ROCKVILLE, Md., Nov. 10,
2011 /PRNewswire/ -- EDGAR® Online, Inc. (NASDAQ: EDGR), a
leading global provider of XBRL (eXtensible Business Reporting
Language) data, software and services, today announced unaudited
financial results for the third quarter of 2011 and the nine months
ended September 30, 2011.
Highlights include:
- XBRL filings revenues of $ 4.0
million, representing growth of 102 percent over the third
quarter of 2010
- Processing of 874 XBRL SEC filings in the quarter
- Data and subscriptions revenues consistent with prior quarter
results
Total revenues were $7.6 million
for the quarter ended September 30,
2011 compared to $5.2 million
for the quarter ended September 30,
2010. For the nine months ended September 30, 2011, total revenues were
$20.1 million compared to
$14.5 million for the corresponding
period in 2010. Adjusted EBITDA was a loss of ($1.0 million) for the quarter ended September 30, 2011 compared to ($0.9 million) for the quarter ended September 30, 2010. For the nine months ended
September 30, 2011, adjusted EBITDA
was a loss of ($4.5 million) compared
to ($2.1 million) for the
corresponding period in 2010.
XBRL filings revenues were $4.0
million for the quarter ended September 30, 2011, a 102 percent increase from
the same quarter last year and a 57 percent increase from the prior
quarter. For the nine months ended September
30, 2011 XBRL filings revenues were $8.9 million, which is a 91 percent increase over
the corresponding period in 2010. Revenues from data and solutions
were $1.9 million and $5.6 million, respectively, for the quarter and
nine months ended September 30, 2011,
consistent with revenues from the quarter and nine months ended
September 30, 2010. Revenues from
subscriptions were $1.2 million and
$3.8 million respectively, for the
quarter and nine months ended September 30,
2011, representing decreases of 6 percent and 10 percent,
respectively, from the quarter and nine months ended September 30, 2010
"For a third straight quarter, EDGAR Online achieved record
total revenues reflecting continued momentum in the filings
business as all US public companies are now required to file or
furnish XBRL financial statements," said Robert J. Farrell, EDGAR Online president and
CEO. "Our dedicated employees and partners have facilitated a
strong revenue performance and continue to deliver high quality
products and services to our clients."
Operating loss was ($2.7 million)
for the quarter ended September 30,
2011 compared to ($1.7
million) for the same quarter last year. This change was
primarily attributable to the continued expansion of infrastructure
and software development required to position the Company for
future growth in the XBRL filings and data markets.
Deferred revenues were $4.8
million at September 30, 2011
compared to $4.5 million at
December 31, 2010. Deferred revenues represent amounts billed
to customers that will be recognized as revenue in future quarters
as the Company's offerings are utilized. During the quarter ended
September 30, 2011, the Company
capitalized $0.2 million of costs for
the development of internal software related to the XBRL filings
business, which are included in property and equipment.
At September 30, 2011, cash, cash
equivalents and short-term investments totaled $6.9 million compared to $11.0 million at December 31, 2010.
