This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ValueClick Announces Third Quarter 2012 Results

Stocks in this article: VCLK

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
Revenue   $160.9   $7.1   $168.1   $164-$169
Adjusted-EBITDA   $51.2   $1.9   $53.1   $49-$51
Non-GAAP diluted net income per common share   $0.39   $0.01   $0.40   $0.36-$0.37
       

Share Repurchase Update

During the third quarter, ValueClick repurchased approximately 590,000 shares of the Company's outstanding common stock for approximately $9.2 million. In the nine-month period ended September 30, ValueClick repurchased approximately 6.5 million shares of the Company's outstanding common stock for approximately $108.7 million. As of today, ValueClick's share repurchase program authorization is $91.3 million. The Company anticipates funding the program through free cash flow generation and its credit facility.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs