Jupitermedia Corporation (Nasdaq: JUPM) today reported results for the
quarter ended December 31, 2007.
Highlights for the year 2007 include:
Revenues increased to $140.3 million for 2007 from $137.5 million for
2006.
Net loss was $77.3 million, or $2.15 per diluted share, and included
non-cash stock-based compensation expense, one time expenses related
to debt issuance costs, and legal and other fees associated with
discussions with Getty Images, Inc. regarding a potential transaction
that were terminated on March 7, 2007, which totaled $0.08 per diluted
share, and a non-cash impairment charge of $82.2 million ($76.7
million after tax or $2.13 per diluted share) related to the
write-down of goodwill and intangible assets. Excluding these non-cash
and one-time charges, earnings per diluted share were $0.06 for 2007.
Deferred revenues increased from $13.5 million at December 31, 2006 to
$15.6 million at December 31, 2007 due to the acquisition of
Mediabistro and the increase in bookings for our
JupiterimagesUnlimited high level subscription offering.
Highlights for the fourth quarter of 2007 include:
Revenues for the fourth quarter of 2007 were $36.1 million compared to
revenues of $34.8 million for the same period last year.
Loss per diluted share was $2.13 and included non-cash stock-based
compensation expense of $0.01 per diluted share, and a non-cash
impairment charge after tax of $2.13 per diluted share related to the
write-down of goodwill and intangible assets. Excluding these non-cash
charges, earnings per diluted share were $0.01 for the fourth quarter
of 2007.
Long-term debt was reduced by $3.7 million during the fourth quarter
of 2007.
"Our financial results for the year ended December 31, 2007 included
record revenues. Our Jupiterimages division showed strength in 2007. Our
Rights Managed category experienced over 30% revenue growth from 2006 to
2007. In addition, revenues from our JupiterimagesUnlimited high level
royalty-free subscription offering grew over 275% from 2006 to 2007. Our
backlog for JupiterimagesUnlimited increased sharply during 2007 which
bodes well for future revenues. Due to the evolution taking place in the
stock photo industry, we are currently focusing on our strengths: sales
of Rights Managed images, subscription products, including
JupiterimagesUnlimited, and our microstock offerings" stated
Jupitermedia's Chairman and CEO Alan M. Meckler. "During 2007 we
continued to make investments in our JupiterOnlineMedia division,
including our acquisition of Mediabistro in July. Mediabistro, which has
a loyal following of media and creative professionals, provides our
JupiterOnlineMedia division with new and growing revenue streams through
its vertical online job board and its training courses which are offered
both online and in-person," added Meckler.
"The intangibles impairment is a non-cash
charge, and it does not affect our liquidity, cash flows from operating
activities or debt covenants, or have any impact on future operations. "This
impairment charge is not reflective of our positive view of the value of
our underlying business,” said Meckler. "We
remain optimistic and encouraged about the future success and value of
our businesses.” Jupitermedia Corporation 4th Quarter 2007 Financial Results
Conference Call Alert
Jupitermedia Corporation invites you to participate in its conference
call reviewing 2007 fourth quarter results on Tuesday, March 18, 2008 at
10:30 am EST.
The conference call number is (888) 765-5580 for domestic participants
and (913) 312-1397 for international participants; pass code "613 0534."
Please call five minutes in advance to ensure that you are connected
prior to the presentation. The conference call replay will be available
until Tuesday, April 1, 2008. Replay call numbers are (888) 203-1112 for
domestic participants and (719) 457-0820 for international participants:
confirmation code: "613 0534."
Acquisitions
In March 2008, Jupitermedia announced that it had acquired the assets of
eStockMusic.com (www.estockmusic.com).
This acquisition adds a micropayment music business to Jupiterimages’
micropayment offerings of royalty-free digital images and footage on
Stockxpert.com (www.stockxpert.com).
eStockMusic.com offers an extensive library of royalty-free stock music
and sound effects that is easily searchable and lets customers listen to
the tracks before purchasing for as little as $1.00 per track.
eStockMusic.com provides an innovative platform for composers to promote
and sell their music online.
New Online Images Offerings
Jupitermedia continued to expand and strengthen its world-class
proprietary Jupiterimages offerings with the addition of the following:
In October 2007, Jupitermedia announced that Stockxpert.com (www.stockxpert.com),
the royalty-free stock photography community, had launched a
subscription service which provides access to its library of
user-contributed microstock images. Subscriptions are available for one
month, three months and one year, and allow subscribers to download up
to 25 images per day at resolutions up to 50MB. The Stockxpert.com
subscription service was launched to serve the needs of high volume
microstock image buyers. Stockxpert.com now enables image buyers to
purchase the images they need for their creative projects either by
single image download or by subscription from its fast-growing library.
In February 2008, Jupitermedia announced that Stockxpert.com has
expanded its product offerings and now includes premium royalty-free
footage which is available in the most popular file resolutions and file
formats and at prices to fit all budgets. File formats include both
standard and high definition video as well as Flash video to appeal to
Web designers. Stockxpert.com now enables footage buyers to purchase the
clips they need for their creative projects for as little as $10 at the
lowest resolution to $50 for 1080 HD. Stockxpert.com's powerful footage
search engine with 16 search categories and over 150 sub-categories
makes finding the right clip fast and easy. Stockxpert.com offers one of
the fastest and easiest ways to upload files and encourages members of
the creative community to submit their footage for consideration to be
sold on the site.
New Online Media Offerings
Jupitermedia continued to expand and strengthen its world-class
proprietary content and advertising opportunities with the addition of
the following:
In February 2008, Jupitermedia’s
Mediabistro.com division announced the launch of the Mediabistro Circus (www.mediabistrocircus.com),
to be held at Skylight Studios in New York City on May 20-21, 2008.
Mediabistro Circus, will be a two-day summit on technology and the
critical platforms changing the flow of media. It will be a gathering of
creative content producers geared toward senior-level professionals.
Topics will include mobile technology, online video, social networking,
blogging, digital publishing and user experience design.
In February 2008, Jupitermedia launched ITChannelPlanet.com (www.itchannelplanet.com),
a new content and community site that provides strategic intelligence
for IT partners. This site features the latest industry developments in
the Channel, Business, Enterprise, Networking, Security and Technology
sectors, as well as a blog, commentary and IT Job boards.
In February 2008, Jupitermedia launched two new Web sites covering the
emerging mobile content market, Mobile Content Today (www.mobilecontenttoday.com),
a blog edited by Susan Schrank and found on Mediabistro.com, and Smart
Phone Today (www.smartphonetoday.com)
on internet.com. Jupitermedia also announced the launch of Mobile
Content Strategies Conference and Expo (www.mobilecontentstrategies.com),
which will be held on October 6-7, 2008 at the San Jose Marriott in San
Jose, California.
In February 2008, Jupitermedia launched Linked Data Planet Conference
and Expo (www.linkeddataplanet.com),
which will be held June 17-18, 2008 at the Roosevelt Hotel in New York
City. Sir Tim Berners-Lee is scheduled to deliver the keynote address at
the event which focuses on how organizations can maximize the value of
their data on the Web.
