EDGR Edgar Online, Inc. (MM)

Revenues, XBRL Filings and EBITDA Increase NEW YORK, Feb. 3 /PRNewswire-FirstCall/ -- EDGAR(R) Online, Inc. (NASDAQ: EDGR) today announced that revenues for the quarter ended December 31, 2008 were $4.9 million, a 2% increase from the amount reported in the same quarter last year. Total revenues for the year ended December 31, 2008 increased $1.6 million to $19.5 million, compared to $17.9 million in the prior year. Adjusted EBITDA increased to $373,000 for the quarter ended December 31, 2008, compared to $149,000 for the same quarter last year. Adjusted EBITDA for the year ended December 31, 2008 increased $2.1 million to $914,000, compared to an EBITDA loss of ($1.2 million) in the prior year. EDGAR Online is a leader in the distribution of company data and public filings for equities, mutual funds and a variety of other publicly traded assets and a solution provider for the creation, management, and translation of XBRL financial reports. "For 2008, we posted record revenues and grew our top line by 9% during the worst economic climate our company has ever faced. We sold 18% more contracts than we did in 2007 while also absorbing record cancelations. We improved EBITDA by over $2 million by reducing G&A while continuing to invest significantly in new capacity and capabilities around our XBRL platform," said Philip Moyer, EDGAR Online President and CEO. "Our filings business continued its strong momentum. In 2008, we grew that business by over 210%. For the full year, we completed over 275 XBRL conversions including those for some of the largest companies in the US market. Our results demonstrate that we are committed to maintaining our leadership in XBRL while also delivering solid financial results in the face of a difficult and changing market. Our team is proud to post these results." Key 2008 accomplishments include: -- Launching several new versions of our Xcelerate XBRL conversion platform which ensured scalability and full compliance with the final SEC mandate adopting XBRL as a requisite standard; -- Converting the largest number of corporate reports into XBRL filings submitted to the SEC Voluntary Filing Program; -- Releasing http://www.tryxbrl.com/, the world's first public web site that allows users to view and analyze complete XBRL-tagged financial statements in conjunction with RR Donnelley; -- Partnering with Canada's largest news and information distribution service for professional communicators, CNW Group, to provide a XBRL solution in the Canadian market; and -- Revising and releasing a new and updated corporate web site and online registration system. Operating loss was ($408,000), or ($0.02) per share, for the three months ended December 31, 2008 compared to ($1.5 million), or ($0.06) per share, for the same quarter last year. The $1.1 million improvement in operating loss for the fourth quarter of 2008, as compared to the prior year, was primarily due to lower operating expenses in 2008 and severance costs in 2007. Net loss was ($517,000), or ($0.02) per share, for the three months ended December 31, 2008 compared to ($1.6 million), or ($0.06) per share, for the same quarter last year. Operating loss was ($2.2 million), or ($0.08) per share, for the year ended December 31, 2008 compared to ($7.1 million), or ($0.27) per share, in the prior year. Net loss was ($2.7 million), or ($0.10) per share, for the year ended December 31, 2008 compared to ($7.4 million), or ($0.28) per share, in the prior year. Deferred revenue increased 3% to $4.2 million at December 31, 2008, compared to $4.1 million at December 31, 2007. Deferred revenue represents amounts billed to customers that will be recognized as revenue in future quarters as the Company's subscription and data products are utilized. At December 31, 2008, cash, cash equivalents and short-term investments totaled $2.3 million, compared to $3.8 million at December 31, 2007. During the year ended December 31, 2008, the Company capitalized $747,000 of costs for the development of internal software related to the XBRL filings business, which are included in long term assets. KEY FINANCIAL METRICS (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2007 2008 2007 2008 ---- ---- ---- ---- Subscriptions $ 2,245 $ 2,040 $ 8,857 $ 8,455 Data and solutions 2,299 2,694 8,238 10,464 Advertising and e-commerce 228 116 813 544 --- --- --- --- Total Revenues $ 4,772 $ 4,850 $ 17,908 $ 19,463 Net loss $ (1,564) $ (517) $ (7,363) $ (2,659) Interest expense, net 92 109 231 456 -- --- --- --- Operating loss (1,472) (408) (7,132) (2,203) Severance costs 396 - 2,011 40 Stock compensation 552 305 1,594 1,207 Sales tax accrual 230 - 620 - Amortization and depreciation 443 476 1,753 1,870 --- --- ----- ----- Adjusted EBITDA $ 149 $ 373 $ (1,154) $ 914 Net loss per share $ (0.06) $ (0.02) $ (0.28) $ (0.10) Adjusted EBITDA per share $ 0.01 $ 0.01 $ (0.04) $ 0.03 In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes severance costs, a non-recurring charge related to a sales tax audit settlement and the non-cash charge for stock compensation expense. As required by the SEC, the Company provides the above reconciliation to net loss, which is the most directly comparable GAAP measure. The Company presents adjusted EBITDA as it is a common alternative measure of performance that is used by management as well as investors when analyzing the financial position