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EXHIBIT 99.1
ICG Announces Second Quarter Financial Results
WAYNE, Pa., July 28, 2011 (GLOBE NEWSWIRE) -- ICG Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the quarter ended June 30, 2011.
"We are pleased to report strong second quarter results, led by the performance of our core consolidated companies," said Walter Buckley, ICG's Chief Executive Officer. "With our proven leadership team driving the continued growth of these companies, ICG is well positioned to enhance shareholder value."
GAAP Financial Results
ICG's GAAP revenue increased to $35.3 million for the quarter ended June 30, 2011, up from $26.7 million in the comparable 2010 period. GAAP net loss for the quarter ended June 30, 2011 was $(3.2) million, or $(0.09) per diluted share, compared to net income of $15.8 million, or $0.43 per diluted share, in the comparable 2010 period. Results for both quarters include non-recurring gains that are detailed later in this release.
ICG's corporate cash and cash equivalents were $114.2 million at June 30, 2011, and the value of ICG's holdings in GoIndustry-DoveBid (LSE.AIM:GOI) was $4.3 million.
Core Consolidated Companies
Core consolidated revenue totaled $35.3 million in the second quarter of 2011, an increase of 29% from the corresponding 2010 period. Core consolidated EBITDA totaled $3.8 million for the second quarter of 2011, as compared to $1.7 million in the corresponding 2010 period.
Core consolidated revenue totaled $69.3 million for the first half of 2011, an increase of 29% from the corresponding 2010 period. Core consolidated EBITDA totaled $7.7 million for the first half of 2011, as compared to $3.6 million in the corresponding 2010 period.
ICG Commerce reported $30.5 million of revenue for the second quarter of 2011, representing an increase of 30% over the comparable 2010 period. ICG Commerce's EBITDA, excluding stock-based compensation and unusual items, for the quarter ended June 30, 2011 increased to $5.0 million, up from $2.6 million in the comparable 2010 period. During the quarter, ICG Commerce signed a multi-year, multi-million dollar contract with a company in the consumer packaged goods sector. ICG Commerce also acquired Neuwing Energy Ventures, which brings deep procurement-related expertise to energy and renewable energy initiatives, allowing ICG Commerce to impact a broader scope of spend and better support clients' sustainability objectives.
GovDelivery and InvestorForce revenue growth was 28% and 23%, respectively, for the second quarter of 2011 compared to the second quarter of 2010.
2011 Guidance
ICG reaffirms its 2011 guidance and continues to expect core consolidated revenue for 2011 to range from $142 million to $148 million and core consolidated EBITDA to range from $16 million to $18 million.
For information related to ICG's core equity companies, Channel Intelligence, Freeborders, StarCite and WhiteFence, please refer to the supplemental schedule on our website, as well as the slide presentation that will accompany today's earnings results webcast. See below for further details regarding the webcast.
Please see ICG's website at www.icg.com for more information on ICG, its companies and its second quarter 2011 results.
ICG will host a webcast at 10:00 a.m. ET today to discuss its financial results. As part of the live webcast for this call, ICG will post a slide presentation to accompany the prepared remarks. To access the webcast, go to www.icg.com and click on the investor relations tab. Then click the link for the second quarter conference call webcast. Please log on to the website approximately ten minutes prior to the call to register and download and install any necessary audio software. The conference call is also accessible through listen-only mode 866-825-1709. The international dial-in number is 617-213-8060. The pass code is 86472186.
For those unable to participate in the conference call, a replay will be available from July 28, 2011 at 1:00 p.m. ET until August 4, 2011 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 58735184. The replay and slide presentation also can be accessed in the investor relations section of the ICG website at www.icg.com/investors/events-and-presentations/.
About ICG
ICG (Nasdaq:ICGE) identifies, capitalizes and grows companies in the SaaS and tech-enabled BPO sectors. These companies transform the way business is done by enabling enterprises to increase efficiencies and improve critical processes. ICG leverages its unique expertise to carefully identify companies based on their potential to become market changers and market leaders. ICG focuses on building successful businesses in the SaaS and tech-enabled BPO sectors by providing them with access to management expertise and strategic and operational guidance, as well as growth capital.
The ICG logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7794
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties, including, but not limited to, risks associated with the effect of economic conditions generally, capital spending by our companies' customers, our companies' ability to compete successfully against their respective competitors, our companies' ability to timely and effectively respond to technological developments, our and our companies' collective ability to retain key personnel, our ability to have continued access to capital and to deploy capital effectively and on acceptable terms, our ability to maximize value in connection with divestitures, and other risks and uncertainties detailed in ICG's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
ICG Group, Inc. | ||||
Consolidated Statements of Operations | ||||
(In thousands, except per share data) | ||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||
2011 | 2010 | 2011 | 2010 | |
Revenue | $ 35,328 | $ 26,657 | $ 69,282 | $ 52,412 |
Operating Expenses | ||||
Cost of revenue | 21,775 | 17,643 | 42,765 | 34,325 |
Selling, general and administrative | 12,115 | 10,788 | 23,702 | 21,222 |
Research and development | 3,325 | 2,645 | 6,454 | 5,069 |
Amortization of intangibles | 338 | 339 | 675 | 678 |
Impairment related and other | 82 | 96 | 119 | 168 |
Total operating expenses | 37,635 | 31,511 | 73,715 | 61,462 |
Operating income (loss) | (2,307) | (4,854) | (4,433) | (9,050) |
Other income (loss), net | 1,612 | 24,627 | 26,558 | 64,923 |
Interest income | 124 | 138 | 208 | 199 |
Interest expense | (186) | (25) | (332) | (69) |
Income (loss) before income taxes and equity loss | (757) | 19,886 | 22,001 | 56,003 |
Income tax benefit (expense) | 963 | 411 | (1,977) | (205) |
Equity loss | (3,185) | (4,580) | (6,761) | (10,915) |
Income (loss) from continuing operations | (2,979) | 15,717 | 13,263 | 44,883 |
Income (loss) on discontinued operations | -- | 223 | -- | 201 |
Net income (loss) | (2,979) | 15,940 | 13,263 | 45,084 |
Less: Net income (loss) attributable to the noncontrolling interest | 254 | 179 | 606 | 552 |
Net income (loss) attributable to ICG | $ (3,233) | $ 15,761 | $ 12,657 | $ 44,532 |
Amounts attributable to ICG common shareholders: | ||||
Net income (loss) from continuing operations | $ (3,233) | $ 15,570 | $ 12,657 | $ 44,372 |
Net income (loss) on discontinued operations | -- | 191 | -- | 160 |
Net income (loss) attributable to ICG common shareholders | $ (3,233) | $ 15,761 | $ 12,657 | $ 44,532 |
Basic net income (loss) per share: | ||||
Income (loss) from continuing operations attributable to ICG common shareholders | $ (0.09) | $ 0.43 | $ 0.34 | $ 1.23 |
Income (loss) on discontinued operations attributable to ICG common shareholders | -- | -- | -- | -- |
$ (0.09) | $ 0.43 | $ 0.34 | $ 1.23 | |
Shares used in computation of basic net income (loss) per common share attributable to ICG common shareholders | 36,961 | 36,346 | 36,953 | 36,326 |
Diluted net income (loss) per share: | ||||
Income (loss) from continuing operations attributable to ICG common shareholders | $ (0.09) | $ 0.42 | $ 0.33 | $ 1.22 |
Income (loss) on discontinued operations attributable to ICG common shareholders | -- | 0.01 | -- | -- |
Income (loss) attributable to ICG common shareholders | $ (0.09) | $ 0.43 | $ 0.33 | $ 1.22 |
Shares used in computation of diluted net income (loss) per common share attributable to ICG common shareholders | 36,961 | 37,074 | 37,976 | 36,518 |
ICG Group, Inc. | ||
Condensed Consolidated Balance Sheets | ||
(In thousands) | ||
June 30, 2011 |
December 31, 2010 |
|
ASSETS | ||
Cash and cash equivalents | $ 132,444 | $ 92,639 |
Accounts receivable, net | 28,885 | 25,832 |
Deferred tax asset | 804 | 4,830 |
Income tax receivable | -- | 6,314 |
Prepaid expenses and other current assets | 3,095 | 2,528 |
Total current assets | 165,228 | 132,143 |
Fixed assets, net | 6,303 | 5,991 |
Ownership interests in partner companies | 51,574 | 83,829 |
Goodwill | 22,369 | 20,317 |
Intangibles, net | 13,157 | 13,832 |
Deferred tax asset | 25,061 | 22,973 |
Other assets, net | 4,954 | 1,904 |
Total assets | $ 288,646 | $ 280,989 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current maturities of other long-term debt | $ 4,259 | $ 4,623 |
Accounts payable | 2,443 | 1,973 |
Accrued expenses | 2,698 | 2,777 |
Accrued compensation and benefits | 10,386 | 15,327 |
Deferred revenue | 11,093 | 10,293 |
Total current liabilities | 30,879 | 34,993 |