Jupitermedia Corporation Unaudited Consolidated Condensed Statements of Operations For the Three Months and Year Ended December 31, 2007 (in thousands, except per share amounts)
Three Months EndedDecember 31,
Year EndedDecember 31, 2007 2007
Revenues
$
36,128
$
140,334
Cost of revenues (exclusive of items shown separately below)
15,337
59,162
Advertising, promotion and selling
7,617
29,151
General and administrative
6,575
27,796
Depreciation
1,094
4,447
Amortization
3,553
13,222
Impairment of goodwill and intangible assets
82,165
82,165
Total operating expenses
116,341
215,943
Operating income (loss)
(80,213
)
(75,609
)
Income (loss) on investments and other, net
137
103
Interest income
44
184
Interest expense
(1,914
)
(7,146
)
Income (loss) before income taxes, minority interests and equity
income from investments, net
(81,946
)
(82,468
)
Provision (benefit) for income taxes
(5,174
)
(5,185
)
Minority interests
45
(64
)
Income (loss) from continuing operations
(76,727
)
(77,347
)
Loss from discontinued operations, net of taxes
—
—
Net income (loss)
$
(76,727
)
$
(77,347
)
Earnings (loss) per share:
Basic
Income (loss) from continuing operations
$
(2.13
)
$
(2.15
)
Net income (loss)
$
(2.13
)
$
(2.15
)
Diluted
Income (loss) from continuing operations
$
(2.13
)
$
(2.15
)
Net income (loss)
$
(2.13
)
$
(2.15
)
Shares used in computing earnings (loss) per share:
Basic
36,015
35,945
Diluted
36,015
35,945
Segment Information
The following tables summarize the results of the segments of
Jupitermedia for the three months and years ended December 31, 2006 and
2007. Online images consists of the Jupiterimages business that
includes: BananaStock, Workbook Stock, Brand X Pictures, FoodPix,
Botanica, Nonstock, The Beauty Archive, IFA Bilderteam, Comstock Images,
Creatas Images, PictureQuest, Liquid Library, Thinkstock Images,
Thinkstock Footage, Bigshot Media, Goodshoot, Polka Dot Images, Stock
Image, Pixland, Photos.com, Ablestock.com, PhotoObjects.net,
Clipart.com, JupiterGreetings.com, AnimationFactory.com,
RoyaltyFree-Music.com, StudioCutz.com and Stockxpert.com. Online media
includes the internet.com, EarthWeb.com, DevX.com, Mediabistro.com and
Graphics.com Networks. Other includes corporate overhead, depreciation
and amortization.
(unaudited)
(in thousands)
Three Months EndedDecember 31,
Year Ended December 31, 2006
2007
2006
2007
Revenues:
Online images
$
27,087
$
26,783
$
106,636
$
108,904
Online media
7,692
9,345
30,888
31,430
Other
—
—
6
—
34,779
36,128
137,530
140,334
Cost of revenues and operating expenses:(A)
Online images
19,354
18,646
70,298
74,091
Online media
4,483
7,155
19,737
23,950
Depreciation and amortization
3,885
4,647
13,386
17,669
Impairment of goodwill and intangible assets
—
82,165
—
82,165
Other (B)
4,419
3,728
17,760
18,068
32,141
116,341
121,181
215,943
Operating income (loss):
Online images
7,733
8,137
36,338
34,813
Online media
3,209
2,190
11,151
7,480
Impairment of goodwill and intangible assets
—
(82,165
)
—
(82,165
)
Other (B) (C)
(8,304
)
(8,375
)
(31,140
)
(35,737
)
$
2,638
$
(80,213
)
$
16,349
$
(75,609
)
(A) Cost of revenues and operating expenses include non-cash,
stock-based compensation expense of $801,000 and $3.7 million,
respectively, for the three months and year ended December 31, 2006,
and $655,000 and $3.0 million, respectively, for the three months
and year ended December 31, 2007.
(B) The year ended December 31, 2007 includes $1.9 million in legal
and other fees associated with discussions with Getty Images, Inc.
regarding a potential transaction which were terminated on March 7,
2007.
(C) Includes depreciation and amortization expense.
Jupitermedia Corporation Unaudited Consolidated Condensed Balance Sheet December 31, 2007 (in thousands, except share and per share amounts)
December 31,2007 ASSETS
Current assets:
Cash and cash equivalents
$
7,301
Accounts receivable, net of allowance of $2,026
25,689
Prepaid expenses and other
5,797
Deferred income taxes
1,562
Total current assets
40,349
Property and equipment, net
13,022
Intangible assets, net
74,002
Goodwill
142,782
Deferred income taxes
12,556
Investments and other assets
2,575
Total assets
$
285,286
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
7,153
Accrued payroll and related expenses
3,383
Accrued expenses and other
11,503
Current portion of long-term debt
750
Deferred revenues
15,121
Total current liabilities
37,910
Long-term debt
83,375
Deferred revenues
507
Other long-term liabilities
3,394
Total liabilities
125,186
Stockholders’ equity:
Preferred stock, $.01 par value, 4,000,000 shares authorized, no
shares issued and outstanding
—
Common stock, $.01 par value, 75,000,000 shares authorized,
36,029,651 shares issued at December 31, 2007
360
Additional paid-in capital
266,858
Accumulated deficit
(112,570
)
Treasury stock, 65,000 shares, at cost
(106
)
Accumulated other comprehensive income
5,558
Total stockholders’ equity
160,100
Total liabilities and stockholders’ equity
$
285,286
Business Outlook
Jupitermedia's financial guidance is prepared in accordance with
accounting principles generally accepted in the United States of
America. Historical results below have been adjusted to conform to this
presentation. The amounts below reflect the preliminary allocation of
the purchase prices paid by Jupitermedia in connection with its recent
acquisitions and are subject to change pending a final allocation of
these amounts. The following forward looking-statements reflect
Jupitermedia's expectations as of March 17, 2008. Due to potential
changes in general economic conditions and the various other risk
factors discussed below and in Jupitermedia's reports filed with the
Securities and Exchange Commission from time to time, actual results may
differ materially. Jupitermedia intends to continue its practice of not
updating forward-looking statements until its next quarterly results
announcement, other than in publicly available statements.
