ValueClick Announces Second Quarter 2012 Results
Revenue & Profitability Exceed High-End of Guidance Ranges
ValueClick, Inc. (Nasdaq: VCLK) today reported financial results for the second quarter ended June 30, 2012. Revenue, adjusted-EBITDA1 and earnings per share metrics all exceeded the high-end of previously-issued guidance ranges.
Financial highlights from the quarter include:
- Revenue of $161.0 million, up 29 percent from the second quarter of 2011 (Q2 2011);
- Adjusted-EBITDA of $49.5 million, up 33 percent from Q2 2011;
- Adjusted-EBITDA margin of 30.7 percent versus 29.6 percent in Q2 2011;
- Non-GAAP net income2 of $0.37 per diluted share versus $0.28 in Q2 2011;
- GAAP net income of $0.25 per diluted share versus $0.21 in Q2 2011; and
- $88.2 million in cash and $172.5 million in debt as of June 30, 2012.
Additional highlights include:
- The repurchase of 5.9 million shares of the Company's outstanding common stock in Q2 2012 and a $100 million increased authorization of the share repurchase program;
- A $50 million increase in the Company's credit facility; and
- The consolidation of the Mediaplex technology business into the Media segment, resulting in three segments: Media, Affiliate Marketing, and Owned & Operated.
"We delivered another quarter of strong financial results, while further leveraging our unique data, traffic and services capabilities to become a more strategic partner for our clients," said James R. Zarley, chief executive officer of ValueClick. "As illustrated in our share repurchase activity, we remain confident in our ability to become the partner of choice for the largest, most sophisticated digital advertisers and capitalize on the growth opportunities in our industry."
1 Adjusted-EBITDA is defined as GAAP (Generally Accepted Accounting Principles) net income before interest, income taxes, depreciation, amortization, and stock-based compensation expenses. Please see the attached schedule for a reconciliation of GAAP net income to adjusted-EBITDA, and a discussion of why the Company believes adjusted-EBITDA is a useful financial measure to investors and how Company management uses this financial measure.
2 Non-GAAP net income excludes stock-based compensation and amortization of intangible assets. Please see the attached schedule for a reconciliation of GAAP net income to non-GAAP diluted net income per common share.
Share Repurchase and Credit Facility Update
During the second quarter, ValueClick repurchased approximately 5.9 million shares of the Company's outstanding common stock for approximately $99.5 million. On June 28, ValueClick's board of directors authorized a $100 million increase to the program, such that $100.5 million of the Company's capital may be used to repurchase shares of the Company's common stock going forward. ValueClick anticipates funding the program through free cash flow generation and its credit facility.
On June 28, ValueClick announced a $50 million increase in the amount available under its credit facility. The Company's total credit facility now consists of: 1) a $200 million revolver (previously $150 million) with an outstanding balance of $130 million as of June 30, 2012; and 2) a term loan with an outstanding balance as of June 30, 2012 of $42.5 million.
New Segment Reporting Structure
Starting with Q2 2012 results, ValueClick will report three segments: Media, which now includes the Mediaplex technology businesses; Affiliate Marketing; and Owned & Operated. The decision to consolidate Mediaplex into the Media segment is being driven by increased revenue synergies between Mediaplex's advertiser base and Media's display offerings.
Gary J. Fuges, CFA, 1-818-575-4677
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