and operating performance of the Company by excluding certain non-cash expenses, such as stock compensation expense, as well as non-operating items that are not indicative of its core operating results. Furthermore, this non-GAAP financial measure is one of the primary indicators management uses for planning and forecasting future periods. As adjusted EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net loss or any other GAAP measure. Because not all companies calculate adjusted EBITDA in the same manner, the Company's definition of adjusted EBITDA might not be consistent with that of other companies. EDGAR Online will hold its quarterly conference call to review results for the quarter ended December 31, 2008 today, Tuesday, February 3, 2009, at 5:00 p.m. EST. Philip Moyer, CEO and President, and John Ferrara, CFO, will host the call. To participate, please call (866) 334-3876 (toll-free for domestic callers), or (416) 849-4292 (international callers). The call will also be broadcast simultaneously over the Internet at: http://www.edgar-online.com/investor/. The teleconference replay will be available for approximately one week beginning at 7:00 p.m. EST on February 3, 2009 by calling (866) 245-6755 (domestic) or (416) 915-1035 (international), passcode 970930. About EDGAR Online, Inc. EDGAR Online, Inc. (NASDAQ:EDGR) is a leader in the distribution of company data and public filings for equities, mutual funds and a variety of other publicly traded assets. We deliver our information products directly to end users via online subscriptions and data licenses, and to redistributors who embed our content in their own and their clients' Web sites. Our proprietary automated systems allow for the rapid conversion of data and we are a pioneer and leader in the global financial reporting standard--eXtensible Business Reporting Language, otherwise known as XBRL. We use our automated processing platform and our expertise in XBRL to produce both datasets and tools and to assist organizations with the creation, management and distribution of XBRL financial reports. For more detailed information on all of our businesses or to contact us please visit our Web site at http://www.edgar-online.com/. "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events and/or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. EDGAR Online, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by EDGAR Online, Inc. with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) increase revenues, (ii) obtain profitability, (iii) obtain additional financing, (iv) changes in general economic and business conditions (including in the online business and financial information industry), (v) actions of our competitors, (vi) the extent to which we are able to develop new services and markets for our services, (vii) the time and expense involved in such development activities, (viii) risks in connection with acquisitions, (ix) the level of demand and market acceptance of our services, and (x) changes in our business strategies. EDGAR(R) is a federally registered trademark of the U.S. Securities and Exchange Commission. EDGAR Online is not affiliated with or approved by the U.S. Securities and Exchange Commission. FINANCIAL TABLES FOLLOW EDGAR Online, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, (unaudited) (unaudited) 2007 2008 2007 2008 Revenues: Subscriptions $2,245 $2,040 $8,857 $8,455 Data and solutions 2,299 2,694 8,238 10,464 Advertising and e-commerce 228 116 813 544 Total revenues 4,772 4,850 17,908 19,463 Total cost of sales 797 916 3,019 3,140 Gross profit 3,975 3,934 14,889 16,323 Sales and marketing 1,193 1,064 4,924 4,545 Product development 935 747 3,710 3,894 General and administrative 2,480 2,055 9,623 8,177 Severance costs 396 - 2,011 40 Amortization and depreciation 443 476 1,753 1,870 Total operating expenses 5,447 4,342 22,021 18,526 Operating loss (1,472) (408) (7,132) (2,203) Interest expense, net (92) (109) (231) (456) Net loss $(1,564) $(517) $(7,363) $(2,659) Weighted average shares outstanding - basic and diluted 26,207 26,499 26,023 26,387 Net loss per share - basic and diluted $(0.06) $(0.02) $(0.28) $(0.10) EDGAR Online, Inc. Condensed Consolidated Balance Sheets (in thousands) December 31, December 31, 2007* 2008 (unaudited) Assets Cash, cash equivalents and short-term investments $3,778 $2,282 Accounts receivable, net 2,799 2,570 Other assets 233 254 Total current assets 6,810 5,106 Property and equipment, net 1,192 1,100 Goodwill 2,189 2,189 Intangible assets, net 4,198 2,952 Other assets 1,232 1,659 Total assets $15,621 $13,006 Liabilities and Stockholders' Equity Accounts payable and accrued expenses $3,422 $2,407 Deferred revenues 4,116 4,239 Current portion of long-term debt 125 438 Total current liabilities 7,663 7,084 Long-term debt 2,281 1,885 Other long-term liabilities 637 333 Total liabilities 10,581 9,302 Stockholders' equity: Common stock 274 276 Treasury stock (1,959) (1,828) Additional paid-in capital 71,902 73,092 Accumulated deficit (65,177) (67,836) Total stockholders' equity 5,040 3,704 Total liabilities and stockholders' equity $15,621 $13,006 * Derived from the Company's audited December 31, 2007 financial statements. DATASOURCE: EDGAR Online, Inc. CONTACT: John C. Ferrara, Chief Financial Officer, +1-212-457-8200, Web Site: http://www.edgar-online.com/

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