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Wednesday February 21, 4:03 pm Eastern Time Press Release Internet Capital Group Announces Fourth Quarter Results Exceeds liquidity expectations and reduces cash burn to strengthen financial flexibility; Reports continued progress at key partner companies WAYNE, Pa.--(BUSINESS WIRE)--Feb. 21, 2001-- Internet Capital Group, Inc. (NASDAQ:ICGE - news) today reported its results for the fourth quarter and fiscal year ended December 31, 2000. ``We are pleased to report that ICG made substantial progress against the milestones we outlined last quarter,`` said Walter Buckley, president and CEO of ICG. ``As a result of our heightened focus, we delivered on our commitments to reduce cash burn, streamline the network and increase our financial flexibility.`` ``As the B2B market evolves, ICG remains steadfast in its goal to build leading B2B e-commerce companies by focusing its human and financial resources on partner companies that we believe will bring the greatest near term value,`` Buckley said. ``We continue to be encouraged by the progress of our developed companies, as evidenced by their calendar year 2000 aggregate pro forma revenues of $161 million, which represents year over year growth of more than 250%.`` Focus on discipline and execution ``Continuing on the path outlined last quarter, ICG has intensified its focus on the most promising companies in its network, while streamlining the balance of the partner company network to free up resources and maximize value. We believe now more than ever that this focus will result in a smaller but stronger group of companies that will fuel ICG`s growth and, in turn, generate increased shareholder value over the long term,`` said Buckley. ICG will continue to support its most developed partner companies with an emphasis on those that are currently meeting, or in the case of several emerging companies, are close to meeting, the developed criteria established in the third quarter. During the quarter the Company made strong progress against its stated operating goals of focusing on key partner companies, reducing cash burn and streamlining the network. Highlights and actions taken include: Reducing ICG`s corporate SG&A expense rate by more than 50%, to an annualized run rate of approximately $35 million; Moving Blackboard, an e-learning infrastructure company for the higher education market, into the developed category, after having met the stringent criteria set out last quarter; Acquiring early in the quarter, as previously announced, a $21.5 million stake in Agribuys and a $4.5 million stake in TexYard. Agribuys is a leading full-service business-to-business e-commerce company that optimizes procurement across multiple segments of the $4 trillion food industry. TexYard is a leading European online sourcing solution for the apparel industry that enables retailers to deliver shorter product cycle times and lower the cost of goods sold, while increasing suppliers` factory utilization rates; Selling ICG`s stake in Servicesoft to Broadbase Software for approximately 1.3 million shares of Broadbase common stock, valued at approximately $10 million at the close of the transaction; Selling e-Chemicals to Aspen Technology, Inc.; Combining two of ICG`s partner companies, FreeBorders and Animated Images (Ai), to create a standard Web-based technology platform for members of the apparel and textile industry to facilitate trading, development and communication at all points in the supply chain. Following this acquisition of Ai by Freeborders, ICG`s ownership in the combined company is 38%; and Removing NationStreet from the ICG network after it ceased operations in December. Subsequent to December 31, 2000, the Company continued to execute against its stated operating plan, taking actions that include: Partnering with world reinsurance market leaders Munich Re and Swiss Re and Accenture (formerly Andersen Consulting) to form inreon, an independent reinsurance exchange. ICG`s contribution to this joint venture was $12.5 million; and Selling or entering into agreements in principle to sell ICG`s stakes in Blackbird, Deja, VerticalNet Europe, EmployeeLife and SageMaker for proceeds totaling in excess of $25 million. Partner Company Highlights One of the measures of ICG`s progress is the revenue growth of its partner companies. On a pro-forma unaudited basis, the aggregate reported revenues of ICG`s developed partner companies grew approximately 211% to $56 million in the fourth quarter of 2000, up from $18 million in the fourth quarter of 1999. On a proforma unaudited basis, the aggregate reported revenues for all of ICG`s partner companies grew approximately 391% to $599 million in the fourth quarter of 2000, up from $122 million in the fourth quarter of 1999. Excluding revenues from reselling, proforma unaudited aggregate reported revenues of all of ICG`s partner companies grew 167% to $218 million, up from $81 million in the fourth quarter of 1999. For the fiscal year, on a pro-forma unaudited basis, the aggregate reported revenues of all of ICG`s partner companies grew approximately 480% to $1.7 billion in 2000, up from $290 million in 1999. Excluding revenues from reselling, proforma