compared to a net loss before cumulative effect
of accounting change of ($935,000), or ($0.06) per share, in the same
period a year ago.
At the end of the third quarter, cash totaled $4.3 million,
current assets $5.9 million and total assets $19.7 million. In the
nine months ended September 30, 2003, the Company generated $1.0
million in operating cash flow.
"Our focus on the financial services market has streamlined the
company's operations, increased product development efficiencies and
allowed for more targeted sales and marketing," said Greg D. Adams,
COO and Chief Financial Officer of EDGAR Online. "During the fourth
quarter, we will be adding staff to our existing subscription sales
force and will continue to demonstrate the ongoing success we have
experienced in driving customers to our EDGAR Online Pro service. We
are positioned to execute the key business and financial objectives we
have laid out for the Company."
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------- ------ -------- ------
Seat-based Subscriptions $ 1,502 $1,382 $ 4,410 $ 3,745
Data Sales 1,169 1,353 3,662 4,156
Technical Services 423 1,021 2,458 3,265
Advertising and E-commerce 207 306 601 1,096
------- -------- -------- --------
Total Revenues $ 3,301 $4,062 $ 11,131 $12,262
Net Loss $ (519) $ (348) $ (1,612) (935)(*)
Interest Expense, net 27 53 104 200
-------- -------- -------- --------
Operating Loss $ (492) $ (295) $ (1,508) $ (735)
Amortization and Depreciation 620 727 1,907 2,180
-------- ------- -------- --------
EBITDA $ 128 $ 432 $ 399 $1,445
EBITDA per share $ 0.01 $ 0.03 $ 0.02 $ 0.09
(*) Before $9.3 million cumulative effect of accounting change for
write-down of goodwill in the nine months ended September 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 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 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.
Third Quarter Conference Call Reminder
EDGAR Online, Inc. will hold its quarterly conference call to
review results for the third quarter on Tuesday October 28, 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 3043151 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 financial
information company specializing in making complex regulatory
reporting by public companies actionable and easy-to-use. 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 and/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, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
(unaudited) (unaudited)
2003 2002 2003 2002
------- ------- ------- --------
Revenues:
Seat-based
subscriptions $ 1,502 $ 1,382 $ 4,410 $ 3,745
Data sales 1,169 1,353 3,662 4,156
Technical services 423 1,021 2,458 3,265
Advertising and e-
commerce 207 306 601 1,096
------- ------- ------- --------
Total revenues 3,301 4,062 11,131 12,262
Total cost of sales 510 653 1,561 2,041
------- ------- ------- --------
Gross profit 2,791 3,409 9,570 10,221
Sales and marketing 529 590 1,625 1,827
Product development 388 609 1,316 1,685
General and
administrative 1,746 1,860 5,446 5,446
Restructuring and
severance charges - (82) 784 (182)
Amortization and
depreciation 620 727 1,907 2,180
------- ------- ------- --------
Total operating
expenses 3,283 3,704 11,078 10,956
Operating loss (492) (295) (1,508) (735)
Interest expense, net (27) (53) (104) (200)
------- ------- ------- --------
Loss before cumulative
effect of accounting
change (519) (348) (1,612) (935)
Cumulative effect of
accounting change - - - (9,317)
------- ------- ------- --------
Net loss $ (519) $ (348) $(1,612) $(10,252)
======= ======= ======= ========
Weighted average shares
outstanding - basic and
diluted 16,915 16,984 16,966 16,909
Loss before cumulative
effect of accounting
change per share- basic
and diluted $ (0.03) $ (0.02) $ (0.10) $ (0.06)
Cumulative effect of
accounting change per
share - basic and
diluted $ - $ - $ - $ (0.55)
Net loss per share -
basic and diluted $ (0.03) $ (0.02) $ (0.10) $ (0.61)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2003 2002
(unaudited)
----------- ---------
Assets
Cash $ 4,255 $ 5,550
Accounts receivable, net 1,085 1,562
Other assets 527 316
-------- --------
Total current assets 5,867 7,428
Property and equipment, net 1,490 1,693
Goodwill 2,189 2,189
Intangible assets, net 9,882 11,135
Other assets 280 774
-------- --------
Total assets $ 19,708 $ 23,219
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 857 $ 1,271
Deferred revenues 2,102 1,744
Notes payable and accrued interest 1,918 1,949
Capital lease payable, current portion - 7
-------- --------
Total current liabilities 4,877 4,971
Notes payable - 1,878
Other long term payables 214 -
-------- --------
Total liabilities 5,091 6,849
-------- --------
Stockholders' equity:
Common stock 171 170
Treasury stock (200) -
Additional paid-in capital 58,235 58,177
Accumulated deficit (43,589) (41,977)
-------- --------
Total stockholders' equity 14,617 16,370
Total liabilities and stockholders' equity $ 19,708 $ 23,219
CONTACT: EDGAR(R) Online(R), Inc.
Greg Adams, 203-852-5666
gadams@edgar-online.com