Ivillage (NASDAQ:IVIL)
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Year-Over-Year Revenue Increased 35%
NEW YORK, Nov. 8 /PRNewswire-FirstCall/ -- iVillage Inc. (NASDAQ:IVIL), The Internet For Women(TM), a leading women's media company, the number one source for women's content and community online, and operator of a top ten online health property, today announced financial results for the third quarter ended September 30, 2005.
Third quarter 2005 revenue totaled $22.6 million, a 35% increase when compared to revenues of $16.7 million for the same period one year ago. iVillage.com revenue for the third quarter of 2005 increased approximately 80% compared to third quarter of 2004(1).
iVillage reported third quarter 2005 net income of $2.2 million, or $0.03 per share, compared to net income of $1.1 million, or $0.02 per share, for the third quarter of 2004.
iVillage reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)(2) of $4.2 million for the third quarter of 2005 compared to $2.0 million for the third quarter 2004.
At the end of the third quarter of 2005, iVillage had $53.3 million in cash and cash equivalents on its balance sheet. The Company continues to carry no debt.
Douglas W. McCormick, Chairman & Chief Executive Officer, iVillage Inc., said, "Our record quarterly revenue performance reflects our success in positioning iVillage as a premium online advertising destination, as well as the contributions of the companies and assets we acquired earlier this year. As online advertising continues to attract a growing share of ad dollars, our highly desirable audience is becoming more valuable to major advertisers. Our blue chip consumer and healthcare clients are making bigger commitments to us at better rates, providing us strong momentum going into 2006. Furthermore, our new growth and value drivers, including our enhanced healthcare and multimedia offerings, position us well to capture a greater portion of increasing online ad dollars."
Business Outlook
For the fourth quarter of 2005, iVillage expects to generate revenues between $26.1 million and $29.1 million. The Company currently anticipates reporting EBITDA between $11.1 million and $12.1 million for the fourth quarter of 2005. Additionally, in the fourth quarter of 2005, iVillage expects to report net income between $8.4 million and $9.4 million.
For full-year 2005, iVillage is raising its revenue guidance to between $87.0 million and $90.0 million and is reiterating its EBITDA outlook of between $17.0 million and $18.0 million. Also as previously announced, iVillage expects to report net income for 2005 between $9.0 million and $10.0 million.
iVillage does not undertake any obligation to update its financial outlook, but reserves the right to do so at any time for any reason.
Advertising & Sponsorship Highlights
-- During the third quarter of 2005, iVillage entered into a
distribution agreement with Yahoo! Search Marketing, formerly known
as Overture Services. The agreement, which went into effect on
September 1, 2005, brings Yahoo!'s comprehensive suite of sponsored
search, Content Match(TM) and Yahoo! Search products to iVillage
visitors.
-- Through its recent healthcare initiatives, iVillage in the third
quarter of 2005 continued to gain commitments from major
pharmaceutical and healthcare companies, including Johnson & Johnson,
Aventis and Pfizer.
-- Blue-chip consumer advertisers, including Procter & Gamble, Unilever,
General Mills and Quaker Oats, also continued to make commitments to
iVillage by adding new brands and campaigns.
-- iVillage continues to execute its strategy to develop and distribute
compelling original multimedia and video features to attract relevant
advertisers. The Company has completed five audio slideshows, two
multimedia features and six original videos and is currently working
on a new online vignette series featuring television veteran Dr. Bob
Berkowitz.
Metrics
-- According to comScore Media Metrix, iVillage delivered approximately
15.6 million unique monthly visitors and the iVillage Network was the
39th most visited Web site in the U.S. in October 2005. According to
the same report, iVillage reaches approximately 9% of the total U.S.
online population and nearly 12% of women 18+ online. Visitors
return more than 2 times per month on average.
-- Also according to the comScore Media Metrix October 2005 report,
iVillage is the #1 women's community site, the #14 community site
overall and, when combined, the iVillage health properties rank 5th
among the most visited commercial health web properties and 8th among
the overall most visited health web properties.
-- Year-over-year third quarter core iVillage page views increased by
approximately 9%, which excludes two affiliate contracts the Company
discontinued in 2005. iVillage delivered approximately 368 million
average monthly page views for the third quarter of 2005, or
relatively level when compared to the same period a year ago, which
included the two aforementioned affiliate arrangements.
Conference Call
iVillage will hold a conference call to discuss its third quarter 2005 financial results today at 5:00 PM (EST). The conference call will be broadcast live on the Internet and will be available on iVillage's Investor Relations Web site, located at http://www.ivillage.com/investor, and on Street Events, located at http://www.streetevents.com/. A replay of the conference call will be available on the iVillage Investor Relations Web site approximately one hour after the call ends on Tuesday, November 8, 2005 until 6:00 PM (EST) on Tuesday, November 15, 2005. A transcript of the conference call will be available on the iVillage Investor Relations Web site thereafter.
About iVillage Inc.
iVillage is "the Internet for women" and consists of several online and offline media-based properties that seek to enrich the lives of women, teenage girls and parents through the offering of unique content, community applications, tools and interactive features. iVillage Inc. (NASDAQ:IVIL) was established in 1995 and is headquartered in New York City.
Average monthly page views for iVillage.com and its affiliate Web sites ("The iVillage Network") totaled 368 million for the quarter ended September 30, 2005. In October 2005, according to comScore Media Metrix, The iVillage Network ranked 39th among the top 100 Web and Digital Media properties with approximately 15.6 million unique visitors in the United States and had an average reach of approximately 9% of the total online population and nearly 12% of women 18+ online. Also, according to the same report, The iVillage Network was the number one "women's community site" and the number four "community site" overall on the Web.
For more information about iVillage, visit http://www.ivillage.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
iVillage Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning iVillage's business, operations and financial condition. The words or phrases "can be," "expects," "may affect," "anticipates," "may depend," "believes," "estimates," "plans," "projects" and similar words and phrases are intended to identify such forward-looking statements. These forward-looking statements are subject to various known and unknown risks and uncertainties and iVillage cautions you that any forward-looking information provided by or on behalf of iVillage is not a guarantee of future results, performance or achievements. Actual results could differ materially from those anticipated in these forward-looking statements due to a number of factors, some of which are beyond iVillage's control. In addition to those risks discussed in iVillage's other press releases, public filings and statements by iVillage's management, factors that may cause iVillage's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied in such forward-looking statements include: (i) the volatile and competitive nature of the Internet industry and the media industry, (ii) changes in domestic and foreign economic, political and market conditions, (iii) the effect of federal, state and foreign regulation on iVillage's business, (iv) the impact of recent and future acquisitions and joint ventures on iVillage's business and financial condition, (v) iVillage's ability to establish and maintain relationships with advertisers, sponsors, and other third-party providers and partners, (vi) iVillage's ability to maintain or increase user traffic levels, (vii) the loss of one or more of iVillage's major customers, (viii) the effect of seasonal fluctuations in traditional online advertising purchasing patterns on iVillage's results of operations and (ix) the impact of pending litigation on iVillage's business, results of operations and financial condition. All such forward-looking statements are current only as of the date on which such statements were made. iVillage does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
(1) Please see the attached financial tables for a reconciliation of
iVillage.com revenue.
(2) To supplement its consolidated financial statements presented in
accordance with generally accepted accounting principles ("GAAP")
in the United States, iVillage uses non-GAAP measures of operating
results and net income, such as EBITDA (defined by iVillage as
Earnings (Loss) Before Interest, Taxes, Depreciation and
Amortization), which are adjusted from results based on GAAP to
exclude certain expenses. These non-GAAP adjustments are provided to
enhance individuals' overall understanding of the Company's current
financial performance and its prospects for the future. Specifically,
iVillage believes the non-GAAP financial measures provide useful
information to both management and investors by excluding certain
expenses that are not indicative of the Company's core operating
results. In addition, since iVillage has historically reported non-
GAAP results to the investment community, the Company believes the
inclusion of non-GAAP financial measures provides consistency in its
financial reporting. Further, these non-GAAP results are one of the
primary indicators management uses for planning and forecasting in
future periods, as well as for executive compensation. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in
accordance with GAAP. Please refer to iVillage's unaudited
consolidated financial statements accompanying this press release for
a reconciliation of any non-GAAP financial measures included in this
press release to the corresponding GAAP financial measures. Although
EBITDA is frequently used as a measure of operating performance, it
is not necessarily comparable to other similarly titled captions of
other companies due to differences in methods of calculation.