unaudited aggregate reported revenues of all of ICG`s partner companies grew 226% to $713 million in 2000, up from $218 million in 1999. During the quarter, four of ICG`s developed partner companies - Jamcracker, United Messaging, NetVendor, and AssetTRADE - closed follow-on fundings of approximately $200 million in the aggregate, primarily led by third parties. Financial Strength and Flexibility ``We continue to manage our business with a high level of financial discipline and rigor. We will continue to deliver on our commitments to streamline our operations and focus our resources on our leading partner companies,`` said Ed West, Chief Financial Officer of Internet Capital Group. ``With more than $330 million in liquid resources at quarter end, access to alternative financing sources, and the ongoing ability to monetize non-strategic assets, we have substantial flexibility going forward.`` Cash used in operations at the parent company, including a semi-annual interest payment of $16 million, totaled $36 million for the fourth quarter, which was better than expectations set by the Company last quarter. Cash deployed for partner company acquisitions and follow-on activity totaled $120 million for the quarter, which was below ICG`s stated guidance. Early in the fourth quarter, the Company spent a total of $26 million in cash for new acquisitions, namely TexYard and Agribuys. The Company deployed an additional $94 million in cash for follow-on activity, approximately half for developed companies and the balance for emerging companies. Cash, short term investments and available for sale securities totaled $332 million at December 31, 2000 on an ICG corporate basis. Financial Results For the quarter ended December 31, 2000, ICG reported a pro forma net loss of $200 million or $0.70 per share. This excludes one-time asset impairment charges, goodwill amortization, and other income. This compares to a pro forma net loss of $30 million or $0.12 per share for the prior year period. For the full year ended December 31, 2000, ICG reported a pro forma net loss of $484 million or $1.76 per share. This excludes one-time asset impairment charges, goodwill amortization, and other income. This compares to a pro forma net loss of $66 million or $0.33 per share for the prior year period. As the result of the Company`s periodic review of the value of our partner companies, we adjusted the carrying value of certain assets, primarily goodwill and other intangibles, by approximately $302 million to their estimated recoverable amounts. On a GAAP basis, the net loss for the quarter was $561 million or $1.97 per share compared with a net loss of $23 million or $0.09 per share in the corresponding period in 1999. For the full year on a GAAP basis, the net loss was $660 million or $2.40 per share compared with a net loss of $30 million or $0.15 per share in the corresponding period in 1999. Outlook Looking ahead to 2001, ICG will continue to allocate its resources to key partner companies while maintaining strict financial discipline. Based on these priorities, along with the ongoing monetization of non-strategic assets and other financing sources, ICG expects to finish fiscal 2001 with a cash, short term investments and available for sale securities balance in excess of $200 million. The Company anticipates deploying approximately $125 - $150 million to fund its key partner companies. At the end of the second quarter, ICG expects its SG&A expenses will be at an annual run-rate of approximately $35 million. On a full-year basis, the Company expects to spend $40 million for the year to support general ICG operations, which does not include one-time items of approximately $10 million. Additionally, the Company will incur $32 million of interest expense associated with its convertible notes. About Internet Capital Group Internet Capital Group (http://www.internetcapital.com) is a leading B2B e-commerce company. It is an Internet holding company actively engaged in business-to-business e-commerce through a network of partner companies. It provides operational assistance, capital support, expertise, and a strategic network of business relationships intended to maximize the long-term market potential of more than 70 business-to-business e-commerce partner companies. Headquartered in Wayne, Pa, Internet Capital Group has offices in San Francisco, Boston, London, Hong Kong and Tokyo. Safe Harbor Statement under Private Securities Litigation Reform Act of 1995 The statements contained in this press release and attachments that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions of interests in additional partner companies, additional financing requirements, the effect of economic conditions in the B2B e-commerce market and other uncertainties detailed in the Company`s filings with the Securities and Exchange Commission. ICG will host a web cast at 5:00 pm EST to discuss results. You can access the web cast at http://ir.ccbn.com/ir.zhtml?t=ICGE&s=2400. A replay of the call can be accessed at our website at http://www.internetcapital.com/investors/presentations. -0- Internet Capital Group, Inc. Consolidated Statements of Operations (Unaudited, in thousands except per share data) Quarter Ended