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ICG Announces Second Quarter 2010 Financial Results
• ICG Achieves Core Consolidated Aggregate Revenue Growth of 25%
• Company to Receive $25.4 Million Cash Dividend from ICG Commerce
WAYNE, Pa., July 29, 2010 -- Internet Capital Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the quarter ended June 30, 2010.
ICG's consolidated revenue increased to $27.4 million for the quarter ended June 30, 2010, up from $22.1 million for the second quarter of 2009. Consolidated net income for the quarter ended June 30, 2010 was $15.8 million, or $0.43 per diluted share, compared to a net loss of $(8.5) million, or $(0.23) per diluted share, in the comparable 2009 period. Results for the 2010 quarter included net gains, primarily related to sales of Blackboard stock, and results for the 2009 quarter included charges, primarily related to an impairment, all of which are detailed below.
ICG's corporate cash and cash equivalents were $55.9 million at June 30, 2010. At June 30, 2010, the value of ICG's marketable securities was $9.5 million, including the value of related hedges, and the value of its holdings in GoIndustry-DoveBid (LSE.AIM:GOI) was $2.5 million. Additionally, as of June 30, 2010, ICG had an income tax receivable of $6.3 million.
"We are pleased with the continued strong revenue growth at our core consolidated companies during the second quarter," said Walter Buckley, ICG's Chief Executive Officer. "We are excited to have further increased our ownership of ICG Commerce, a strong, cash flow-generating company. Based on year-to-date revenue and EBITDA performance, along with customer signings and pipeline activity subsequent to quarter end, we are well positioned to meet our 2010 revenue and EBITDA guidance."
Core Consolidated Company Results
The aggregate information presented below includes the sum total of the individual GAAP results of ICG's three core consolidated companies, GovDelivery, ICG Commerce and InvestorForce. Aggregate Revenue of GovDelivery, ICG Commerce and InvestorForce increased to $28.1 million in the second quarter of 2010, an increase of 25% from the second quarter of 2009. Aggregate EBITDA of these companies for the second quarter of 2010 was $1.7 million, which was equal to the corresponding 2009 period. Excluding the impact of stock-based compensation and unusual items, Aggregate EBITDA of the core consolidated companies was $2.0 million, compared to $1.8 million in the corresponding 2009 period.
ICG Commerce grew its revenue to $23.5 million in the second quarter of 2010, an increase from $19.5 million in the second quarter of 2009. ICG Commerce's EBITDA, excluding the impact of stock-based compensation and unusual items, was $2.6 million in the second quarter, compared to $3.0 million in the comparable 2009 period. ICG Commerce's cash and cash equivalents were $24.1 million at June 30, 2010.
As previously announced, ICG recently completed two transactions in which it acquired an additional 17% of ICG Commerce for a total of $49.7 million in cash, increasing its ownership to 81%. In addition, on July 22, 2010, ICG Commerce declared a $27.0 million cash dividend on certain of its securities. This dividend will be funded from ICG Commerce's existing $24.0 million cash balance and a new credit facility. ICG will receive its $25.4 million share of the dividend during the third quarter of 2010.
Information related to ICG's core equity companies, Channel Intelligence, Freeborders, Metastorm, StarCite and WhiteFence, is set forth in the Supplemental Information section of this press release.
Please see ICG's new website at www.icg.com for more information on ICG, its partner companies and today's 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 at 866-831-6162. The international dial-in number is 617-213-8852. The passcode is 57769563.
For those unable to participate in the conference call, a replay will be available from July 29, 2010 at 1:00 p.m. ET until August 5, 2010 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is 96111514. 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/tech-enabled BPO and Internet marketing sectors. These partner 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/tech-enabled BPO and Internet marketing sectors by providing them with access to management expertise and strategic and operational guidance, as well as growth capital.