| |
|
|
Internet Capital Group Announces Fourth Quarter And Year-End Financial Results For 2006
Wayne, PA – February 16, 2007 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the fourth quarter and fiscal year ended December 31, 2006.
ICG’s highlights include the following:
- Achieved annual Core company aggregate revenue growth of 28%;
- Elevated StarCite and CreditTrade to market-leading positions through mergers, thereby significantly enhancing and accelerating the ability of these companies to create value;
- Acquired interests in Vcommerce and Channel Intelligence;
- Monetized $50 million from partner company holdings ($14 million from non-Core holdings), resulting in approximately $37 million in after-tax gains; and
- Subsequent to year end, retired all outstanding convertible notes, leaving the Company debt-free.
“ICG met, and in some cases exceeded, its goals in 2006, making significant progress on our strategy to acquire, build and capture the value of our partner companies,” said Walter Buckley, ICG’s Chief Executive Officer. “This strategy guides our focus on partner company performance, acquisitions of new partner companies and the strategic monetization of assets."
ICG Financial Results
ICG reported consolidated revenue of $17.0 million for the fourth quarter of 2006, versus $12.0 million for the comparable 2005 period. ICG reported consolidated revenue of $64.8 million for the fiscal year ended December 31, 2006, versus $47.6 million for the comparable 2005 period.
ICG reported net income of $14.9 million, or $0.37 per diluted share, for the fourth quarter of 2006, versus a net loss of ($12.7) million, or ($0.34) per diluted share, for the comparable 2005 period. ICG reported consolidated net income of $15.6 million, or $0.41 per diluted share, for the full fiscal year 2006, versus net income of $72.5 million, or $1.73 per diluted share, for the comparable 2005 period.
Results for the fourth quarter of 2006 include $19.3 million in net after-tax gains, primarily related to gains from the sales of interests in partner companies and marketable securities. Results for the fourth quarter of 2005 include $(5.2) million in net after-tax charges primarily related to debt repurchases, legal settlement fees and discontinued operations, offset by sales of partner companies and marketable securities. Additionally, results for the 2006 quarter include $1.8 million of stock-based compensation, versus $1.4 million in the prior year period.
Results for the full year of 2006 include $41.0 million in net after-tax gains, primarily related to gains from the sales of interests in partner companies and marketable securities. Results for the full year of 2005 include $107.4 million in net after-tax gains primarily related to sales of partner companies, net of taxes and sales of marketable securities. Additionally, the 2006 results include $7.7 million in stock-based compensation charges, and the 2005 results include $4.3 million in stock-based compensation charges.
ICG’s corporate cash balance at December 31, 2006 was $104.2 million, the value of its holdings in Blackboard (Nasdaq: BBBB) was $66.1 million and the value of its holdings in GoIndustry (LSE.AIM: GOI) was $29.0 million.
In early 2007, ICG retired all of its outstanding convertible notes for approximately $37.1 million in cash. The Company will record a loss of $10.9 million in the first quarter of 2007 on these repurchases.
Online versions of Q4 and Year End Release Earnings (PDF):
|
ICG
Core Partner Company Information
In the fourth quarter of 2006, StarCite completed its merger with OnVantage and ICG acquired a 40% ownership interest in Channel Intelligence. To aid in the comparability of the ICG Core Partner Company information, ICG is presenting pro forma financial information assuming those events occurred on January 1, 2005. Set forth below is pro forma information relating to ICG’s current nine Core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Marketron, Metastorm, StarCite, Vcommerce and WhiteFence. Our average ownership position in these nine companies was 45% at December 31, 2006. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to GAAP measures.
In the fourth quarter of 2006, aggregate pro forma revenue of ICG’s nine private Core companies grew 29% year-over-year, to $51.5 million from $40.0 million in the fourth quarter of 2005. Aggregate pro forma EBITDA (loss) for the Core companies was $(7.9) million in the fourth quarter of 2006, versus $(9.1) million in the fourth quarter of 2005. Results for the fourth quarter of 2006 include $2.8 million in net charges, principally related to costs associated with the StarCite/OnVantage transaction. Excluding one-time items, aggregate pro forma EBITDA (loss) would have improved approximately 45%.
In 2006, annual aggregate pro forma revenue of ICG’s nine Core companies grew 28% year-over-year, to $190.1 million from $148.0 million in 2005. Annual aggregate pro forma EBITDA (loss) for the Core companies improved 16% to $(27.0) million in 2006 from $(32.0) million in 2005. Results for 2006 include $3.1 million in net charges, principally related to costs associated with the StarCite/OnVantage transaction. Excluding one-time items, annual aggregate pro forma EBITDA (loss) would have improved approximately 25%.
“Looking forward to 2007, we will continue to work aggressively to build long-term shareholder value,” said Kirk Morgan, ICG’s Chief Financial Officer. “We plan to deploy capital in new and existing Core partner companies, grow aggregate revenues of our Core companies by at least 25%, improve EBITDA performance and strategically monetize assets.”
ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to http://www.internetcapital.com/investorinfo-preswebcast.htm. and click on the link for the fourth quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode at 877-407-8035. The international dial-in number is 201-689-8035.
For those unable to participate in the conference call, a replay will be available from February 16, 2007 at 11:00 a.m. ET until February 23, 2007 at 11:59 p.m. ET. To access the replay, dial 877-660-6853 (domestic) or 201-612-7415 (international) and enter the account code 286, followed by the conference ID number 229385. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm. |
About
Internet Capital Group
Internet Capital Group (www.internetcapital.com) acquires and builds Internet software and services companies that drive business productivity and reduce transaction costs between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which are delivering software and service applications to customers worldwide.
|
Safe
Harbor Statement under Private Securities Litigation Reform
Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in additional partner companies, the effect of economic conditions generally, capital spending by customers, the development of the e-commerce and information technology markets, and uncertainties detailed in the Company’s filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
|
|
|
