Traffic (NASDAQ:TRFC)
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Traffic.com, Inc. (NASDAQ: TRFC), the leading provider of personalized
traffic information to drivers coast to coast, today announced financial
results for the third quarter 2006.
In a separate press release made contemporaneously with this
announcement, NAVTEQ (NYSE: NVT) announced that the Company and NAVTEQ
have entered into an agreement pursuant to which NAVTEQ will acquire the
Company. Readers are referred to that announcement for further details
regarding the proposed transaction.
Robert N. Verratti, chief executive officer, Traffic.com said, "We are
pleased with the Company’s execution in the
third quarter as we continue to make progress against our long-term
growth initiatives. We saw strong growth during the quarter in our
emerging traffic data services and on-line and mobile advertising
business lines, and we reported solid results in our traditional media
business and our partnership programs. With significant infrastructure
investments largely in place, we saw total expenses start to flatten,
positioning the company well for improved profitability in the years
ahead.”
For the quarter ended September 30, 2006, Traffic.com reported total
revenue of $13.1 million, an increase of 22% from the third quarter of
2005. Within total revenue, advertising revenue of $11.0 million was up
15% from the same period a year ago, with online and mobile advertising
contributing $0.4 million to overall advertising revenue. Traffic data
service revenue of $2.0 million was up 80% from the same period a year
ago. The Company reported a net loss of $6.4 million, or $0.31 per
share, in the third quarter of 2006, compared to a net loss of $20.2
million, or $6.05 per share, in the third quarter of 2005. The net loss
in the prior year included $14.3 million in one-time legal settlement
costs.
“Since reaching the important milestone of
nationwide traffic coverage in 50 metropolitan areas, our partnerships
have expanded with global brands and innovative solutions. We obtained
our first national mobile advertising order under our Garmin
relationship and its groundbreaking model of offering free
advertising-supported, traffic-enabled GPS routing. We were chosen by
AOL to provide their AOL.com and AOLCityGuide.com websites with traffic
content. Finally, via our relationship with NAVTEQ, traffic-enabled
navigation expanded to six vehicles in the 2007 model year,”
Verratti added.
Operational highlights since Traffic.com’s
last earnings announcement include:
Paid ads delivered grew 18% from 15.6 million in June and to 18.5
million in September.
Monthly unique visitors to Traffic.com online content totaled 1.4
million in September 2006, reflecting a softening during the summer
months.
Total page views in September were 9.4 million.
October results reflect increases to 1.7 million unique visitors, 10.8
million page views and paid ads of 25.1 million.
The Company’s registered user base grew to
over 300,000 compared to 240,000 in June.
Traffic.com was awarded a patent for its animated display of real-time
traffic flow on maps delivered across multiple platforms including
personal navigation devices, cellular phones, in-vehicle systems,
television, and the Web.
Traffic.com secured a $12 million line of credit with Square 1 Bank.
Conference Call Today
Traffic.com will hold its third quarter 2006 earnings conference call
today at 9:30 AM, Eastern Time. To access the conference call, please
dial (800) 263-8506. International callers should dial (719) 457-2681.
The call will also be web cast live on the Company's investor relations
Web site at investor.traffic.com/events.
After the call, an on-demand replay will be available on the Traffic.com
investor relations site at investor.traffic.com/events where the call
will be archived from 12:30 PM Eastern Time on Monday, November 6, 2006
through midnight Eastern Time on Friday, November 18, 2006 at (719)
457-0820 (domestic) or (888) 203-1112 (international). The replay pass
code is 4779887.
Traffic.com, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2006
2005
2006
2005
(unaudited)
(unaudited)
Revenue:
Advertising
$ 11,029
$ 9,564
$ 32,885
$ 29,071
Traffic data services
2,022
1,126
5,330
3,025
13,051
10,690
38,215
32,096
Cost of revenue
10,424
8,595
30,067
24,541
Gross margin
2,627
2,095
8,148
7,555
Operating expenses:
Research and development
1,551
983
4,361
2,587
Sales and marketing
4,761
3,733
13,772
11,045
General and administrative
3,013
1,945
8,146
6,137
Legal settlements
-
14,250
-
18,473
9,325
20,911
26,279
38,242
Loss from operations
(6,698)
(18,816)
(18,131)
(30,687)
Interest income (expense), net
281
(1,416)
(677)
(4,229)
Net loss
$ (6,417)
$ (20,232)
$ (18,808)
$ (34,916)
Redemption and accretion of redeemable convertible preferred stock
-
(554)
(108)
(1,643)
Net income (loss) attributable to common stockholders
$ (6,417)
$ (20,786)
$ (18,916)
$ (36,559)
Net loss per common share
$ (0.31)
$ (6.05)
$ (1.00)
$ (10.79)
Weighted average common shares
outstanding
20,575
3,438
18,937
3,387
Traffic.com, Inc.
Consolidated Balance Sheet Data
(In Thousands)
September 30,
December 31,
2006
2005
(unaudited)
Cash, cash equivalents, and short-term investments
$ 22,023
$ 13,143
Total assets
64,582
54,978
Long-term deferred revenue and deferred
license fees
34,237
32,646
Senior secured credit facility and accrued
interest
-
37,659
Other long-term liabilities
1,392
678
Redeemable convertible preferred stock
-
56,977
Total stockholders' equity (deficit)
16,493
(97,677)
About Traffic.com
Traffic.com® is the leading provider of
personalized traffic information for drivers coast to coast. Through the
industry's most comprehensive data collection infrastructure,
Traffic.com offers consumers real-time customized traffic reports in 50
metropolitan areas. These personalized consumer reports are complete
with predictive traffic trends, vehicle speeds, congestion levels,
travel times, and delay times delivered via Web, wireless device, radio,
television, and in-vehicle navigation systems. Traffic.com's ability to
distribute traffic information via specialized data feeds and across
multiple platforms creates unique, and powerful branding opportunities
for advertisers, enabling them to expand their reach and target
consumers with useful, relevant content multiple times per day.
Traffic.com's business partners include AOL, Comcast, Garmin
International Inc., Microsoft, NAVTEQ, The Weather Channel®,
and XM Satellite Radio.
Forward-Looking Statement
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Because
these statements apply to future events, they are subject to risks and
uncertainties that could cause actual results to differ materially,
including Traffic.com's history of operating losses, risks associated
with its recently expanded business model, the substantial competition
it faces, its ability to maintain advertiser relationships and attract
additional advertisers, its dependency on government contracts, possible
failure of its traffic information management system, and failure to
protect its intellectual property or to defend against intellectual
property claims of others. These and other risks are described in
greater detail in Traffic.com's filings with the Securities and Exchange
Commission. Traffic.com may not actually achieve the goals or plans
described in its forward-looking statements, and investors should not
place undue reliance on these statements. Traffic.com disclaims any
intent or obligation to update any forward-looking statements as a
result of developments occurring after the date of this press release.
The Traffic.com logo and Traffic.com are registered trademarks of
Traffic.com, Inc. All other product or service names or marks are the
property of their respective owners. © 2006
Traffic.com, Inc.
Traffic.com, Inc. (NASDAQ: TRFC), the leading provider of
personalized traffic information to drivers coast to coast, today
announced financial results for the third quarter 2006.
In a separate press release made contemporaneously with this
announcement, NAVTEQ (NYSE: NVT) announced that the Company and NAVTEQ
have entered into an agreement pursuant to which NAVTEQ will acquire
the Company. Readers are referred to that announcement for further
details regarding the proposed transaction.
Robert N. Verratti, chief executive officer, Traffic.com said, "We
are pleased with the Company's execution in the third quarter as we
continue to make progress against our long-term growth initiatives. We
saw strong growth during the quarter in our emerging traffic data
services and on-line and mobile advertising business lines, and we
reported solid results in our traditional media business and our
partnership programs. With significant infrastructure investments
largely in place, we saw total expenses start to flatten, positioning
the company well for improved profitability in the years ahead."
For the quarter ended September 30, 2006, Traffic.com reported
total revenue of $13.1 million, an increase of 22% from the third
quarter of 2005. Within total revenue, advertising revenue of $11.0
million was up 15% from the same period a year ago, with online and
mobile advertising contributing $0.4 million to overall advertising
revenue. Traffic data service revenue of $2.0 million was up 80% from
the same period a year ago. The Company reported a net loss of $6.4
million, or $0.31 per share, in the third quarter of 2006, compared to
a net loss of $20.2 million, or $6.05 per share, in the third quarter
of 2005. The net loss in the prior year included $14.3 million in
one-time legal settlement costs.
"Since reaching the important milestone of nationwide traffic
coverage in 50 metropolitan areas, our partnerships have expanded with
global brands and innovative solutions. We obtained our first national
mobile advertising order under our Garmin relationship and its
groundbreaking model of offering free advertising-supported,
traffic-enabled GPS routing. We were chosen by AOL to provide their
AOL.com and AOLCityGuide.com websites with traffic content. Finally,
via our relationship with NAVTEQ, traffic-enabled navigation expanded
to six vehicles in the 2007 model year," Verratti added.
Operational highlights since Traffic.com's last earnings
announcement include:
-- Paid ads delivered grew 18% from 15.6 million in June and to
18.5 million in September.
-- Monthly unique visitors to Traffic.com online content totaled
1.4 million in September 2006, reflecting a softening during
the summer months.
-- Total page views in September were 9.4 million.
-- October results reflect increases to 1.7 million unique
visitors, 10.8 million page views and paid ads of 25.1
million.
-- The Company's registered user base grew to over 300,000
compared to 240,000 in June.
