-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WgSDrgK6hEJUbaz4iOLNlF1YfmL3LHTpc9N0S/PHOZ1BPEghkxUJ+SnuQAkpJxHN TGMAa/+zqjNmd/VpGkg3ZA== 0000950123-04-000977.txt : 20040128 0000950123-04-000977.hdr.sgml : 20040128 20040128165425 ACCESSION NUMBER: 0000950123-04-000977 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040128 ITEM INFORMATION: FILED AS OF DATE: 20040128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOUBLECLICK INC CENTRAL INDEX KEY: 0001049480 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 133870996 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23709 FILM NUMBER: 04549761 BUSINESS ADDRESS: STREET 1: 450 W 33RD ST STREET 2: 16TH FL CITY: NEW YORK STATE: NY ZIP: 10001 BUSINESS PHONE: 2126830001 MAIL ADDRESS: STREET 1: 450 W 33RD ST STREET 2: 16TH FL CITY: NEW YORK STATE: NY ZIP: 10001 8-K 1 y93472e8vk.txt FORM 8-K ---------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 28, 2004 (JANUARY 28, 2004) ----------- DOUBLECLICK INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE (STATE OR OTHER JURISDICTION OF INCORPORATION) 000-23709 13-3870996 (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER IDENTIFICATION NO.) 111 EIGHTH AVENUE, 10TH FLOOR NEW YORK, NEW YORK 10011 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (212) 683-0001 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) N.A. (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) ---------------------------------- ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On January 28, 2004, DoubleClick Inc. ("DoubleClick" or the "Company") announced its financial results for the fourth quarter and fiscal year ended December 31, 2003. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Form 8-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. The attached press release contains non-GAAP financial measures. The non-GAAP measures included in the press release should be considered in addition to, not as a substitute for, or superior to other measures of the Company's financial position prepared in accordance with generally accepted accounting principles. The attached press release discloses the Company's net cash position as of December 31, 2003, which may be considered to be a non-GAAP financial measure, and reconciles the Company's net cash position to its cash, cash equivalents, restricted cash and investments in marketable securities as of December 31, 2003, as determined in accordance with GAAP. Net cash is considered a liquidity measure and provides useful information to management and investors about the amount of cash available to the Company after taking into account the principal amount of outstanding debt and capital lease obligations. Management uses this financial measure in making operating decisions, for budget planning purposes and in considering strategic opportunities, including strategic acquisitions and repurchasing stock or bonds. The attached press release also discloses EBITDA, a non-GAAP financial measure which represents net income as presented in the statement of operations under GAAP before interest, taxes, depreciation and amortization and reconciles EBITDA to GAAP net income. EBITDA, as defined above, may not be similar to EBITDA measures used by other companies. We believe that EBITDA provides useful information to investors about the Company's performance because it eliminates the effects of period to period changes in costs associated with capital investments and income from interest on our cash and marketable securities that are not directly attributable to the underlying performance of the Company's business operations. Management uses EBITDA in evaluating the overall performance of the Company's business operations. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DOUBLECLICK INC. ----------------------------- (Registrant) By: /s/ Bruce Dalziel ------------------------------ Name: Bruce Dalziel Title: Chief Financial Officer Dated: January 28, 2004
EXHIBIT EXHIBIT INDEX - ------- ------------- 99.1 Press Release dated January 28, 2004
EX-99.1 3 y93472exv99w1.txt PRESS RELEASE Exhibit 99.1 [DOUBLECLICK LETTERHEAD] For Immediate Release INVESTOR CONTACT: Jason McGruder Manager, Investor Relations 212-381-5182 PRESS CONTACT: Jennifer Blum VP, Public Relations 212-381-5705 DOUBLECLICK HAS FOURTH CONSECUTIVE GAAP PROFITABLE QUARTER AND RAISES GUIDANCE FOR FULL YEAR 2004 Company reports fourth quarter and full year 2003 results New York, NY, January 28, 2004 -- DoubleClick Inc. (NASDAQ: DCLK), the leading provider of data and technology tools for direct marketers, web publishers and advertisers, today announced financial results for the fourth quarter and full year ended December 31, 2003 and updated its business outlook for 2004. - -------------------------------------------------------------------------------- 4Q03 3Q03 