Reports First-Quarter Financial Results

April 29, 2008 at 12:00 AM EDT

TSCM NEW YORK, Apr 29, 2008 (BUSINESS WIRE) --, Inc. (Nasdaq: TSCM), a leading financial media company, reported financial results for its quarter ended March 31, 2008.

First-Quarter 2008 Results:

Total revenue for the quarter was $18.9 million, an increase of 31% over revenue of $14.5 million reported for the first quarter of 2007. Net income decreased by 19% to $2.4 million, or $0.07 per fully diluted share, in the first quarter of 2008, compared to $3.0 million, or $0.11 per fully diluted share, in the first quarter of 2007. Net income attributable to common stockholders for the first quarter of 2008 was $2.4 million, or $0.07 per fully diluted share, after deducting preferred stock dividends of $0.1 million.

EBITDA, excluding stock compensation expense ("Adjusted EBITDA"), was $3.9 million, an increase of 11% over Adjusted EBITDA of $3.5 million for the first quarter of 2007.

"We began 2008 delivering on key strategic initiatives - the launch of the new Web site and the launch of - to strengthen our position as the leading destination for 'all things money,'" said Thomas J. Clarke Jr., chairman and chief executive officer of "These initiatives have allowed us to capitalize on the growing opportunity in online advertising and enabled us to achieve record first-quarter revenue. While the initiatives had a short-term effect on our quarterly earnings, we are encouraged by the strong demand from advertisers across's network of sites and services."

First-Quarter Financial Highlights

-- Marketing services revenue, which comprises advertising and
 interactive marketing services revenue, totaled $8.2 million for the
 first quarter of 2008, an increase of 62% over revenue of $5.1
 million for the first quarter of 2007.

     - Advertising revenue totaled $6.0 million for the current
      quarter, an increase of 18% over revenue of $5.1 million in the
      quarter one year ago.

     - Interactive marketing services revenue, derived from, which was acquired on August 2, 2007, totaled
      $2.2 million.
-- Paid services revenue, which comprises subscription, syndication,
 licensing and information services revenue, totaled $10.8 million for
 the first quarter of 2008, an increase of 14% over revenue of $9.4
 million for the first quarter of 2007.

     - Subscription revenue, excluding the impact of subscription
      revenue from Ratings Print Directory business,
      which was outsourced in the second quarter of 2007, was $8.0
      million, a decrease of 2% from the $8.1 million in the prior
     - Syndication, licensing and information services revenue totaled
      $2.7 million for the current quarter, an increase of 290% over
      revenue of $0.7 million in the quarter one year ago, primarily
      resulting from the acquisition of Bankers Financial Products
      Corp. in November, 2007.
-- Marketing services and paid services revenue in the first quarter
 of 2008 accounted for 43% and 57% of total revenue, respectively.
 This compares to a revenue mix of 35% for marketing services and 65%
 for paid services in the first quarter of 2007.
-- reported a 44% year-over-year increase in non-
 financial advertising revenue in the quarter. Non-financial
 advertising revenue represents 40% of total advertising revenue in
 the quarter, up from 32% in the first quarter of 2007.
-- As of March 31, 2008, cash, cash equivalents and restricted cash
 stood at $82.2 million. The Company has no bank debt. During the
 quarter, the company generated cash flow from operations of $4.9
 million, while free cash flow totaled $3.5 million.
-- The board of directors declared the Company's quarterly cash
 dividend, payable to all shareholders of record at the close of
 business on March 14, 2008. The cash dividend of $0.025 per share was
 paid on March 31, 2008.

Recent Company Highlights

-- made a strategic investment in Geezeo, a leader in Web-based personal finance management. The initial investment of $1.2 million represents an approximate 13% interest in Geezeo and the option to purchase the company based on an equity value of $12 million at any point over the next year. expects the partnership to drive traffic, revenue and user engagement, while further positioning the company as a superior destination for all things related to money.

-- expanded its content partnership with AOL to include a wider range of content from the Company's network of sites, including,, and Content will be featured on AOL Money & Finance,, and other areas of AOL, allowing to extend its audience reach, drive traffic and build brand awareness.

-- entered into a strategic content partnership with Internet Broadcasting, a leading local media network that builds powerful advertiser and publisher solutions, to showcase content from Editorial content from MainStreet will be highlighted across the IB Local Network.

-- entered into an agreement with to provide visitors to the BankingMyWay Web site with free access to the search engine. Adding free access to the best credit card offerings available online to is expected to attract traffic and drive revenue to the site.

-- created an online sweepstakes game for Outback restaurants that was available throughout the men's NCAA basketball tournament. Partnering with Coke Zero, customers in participating Outback restaurants could enter through a special code through a rub-off game piece. also created a sweepstakes game for Verizon that enabled their customers to win a weekly $25,000 grand prize through an online instant-win game.