Long-term debt | 12,688 | 15,458 |
Other non-current liabilities | 1,551 | 927 |
Total liabilities | 45,118 | 51,378 |
Redeemable noncontrolling interest | 1,277 | 1,182 |
Equity: | ||
Controlling (ICG) equity | 236,498 | 223,807 |
Noncontrolling interest | 5,753 | 4,622 |
Total stockholders' equity | 242,251 | 228,429 |
Total liabilities and stockholders' equity | $ 288,646 | $ 280,989 |
ICG | ||||||||
Non-GAAP Reconciliation | ||||||||
(In thousands) | ||||||||
The following table is a reconciliation of non-GAAP financial measures to GAAP results. | ||||||||
Quarter Ended June 30, | Year to Date Ended June 30, | |||||||
2011 | 2010 | 2011 | 2010 | |||||
Reconciliation of GAAP revenue to core consolidated revenue (A) | ||||||||
GAAP revenue | $ 35,328 | $ 26,657 | $ 69,282 | $ 52,412 | ||||
Deferred revenue not recorded in purchase accounting | -- | 667 | -- | 1,501 | ||||
Core consolidated revenue | $ 35,328 | $ 27,324 | $ 69,282 | $ 53,913 | ||||
Reconciliation of GAAP Net income (loss) attributable to ICG to adjusted operating income (loss) and core consolidated EBITDA (A) | ||||||||
GAAP Net income (loss) attributable to ICG: | $ (3,233) | $ 15,761 | $ 12,657 | $ 44,532 | ||||
Net income attributable to non-controlling interests | 254 | 179 | 606 | 552 | ||||
Discontinued operations | -- | (223) | -- | (201) | ||||
Equity loss (income) | 3,185 | 4,580 | 6,761 | 10,915 | ||||
Income tax expense (benefit) | (963) | (411) | 1,977 | 205 | ||||
Interest (income) expense, net | 62 | (113) | 124 | (130) | ||||
Other (income) loss, net (B) | (1,612) | (24,627) | (26,558) | (64,923) | ||||
Consolidated operating income (loss) | (2,307) | (4,854) | (4,433) | (9,050) | ||||
Depreciation - corporate | 11 | 15 | 24 | 30 | ||||
Amortization of intangibles (resulting from acquisitions) - corporate | 338 | 339 | 675 | 678 | ||||
Depreciation and amortization - core consolidated | 796 | 599 | 1,572 | 1,134 | ||||
Stock-based compensation - corporate | 836 | 618 | 1,464 | 1,217 | ||||
Stock-based compensation - core consolidated | 190 | 234 | 296 | 373 | ||||
Impairment related and other - corporate | -- | -- | -- | -- | ||||
Impairment related and other - core consolidated | 82 | 96 | 119 | 168 | ||||
Adjusted operating income (loss) | (54) | (2,953) | (283) | (5,450) | ||||
Corporate: | ||||||||
Operating expenses | 3,870 | 4,164 | 7,902 | 8,074 | ||||
Core Consolidated Companies: | ||||||||
Deferred revenue not recorded in purchase accounting | -- | 667 | -- | 1,501 | ||||
Other income (loss), net | 11 | (135) | 93 | (478) | ||||
Core consolidated EBITDA | $ 3,827 | $ 1,743 | $ 7,712 | $ 3,647 | ||||
(A) Core consolidated revenue, core consolidated EBITDA and adjusted operating income (loss) are non-GAAP financial measures and have no standardized measurement prescribed by GAAP. Core consolidated revenue is the sum of the revenue of ICG's three core consolidated companies. Core consolidated EBITDA is the sum of the earnings (losses) before interest, taxes, depreciation and amortization, stock-based compensation and unusual items of ICG's three core consolidated companies. ICG's management considers charges unusual when they are transactional-driven or non-recurring. Adjusted operating income (loss) is consolidated operating income (loss), adjusted for depreciation and amortization, stock-based compensation, and impairment related and other amounts of ICG and its three core consolidated companies. ICG's management believes these non-GAAP financial measures provide useful information to investors, potential investors, securities analysts and others that enables each such group to evaluate core consolidated companies' current and future prospects in a similar manner as ICG's management and to review results on a comparable basis for all periods presented. | ||||||||
(B) Other (income) loss, net, as reflected in reconciliation above, relates to net gains as follows: |
Quarter Ended June 30, |
Year to Date Ended June 30, |
||||||
2011 | 2010 | 2011 | 2010 | |||||
(in millions) | ||||||||
Gains on sales of marketable securities | $ -- | $ 23.0 | $ -- | $ 57.8 | ||||
Gain on Metastorm sale | -- | -- | 24.9 | -- | ||||
Gain on distribution | 1.4 | -- | 1.4 | -- | ||||
Net gains (losses) on sales of companies | 0.2 | 1.7 | 0.2 | 6.7 | ||||
Other, net | -- | (0.1) | -- | 0.4 | ||||
Other income (loss), net on Consolidated Statements of Operations | $ 1.6 | $ 24.6 | $ 26.5 | $ 64.9 |
CONTACT: Investor inquiries: Karen Greene ICG Investor Relations 610-727-6900 IR@icg.com