-- Traffic.com was awarded a patent for its animated display of
real-time traffic flow on maps delivered across multiple
platforms including personal navigation devices, cellular
phones, in-vehicle systems, television, and the Web.
-- Traffic.com secured a $12 million line of credit with Square 1
Bank.
Conference Call Today
Traffic.com will hold its third quarter 2006 earnings conference
call today at 9:30 AM, Eastern Time. To access the conference call,
please dial (800) 263-8506. International callers should dial (719)
457-2681. The call will also be web cast live on the Company's
investor relations Web site at investor.traffic.com/events.
After the call, an on-demand replay will be available on the
Traffic.com investor relations site at investor.traffic.com/events
where the call will be archived from 12:30 PM Eastern Time on Monday,
November 6, 2006 through midnight Eastern Time on Friday, November 18,
2006 at (719) 457-0820 (domestic) or (888) 203-1112 (international).
The replay pass code is 4779887.
-0-
*T
Traffic.com, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2006 2005 2006 2005
----------- --------- ----------- ---------
(unaudited) (unaudited)
Revenue:
Advertising $11,029 $9,564 $32,885 $29,071
Traffic data services 2,022 1,126 5,330 3,025
----------- --------- ----------- ---------
13,051 10,690 38,215 32,096
Cost of revenue 10,424 8,595 30,067 24,541
----------- --------- ----------- ---------
Gross margin 2,627 2,095 8,148 7,555
Operating expenses:
Research and development 1,551 983 4,361 2,587
Sales and marketing 4,761 3,733 13,772 11,045
General and administrative 3,013 1,945 8,146 6,137
Legal settlements - 14,250 - 18,473
----------- --------- ----------- ---------
9,325 20,911 26,279 38,242
=========== ========= =========== =========
Loss from operations (6,698) (18,816) (18,131) (30,687)
Interest income (expense),
net 281 (1,416) (677) (4,229)
----------- --------- ----------- ---------
Net loss $(6,417) $(20,232) $(18,808) $(34,916)
=========== ========= =========== =========
Redemption and accretion
of redeemable convertible
preferred stock - (554) (108) (1,643)
Net income (loss)
attributable to common
stockholders $(6,417) $(20,786) $(18,916) $(36,559)
Net loss per common share $(0.31) $(6.05) $(1.00) $(10.79)
=========== ========= =========== =========
Weighted average common
shares
outstanding 20,575 3,438 18,937 3,387
=========== ========= =========== =========
*T
-0-
*T
Traffic.com, Inc.
Consolidated Balance Sheet Data
(In Thousands)
September December
30, 31,
2006 2005
----------- --------
(unaudited)
Cash, cash equivalents, and short-term
investments $22,023 $13,143
Total assets 64,582 54,978
Long-term deferred revenue and deferred
license fees 34,237 32,646
Senior secured credit facility and accrued
interest - 37,659
Other long-term liabilities 1,392 678
Redeemable convertible preferred stock - 56,977
Total stockholders' equity (deficit) 16,493 (97,677)
*T
About Traffic.com
Traffic.com(R) is the leading provider of personalized traffic
information for drivers coast to coast. Through the industry's most
comprehensive data collection infrastructure, Traffic.com offers
consumers real-time customized traffic reports in 50 metropolitan
areas. These personalized consumer reports are complete with
predictive traffic trends, vehicle speeds, congestion levels, travel
times, and delay times delivered via Web, wireless device, radio,
television, and in-vehicle navigation systems. Traffic.com's ability
to distribute traffic information via specialized data feeds and
across multiple platforms creates unique, and powerful branding
opportunities for advertisers, enabling them to expand their reach and
target consumers with useful, relevant content multiple times per day.
Traffic.com's business partners include AOL, Comcast, Garmin
International Inc., Microsoft, NAVTEQ, The Weather Channel(R), and XM
Satellite Radio.
Forward-Looking Statement
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Because these statements apply to future events, they are subject to
risks and uncertainties that could cause actual results to differ
materially, including Traffic.com's history of operating losses, risks
associated with its recently expanded business model, the substantial
competition it faces, its ability to maintain advertiser relationships
and attract additional advertisers, its dependency on government
contracts, possible failure of its traffic information management
system, and failure to protect its intellectual property or to defend
against intellectual property claims of others. These and other risks
are described in greater detail in Traffic.com's filings with the
Securities and Exchange Commission. Traffic.com may not actually
achieve the goals or plans described in its forward-looking
statements, and investors should not place undue reliance on these
statements. Traffic.com disclaims any intent or obligation to update
any forward-looking statements as a result of developments occurring
after the date of this press release.
The Traffic.com logo and Traffic.com are registered trademarks of
Traffic.com, Inc. All other product or service names or marks are the
property of their respective owners. (C) 2006 Traffic.com, Inc.