iVillage Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
Revenues $22,596 $16,698 $60,950 $48,703
Operating expenses:
Editorial, product
development and
technology 8,285 7,740 25,445 22,264
Sales and marketing 6,604 4,562 19,541 13,670
General and administrative 3,535 2,440 10,096 8,233
Depreciation and amortization 2,398 1,140 6,513 4,897
Total operating expenses 20,822 15,882 61,595 49,064
Income (loss) from
operations 1,774 816 (645) (361)
Interest income, net 399 236 1,109 304
Other income, net 52 11 68 97
Gain on sale of joint venture
interest - 76 101 319
Net income $2,225 $1,139 $633 $359
Basic net income per share $0.03 $0.02 $0.01 $0.01
Diluted net income per share $0.03 $0.02 $0.01 $0.01
Weighted-average shares of
common stock outstanding
used in computing basic
net income per share 72,427 70,891 72,197 62,834
Weighted-average shares of
common stock outstanding
used in computing diluted
net income per share 76,586 75,230 76,346 67,902
iVillage Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, December 31,
2005 2004
ASSETS:
Current assets:
Cash and cash equivalents $53,339 $83,046
Accounts receivable, net 16,147 9,708
Prepaid rent 318 318
Other current assets 4,206 3,740
Total current assets 74,010 96,812
Fixed assets, net 11,584 8,381
Goodwill and intangible assets, net 61,158 32,073
Prepaid rent, net of current portion 3,090 3,203
Other assets 102 79
Total assets $149,944 $140,548
LIABILITIES and STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable and accrued expenses $11,608 $10,142
Deferred revenue 6,044 2,080
Other liabilities 168 168
Total current liabilities 17,820 12,390
Deferred rent, net of current portion 1,232 1,339
Total liabilities 19,052 13,729
Commitments and contingencies
Stockholders' equity 130,892 126,819
Total liabilities and stockholders'
equity $149,944 $140,548
iVillage Inc. and Subsidiaries
Quarterly Income Statement
($ in million except for per share amounts)
(unaudited)
Mar-04 Jun-04 Sep-04 Dec-04
Revenue $15.507 $16.498 $16.698 $18.200
Growth q-q -2% 6% 1% 9%
Growth Y/y 23% 25% 23% 15%
Editorial, product development &
technology 7.511 7.013 7.740 6.639
% of Revenues 48% 43% 46% 36%
Sales and marketing 4.385 4.723 4.562 5.352
% of Revenues 28% 29% 27% 29%
General and administrative 2.908 2.885 2.440 2.994
% of Revenues 19% 17% 15% 16%
Depreciation and amortization 1.804 1.953 1.140 1.114
% of Revenues 12% 12% 7% 6%
Total operating expenses 16.608 16.574 15.882 16.099
% of Revenues 107% 100% 95% 88%
(Loss) income from operations (1.101) (0.076) 0.816 2.101
Interest income, net 0.018 0.050 0.236 0.338
Other income, net 0.052 0.034 0.011 0.110
Gain on sale of joint venture
interest 0.167 0.076 0.076 0.076
Provision for income taxes - - - (0.307)
(Loss) income from continuing
operations (0.864) 0.084 1.139 2.318
Discontinued operations - - - 0.069
Net (loss) income $(0.864) $0.084 $1.139 $2.387
Basic and diluted (per share data):
(Loss) income from continuing
operations $(0.01) $0.00 $0.02 $0.03
Income from discontinued operations - - - 0.00
Net (loss) income $(0.01) $0.00 $0.02 $0.03
Weighted average shares of common
stock outstanding - basic 58.4 59.1 70.9 71.7
Weighted average shares of common
stock outstanding - diluted 58.4 64.4 75.2 75.8
Additional Financial Information
Revenue from barter 0.844 1.119 1.204 1.363
% of Revenues 5% 7% 7% 7%
FY 04 Mar-05 Jun-05 Sep-05
Revenue $66.903 $17.274 $21.080 $22.596
Growth q-q -5% 22% 7%
Growth Y/y 21% 11% 28% 35%
Editorial, product development &
technology 28.903 8.239 8.921 8.285
% of Revenues 43% 48% 42% 37%
Sales and marketing 19.022 5.936 7.001 6.604
% of Revenues 28% 34% 33% 29%
General and administrative 11.227 2.989 3.572 3.535
% of Revenues 17% 17% 17% 16%
Depreciation and amortization 6.011 1.804 2.311 2.398
% of Revenues 9% 10% 11% 11%
Total operating expenses 65.163 18.968 21.805 $20.822
% of Revenues 97% 110% 103% 92%
(Loss) income from operations 1.740 (1.694) (0.725) 1.774
Interest income, net 0.642 0.352 0.358 0.399
Other income, net 0.207 - 0.016 0.052
Gain on sale of joint venture
interest 0.395 0.076 0.025 -
Provision for income taxes (0.307) - - -
(Loss) income from continuing
operations 2.677 (1.266) (0.326) 2.225
Discontinued operations 0.069 - - -
Net (loss) income $2.746 $(1.266) $(0.326) 2.225
Basic and diluted (per share data):
(Loss) income from continuing
operations $0.04 $(0.02) $(0.00) $0.03
