Interactive Data Reports 14.5% Increase in Pro Forma EBITDA to $29.8 Million for the Third Quarter

Pro Forma Net Income of $0.04 Per Share Compared to Pro Forma Loss of $0.06 Per Share in 2000

Interactive Data Corporation (Nasdaq NM: IDCO) today announced results for the third quarter ended September 30, 2001. This is the company's sixth full reporting period since the completion of the Interactive Data (now known as FT Interactive Data) merger with Data Broadcasting on March 1, 2000.

On a pro forma basis, reported as if the merged businesses had been combined on January 1, 2000 and excluding the financial results from the Federal News Service and MarketWatch.com businesses that were sold in January 2001, revenues for the third quarter of 2001 increased by 4.2% to $85.3 million from $81.9 million in the comparable period in 2000. Excluding the effects of foreign exchange, revenues increased by 6.0%. Pro forma EBITDA for the third quarter of 2001 increased by 14.5% to $29.8 million, or $0.32 per diluted share, from $26.0 million, or $0.29 per share, in the same period in 2000. Pro forma net income for the quarter totaled $3.8 million, or $0.04 per share, compared to a loss of $5.7 million, or $0.06 per share, in last year's third quarter.

Stuart Clark, president and chief executive officer, commented, "This has been another quarter of strong performance for Interactive Data. Our institutional business continues to be the main driver of our revenue, accounting for 87.5% of the company's third quarter revenues. This segment grew by 11.6% before the effects of foreign exchange, illustrating the resilience of our business even under today's very difficult economic conditions. In fact, despite the slower economy worldwide, our institutional business continued to grow in all three of its geographic business areas - North America, Europe and Asia - primarily by winning new customers and expanding our relationships with existing clients."

"Revenues from our retail segment decreased by 22% for the quarter, driven by the continuing and expected decline in broadcast customers. The business is being managed very effectively in this difficult market environment and, as in the first half of 2001, was EBITDA positive in the third quarter. In fact, the business actually exceeded the target we had set for it for this period."

"Our outlook for the remainder of the year continues to be positive," Mr. Clark said. "We continue to work toward our goal of achieving underlying double digit growth across our core institutional business. Our expansion in Europe, which represents an important market for us going forward, is making good progress. In mid-October we launched the multi-currency version of CMS BondEdge, our fixed income portfolio analytics system, which is offered in Europe under the FT Interactive Data brand. The reception for this new product has been very encouraging."

Mr. Clark concluded, "We want to extend our appreciation and thanks to our employees for their dedication and outstanding performance after the terrible national tragedy that took place on September 11. Although some of our data collection and distribution facilities are based in lower Manhattan, our staff's skill and commitment enabled us to operate continuously during this very difficult period. Many of our customers, who depend on Interactive Data for some of their most critical functions, have expressed their appreciation of our employees' resourcefulness and commitment to client service."

Financial Results

Actual

For the quarter ended September 30, 2001, Interactive Data reported revenues of $85.3 million versus $82.9 million for the third quarter of 2000. EBITDA totaled $29.8 million, or $0.32 per diluted share, for the third quarter of 2001 versus $26.2 million, or $0.29 per share, for the same period in 2000. Net income totaled $3.8 million, or $0.04 per share, versus a loss of $17.2 million, or $0.19 per share, in the third quarter of 2000.

For the nine months ended September 30, 2001, Interactive Data reported revenues totaling $253.5 million versus $228.5 million for the first nine months of 2000. EBITDA totaled $82.1 million compared to $66.0 million for the same period last year. Net income totaled $5.4 million, or $0.06 per share, versus a loss of $41.2 million, or $0.49 per share, for the first nine months of 2000.

Pro Forma

On a pro forma basis, for the nine months ended September 30, 2001, revenues increased 4.9% to $253.5 million from $241.7 million in the same period in 2000. EBITDA increased by 23.4% to $82.1 million from $66.5 million for the same period last year. Net income for the period totaled $5.35 million, compared to a loss of $18.7 million for the first nine months of 2000.

As of September 30, 2001, the company had no outstanding debt and had cash of $92.2 million.

Conference Call Information

Interactive Data Corporation's management will conduct a conference call today at 10:00 a.m. Eastern Time to discuss the third quarter 2001 results. The dial-in number for the call is 212-896-6065; no access code is required. Investors and interested parties may also listen to the call via a live web broadcast available through the Investor Relations section of the Company's web site at www.interactivedatacorp.com and through www.StreetEvents.com. To listen, please register and download audio software at the site at least 15 minutes prior to the call. A replay will be available on both web sites shortly after the call. In addition, a telephone replay will be available until Friday, November 2, 2001. To access the replay, please dial 800-633-8284 and request reservation #19789129.

INTERACTIVE DATA CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share data)

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 



 



 

2001

2000

 

2001

2000

 



 



REVENUES

 

 

 

 

 

Institutional Retail

74,618

69,210

 

218,350

196,777

-eSignal

8,474

8,795

 

26,742

18,366

-Broadcast

2,195

4,881

 

8,409

13,336

 



 



Total

85,287

82,886

 

253,501

228,479

 

 

 

 

 

 

COSTS & EXPENSES

 

 

 

 

 

Cost of Services

25,433

27,452

 

77,689

78,562

Selling, general & administrative

30,041

29,237

 

93,747

83,926

 



 



 

 

 

 

 

 

EBITDA

29,813

26,197

 

82,065

65,991

 

 

 

 

 

 

Depreciation

3,105

3,516

 

9,207

9,065

Amortization

17,793

21,156

 

60,133

57,670

 

 



Total costs & expenses

76,372

81,361

 

240,776

229,223

 

 



 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

8,915

1,525

 

12,725

(744)

 

 

 

 

 

 

Equity in loss from Marketwatch.com, Inc.

