Wayne, PA – November 5, 2009 – Internet Capital Group, Inc. (NASDAQ: ICGE) today announced that its consolidated revenue in the third quarter ended September 30, 2009 was $22.6 million compared to $17.1 million in the comparable 2008 period. ICG’s consolidated net income in the third quarter was $3.1 million, or $0.08 per diluted share, compared to net income of $22.5 million, or $0.58 per diluted share, in the same period of 2008. Results for the third quarter of 2009 include $8.5 million of net gains, which primarily relate to gains on sales of marketable securities, compared to $34.1 million of net gains in the comparable 2008 period, which primarily relate to the gain on the sale of Creditex. Results for the third quarter of 2009 include the results of Vcommerce up to the date of its acquisition by Channel Intelligence on August 28, 2009.
“Our partner companies continued to report strong aggregate EBITDA results while the challenging economic environment continued to impact revenue growth during the third quarter,” said Walter Buckley, ICG’s Chief Executive Officer. “We are pleased with the exceptional performance at ICG Commerce, as well as healthy growth at Channel Intelligence, Freeborders and Investor Force.”
Aggregate Revenue of ICG’s seven core companies declined 2% year-over-year, to $67.0 million in the 2009 third quarter from $68.1 million in the same period of 2008. Aggregate EBITDA in the third quarter improved to $1.8 million from $(5.3) million in the comparable 2008 quarter. Excluding the impact of stock-based compensation and unusual items, Aggregate EBITDA for the seven core companies was $3.2 million in the third quarter compared to $(1.2) million in the 2008 quarter.
Through the nine months of 2009, Aggregate Revenue of ICG’s seven core companies improved 6% year-over-year, to $199.9 million from $188.7 million through the same period of 2008. Aggregate EBITDA through the nine months of 2009 improved to breakeven, from $(25.0) million through the comparable 2008 period. Excluding the impact of stock-based compensation and unusual items, Aggregate EBITDA for the seven core companies was $6.9 million through the nine months of 2009, compared to $(13.8) million through the comparable 2008 period, an improvement of over $20.0 million.
“Our stated goals at the beginning of 2009 were to significantly improve Aggregate EBITDA, exclusive of stock-based compensation and unusual items, while growing revenues,” said Kirk Morgan, ICG’s Chief Financial Officer. “Given our strong EBITDA performance combined with Aggregate Revenue growth year-to-date, we expect to meet those goals.”
ICG Corporate
At September 30, 2009, ICG’s corporate cash balance was $56.2 million, and the value of its holdings related to Blackboard (Nasdaq: BBBB) was $73.8 million, including its hedges and other related receivables. The value of ICG’s equity holdings in GoIndustry (LSE.AIM: GOI) at September 30, 2009 was $9.8 million.
Highlighted Partner Companies
ICG Commerce
ICG Commerce is an outsourced procurement services provider. In the third quarter of 2009, ICG Commerce’s revenue grew to $20.5 million, compared to $14.7 million in the same 2008 period. ICG Commerce’s EBITDA improved to $2.6 million in the third quarter, compared to $0.3 million in the comparable 2008 period. ICG Commerce’s cash balance at September 30, 2009 was approximately $20.6 million. ICG has a 64% ownership position in ICG Commerce.
Metastorm
Metastorm is an enterprise software and services provider that enables its customers to turn business strategies into business processes. Metastorm’s revenue declined to $16.5 million in the third quarter of 2009 from $21.6 million in the comparable 2008 period. Metastorm’s EBITDA declined to $1.1 million in the third quarter compared to $1.5 million in the comparable 2008 period. Metastorm’s cash balance at September 30, 2009 was approximately $8.5 million. ICG has a 33% ownership position in Metastorm
Online versions of Q3 2009 (pdf):
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 866-578-5771. The international dial-in number is 617-213-8055. The passcode is 99528174.
For those unable to participate in the conference call, a replay will be available from November 5, 2009 at 1:00 p.m. ET until November 12, 2009 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 87331373. The replay and slide presentation also can be accessed on the Internet Capital Group web site at http://www.internetcapital.com/investorinfo-preswebcast.htm. |