Year Ended December 31, December 31, --------------- --------------- 2000 1999 2000 1999 --------------- --------------- Revenues $21,262 $1,753 $42,935 $16,536 Operating Expenses Cost of revenue 14,888 731 27,333 8,156 Selling, general and administrative 76,372 14,648 243,161 39,907 Research and development 38,592 -- 75,902 -- Stock-based compensation 10,829 2,378 25,747 5,699 Amortization of goodwill 121,104 896 254,530 3,318 Impairment related and other 153,176 -- 160,844 -- -------- -------- -------- -------- Total operating costs 414,961 18,653 787,517 57,080 -------- -------- -------- -------- (393,699) (16,900) (744,582) (40,544) Other income (loss), net (57,299) 20,382 627,227 67,384 Interest income 7,878 5,454 51,379 9,631 Interest expense (11,500) (2,126) (42,982) (3,897) -------- -------- -------- -------- Income (loss) before income taxes, minority interest and equity loss (454,620) 6,810 (108,958) 32,574 Income taxes 311,888 10,882 327,255 23,722 Minority interest 49,008 1,893 95,546 6,026 Equity loss - share of partner company losses (235,939) (34,309) (516,690) (72,251) Equity loss - goodwill amortization (96,006) (8,648) (299,298) (19,848) Equity loss - impairment related (135,498) -- (157,768) -- -------- -------- -------- -------- Net loss $(561,167) $(23,372) $(659,913)$(29,777) ======== ======== ======== ======== Basic and diluted loss per share $(1.97) $(0.09) $(2.40) $(0.15) ======== ======== ======== ======== Shares used in computation of basic and diluted loss per share 285,095 255,012 275,044 201,851 ======== ======== ======== ======== Pro Forma Results ----------------- Reported Net Loss $(561,167) $(23,372) $(659,913)$(29,777) Amortization of intangibles 121,104 896 254,530 3,318 Impairment related and other 153,176 -- 160,844 -- Other income (loss), net 57,299 (20,382) (627,227) (67,384) Equity loss - goodwill amortization 96,006 8,648 299,298 19,848 Equity loss - impairment related 135,498 -- 157,768 -- Income taxes (202,198) 3,894 (68,803) 8,352 -------- -------- -------- -------- Pro forma net loss $(200,282) $(30,316) $(483,503)$(65,643) ======== ======== ======== ======== Pro forma basic and diluted loss per share $(0.70) $(0.12) $(1.76) $(0.33) ======== ======== ======== ======== Shares used in computation of pro forma basic and diluted loss per share 285,095 255,012 275,044 201,851 ======== ======== ======== ======== Internet Capital Group, Inc. Supplemental Segment Information (Unaudited, in thousands) Quarter Ended Dec. 31, Year Ended Dec. 31, -------------------------- ----------------------- 2000 1999 2000 1999 ------------- ----------- ------------ --------- Components of net loss: Partner Company operations Loss attributable to consolidated Partner Companies Share of losses $ (44,260) $ (3,784) $ (132,562) $ (7,999) Goodwill amortization (110,546) (818) (228,921) (3,318) Impairment related (134,925) -- (134,925) -- Loss attributable to equity method Partner Companies Share of losses (235,562) (34,309) (515,852) (72,253) Goodwill amortization (96,006) (8,648) (299,298) (19,848) Impairment related (135,498) -- (157,768) -- Loss attributable to Partner Company ------------- ----------- ------------ --------- operations (756,797) (47,559) (1,469,326) (103,418) ------------- ----------- ------------ --------- General ICG operations General and administrative (22,549) (8,276) (78,728) (17,690) Research and development -- -- (22,548) -- Stock-based compensation (1,725) (2,378) (7,104) (5,699) Impairment and other (18,251) -- (25,919) -- Other income (loss), net (57,732) 20,668 626,956 67,642 Interest income (expense), net (7,833) 3,291 (1,561) 5,666 Income taxes 303,720 10,882 318,317 23,722 ------------- ----------- ------------ --------- Income attributable to General ICG operations 195,630 24,187 809,413 73,641 ------------- ----------- ------------ --------- ------------- ----------- ------------ --------- Net loss $ (561,167) $ (23,372) $ (659,913) $ (29,777) ============ ============ ============ ========== Internet Capital Group, Inc. Schedule of Ownership Interests in Partner Companies as of 12/31/2000 ====================================================================== INFRASTRUCTURE - US ICG OWNERSHIP ====================================================================== Breakaway Solutions, Inc. 30% ClearCommerce Corporation 11% CommerceQuest, Inc. 27% Context Integration, Inc. 15% Emptoris, Inc. 62% Entegrity Solutions Corporation 9% iSky, Inc. 26% Jamcracker, Inc. 17% NetVendor Inc. 35% Persona, Inc. 8% RightWorks Corporation 56% Surgency, Inc. 12% Syncra Systems, Inc. 36% TeamOn.com, Inc. 34% traffic.com, Inc. 26% United Messaging, Inc. 26% ====================================================================== ====================================================================== HORIZONTAL SERVICE PROVIDERS ICG OWNERSHIP ====================================================================== US ====================================================================== AssetTRADE.com, Inc. 48% eCredit.com, Inc. 42% eMarketWorld.com, Inc. 42% ICG Commerce Holdings, Inc. 54% LinkShare Corporation 40% Logistics.com, Inc. 29% MROLink Corporation 52% Onvia.com, Inc. 20% VerticalNet, Inc. 