4Q02 FY03 FY02 ---- ---- ---- ---- ---- - -------------------------------------------------------------------------------- Revenue (000's) $72,937 $74,790 $66,266 $271,337 $300,198 - -------------------------------------------------------------------------------- GAAP Net Income (Loss) (000's) $3,841 $6,340 ($53,969) $16,918 ($117,890) - -------------------------------------------------------------------------------- GAAP EPS $0.03 $0.04 ($0.40) $0.12 ($0.87) - -------------------------------------------------------------------------------- "2003 was our first full year of GAAP profitability," said Kevin Ryan, Chief Executive Officer, DoubleClick. "We exceeded our fourth quarter revenue guidance, and were profitable in both GAAP net income and EBITDA1 terms every quarter in 2003. The fourth quarter of 2003 was our best ever in terms of cash flow from operations, which was 33% of revenues. We feel confident enough to raise guidance for 2004." Fourth Quarter Results - ---------------------- DoubleClick reported revenues for the fourth quarter of $72.9 million versus $66.3 million in the year ago period. GAAP net income for the most recent quarter was $3.8 million, or $0.03 per share, compared with $6.3 million or $0.04 in the third quarter of 2003, and a loss of $54.0 million or $0.40 per share in the fourth quarter of 2002. EBITDA was $16.2 million for the fourth quarter of 2003 versus negative EBITDA of $43.7 million in the year-ago period. Fourth quarter 2003 GAAP earnings and EBITDA were negatively impacted by $5.4 million in charges related to the recent relocation of the Company's New York headquarters. These charges were partially offset by the reversal of a $1.3 million reserve relating to the favorable resolution of certain tax matters. For the year-ago period, GAAP net loss included a $65.8 million restructuring charge related to the Company's real estate, partially offset by gains of $7.9 million from the sale of a portion of the Company's holdings in DoubleClick Japan and other minority interest positions. - -------- 1 See attached schedule for a reconciliation of EBITDA to GAAP net income. Please see the Form 8-K filed on January 28, 2004 by the Company with the SEC for a discussion of why the Company believes EBITDA is a useful financial measure to investors and how management uses it. 1 Full Year Results - ----------------- DoubleClick reported revenues for the full year 2003 of $271.3 million versus $300.2 million for full year 2002. Results for 2003 included revenue of $5.5 million from the Data Management business, which was acquired in 2Q03. Results for 2002 included $35.8 million in revenues from the Company's divested media and research businesses. GAAP net income for 2003 was $16.9 million or $0.12 per share, compared with a loss of $117.9 million or $0.87 per share in 2002. EBITDA was $67.9 million for the full year 2003, compared to negative EBITDA of $70.9 million for 2002. Full year 2003 GAAP earnings and EBITDA were negatively impacted by $14.6 million in charges related to the termination of real estate leases, partially offset by a net restructuring credit of $9.1 million related to the reversal of a portion of the Company's real estate reserve. Full year 2002 GAAP net loss and EBITDA were negatively impacted by $98.4 million in real estate related restructuring charges and $47.1 million in goodwill impairment charges, partially offset by gains of $37.7 million from the early extinguishment of debt and the sale of certain businesses. The Company generated $24.0 million in cash flow from operations during the fourth quarter of 2003 and used $15.1 million in cash flow from operations during the full year 2003. Full year figures include payments by the Company of $70.9 million in connection with the termination of real estate leases. The Company used $1.4 million in connection with the open market repurchase of 165,500 shares of its common stock during the fourth quarter. The Company ended the quarter and the year with $675.8 million in cash and marketable securities, and had a net cash position of $540.4 million, or $3.93 per share.2 "These results reflect strength among all of our businesses," added Ryan. "Our ad management, email, and marketing automation solutions all showed year-over-year revenue increases in the quarter. In addition, Abacus and our overall Data Segment had their best-ever fourth quarter and full year revenue." TechSolutions - ------------- The global TechSolutions division reported fourth quarter revenues of $46.9 million versus $43.5 million in 3Q03 and $43.6 million in 4Q02. Total TechSolutions gross margins were 68.1%, an increase from 62.0% sequentially and from 54.1% in the fourth quarter of 2002. For all of 2003, TechSolutions revenues were $175.4 million versus $187.2 million in 2002, while TechSolutions gross margins