Future Expectations
(In millions except for earnings per diluted share)
Q1 2008(A)
Revenues
$35.0-36.0
Cost of revenues, advertising, promotion & selling, and general &
administrative expenses
$28.3-29.3
EBITDA (Earnings before interest, taxes, depreciation and
amortization)
$6.4-7.0
Depreciation and amortization
$4.5
Interest expense, net
$1.7
Provision for income taxes
$0.2
Net income
$0.3
Diluted share count
36.0
Earnings per diluted share
$0.01
Notes:
(A) This financial guidance does not include estimated non-cash
stock-based compensation expense relating to employee stock options
in the amount of $0.01 per share for Q1 2008.
About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM, http://www.jupitermedia.com),
headquartered in Darien, CT, is a leading global provider of images,
news and original information, career Web sites and events for
information technology, business, media and creative professionals.
Jupitermedia includes Jupiterimages, one of the leading images companies
in the world with over 9.0 million images online serving creative
professionals with brands like BananaStock, Workbook Stock, Brand X
Pictures, FoodPix, Botanica, Nonstock, The Beauty Archive, IFA
Bilderteam, Comstock Images, Creatas Images, PictureQuest, Liquid
Library, Thinkstock Images, Thinkstock Footage, Bigshot Media,
Goodshoot, Polka Dot Images, Stock Image, Pixland, Photos.com,
Ablestock.com, PhotoObjects.net, Clipart.com, JupiterGreetings.com,
AnimationFactory.com, RoyaltyFreeMusic.com, StudioCutz.com,
eStockMusic.com and Stockxpert.com. The JupiterOnlineMedia division of
Jupitermedia consists of five distinct online networks: internet.com and
EarthWeb.com for IT and business professionals; DevX.com for developers;
and Mediabistro.com and Graphics.com for media and creative
professionals. These networks include more than 150 Web sites and over
150 e-mail newsletters that are viewed by over 15 million users monthly.
JupiterOnlineMedia also includes specialized career Web sites for select
professional communities which can be found on Mediabistro.com and
JustTechJobs.com. In addition, JupiterOnlineMedia includes JupiterEvents
and Mediabistro’s media-related events, which
produce offline conferences and trade shows focused on IT and
business-specific topics including ISPCON, Mediabistro Circus, Linked
Data Planet and Mobile Content Strategies.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release which are not
historical facts are "forward-looking statements" that are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The potential risks
and uncertainties address a variety of subjects including, for example,
the competitive environment in which Jupitermedia competes; the
unpredictability of Jupitermedia's future revenues, expenses, cash flows
and stock price; Jupitermedia's ability to integrate acquired
businesses, products and personnel into its existing businesses;
Jupitermedia's ability to protect its intellectual property; and
Jupitermedia's dependence on a limited number of advertisers. For a more
detailed discussion of such risks and uncertainties, refer to
Jupitermedia's reports filed with the Securities and Exchange Commission
pursuant to the Securities Exchange Act of 1934. The forward-looking
statements included herein are made as of the date of this press
release, and Jupitermedia assumes no obligation to update the
forward-looking statements after the date hereof. All current Jupitermedia press releases can be found online at www.jupitermedia.com/corporate/press.html.
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