ValueClick, Inc. (NASDAQ:VCLK) today reported financial results for the third quarter ended September 30, 2012. Revenue, Adjusted-EBITDA 1 and net income per diluted share figures exclude the contribution of Search123, which was sold by the Company effective September 30, 2012. The results of Search123 are reported as discontinued operations in the Company's consolidated statements of operations.
"We delivered another strong quarter of financial results, while further integrating our core businesses to enhance the long-term growth profile of the Company," said James R. Zarley, chief executive officer of ValueClick. "Our integration initiatives -- including the launch of new products that leverage expertise and technology across the organization -- are rapidly transforming ValueClick into the 'go-to' provider of digital marketing services for large advertisers."
Financial highlights from the quarter include:
- Revenue of $160.9 million, up 26 percent from the third quarter of 2011 (Q3 2011);
- Adjusted-EBITDA of $51.2 million, up 35 percent from Q3 2011;
- Adjusted-EBITDA margin of 31.8 percent versus 29.6 percent in Q3 2011;
- Non-GAAP diluted net income 2 of $0.39 per common share versus $0.52 in Q3 2011 (Q3 2011 included a $0.24 positive impact from favorable tax adjustments);
- GAAP diluted net income from continuing operations of $0.27 per common share versus $0.44 in Q3 2011 (Q3 2011 included a $0.24 positive impact from favorable tax adjustments); and
- Free cash flow (defined as cash from operations less capital expenditures) for the nine-month period ended September 30, 2012 of $91.8 million versus $55.9 million for the nine-month period ended September 30, 2011.
_____________________________1 Adjusted-EBITDA is defined as GAAP (Generally Accepted Accounting Principles) income from continuing operations before interest, income taxes, depreciation, amortization, stock-based compensation, and acquisition-related costs. Please see the attached schedule for a reconciliation of GAAP net income to adjusted-EBITDA, and a discussion of why the Company believes adjusted-EBITDA is a useful financial measure to investors and how Company management uses this financial measure. 2 Non-GAAP net income is defined as GAAP income from continuing operations before the impact of stock-based compensation and amortization of intangible assets. Please see the attached schedule for a reconciliation of GAAP income from continuing operations to non-GAAP diluted net income per common share. The following table compares the Company's previously-issued third quarter guidance for revenue, Adjusted-EBITDA and non-GAAP diluted net income per common share to the pro forma results if Search123 was not treated as a discontinued operation for the quarter.
|Q3 2012 (in millions, except per share data):||Reported/ Continuing Operations||Search123/ Discontinued Operations||Pro Forma Combined||Previously-Issued Guidance|
|Non-GAAP diluted net income per common share||$0.39||$0.01||$0.40||$0.36-$0.37|
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