28% ====================================================================== Europe ====================================================================== buy.co.uk limited 33% eu-Supply.com Svenska AB 51% GoIndustry AG 20% Sourceree Limited 39% ====================================================================== 1) The schedule excludes Blackbird, EmployeeLife, Deja, SageMaker, and VerticalNet Europe which were included at year end but subsequent to year end have been sold or are under an agreement of sale. 2) The schedule includes information as of January 2, 2001 on which inreon was acquired as a partner company. Schedule of Ownership Interests in Partner Companies as of 12/31/2000 (continued) ====================================================================== VERTICAL SOLUTIONS PROVIDERS ICG OWNERSHIP ====================================================================== US ====================================================================== Agribuys, Inc. 35% Arbinet-thexchange Inc. 8% Autovia Corporation 20% Bidcom, Inc. (merging with Citadon) 27% Blackboard, Inc. 26% BuyMedia, Inc. 40% Collabria, Inc. 8% Commerx, Inc. 43% ComputerJobs.com, Inc. 46% CreditTrade Inc. 30% CyberCrop.com, Incorporated 78% Data West Corporation (d/b/a CourtLink) 34% Delphion, Inc. 33% eMarket Capital, Inc. 54% eMerge Interactive, Inc. 20% FreeBorders.com, Inc. 38% FuelSpot.com, Inc. 37% inreon limited 31% Internet Commerce Systems, Inc. 44% Investor Force Holdings, Inc. 39% iParts, Inc. 67% MetalSite, Inc. 38% PaperExchange.com, Inc. 83% RetailExchange.com, Inc. 28% Simplexis.com 47% StarCite, Inc. 49% TALPX Inc. 28% Tibersoft Corporation 28% Universal Access, Inc. 23% USgift.com Corporation 35% Vivant! Corporation 38% ====================================================================== Europe ====================================================================== cargobiz.com AG 19% eMetra Limited 42% Eumedix.com BV 39% FOL Networks Limited 32% iVOWS Interactive Limited (d/b/a Mesania.com) 50% PrintMountain Ltd. 28% Textiles Online Marketplaces Limited 16% ====================================================================== Asia ====================================================================== InfoMart Corporation 45% ====================================================================== ====================================================================== OTHER ICG OWNERSHIP ====================================================================== eColony, Inc. 5% ICG Asia Ltd. 54% Internet Healthcare Group L.L.C. 38% OnMedica Group PLC 76% ====================================================================== INTERNET CAPITAL GROUP December 31, 2000 Supplemental Information General ICG Operations Segment The General ICG Operations segment represents the expenses of providing strategic and operational support to our partner companies, the administrative costs related to these expenses and the effect of transactions and other events incidental to our ownership interests in our partner companies. General and Administrative General and administrative expenses consist of payroll and related expenses for executive, operational, acquisitions, finance and administrative personnel, recruiting, professional fees and other general corporate expenses for Internet Capital Group. Research and Development Research and development expenses relate to the development of certain technologies for the benefit of our partner companies. Stock-Based Compensation Stock-based compensation primarily consists of non-cash charges related to certain compensation arrangements. Amortization of Goodwill and intangible assets Goodwill, the excess of cost over net assets of businesses acquired, and other intangible assets are amortized on a straight-line basis over three years. Impairment-Related and Other We continually evaluate the carrying value of our partner companies based on quantitative and qualitative measures. If we conclude that the carrying value should be adjusted and the estimated fair value of the asset is less than its recorded amount, an adjustment to the carrying value is recorded. The industry in which we operate is rapidly evolving and extremely competitive. Valuations of public companies operating in the Internet B2B e-commerce sector have declined significantly throughout 2000. In 1999 and 2000, we announced several significant acquisitions that were financed principally with shares of our stock and, based on the price of our stock at that time were valued in excess of $1 billion. During the quarter ended December 31, 2000, our review of the carrying value of our partner companies resulted in an adjustment to the carrying value of certain partner companies in the amount of approximately $302 million. Adjustments of $46.4 million to carrying values were also recorded in previous quarters. These adjustments are presented in `impairment and other`, `other income, net` and `equity loss` in the accompanying statement of operations depending on the method of accounting for the affected partner company. It is possible that our accounting estimates with respect to the useful life and ultimate recoverability of our carrying basis including goodwill in other partner companies could change in the near term and that the effect