increased to 63.4%, against 62.7% a year ago. The Company's ad management products had revenues of $34.1 million in 4Q03 versus $31.0 million in 3Q03 and $32.8 million in the year ago period. On an annual basis, DoubleClick's ad management products had revenues of $128.8 million against $147.2 million in 2002. During the quarter, DoubleClick reached an exclusive agreement with Carat Interactive to manage online campaigns for Pfizer on a global basis. Business Week Online, eDiets, HomeStore.com, and ING Direct were among the new customers signing on to use DoubleClick's ad management solutions during the fourth quarter of 2003. Agencies planning to use DART Motif now include Ford Motor Media, MPG Media Contacts, Starcom IP, Tribal DDB-Dallas, Universal McCann Interactive, and Zentropy Partners. DoubleClick's global DART and DARTmail platforms delivered approximately 206 billion impressions in the fourth quarter of 2003 and 669 billion impressions for the full year 2003. DARTmail volumes were up sequentially and year-over-year in the fourth quarter. Ad management revenues increased at a slower rate than volumes, in line with previous guidance. - ------------------- 2 Net cash is defined as gross cash and cash equivalents of $183.5 million, restricted cash of $28.0 million, and investments in marketable securities of $464.3 million minus zero coupon convertible subordinated notes of $135.0 million and capital lease obligations of $0.4 million. Please see the Form 8-K filed on January 28, 2004 by the Company with the SEC for a discussion of why the Company believes net cash is a useful financial measure to investors and how and when management uses the term. 2 DoubleClick's email management and related strategic services reported revenues of $11.0 million for 4Q03, against $9.6 million in 3Q03 and $10.2 million in the year ago period. Annual revenues were up slightly to $39.4 million. Beginning in the first quarter of 2004, the Company plans to report Ensemble and SiteAdvance sales figures with those from its email products, since these products are increasingly being sold with email as bundled marketing automation solutions. Ensemble and SiteAdvance had combined revenues of $1.9 million in 4Q03 versus $2.9 million in the third quarter of 2003, in line with previous guidance. For the year, Ensemble and SiteAdvance revenues totaled $7.2 million. During the quarter, over 60 new agreements to use DoubleClick's marketing automation tools were signed with customers such as Bertelsmann-Der Club, CondeNet's Golf Digest, Continental Airlines, and Prudential Insurance Company, as well one of the world's largest computer chip manufacturers and one of the world's largest Internet portals. "We have had great success in creating product extensions to our core ad management businesses and Abacus Alliances. For the last year and a half, we have been focused on creating a world-class suite of integrated marketing automation solutions," said David Rosenblatt, President of DoubleClick. "While we are not done with the building phase, we expect 2004 to be a year in which we begin to see the concrete results of our efforts. Already, our new business pipeline includes a large number of clients and prospects considering multi-service purchases for Data and Tech products. We expect this trend to continue as we further mesh our TechSolutions and Data offerings." Data - ---- DoubleClick Data revenue was $26.0 million in 4Q03, down 16.7% versus $31.3 million in the seasonally strong third quarter of 2003, and up 27.5% from $20.4 million in 4Q02. For the full year 2003, DoubleClick Data revenue grew 15.1% to $95.9 million versus $83.3 million in the previous year. The Data segment's 2002 revenues included $3.1 million in revenue from divested businesses. Abacus quarterly revenue was up 13.0% year-over-year to $23.1 million, while the remaining $3.0 million in revenues came from DoubleClick's Data Management business, which was acquired in June of 2003. For the full year 2003, Abacus revenues were up 12.8% over 2002 to $90.4 million, with $5.5 million in revenues coming from Data Management. The year-over-year increases in Abacus revenue were driven primarily by continued growth in the Company's U.S. business-to-business Alliance and U.K. business-to-consumer Alliance. Revenues were down sequentially due to seasonality, as cataloguers prepared for the holiday season in the September quarter. Gross margins were 64.0% for the quarter and 68.8% for the year, against 72.1% for 4Q02 and 71.7% for both 3Q03 and FY02. Gross margins were adversely affected in the fourth quarter and full year 2003 by the lower margins associated with the Company's Data Management business. During the year, DoubleClick added over 110 new Abacus business-to-consumer Alliance members globally. This was primarily driven by traditional