-

(19,376)

 

-

(45,776)

Other income, net

934

228

 

2,383

591

 



 



INCOME (LOSS) BEFORE INCOME TAXES

9,849

(17,623)

 

15,108

(45,929)

Provision (Benefit) for Income Taxes

6,011

(434)

 

9,758

(4,685)

 



 



NET INCOME (LOSS)

3,838

(17,189)

 

5,350

(41,244)

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

Basic

0.04

(0.19)

 

0.06

(0.49)

Diluted

0.04

(0.19)

 

0.06

(0.49)

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

Basic

91,085

91,202

 

91,183

83,679

Diluted

93,537

91,202

 

92,391

83,679

 

 

 

 

 

 

INTERACTIVE DATA CORPORATION AND SUBSIDIARIES PROFORMA SELECTED FINANCIAL DATA
(Unaudited)
(In thousands except per share data)

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 




 




 

2001

2000

Change

 

2001

2000

Change

 




 




 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

Institutional

74,618

68,180

9.4%

 

218,350

200,087

9.1%

Retail

 

 

 

 

 

 

 

-eSignal

8,474

8,795

-3.6%

 

26,742

23,490

13.8%

-Broadcast

2,195

4,881

-55.0%

 

8,409

18,116

-53.6%

 




 




Total

85,287

81,856

4.2%

 

253,501

241,693

4.9%

 

 

 

 

 

 

 

 

COSTS & EXPENSES

 

 

 

 

 

 

 

Cost of Services

25,433

26,834

-5.2%

 

77,689

84,566

-8.1%

Selling, general & administrative

30,041

28,994

3.6%

 

93,747

90,628

3.4%

 




 




EBITDA

29,813

26,028

14.5%

 

82,065

66,499

23.4%

 

 

 

 

 

 

 

 

Depreciation

3,105

3,487

-11.0%

 

9,207

10,036

-8.3%

Amortization

17,793

21,156

-15.9%

 

60,133

63,644

-5.5%

 




 




Total costs & expenses

76,372

80,471

-5.1%

 

240,776

248,874

-3.3%

 




 




 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

8,915

1,385

543.7%

 

12,725

(7,181)

277.2%

 

 

 

 

 

 

 

 

Equity in loss from Marketwatch.com, Inc.

-

-

 

 

-

-

 

Other income, net

934

228

309.6%

 

2,383

959

148.5%

 




 




 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

9,849

1,613

510.6%

 

15,108

(6,222)

342.8%

Provision (Benefit) for Income Taxes

6,011

7,313

-17.8%

 

9,758

12,437

-21.5%

 




 




NET INCOME (LOSS)

3,838

(5,700)

167.3%

 

5,350

(18,659)

128.7%

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE

 

 

 

 

 

 

 

Basic

0.04

(0.06)

 

 

0.06

(0.20)

 

Diluted

0.04

(0.06)

 

 

0.06

(0.20)

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

91,085

91,202

 

 

91,183

91,202

 

Diluted

93,537

91,202

 

 

92,391

91,202

 

Notes

Forward-looking and Cautionary Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and is subject to the safe-harbor created by such Act. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those contemplated in the forward-looking statements. Such factors include, but are not limited to: (i) the presence of competitors with greater financial resources than the Company's and their strategic response to the Company's services and products; (ii) changes in technology, which could affect the competitiveness of the Company's products and services; (iii) a decline in activity levels in the securities markets, which could lower demand for the Company's products and services; (iv) consolidation of financial services, both within an industry and across industries, which could lower demand for the Company's products and services; (v) the loss of key employees assigned to work associated with the integration of the recently acquired businesses of the Company and other delays in integration; (vi) prolonged outage at one of the Company's data centers; (vii) the acceptance of the Internet as a reliable real-time distribution platform by institutional customers; (viii) the ability of the Company to broaden its subscriber base by adding more individual investors outside of the Company's traditional "active-trader" market; (ix) the potential obsolescence of the Company's services due to the introduction of new technologies; and (x) other trends in competitive or economic conditions affecting the Company's financial condition or results of operations not presently contemplated. The Company undertakes no obligation to update these forward-looking statements.

About Interactive Data Corporation

Interactive Data Corporation is a leading global provider of securities pricing, financial information, and analytic tools to institutional and individual investors. The company supplies time-sensitive pricing, dividend, corporate action, and descriptive information for more than 3.5 million securities traded around the world, including hard-to-value, unlisted fixed income instruments. The company links to most of the world's best-known financial service and software companies for trading, analysis, portfolio management, and valuation.

Interactive Data Corporation is headquartered in Bedford, Massachusetts. Through its branded businesses, FT Interactive Data, CMS BondEdge, and eSignal, Interactive Data Corporation has approximately 1,600 employees in 22 offices in North America, Europe, Asia, and Australia. Pearson plc (NYSE: PSO), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, owns approximately 60 percent of Interactive Data Corporation.

Further Information

Lippert/Heilshorn & Associates
Investor Relations Contact
Harriet Fried/John Nesbett, 212/838-3777
Hfried@lhai.com

or

Lippert/Heilshorn & Associates
Media Contact
Chenoa Taitt, 212/838-3777
Ctaitt@lhai.com