of such changes on the financial statements could be material. Impairment-related and other for the year ended December 31, 2000, also includes a fourth-quarter charge of approximately $18.1 million related to previously announced severance related costs, costs associated with facilities reduction and the loss on retirement of certain fixed assets. Other Income (loss), net Other income (loss), net primarily consists of net realized gains and losses on sales of marketable securities and other minority interest investments, impairment charges relating to cost method companies and gains or losses on the issuances of stock by our partner companies to reflect the change in our share of the net equity of these companies. Other income (loss), net for the quarter ended December 31, 2000, primarily consists of a loss of approximately $26.8 million related to the sales of marketable securities, principally shares of Ariba and a $31.5 million loss related to the previously detailed adjustment to carrying values (cost method companies). Other income (loss), net for the year ended December 31, 2000, also consists primarily of gains of approximately $251.1 million related to the issuance of stock by certain equity method companies and a gain of approximately $449.3 million related to the sale of Tradex to Ariba, Inc Partner Company Operations Segment The Partner Company Operations segment includes the effect of consolidating our majority-owned partner companies from the dates of their acquisitions and recording our share of the earnings and losses of partner companies accounted for under the equity method of accounting. Because many of these companies are in the early stage of their development, they have been and are expected to continue to generate losses. The performance of these partner companies, coupled with the occasional and unplanned nature of the gains and losses related to our ownership in them, will most likely continue to result in wide fluctuations of our quarterly results. Effect of Various Accounting Methods on our Results of Operations The various interests that we acquire in our partner companies are accounted for under three broad methods: consolidation, equity method and cost method. The effect of a partner company`s net results of operations on our net results of operations is generally the same under either the consolidation method of accounting or the equity method of accounting, because under each of these methods only our share of the earnings or losses of a partner company is reflected in our net results of operations in the Consolidated Statements of Operations. The applicable accounting method is generally determined based on our voting interest in a partner company. Consolidation. Partner companies in which we directly or indirectly own more than 50% of the outstanding voting securities or those where we have effective control are generally accounted for under the consolidation method of accounting. Under this method, a partner company`s accounts (revenue, cost of revenue, general and administrative, research and development, stock based compensation, goodwill amortization and interest income/expense) are reflected within our Consolidated Statements of Operations. Participation of other partner company stockholders in the earnings or losses of a consolidated partner company is reflected in the caption ``Minority interest`` in our Consolidated Statements of Operations. Minority interest adjusts our consolidated net results of operations to reflect only our share of the earnings or losses of the consolidated partner company. As of December 31, 2000, we accounted for 14 of our partner companies under this method. Equity Method. Partner companies whose results we do not consolidate, but over whom we exercise significant influence, are generally accounted for under the equity method of accounting. Whether or not we exercise significant influence with respect to a partner company depends on an evaluation of several factors including, among others, representation on the partner company`s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the partner company, including voting rights associated with our holdings in common, preferred and other convertible instruments in the partner company. Under the equity method of accounting, a partner company`s accounts are not reflected within our Consolidated Statements of Operations; however, our share of the earnings or losses of the partner company is reflected in the caption ``Equity loss`` in the Consolidated Statements of Operations. As of December 31, 2000, we accounted for 45 of our partner companies under this method. Cost Method. Partner companies not accounted for under either the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, our share of the earnings or losses of these companies is not included in our Consolidated Statements of Operations. As of December 31, 2000, we accounted for 20 of our partner companies under this method. |
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| aus der Diskussion: | INTERNET CAPITAL GROUP - es geht los ? |
| Autor (Datum des Eintrages): | guuruh (22.02.01 00:49:00) |
| Beitrag: | 94 von 17,989 (ID:2957978) |
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