brick-and-mortar retailers adopting catalog marketing as a new advertising medium. The Company also signed up more than 60 new business-to-business Alliance members in 2003. During the fourth quarter, DoubleClick and AZ Direct, a subsidiary of Bertelsmann AG, formed Abacus Deutschland. With the addition of Germany, along with the existing U.S., Japan, and U.K. Alliances, Abacus now has a presence in the four largest catalogue markets in the world. Over the next four to five years, DoubleClick believes that Abacus Deutschland has the potential to grow larger than the Company's U.K. Alliance. First Quarter 2004 Outlook - -------------------------- DoubleClick is expecting first quarter revenues to be between $68 million and $72 million. GAAP earnings for the first quarter are projected to be between $0.03 and $0.06 per share. 3 Total company gross margins are expected to be in the high 60s percentage range. Total company GAAP operating expenses are expected to be between $43 million and $45 million. Items in interest and other, net and taxes are expected to be roughly $2 million, based an assumed tax rate of approximately 15%. Segment projections for the first quarter of 2004 are as follows: ... Data revenues are estimated to be between $22 million and $24 million, including approximately $3 million from Data Management, with overall Data gross margins in the low 60s percentage range. ... TechSolutions revenues are estimated to be between $45 million and $48 million, including $33 to $35.5 million from ad management, with overall TechSolutions gross margins in the high 60s to low 70s percentage range. Updated 2004 Outlook - -------------------- DoubleClick is expecting full year 2004 revenues to be between $290 million and $310 million. GAAP earnings for the year are projected to be between $38 million and $45 million, or between $0.27 and $0.32 per share. Total company gross margins are expected to be in the high 60s to low 70s percentage range. Total company GAAP operating expenses are expected to be between $170 million and $185 million. Items in interest and other, net and taxes are expected to be roughly $3 million, based an assumed tax rate of approximately 15%. Segment projections for the full year 2004 are as follows: ... Data revenues are estimated to be between $105 million and $115 million, including $11 to $14.5 million from Data Management, with overall Data gross margins in the mid 60s percentage range. ... TechSolutions revenues are estimated to be between $180 million and $205 million, including $130 million to $145 million from ad management, with overall TechSolutions gross margins in the mid 70s percentage range. "DoubleClick continues to benefit from increased spending by advertisers and direct marketers, and we are seeing signs that technology spending is improving," said Bruce Dalziel, Chief Financial Officer, DoubleClick. "We plan continued investment in data management, marketing automation, and rich media, as well as our core Alliance and ad management businesses, in order to generate future growth. We nonetheless expect net income to more than double in 2004." Conference Call Today - --------------------- The DoubleClick Conference Call to discuss this earnings press release is scheduled for today at 5:00pm EST. This call will be available live via Webcast, and on a replay basis afterward on the Company's website www.doubleclick.net under Investor Relations or at http://ir.doubleclick.net. Institutional investors can also access the call via www.streetevents.com. About DoubleClick - ----------------- DoubleClick (www.doubleclick.net) is the leading provider of data and technology for advertisers, direct marketers and web publishers to plan, execute and analyze their marketing programs. DoubleClick's online advertising, email marketing and database marketing solutions help clients yield the highest return on their marketing dollar. In addition, the Company's marketing analytics tools help clients measure performance within and across channels. DoubleClick Inc. has global headquarters in New York City and maintains offices around the world. 