-- entered into an agreement with Captivate Network to license its breaking news feeds to more than 8,300 Captivate Network screens in the elevators of premier office towers across North America. Streaming content from TV onto Captivate Network will allow the company to continue to build brand awareness for its network of Web sites.

-- The "Beat the Street" Stock Game was launched in April as the company's first network-wide programming initiative. leveraged the technology of to build the new game and to conduct an extensive internal promotion across,, and

-- entered into a partnership to power the Bankaholic Web site with its local banking rates for CDs, savings accounts, interest checking, money markets, mortgage/home equity and auto loans. The partnership is expected to drive advertising revenue and traffic to BankingMyWay and the rest of network of properties.

-- added financial horoscopes from KT, The Astrologer to its offerings. In addition to personal daily and monthly horoscopes, visitors to MainStreet can view weekly forecasts for the quarterly future performance Dow 30 companies. Other features include Sun Sign Financial Profiles, Spend/Save and Money Motivator Signs, a Money Matrix and a Money Matchmaker that allows you to compare your financial compatibility with both business and life partners. will conduct a conference call today April 29, 2008, at 11:00 a.m. EST to discuss these results. To participate in the call, dial 800.561.2813 (domestic) or 617.614.3529 (international). The passcode for the call is 56901294.

To access the Web cast of the call please visit: 65508&eventID=1826404 (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About, Inc. is a leading financial media company. It engages audiences on video and digital platforms through some of the Web's best known sites:,,,,, and Through this network, the company produces and distributes content in all areas where life and money intersect to inform, engage and activate one of the most affluent, influential audiences on the Web today.

                         THESTREET.COM, INC.

                                                        December 31,
                                         March 31, 2008      2007
                                         -------------- --------------
Current Assets:
Cash and cash equivalents                $  81,580,636  $  79,170,754
Accounts receivable, net of allowance
 for doubtful accounts of $242,807 at
 March 31, 2008 and December 31, 2007       11,008,707     11,133,957
Other receivables                            1,205,688      1,227,144
Deferred taxes                               5,800,000      5,800,000
Prepaid expenses and other current
 assets                                      1,886,277      1,652,608
                                         -------------- --------------
      Total current assets                 101,481,308     98,984,463

Property and equipment, net of
 accumulated depreciation and
 amortization of $18,054,276 at
 March 31, 2008 and $17,493,847 at
 December 31, 2007                           8,495,251      7,730,922
Other assets                                   269,463        328,117
Goodwill                                    40,001,665     40,245,413
Other intangibles, net                      18,023,815     18,368,792
Deferred taxes                              10,200,000     10,200,000
Restricted cash                                618,660        576,951
                                         -------------- --------------
      Total assets                       $ 179,090,162  $ 176,434,658
                                         ============== ==============

Current Liabilities:
Accounts payable                         $   2,022,173  $   2,189,259
Accrued expenses                             4,226,256      5,006,635
Deferred revenue                            17,476,951     16,240,008
Other current liabilities                      314,288        214,654
Current liabilities of discontinued
 operations                                    226,034        232,242
                                         -------------- --------------
      Total current liabilities             24,265,702     23,882,798
Other liabilities                               78,857         90,105
                                         -------------- --------------
      Total liabilities                     24,344,559     23,972,903
                                         -------------- --------------

Stockholders' Equity:
Preferred stock; $0.01 par value;
 10,000,000 shares authorized; 5,500
 shares issued and 5,500 shares
 outstanding at March 31, 2008 and
 December 31, 2007; the aggregate
 liquidation preference totals
 $55,000,000 as of March 31, 2008 and
 $55,096,424 as of December 31, 2007                55             55
Common stock; $0.01 par value;
 100,000,000 shares authorized;
 36,224,704 shares issued and
 30,445,107 shares outstanding at
 March 31, 2008, and 36,006,137
 shares issued and 30,254,137 shares
 outstanding at December 31, 2007              362,247        360,061
Additional paid-in capital                 270,913,050    270,752,308
Treasury stock at cost; 5,779,597
 shares at March 31, 2008 and 5,752,000
 shares at December 31, 2007                (9,359,200)    (9,033,471)
Accumulated deficit                       (107,170,549)  (109,617,198)
                                         -------------- --------------
      Total stockholders' equity           154,745,603    152,461,755
                                         -------------- --------------

      Total liabilities and
       stockholders' equity              $ 179,090,162  $ 176,434,658
                                         ============== ==============

Note: The Company has pledged cash as a security deposit for operating
 leases. Accordingly, this cash is classified as restricted cash, and
 our cash is classified in several places on the above balance sheet.

