Exhibit 99.1
EDGAR Online Reports Continued Positive EBITDA for 2003; Subscription
Revenue Increases 16%
SOUTH NORWALK, Conn.--(BUSINESS WIRE)--Feb. 3, 2004--EDGAR(R)
Online(R), Inc (NASDAQ: EDGR) today reported positive EBITDA for the
year ended December 31, 2003 of $470,000 and a 16% increase in
seat-based subscription revenue over the prior year. 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 $14.3 million for the year ended
December 31, 2003, a decrease of 11% compared to last year. Strong
growth in the Company's core subscription business was offset by a
$1.5 million, or 35%, decline in the Company's technical services
revenue from its client NASDAQ and $627,000, or 46%, decrease in
advertising and e-commerce revenue. Seat-based subscription revenue
increased 16% from last year primarily due to the sale of new seats to
its professional EDGAR(R) OnlinePro subscription service. At December
31, 2003, the Company had over 27,000 subscribers. Since inception,
the Company's subscription revenues have grown each quarter. "We
remain committed to our strategic focus of selling EDGAR Online Pro
and digital data feeds to clients in financial services companies,"
said Susan Strausberg, EDGAR Online's President and CEO. "Our new
additions to EDGAR Online Pro and the partnership with Microsoft to
deliver financial information in XBRL format to Microsoft Office 2003
applications cause us to be optimistic about our core subscription and
data businesses in 2004."
Operating Results Improve
During the fourth quarter of 2003, gross margins increased to 87%
from 85% in the same period last year. Operating loss was ($525,000),
or ($0.03) per share, compared to an operating loss of ($740,000), or
($0.04) per share, for the same quarter last year. Net loss for the
fourth quarter of 2003, was ($555,000), or ($0.03) per share, compared
to a net loss of ($791,000), or ($0.05) per share, in the same period
a year ago.
For the year ended December 31, 2003, gross margins increased to
86% from 84% in the prior year. EBITDA for the year ended December 31,
2003, was a positive $470,000, or $0.03 per share, compared to EBITDA
of $1.4 million, or $0.08 per share, for the year ended December 31,
2002. Net loss for the year ending December 31, 2003, was ($2.2
million), or ($0.13) per share. This compares to a net loss before
cumulative effect of accounting change of ($1.7 million), or ($0.10)
per share in the prior year.
At the end of the year, cash totaled $3.9 million, current assets
$5.7 million, total assets $19.1 million and shareholders' equity
totaled $14.0 million. In the year ended December 31, 2003, the
Company generated $668,000 in operating cash flow, repaid $1.9 million
in promissory notes and incurred $595,000 of capital expenditures.
Growth Strategy
Our primary growth strategies heading into 2004 are as follows:
-- Continue to expand the content and functionality available to
customers using our EDGAR Online Pro subscription service and
our EDGAR Online Explorer digital data feeds.
-- Continue to migrate lower and mid-tier subscribers from our
EDGAR Online (www.edgar-online.com) service to our premium
EDGAR Online Pro service (www.edgaronlinepro.com).
-- Enable users of Microsoft Office 2003 to be able to seamlessly
retrieve a digital feed of information on over 12,000 public
companies into an XBRL Add-In for analytical applications.
-- Market our services and leverage our EDGAR Online Pro platform
to increase sales and profitability.
Key Financial Metrics
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
----- ------ ----- -----
Seat-based Subscriptions $ 1,543 $ 1,403 $ 5,953 $ 5,149
Data Sales 1,171 1,224 4,833 5,380
Technical Services 347 1,022 2,805 4,287
Advertising and E-commerce 127 259 728 1,355
--------- -------- -------- ---------
Total Revenues $ 3,188 $ 3,908 $ 14,319 $ 16,171
Net Loss $ (555) $ (791) $ (2,167) $ (1,725)
Interest Expense, net 30 51 134 251
--------- -------- --------- --------
Loss from Operations (525) (740) (2,033) (1,474)
Amortization and Depreciation 596 700 2,503 2,880
--------- -------- ---------- --------
EBITDA 71 (40) 470 1,406
EBITDA per share $ 0.00 $ 0.00 $ 0.03 $ 0.08
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 that 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 all
companies do not calculate EBITDA in the same manner, the Company's
definition of EBITDA may not be consistent with that of other
companies.