4 Note: This press release includes forward-looking statements, including earnings and revenue projections and future plans set forth under the sections titled "First Quarter 2004 Outlook" and "Updated 2004 Outlook" above, as well as sentences using the words "expects" or "believes" and all other statements that are not purely historical. The results or events predicted in these statements may vary materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include: lack of growth or decline in online advertising or marketing, changes in government regulation, intense competition in DoubleClick's industry, failure to manage the integration of acquired companies, failure to successfully manage the Company's international operations and other risks that are contained in documents which the Company files from time to time with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and Form 10-Q. In addition, any forward-looking statements represent the Company's estimates only as of today and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it may choose not to do so, even if the Company's estimates change. # # # - - Continued - - 5 DOUBLECLICK INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Year Ended December 31, December, -------------------------- -------------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- REVENUE: Technology $ 46,892 $ 43,621 $ 175,403 $ 187,155 Data 26,045 20,428 95,934 83,349 Media -- 2,410 -- 32,660 Intersegment elimination -- (193) -- (2,966) ---------- ---------- ---------- ---------- Total revenue 72,937 66,266 271,337 300,198 Cost of revenue (inclusive of $4,374 of restructuring charges for the 24,353 27,667 94,131 113,780 three months and year ended December 31, 2002) ---------- ---------- ---------- ---------- Gross profit 48,584 38,599 177,206 186,418 Operating expenses: Sales and marketing 24,625 22,842 92,308 101,527 General and administrative 10,378 10,090 36,063 46,401 Product development 11,922 9,106 39,180 39,790 Amortization of intangibles 1,016 3,111 5,896 12,392 Goodwill and other impairments -- 917 -- 47,077 Restructuring charges (credits), net -- 61,415 (9,092) 94,011 ---------- ---------- ---------- ---------- Total operating expenses 47,941 107,481 164,355 341,198 Income (loss) from operations 643 (68,882) 12,851 (154,780) Other income (expense) Equity in losses of affiliates (112) (550) (2,551) (331) Impairment of investments in affiliates -- -- -- (14,147) Gain (loss) on early extinguishment of debt -- -- (4,406) 11,855 Gain on sale of investments in affiliates -- 7,880 -- 7,880 Gain on sale of businesses, net -- -- -- 17,946 Interest and other, net 2,940 5,160 12,063 15,932 ---------- ---------- ---------- ---------- Total other income (expense) 2,828 12,490 5,106 39,135 Income (loss) before income taxes 3,471 (56,392) 17,957 (115,645) Benefit (provision) for income taxes 370 1,226 (1,039) (4,794) ---------- ---------- ---------- ---------- Income (loss) before minority interest 3,841 (55,166) 16,918 (120,439) Minority interest in results of consolidated subsidiaries -- 1,197 -- 2,549 ---------- ---------- ---------- ---------- NET INCOME (LOSS) $ 3,841 $ (53,969) $ 16,918 $ (117,890) ========== ========== ========== ========== Basic net income (loss) per share $ 0.03 $ (0.40) $ 0.12 $ (0.87) ========== ========== ========== ========== Weighted average shares used in basic net income (loss) per share 137,571 136,024 137,074 135,840 ========== ========== ========== ========== Diluted net income (loss) per share $ 0.03 $ (0.40) $ 0.12 $ (0.87) ========== ========== ========== ========== Weighted average shares used in diluted net income (loss) per share 141,334 136,024 140,720 135,840 ========== ========== ========== ==========
DOUBLECLICK INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AMOUNTS)
December 31, December 31, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 183,484 $ 123,671 Investments in marketable securities 151,898 306,974 Restricted cash 16,328 2,500 Accounts receivable, net of allowances of $7,519 and $13,704, respectively 51,491 48,850 Prepaid expenses and other current assets 17,473 24,324 -------------- -------------- Total current assets 420,674 506,319 Investments in marketable securities 312,434 294,249 Restricted cash 11,668 22,591 Property and equipment, net 75,786 98,545 Goodwill 18,658 20,572 Intangible assets, net 10,847 13,378 Investment in affiliates 13,422 12,125 Other assets 14,408 9,128 -------------- -------------- Total assets $ 877,897 $ 976,907 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 4,164 $ 7,218 Accrued expenses and other current liabilities 62,741 117,320 Current portion of capital lease obligations 411 6,163 Deferred revenue 8,188 6,245 -------------- -------------- Total current liabilities 75,504 136,946 Convertible subordinated notes - 0% Coupon, due 2023 135,000 -- Convertible subordinated notes - 4.75% Coupon, due 2006 -- 154,800 Long term portion of capital lease obligations -- 852 Other long term liabilities 27,046 73,747 STOCKHOLDERS' EQUITY: Preferred stock, par value $0.001; 5,000,000 shares authorized, none outstanding -- -- Common stock, par value $0.001; 400,000,000 shares authorized, 139,329,875 and 137,854,385 shares issued, respectively 139 138 Treasury stock, 1,846,170 and 1,680,670 shares, respectively (10,396) (8,949) Additional paid-in capital 1,287,775 1,281,244 Accumulated deficit (649,523) (666,441) Other accumulated comprehensive income 12,352 4,570 -------------- -------------- Total stockholders' equity 640,347 610,562 -------------- -------------- Total liabilities and stockholders' equity $ 877,897 $ 976,907 ============== ==============
