NEW YORK, May 5 /PRNewswire-FirstCall/ -- EDGAR® Online,
Inc. (Nasdaq: EDGR), a leader in the creation of XBRL financial
reports and the distribution of company data and public filings for
equities, mutual funds and a variety of other publicly traded
assets, today reported unaudited financial results for the first
quarter of 2010.
Total revenues for the quarter ended March 31, 2010 were $4.4
million as compared to $4.2
million for the quarter ended March
31, 2009. Revenues from XBRL filings, which are included in
total revenue, were $1.0 million for
the quarter ended March 31, 2010, a
293% increase over the quarter ended March
31, 2009. The increase in revenue from XBRL filings was
offset by decreases in revenues from data and solutions and
subscriptions for this period.
In addition, in the first quarter of 2010, the company
successfully completed an offering of its convertible Series B
Preferred Stock to Bain Capital Ventures, LLC, a subsidiary of Bain
Capital, for $12 million before fees.
The proceeds from this offering significantly improved the
company's liquidity and provided funds that will be invested in
expanding its XBRL filings and data businesses.
Philip Moyer, EDGAR Online
President and CEO, stated, "In the first quarter of 2010, we
experienced marginal growth but recorded some important strategic
accomplishments. We completed our capital raise. We announced
a broad new XBRL partnership with PR Newswire. We delivered more
XBRL Form 10-K filings without an amendment than any other
provider. We expect the SEC's XBRL mandate to grow the XBRL filings
market from 500 companies to 10,000 companies in fourteen months.
We believe the resulting demand for XBRL filing services and XBRL
data products will continue to increase. However, competition and
the costs associated with competing in this business are also
increasing. In the first quarter of 2010, we increased our
spending as we started a multi-year process of growing our capacity
ahead of this opportunity. As a result, our cash burn has gone up
and will continue to go up in the upcoming quarters."
Mr. Moyer went on to say, "Our legacy EDGAR based subscription
business is continuing to decline as the impact of cancelations and
tighter spending in the financial information market is taking its
toll on that business. While we continue to support this business,
we don't expect this trend to change. Our data and solutions
business also experienced a slight decline in revenue; however, we
continue to see positive demand and expect future growth from the
new sales we are seeing in that business as the opportunity for
XBRL continues to unfold."
First Quarter 2010 Operating Results and Highlights
Total revenues in the first quarter of 2010 decreased by
$0.8 million compared to revenues of
$5.1 million in the fourth quarter of
2009. The decrease in revenue is principally attributable to a
decrease in revenue from XBRL filings of $0.7 million. This is primarily due to a decrease
in trial filings from companies that are not yet required to file
under the SEC mandate as these companies typically focus on their
annual report and proxy statement during the first quarter of the
year. In addition, we did not record any fixed fees in the first
quarter of 2010 as our relationship with R.R. Donnelley & Sons became
non-exclusive.
Cost of revenues was $1.4 million
in the first quarter of 2010 as compared to $1.2 million in each of the first and fourth
quarters of 2009. Cost of revenues is primarily comprised of
payroll related costs and fees paid to acquire data. The increase
of $0.3 million over the first and
fourth quarter of 2009 is principally attributable to additional
payroll and infrastructure related costs as we grow our XBRL
filings business.
Operating expenses of $3.8 million
in the first quarter of 2010 decreased by $0.3 million from $4.1
million in the first quarter of 2009 principally as a result
of a decrease in sales, development and general and administrative
expenses of $0.6 million, offset by
an increase in severance, depreciation and amortization costs of
$0.3 million. Operating expenses
increased by $0.1 million from
$3.7 million in the fourth quarter of
2009 due to an increase in severance, depreciation and amortization
costs of $0.3 million which was
partially offset by a decrease in sales, development and general
and administrative expenses of $0.2
million.
As a result of the fluctuations noted above, operating loss was
($0.9 million) for the quarter ended
March 31, 2010 compared to an
operating loss of ($1.0 million) for
the quarter ended March 31, 2009 and
operating income of $0.3 million in
the fourth quarter of 2009.
Cash and short term investments were $12.3 million at March 31,
2010 as compared to $2.3
million at December 31, 2009
principally as a result of $11.2
million of net proceeds from the convertible Series B
Preferred Stock offering, offset by cash used for operations of
($0.3 million), cash used for
investing activities of ($0.8
million) and debt repayments of ($0.1
million).
At March 31, 2010, the company has
available a $2.5 million revolving
credit facility; no borrowings are outstanding under this facility.
The company had outstanding debt of $1.8
million under a term loan which matures in March, 2011.
Deferred revenue was $3.2 million
at March 31, 2010 compared to
$3.4 million at December 31, 2009. Deferred revenue
represents amounts billed to customers that will be recognized as
revenue in future quarters as the company's products and services
are utilized.
During the quarter ended March 31,
2010, the company capitalized $490,000 of costs for the development of internal
software related to the XBRL filings business, and purchased
equipment totaling $355,000, all of
which are included in property and equipment.