Fourth Quarter Conference Call Reminder
EDGAR Online, Inc. will hold its quarterly conference call to
review results for the fourth quarter and year ended December 31, 2003
on Tuesday February 3, 2004 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 5004424 for the teleconference replay, which will be
available for approximately one week beginning at 7:00 p.m. ET on
February 3, 2004. 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. (http://www.edgar-online.com) is a financial
information company specializing in making complex regulatory
reporting by public companies actionable and easy-to-use. The company
makes financial information and a variety of analysis tools available
via online subscriptions and licensing agreements to professionals in
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, 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 Year Ended
December 31, December 31,
(unaudited)
2003 2002 2003 2002
------- ------- ------- --------
Revenues:
Seat-based
subscriptions $ 1,543 $ 1,403 $ 5,953 $ 5,149
Data sales 1,171 1,224 4,833 5,380
Technical services 347 1,022 2,805 4,287
Advertising and e-
commerce 127 259 728 1,355
------- ------- ------- --------
Total revenues 3,188 3,908 14,319 16,171
Total cost of sales 418 591 1,979 2,632
------- ------- ------- --------
Gross profit 2,770 3,317 12,340 13,539
------- ------- ------- --------
Sales and marketing 540 487 2,165 2,314
Product development 383 559 1,699 2,244
General and
administrative 1,776 2,311 7,222 7,757
Restructuring and
severance charges - - 784 (182)
Amortization and
depreciation 596 700 2,503 2,880
------- ------- ------- --------
Total operating
expenses 3,295 4,057 14,373 15,013
------- ------- ------- --------
Loss from operations (525) (740) (2,033) (1,474)
Interest and other income
(expense), net (30) (51) (134) (251)
------- ------- ------- --------
Loss before cumulative
effect of accounting
change (555) (791) (2,167) (1,725)
Cumulative effect of
accounting change - - - (9,317)
------- ------- ------- --------
Net loss $ (555) $ (791) $(2,167) $(11,042)
======= ======= ======= ========
Weighted average shares
outstanding - basic and
diluted 17,007 17,002 16,976 16,933
Loss before cumulative
effect of accounting
change per share- basic
and diluted $ (0.03) $ (0.05) $ (0.13) $ (0.10)
Cumulative effect of
accounting change per
share - basic and
diluted $ - $ - $ - $ (0.55)
Net loss per share -
basic and diluted $ (0.03) $ (0.05) $ (0.13) $ (0.65)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2003 2002
---------- -----------
Assets
Cash $ 3,860 $ 5,550
Accounts receivable, net 1,430 1,562
Other assets 439 316
--------- ----------
Total current assets 5,729 7,428
Property and equipment, net 1,477 1,693
Goodwill and intangible assets 11,654 13,324
Other assets 285 774
--------- ----------
Total assets $ 19,145 $ 23,219
========== ===========
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 1,061 $ 1,271
Deferred revenues 2,040 1,744
Notes payable and accrued interest 1,926 1,949
Capital lease payable, current portion - 7
--------- ----------
Total current liabilities 5,027 4,971
Notes payable - 1,878
Other long term payables 103 -
--------- ----------
Total liabilities 5,130 6,849
--------- ----------
Stockholders' equity:
Common stock 172 170
Treasury Stock (332) -
Additional paid-in capital 58,319 58,177
Accumulated deficit (44,144) (41,977)
--------- ----------
Total stockholders' equity 14,015 16,370
Total liabilities and stockholders'
equity $ 19,145 $ 23,219
========== ===========
CONTACT: EDGAR(R) Online(R), Inc.
Greg Adams, 203/852-5666
gadams@edgar-online.com