DOUBLECLICK INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS)
Three Months Ended Year Ended December 31, December 31 -------------------------- -------------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- OPERATING ACTIVITIES Net income (loss) $ 3,841 $ (53,969) $ 16,918 $ (117,890) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and leasehold amortization 13,787 10,867 51,252 42,340 Amortization of intangible assets 1,944 3,920 9,427 14,713 Equity in losses of affiliates 112 550 2,551 331 Gain on sale of businesses, net -- -- -- (17,946) Gain on sale of investments in affiliates -- (7,880) -- (7,880) Lease termination and related payments -- -- (70,874) -- Impairment of investments in affiliates -- -- -- 14,147 Goodwill and other impairments -- 917 -- 47,077 Gain (loss) on early extinguishment of debt -- -- 4,406 (11,855) Other non-cash items 2,233 13,860 9,907 33,320 Other changes in working capital 2,034 45,749 (38,669) 47,555 ---------- ---------- ---------- ---------- Net cash provided by (used in) operating activities 23,951 14,014 (15,082) 43,912 INVESTING ACTIVITIES Purchases of property and equipment (11,346) (2,092) (28,580) (12,113) Purchases of investments in marketable securities (74,850) (192,381) (409,045) (488,286) Maturities of investments in marketable securities 116,881 185,888 541,367 522,734 Restricted cash (255) (1,455) (2,905) (7,455) Acquisition of businesses and intangible assets, net of cash acquired -- 1,438 (2,757) (4,842) Proceeds from sale of investments in affiliates -- 37,994 656 37,994 Proceeds from sale of businesses -- -- -- 16,927 Proceeds from sale of intangible asset, net -- -- 900 -- ---------- ---------- ---------- ---------- Net cash provided by investing activities 30,430 29,392 99,636 64,959 FINANCING ACTIVITIES Proceeds from the issuance of common stock and the exercise of stock options, net 587 849 5,037 5,713 Proceeds from issuance of convertible subordinated notes, net -- -- 131,963 -- Repurchase of convertible subordinated notes -- -- (157,952) (53,578) Purchases of treasury stock (1,447) -- (1,447) (4,483) Payments under capital lease obligations and notes payable (578) (1,733) (8,886) (16,113) Other -- -- -- (1,000) ---------- ---------- ---------- ---------- Net cash used in financing activities (1,438) (884) (31,285) (69,461) DECONSOLIDATION OF SUBSIDIARY -- (21,890) -- (21,890) Effect of exchange rate changes on cash 3,849 2,406 6,544 6,640 ---------- ---------- ---------- ---------- Net increase in cash and cash equivalents 56,792 23,038 59,813 24,160 Cash and cash equivalents at beginning of period $ 126,692 $ 100,633 $ 123,671 $ 99,511 ---------- ---------- ---------- ---------- Cash and cash equivalents at end of period $ 183,484 $ 123,671 $ 183,484 $ 123,671 ========== ========== ========== ==========
DOUBLECLICK INC. RECONCILIATION OF EBITDA TO GAAP NET INCOME (UNAUDITED, IN THOUSANDS)
Three Months Ended March 31, June 30, September 30, December 31, December 31, ----------------------------------------------------------------------------- 2003 2003 2003 2003 2002 -------------- -------------- -------------- ------------- -------------- GAAP net income (loss) $ 906 $ 5,831 $ 6,340 $ 3,841 (53,969) Plus tax provision 333 303 773 (370) (1,226) Less interest income, net (2,914) (1,919) (2,904) (2,965) (3,303) Plus amortization of intangibles (1) 2,949 2,031 2,503 1,944 3,920 Plus depreciation and leasehold amortization 10,189 10,164 17,112 13,787 10,867 -------------- -------------- -------------- ------------- -------------- EBITDA $ 11,463 $ 16,410 $ 23,824 $ 16,237 $ (43,711) ============== ============== ============== ============= ==============
Year Ended December 31, -------------------------------- 2003 2002 --------------- --------------- GAAP net income (loss) $ 16,918 $ (117,890) Plus tax provision 1,039 4,794 Less interest income, net (10,702) (14,870) Plus amortization of intangibles (2) 9,427 14,713 Plus depreciation and leasehold amortization 51,252 42,340 --------------- --------------- EBITDA $ 67,934 $ (70,913) =============== ===============
(1) For the three months ended March 31, June 30, September 30 and December 31, 2003 and the three months ended December 31, 2002, $0.9M, $0.8M, $0.9M, $0.9M and $0.8M, respectively, of amortization expense of intangible assets relating to purchased technology was included as a component of cost of revenue in the Consolidated Statements of Operations. (2) For the year ended December 31, 2003 and 2002, $3.5M and $2.3M, respectively, of amortization expense of intangible assets relating to purchased technology was included as a component of cost of revenue in the Consolidated Statements of Operations. -----END PRIVACY-ENHANCED MESSAGE-----