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KEY FINANCIAL METRICS
(In thousands)
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Three Months Ended
September 30,
(unaudited)
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Nine Months Ended
September 30,
(unaudited)
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2010
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2011
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2010
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2011
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Revenue:
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XBRL filings
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$
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1,959
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$
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3,956
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$
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4,642
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$
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8,872
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XBRL software
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—
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570
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—
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1,843
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Data and
solutions
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1,892
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1,887
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5,703
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5,643
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Subscriptions
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1,307
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1,226
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4,199
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3,769
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Total
Revenues
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$
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5,158
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$
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7,639
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$
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14,544
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$
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20,127
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Cost of revenues
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$
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(2,244)
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$
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(3,459)
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$
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(5,706)
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$
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(9,297)
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Operating
expenses
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(4,613)
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(6,851)
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(12,661)
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(19,877)
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Interest, net
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(65)
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(71)
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(221)
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(154)
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Net loss
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(1,764)
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(2,742)
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(4,044)
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(9,201)
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Interest, net
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65
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71
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221
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154
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Operating loss
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(1,699)
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(2,671)
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(3,823)
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(9,047)
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Severance costs
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211
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341
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438
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341
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Stock
compensation
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284
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687
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664
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2,725
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Capitalized software
development
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(512)
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(189)
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(1,597)
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(1,077)
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Depreciation and
amortization
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801
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792
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2,189
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2,519
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Adjusted
EBITDA
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$
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(915)
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$
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(1,040)
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$
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(2,129)
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$
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(4,539)
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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 and
includes capitalized software development costs incurred during the
period. As required by the SEC, the Company provides the above
reconciliation to net income (loss), which is the most directly
comparable GAAP financial 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
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. Since adjusted EBITDA is a non-GAAP financial
measure, it should not be considered in isolation or as a
substitute for net income (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.
Business Outlook
Based upon the dynamics and anticipated market growth for XBRL
related products and services, EDGAR Online continues to
target annual revenue growth in excess of 25 percent over the next
three years. Despite the anticipated revenue growth, our operations
continue to be cash flow negative and as such our existing capital
resources may not be sufficient for funding working capital,
capital expenditures and debt obligations for the next 12
months. We intend to implement certain operational measures,
including operating expense reductions, the launch of a new, higher
margin software product and initiatives to drive higher margins
from our XBRL filings business in order to preserve cash and move
our operations to become cash flow positive.
Conference Call
EDGAR Online will hold its quarterly conference call to review
results for the quarter ended September 30,
2011 on Thursday November 10,
2011, at 8:00 a.m. EST.
Robert Farrell, president and CEO,
and David Price, CFO and COO, will
host the call. To participate, please call
(877) 407-9205 (toll-free for domestic callers), or
(201) 689-8054 (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 three months beginning at
7:00 p.m. EST on November 10, 2011 by calling (877) 660-6853
(domestic) or (201) 612-7415. The account number is 286 and
the conference ID is 382125.
About EDGAR Online
EDGAR Online (NASDAQ: EDGR) is a leading global provider of XBRL
data, software and services solutions that improve the flow of
business information. The company's integrated portfolio of
products and services for global enterprises help customers create,
deliver, analyze and use quality information. Thousands use the
company's solutions, including U.S. public companies, mutual funds,
leading financial analysts and institutional investors, as well as
global regulators such as the FDIC, Banque de France and the U.S. Securities and Exchange
Commission. The company delivers its solutions, including UBmatrix®
XBRL software solutions, through an extensive network of partners,
including LexisNexis®, NASDAQ OMX, Oracle, PR Newswire, RR
Donnelley and SAP. To learn more about EDGAR Online, visit
www.edgar-online.com.
This press release may contain forward-looking
statements. These statements relate to future events or to
future financial performance and may include, without limitation,
statements regarding our future growth prospects, future demand for
our XBRL products/services and future innovations in our data and
solutions and subscriptions businesses. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results, levels of activity,
performance, or achievements to be materially different from any
future results, levels of activity, performance, or achievements
expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of
words such as "may," "could," "expect," "intend," "plan," "seek,"
"anticipate," "believe," "estimate," "predict," "potential," or
"continue" or the negative of these terms or other comparable
terminology. You should not place undue reliance on
forward-looking statements because they involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond our control and that could materially affect actual results,
levels of activity, performance, or our growth strategy. For
further information about the factors that could affect EDGAR
Online's future results, please refer to our filings with the
Securities and Exchange Commission. We assume no obligation
to publicly update or revise these forward-looking statements for
any reason, whether as a result of new information, future events,
or otherwise.
