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Stocks Z / Ziff-Davis
|Subject: Earning was out June 2||Date: 6/15/1998 7:05 PM|
|Author: GreatAnalyzer||Number: 33 of 371|
Ziff-Davis Inc. Announces First Quarter Results
PR Newswire, Tuesday, June 02, 1998 at 09:42
NEW YORK, June 2 /PRNewswire/ -- Ziff-Davis Inc. (NYSE:ZD) today
announced financial results for its first quarter ended March 31, 1998.
Revenue for the first quarter of 1998 was $228.1 million compared to
$224.9 million for the first quarter of 1997. Excluding the impact of
transferring certain publications to a joint venture, publishing segment
revenue improved $4.1 million or 2.1%. The improvement was due to growth in
advertising in the Internet business, principally ZDNet, and consumer
publications, which was partly offset by lower advertising in business
publications. In October 1997, Ziff-Davis transferred its Macuser and MacWeek
magazines to form a 50/50 joint venture with another publishing company.
These publications contributed $12.8 million of revenue in the first quarter
of 1997 but are no longer consolidated in the Company's results for 1998.
Advertising revenue was lower in the business publications principally due to
factors affecting the computer technology industry during the period.
Revenue from the events segment rose 77%, primarily the result of the
earlier production of two events as compared to the prior year. Excluding
timing effects, segment revenue increased $2 million or 7.8% principally from
growth in the JavaOne event.
Losses from operations for the first quarter 1998 totaled $24.0 million
compared to $15.6 million in the comparable period last year. Earnings before
interest, taxes, depreciation and amortization ("EBITDA") were $15.1 million
for 1998 compared to $25.5 million in 1997. Excluding the impact from the
timing of events, results were less favorable than last year primarily due to
the lower level of advertising in the higher margin business publications. In
addition, during the first quarter of 1998 the Company recorded $3.2 million
of one-time costs for office relocations and incurred $1.4 million of losses
from launching new publications.
The net loss for the period was $5.1 million or $0.05 per pro forma share,
compared to $59.8 million or $0.60 per pro forma share in 1997. The net loss
and per share results are not directly comparable to last year due to
significant tax benefits recorded in the first quarter of 1998.
On May 4, 1998, Ziff-Davis issued 74.2 million shares to its parent
company, SOFTBANK Holdings Inc., and closed an initial public offering of
25.8 million shares of its common stock. On May 28, 1998, the Company's U.S.
underwriters exercised their option to purchase an additional 2 million shares
to cover over-allotments. The Company will procure the additional shares from
SOFTBANK Holdings Inc. and there will be no change to the total number of
shares outstanding. As a result of the reorganization and offering, the
public now holds 27.8 million or 27.8% of the Company's shares.
As a result of the reorganization and offering, the Company significantly
increased the number of shares outstanding from 1997 to 1998. For comparative
purposes, the Company has reported losses per share for both periods on a
proforma basis as if the shares were outstanding since January 1, 1997.
Ziff-Davis is a leading integrated media and marketing company focused on
computing and Internet-related technology, with principal platforms in print
publishing, trade shows and conferences, online content, market research and
education. The company provides global technology companies with marketing
strategies for reaching key decision-makers. Information on the Company can
be found at www.ziffdavis.com and www.zdnet.com.
Ziff-Davis Inc. (a)
Combined Statement of Operations
(Unaudited - in thousands, except share and per share data)
Three Months Ended
Publishing $200,933 $209,564
Events 27,121 15,321
Cost of production:
Publishing 53,581 54,990
Events 16,729 6,537
Selling, general and
administrative expenses 144,239 139,980
Depreciation and amortization
of property and equipment 7,029 7,894
Amortization of intangible
assets 30,446 31,072
Loss from operations (23,970) (15,588)
Related party interest
expense, net (45,939) (46,712)
income, net 1,622 2,155
Loss before income taxes (68,287) (60,145)
Income tax benefit (63,166) (328)
Net loss $(5,121) $(59,817)
Basic loss per share (b) $(0.05) $(0.60)
EBITDA 15,127 25,533
(a) Ziff-Davis Inc. was capitalized on May 4, 1998 through SOFTBANK
Holdings Inc.'s contribution of its equity in ZD Inc. and ZD Comdex
and Forums Inc. and an initial public offering of the Company's
common stock. The above results of operations are the combined
results of ZD Inc. and ZD Comdex and Forums Inc. for the indicated
(b) Basic loss per share has been calculated as if the 100 million shares
issued on May 4, 1998 were outstanding since January 1, 1997.
Diluted loss per share is not shown as the effect of common stock