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Internet Capital Group Announces Third Quarter Financial Results
Core partner companies achieve excellent aggregate revenue growth of 35%
Wayne, PA – November 1, 2007 – Internet Capital Group, Inc. (Nasdaq: ICGE) today reported its results for the third quarter ended September 30, 2007.
“We are very pleased with the performance of our core partner companies,” said Walter Buckley, ICG’s chairman and CEO. “We continue to work closely with these companies, driving execution of strategic product development, aggressive sales and marketing and M&A activity. These efforts have resulted in accelerating revenue growth, which we believe is a key component to building stockholder value.”
ICG Financial Results
ICG consolidated the results of two partner companies, ICG Commerce and Investor Force, for the three and nine months ended September 30, 2007, versus the results of three partner companies, ICG Commerce, Investor Force and StarCite, for the three and nine months ended September 30, 2006.
ICG reported consolidated revenue of $14.6 million for the third quarter of 2007, versus $16.6 million for the comparable 2006 period. ICG reported consolidated revenue of $38.9 million for the nine months ended September 30, 2007, versus $47.7 million for the comparable 2006 period.
ICG reported a net loss of $(4.0) million, or $(0.11) per diluted share, for the third quarter of 2007, versus net income of $13.4 million, or $0.34 per diluted share, for the comparable 2006 period. Results for the third quarter of 2007 include $3.3 million in net gains, compared to $21.1 million in net gains in the 2006 period, primarily related to gains from dispositions. ICG reported a net loss of $(27.6) million, or $(0.73) per diluted share, for the nine months ended September 30, 2007, versus net income of $0.7 million, or $0.02 per diluted share, for the prior year period.
As of September 30, 2007, ICG’s corporate cash balance was $73.6 million and the value of its holdings in Blackboard was $91.1 million, net of $9.2 million in hedge positions. The value of its holdings in GoIndustry at quarter-end was $23.8 million.
Online versions of Q3 Release Earnings (PDF):
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ICG
Core Partner Company Information
Set forth below is pro forma information relating to the following eight core companies: Channel Intelligence, Freeborders, ICG Commerce, Investor Force, Metastorm, StarCite, Vcommerce and WhiteFence. Our ownership positions in these eight companies ranged from 26% to 80% and averaged 45% at September 30, 2007. Please refer to the supplemental financial data at the end of this release for a reconciliation of such amounts to the nearest comparable GAAP measures.
In the third quarter of 2007, aggregate pro forma revenue of ICG’s eight core companies grew 35% year-over-year, to $61.9 million from $45.8 million in the third quarter of 2006. Aggregate pro forma EBITDA (loss) for the core companies was $(4.0) million in the third quarter of 2007, versus $(8.0) million in the third quarter of 2006. In the nine months ended September 30, 2007, aggregate pro forma revenue of ICG’s eight core companies grew 31% year-over-year, to $172.8 million from $131.8 million in the comparable period of 2006. Aggregate pro forma EBITDA (loss) for the core companies improved to $(12.1) million in the nine months ended September 30, 2007 from $(23.8) million in the comparable period of 2006.
“Based on the strong year-to-date aggregate performance of our core companies, we would expect the full year 2007 aggregate revenue growth of our core companies to be approximately 30%, exceeding our initial 2007 full year guidance of 25% ,” said R. Kirk Morgan, ICG’s CFO.
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 third 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 November 1, 2007 at 11:00 a.m. ET until November 8, 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 258456. 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.
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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.
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