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 DATA)
(UNAUDITED)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2010
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2011
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2010
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2011
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Revenues:
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XBRL filings
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1,959
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3,956
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4,642
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8,872
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XBRL software
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—
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570
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—
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1,843
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Data and
solutions
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1,892
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1,887
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5,703
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5,643
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Subscriptions
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1,307
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1,226
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4,199
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3,769
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Total revenues
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5,158
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7,639
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14,544
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20,127
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Cost of revenues
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2,244
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3,459
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5,706
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9,297
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Gross profit
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2,914
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4,180
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8,838
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10,830
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Operating expenses:
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Sales and
marketing
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527
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855
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1,963
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2,567
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Product
development
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440
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1,399
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1,272
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4,001
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General and
administrative
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2,634
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3,464
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6,799
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10,449
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Severance costs
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211
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341
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438
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341
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Amortization and
depreciation
|
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801
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792
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2,189
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2,519
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4,613
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6,851
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12,661
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19,877
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Loss from
operations
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(1,699)
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(2,671)
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(3,823)
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(9,047)
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Interest and other, net
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(65)
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(71)
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|
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(221)
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|
|
(154)
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|
|
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|
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Net loss
|
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(1,764)
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|
|
(2,742)
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(4,044)
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|
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(9,201)
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Dividends on preferred stock
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(346)
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(764)
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(921)
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(1,926)
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Accretion on preferred stock
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(19)
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(176)
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(47)
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(443)
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Net loss to common shareholders
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$
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(2,129)
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$
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(3,682)
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$
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(5,012)
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$
|
(11,570)
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Weighted average shares outstanding—basic
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|
26,972
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|
|
30,955
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|
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26,929
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|
30,127
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|
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Weighted average shares outstanding—diluted
|
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26,972
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|
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30,955
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|
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26,929
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30,127
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|
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|
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Net loss per share—basic
|
$
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(0.08)
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$
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(0.12)
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$
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(0.19)
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$
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(0.38)
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Net loss per share—diluted
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$
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(0.08)
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$
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(0.12)
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$
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(0.19)
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$
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(0.38)
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EDGAR ONLINE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
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December 31,
2010*
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September 30,
2011
(unaudited)
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Assets
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Cash, cash equivalents and short-term
investments
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$
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10,991
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$
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6,911
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Accounts receivable, net
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3,988
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5,026
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Other assets
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218
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647
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Total current
assets
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15,197
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12,584
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Property and equipment, net
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3,863
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3,769
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Goodwill
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7,665
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7,328
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Intangible assets, net
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3,066
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|
|
2,563
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Other assets
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458
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|
|
454
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Total assets
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$
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30,249
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$
|
26,698
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Liabilities and Stockholders' Equity
(Deficit)
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Accounts payable and accrued expenses
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$
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3,879
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$
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5,826
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Deferred revenues
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|
4,468
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|
|
4,817
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Current portion of long-term debt
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1,437
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|
667
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Total current
liabilities
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|
9,784
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|
|
11,310
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Long-term debt
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—
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|
|
1,333
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Other long-term liabilities
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|
|
233
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|
|
298
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|
|
|
|
|
|
|
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|
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Total liabilities
|
|
|
10,017
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|
|
12,941
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Redeemable preferred stock
|
|
|
19,431
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|
|
21,801
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Common stockholders' equity:
|
|
|
|
|
|
|
|
|
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Common stock
|
|
|
294
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|
|
355
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Treasury stock
|
|
|
(1,679)
|
|
|
(606)
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|
|
|
Additional paid-in
capital
|
|
|
78,201
|
|
|
77,423
|
|
|
|
Accumulated
deficit
|
|
|
(76,015)
|
|
|
(85,216)
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity (deficit)
|
|
|
801
|
|
|
(8,044)
|
|
|
|
|
|
|
|
Total liabilities, redeemable preferred stock
and common stockholders' equity
|
|
$
|
30,249
|
|
$
|
26,698
|
|
|
|
|
|
|
|
|
* Derived from the company's audited
December 31, 2010 financial statements
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SOURCE EDGAR Online, Inc.