Income from discontinued operations 0.00 - - -
Net (loss) income $0.04 $(0.02) $(0.00) $0.03
Weighted average shares of common
stock outstanding - basic 65.1 71.9 72.2 72.4
Weighted average shares of common
stock outstanding - diluted 69.9 71.9 72.2 76.6
Additional Financial Information
Revenue from barter 4.530 1.680 1.606 1.232
% of Revenues 7% 10% 8% 5%
iVillage Inc. and Subsidiaries
Supplemental Financial Data
(in thousands)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
EBITDA reconciliation:
Net income $ 2,225 $ 1,139 $ 633 $ 359
Addback: Depreciation
and amortization 2,398 1,140 6,513 4,897
Interest income, net (399) (236) (1,109) (304)
Other income, net (52) (11) (68) (97)
Gain on sale of joint
venture interest - (76) (101) (319)
EBITDA $ 4,172 $ 1,956 $ 5,868 $ 4,536
Revenues by property:
iVillage.com (1) $ 17,074 $ 9,524 $ 45,173 $ 27,857
Astrology.com 1,294 908 3,615 2,536
IVPN 3,348 5,351 9,859 15,741
PAG 880 915 2,303 2,569
Total revenues $ 22,596 $ 16,698 $ 60,950 $ 48,703
iVillage.com organic revenue
growth excluding recent
acquisitions and Hearst
advertising legacy deal:
iVillage.com (1) $ 17,074 $ 9,524 $ 45,173 $ 27,857
Less: Recent acquisitions (5,117) - (10,479) -
Hearst advertising
legacy deal - - - (1,443)
iVillage.com (1) organic
revenue growth excluding
recent acquisitions and
Hearst advertising legacy
deal $ 11,957 $ 9,524 $ 34,694 $ 26,414
iVillage.com (1) organic
revenue growth % excluding
recent acquisitions and
Hearst advertising legacy
deal 26% 31%
iVillage.com (1) sponsorship
and advertising revenue growth
excluding recent acquisitions
and Hearst advertising legacy
deal:
iVillage.com (1) $ 17,074 $ 9,524 $ 45,173 $ 27,857
Less: Non-sponsorship
and advertising revenue
and barter revenue (3,856) (3,818) (12,904) (10,560)
Hearst advertising
legacy deal - - - (1,443)
iVillage.com (1) sponsorship
and advertising revenue
growth excluding Hearst
advertising legacy deal l13,218 5,706 32,269 15,854
Less: Sponsorship and
advertising revenue from
recent acquisitions (4,978) - (10,107) -
iVillage.com (1) sponsorship
and advertising revenue
growth excluding recent
acquisitions and Hearst
advertising legacy deal $ 8,240 $ 5,706 $ 22,162 $ 15,854
iVillage.com (1) sponsorship
and advertising revenue
growth % excluding Hearst
advertising legacy deal 132% 104%
iVillage.com (1) sponsorship
and advertising revenue
growth % excluding recent
acquisitions and Hearst
advertising legacy deal 44% 40%
Total revenues excluding
recent acquisitions and
legacy deals:
Total revenues $ 22,596 $ 16,698 $ 60,950 $ 48,703
Less: Recent
acquisitions (5,117) - (10,479) -
Hearst advertising
legacy deal - - - (1,443)
Wal-Mart US legacy deal - (1,802) - (4,812)
Total revenues excluding
recent acquisitions and
legacy deals $ 17,479 $ 14,896 $ 50,471 $ 42,448
Total revenues excluding
recent acquisitions and
legacy deals growth % 17% 19%
(1) Included in iVillage.com revenues are iVillage.com, Healthology,
Inc., HealthCentersOnline, Inc., iVillage Limited, Promotions.com,
Substance.com, Women.com and GardenWeb properties and gURL.com,
iVillage Consulting and iVillage Solutions divisions.
iVillage Inc. and Subsidiaries
Quarterly Supplemental Financial Data
($ in million except for per share amounts)
(unaudited)
Mar-04 Jun-04 Sep-04 Dec-04
EBITDA reconciliation:
Net (loss) income $(0.864) $0.084 $1.139 $2.387
Addback: Depreciation and
amortization 1.804 1.953 1.140 1.114
Interest income, net (0.018) (0.050) (0.236) (0.338)
Other income, net (0.052) (0.034) (0.011) (0.110)
Gain on sale of joint
venture interest (0.167) (0.076) (0.076) (0.076)
Provision for income taxes - - - 0.307
Discontinued operations - - - (0.069)
EBITDA $0.703 $1.877 $1.956 3.215
FY 04 Mar-05 Jun-05 Sep-05
EBITDA reconciliation:
Net (loss) income $2.746 $(1.266) $(0.326) $2.225
Addback: Depreciation and
amortization 6.011 1.804 2.311 2.398
Interest income, net (0.642) (0.352) (0.358) (0.399)
Other income, net (0.207) - (0.016) (0.052)
Gain on sale of joint
venture interest (0.395) (0.076) (0.025) -
Provision for income taxes 0.307 - - -
Discontinued operations (0.069) - - -
EBITDA $7.751 0.110 1.586 4.172
DATASOURCE: iVillage Inc.
CONTACT: Carl Fischer of iVillage Inc., +1-212-600-6502,
; or Carina Davidson, , or Eliza
Johnson, , both of The Abernathy MacGregor Group,
+1-212-371-5999, for iVillage Inc.
Web site: http://www.ivillage.com/