                                         March 31, 2008 December 31,
                                         -------------- --------------
Cash and cash equivalents                $  81,580,636  $  79,170,754
Noncurrent restricted cash                     618,660        576,951
                                         -------------- --------------
Total cash and cash equivalents and
 noncurrent restricted cash              $  82,199,296  $  79,747,705
                                         ============== ==============

                         THESTREET.COM, INC.

                                          For the Three Months Ended
                                                   March 31,
                                              2008           2007
                                         -------------- --------------
Net Revenue:
Paid services                            $  10,759,469  $   9,438,551
Marketing services                           8,188,516      5,069,013
                                         -------------- --------------
     Total net revenue                      18,947,985     14,507,564
                                         -------------- --------------

Operating expense:
Cost of services                             7,656,127      5,626,089
Sales and marketing                          3,763,595      3,329,740
General and administrative                   4,355,545      2,708,021
Depreciation and amortization                1,263,604        379,207
                                         -------------- --------------
     Total operating expense                17,038,871     12,043,057
                                         -------------- --------------
     Operating income                        1,909,114      2,464,507
Net interest income                            686,194        600,657
                                         -------------- --------------
  Income from continuing operations
   before income taxes                       2,595,308      3,065,164
Provision for Income taxes                     145,928         61,275
                                         -------------- --------------
  Income from continuing operations          2,449,380      3,003,889
                                         -------------- --------------
Discontinued operations:
Loss on disposal of discontinued
 operations                                     (2,731)        (1,385)
                                         -------------- --------------
Net income                                   2,446,649      3,002,504
Preferred stock cash dividends                  96,424              -
                                         -------------- --------------
Net income attributable to common
 stockholders                            $   2,350,225  $   3,002,504
                                         ============== ==============

Basic net income (loss) per share:
  Income from continuing operations      $        0.08  $        0.11
  Loss on disposal of discontinued
   operations                                    (0.00)         (0.00)
  Preferred stock dividends                      (0.00)             -
                                         -------------- --------------
Net income attributable to common
 stockholders                            $        0.08  $        0.11
                                         ============== ==============

Diluted net income (loss) per share:
  Income from continuing operations      $        0.07  $        0.11
  Loss on disposal of discontinued
   operations                                    (0.00)         (0.00)
  Preferred stock dividends                      (0.00)             -
                                         -------------- --------------
Net income attributable to common
 stockholders                            $        0.07  $        0.11
                                         ============== ==============

Weighted average basic shares
 outstanding                                30,392,980     27,944,360
                                         ============== ==============
Weighted average diluted shares
 outstanding                                34,615,221     28,383,061
                                         ============== ==============

To supplement the Company's financial statements presented in accordance with generally accepted accounting principles ("GAAP"), uses non-GAAP measures of certain components of financial performance, including "EBITDA" and "free cash flow". EBITDA is adjusted from results based on GAAP to exclude interest, taxes, depreciation and amortization. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes that the non-GAAP EBITDA results are an important indicator of the operational strength of the Company's business and provide an indication of the Company's ability to service debt and fund capital expenditures. EBITDA eliminates the uneven effect of considerable amounts of noncash depreciation of tangible assets and amortization of certain intangible assets that were recognized in business combinations. A limitation of this measure, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets and investment spending levels. This measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measure included in this press release has been reconciled to the nearest GAAP measure.

                                           For the Three Months
                                             Ended March 31,
                                          2008             2007
                                    ---------------- -----------------
EBITDA                              $     3,169,987  $      2,887,954
Add net interest income                     686,194           600,657
Less taxes                                 (145,928)         (106,900)
Less depreciation and amortization       (1,263,604)         (379,207)
                                    ---------------- -----------------
Net income                          $     2,446,649  $      3,002,504
                                    ================ =================

"Free cash flow" means net income plus non-cash expenses less changes in working capital and capital expenditures. believes that this non-GAAP financial measure is an important indicator of the Company's financial results because it gives investors a clear view of the Company's ability to generate cash. The presentation of this non-GAAP financial measure should be considered in addition to's GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

                                   For the Three Months Ended
                                            March 31,
                                   2008                  2007
                           -------------------- ----------------------
Free Cash Flow             $         3,476,627  $           2,786,012
Non-cash Expenses                   (2,045,814)            (1,008,870)
Changes in Working Capital            (374,505)               294,244
Capital Expenditures                 1,390,341                931,118
                           -------------------- ----------------------
Net Income                 $         2,446,649  $           3,002,504
                           ==================== ======================

Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings) that could cause actual results to differ.

SOURCE:, Inc., Inc.
Chaela Volpe, Investor Relations Manager
Phone: 212-321-5008

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