KEY FINANCIAL METRICS
|
|
(in thousands, except per share
amounts)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
(unaudited)
|
|
|
2009
|
2010
|
|
Subscriptions
|
$1,830
|
$1,493
|
|
Data and solutions
|
2,163
|
1,923
|
|
XBRL filings
|
242
|
950
|
|
Total Revenues
|
4,235
|
4,366
|
|
|
|
|
|
Cost of Revenues
|
1,151
|
1,430
|
|
Operating expenses
|
4,071
|
3,815
|
|
Interest, net
|
110
|
72
|
|
Net loss
|
(1,097)
|
(951)
|
|
Interest expense
|
110
|
72
|
|
Operating loss
|
(987)
|
(879)
|
|
Severance costs
|
57
|
227
|
|
Stock compensation
|
465
|
196
|
|
Amortization and depreciation
|
497
|
664
|
|
Adjusted EBITDA
|
$ 32
|
$ 208
|
|
|
|
|
In addition to disclosing financial results prepared in
accordance with GAAP, the company discloses information regarding
adjusted EBITDA. EBITDA is a non-GAAP financial measure defined as
earnings before interest, taxes, depreciation and amortization. As
the company defines it, adjusted EBITDA also excludes severance
costs and the non-cash charge for stock compensation expense.
As required by the Securities and Exchange Commission, 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 March 31,
2010 today, Wednesday, May 5,
2010, at 5:00 p.m. EDT.
Philip Moyer, CEO and President, and
Ronald Fetzer, Interim CFO, will
host the call. To participate, please dial (877) 407-8031
(toll-free for domestic callers), or (201) 689-8031 (international
callers). The call will also be broadcast simultaneously and
archived on the Internet at: http://www.edgar-online.com/investor/.
The teleconference replay will be available for approximately one
week beginning May 5, 2010 after
7:00 p.m. EDT through May 12, 2010. To access the replay, dial
(877) 660-6853 (domestic) or (201) 612-7415 (international).
The account number is 286 and the conference ID is
349561.
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
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 and include, without limitation,
statements regarding our future growth prospects, future demand for
our XBRL business and future innovations in our data and solutions
and subscriptions business. 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® 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
March
31,
(unaudited)
|
|
|
2009
|
|
2010
|
|
Revenues:
|
|
|
|
|
Subscriptions
|
$
1,830
|
|
$
1,493
|
|
Data and
solutions
|
2,163
|
|
1,923
|
|
XBRL
filings
|
242
|
|
950
|
|
Total revenues
|
4,235
|
|
4,366
|
|
|
|
|
|
|
Total cost of
sales
|
1,151
|
|
1,430
|
|
|
|
|
|
|
Gross profit
|
3,084
|
|
2,936
|
|
|
|
|
|
|
Sales and
marketing
|
929
|
|
704
|
|
Product
development
|
558
|
|
409
|
|
General and
administrative
|
2,030
|
|
1,811
|
|
Severance costs
|
57
|
|
227
|
|
Amortization and
depreciation
|
497
|
|
664
|
|
Total operating expenses
|
4,071
|
|
3,815
|
|
|
|
|
|
|
Operating
loss
|
(987)
|
|
(879)
|
|
|
|
|
|
|
Interest expense, net
|
(110)
|
|
(72)
|
|
Net
loss
|
(1,097)
|
|
(951)
|
|
Dividend on
preferred stock
|
-
|
|
(236)
|
|
Accretion of
beneficial conversion feature
|
-
|
|
(2)
|
|
Net loss to common
shareholders
|
$
(1,097)
|
|
$
(1,189)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
- basic and
diluted
|
26,659
|
|
26,874
|
|
Net loss per common share – basic and
diluted
|
$
(0.04)
|
|
$
(0.04)
|
|
|
|
|
|
EDGAR Online,
Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
|
|
|
|
|
|
December
31,
2009*
|
March
31,
2010
|
|
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term
investments
|
|
$
2,323
|
$
12,265
|
|
Accounts receivable, net
|
|
2,360
|
2,053
|
|
Other assets
|
|
248
|
135
|
|
Total current
assets
|
|
4,931
|
14,453
|
|
|
|
|
|
|
Property and equipment, net
|
|
2,726
|
3,218
|
|
Goodwill
|
|
2,189
|
2,189
|
|
Intangible assets, net
|
|
1,706
|
1,394
|
|
Other assets
|
|
631
|
576
|
|
Total assets
|
|
$12,183
|
$21,830
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
2,546
|
$
1,998
|
|
Deferred revenues
|
|
3,370
|
3,183
|
|
Current portion of long-term
debt
|
|
500
|
1,789
|
|
Total current
liabilities
|
|
6,416
|
6,970
|
|
|
|
|
|
|
Long-term debt
|
|
1,408
|
-
|
|
Other long-term liabilities
|
|
250
|
246
|
|
Total
liabilities
|
|
8,074
|
7,216
|
|
|
|
|
|
|
Redeemable preferred stock
|
|
-
|
12,236
|
|
Common stockholders'
equity:
|
|
|
|
|
Common stock
|
|
279
|
279
|
|
Treasury stock
|
|
(1,731)
|
(1,724)
|
|
Additional paid-in
capital
|
|
74,347
|
73,560
|
|
Accumulated deficit
|
|
(68,786)
|
(69,737)
|
|
Total common
stockholders' equity
|
|
4,109
|
2,378
|
|
|
|
|
|
|
Total liabilities, redeemable
preferred stock and common stockholders' equity
|
|
$12,183
|
$21,830
|
|
* Derived from the company's audited
December 31, 2009 financial statements.
|
|
|
|
|
|
SOURCE EDGAR Online, Inc.