United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer products and services over the Internet, today reported financial results for its first quarter ended March 31, 2012.
“Consolidated adjusted OIBDA exceeded the high end of our guidance range for the quarter, and consolidated revenues were near the high end of our guidance range,” said Mark R. Goldston, Chairman, President and Chief Executive Officer of United Online. “Highlights of the quarter included the FTD segment’s fifth consecutive quarter of year-over-year growth in revenues and segment adjusted OIBDA, including a modest year-over-year increase in consumer orders for the 14-day selling period leading up to and including Valentine’s Day, and the launch of our NetZero 4G Mobile Broadband service.”
“On March 19, 2012, we launched our NetZero 4G Mobile Broadband service,” Goldston added. “Plans start at $9.95 per month, with no contracts, commitments or activation fees, and our customers can even try our service for up to one year for free with the purchase of an access device. The launch was widely reported in the media, and new customer sign-ups thus far have been in line with our expectations."
Added Neil P. Edwards, Executive Vice President and Chief Financial Officer, “FTD revenues were $176.4 million for the quarter and segment adjusted OIBDA was $25.5 million, representing increases of 11% and 31%, respectively, from the first quarter of 2011. In 2011, the U.K. Mother’s Day fell in the first week of April rather than in March, resulting in a shift of approximately $14 million in revenues and approximately $3 million in adjusted OIBDA into the second quarter of 2011. Adjusting for this timing difference, FTD revenues and adjusted OIBDA would have increased by 2% and 14%, respectively, compared to the year-ago quarter.”Summary Results for First Quarter Ended March 31, 2012: The following table summarizes key financial results for the first quarter ended March 31, 2012:
|(in millions, except per share amounts and percentages)|
|Q1 2012||Q1 2011||% Change|
|Content & Media revenues||39.4||48.3||(18||%)|
|GAAP operating income||$||21.3||$||22.6||(6||%)|
|Adjusted OIBDA (1)||$||39.2||$||44.2||(11||%)|
|GAAP net income attributable to common stockholders||$||11.2||$||11.6||(4||%)|
|GAAP diluted net income per common share||$||0.12||$||0.13||(8||%)|
|Adjusted net income attributable to common stockholders (2)||$||19.2||$||22.1||(13||%)|
|Adjusted diluted net income per common share (2)||$||0.21||$||0.25||(16||%)|
- Consolidated revenues were $242.3 million, a slight increase from the first quarter of 2011. Adjusting for the shift of approximately $14 million of revenues into the second quarter of 2011 related to the timing of the U.K. Mother’s Day, consolidated revenues in the first quarter of 2012 would have decreased by $13.2 million, or 5%, compared to the year-ago quarter.
- GAAP operating income was $21.3 million, a decrease of 6% versus the year-ago quarter.
- Consolidated adjusted OIBDA (1) was $39.2 million, a decrease of 11% versus the year-ago quarter. Adjusting for the shift of approximately $3 million of adjusted OIBDA into the second quarter of 2011 related to the timing of the U.K. Mother’s Day, consolidated adjusted OIBDA in the first quarter of 2012 would have decreased by approximately $8.0 million, or 17%, compared to the year-ago quarter.
- Interest expense was $3.5 million, down 31% from the year-ago quarter, driven by reduced interest rates resulting from the June 2011 refinancing of FTD’s credit facility.
- The effective income tax rate was 37%, versus 38% in the year-ago quarter.
- GAAP diluted net income per common share was $0.12, down 8% compared to the year-ago quarter.
- Adjusted diluted net income per common share (2) was $0.21, down 16% compared to the year-ago quarter.