Core Consolidated Revenue Increases 27% in 2010
Metastorm Sale Completed
WAYNE, Pa., Feb. 24, 2011 (GLOBE NEWSWIRE) -- Internet Capital Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the fourth quarter and full year ended December 31, 2010.
"We are pleased with our financial results, which were driven by strong performance at each of our consolidated core partner companies," said Walter Buckley, ICG's Chief Executive Officer. "2010 was a pivotal year for ICG, as we set out on a path to refine our business model by focusing on core consolidated companies while monetizing certain equity companies. We successfully executed against these goals by increasing our stake in ICG Commerce to over 80% and, more recently, by monetizing our stake in Metastorm, one of our core equity companies. As we look ahead, we are well positioned to continue to report strong operating results within a simpler, more transparent structure."
ICG's GAAP revenue increased to $33.1 million for the quarter ended December 31, 2010, up from $24.0 million for the fourth quarter of 2009. GAAP net income for the quarter ended December 31, 2010 was $0.3 million, or $0.01 per diluted share, compared to $32.0 million, or $0.87 per diluted share, in the comparable 2009 period. Core consolidated revenue totaled $33.1 million in the fourth quarter of 2010, an increase of 27% from the corresponding 2009 period. Core consolidated EBITDA totaled $5.6 million for the fourth quarter of 2010, compared to $4.0 million in the corresponding 2009 period.
ICG's GAAP revenue increased to $115.7 million for 2010, up from $90.3 million for 2009. GAAP net income for 2010 was $46.6 million, or $1.26 per diluted share, compared to $15.5 million, or $0.42 per diluted share, for 2009. Core consolidated revenue totaled $117.7 million for 2010, an increase of 27% from 2009. Core consolidated EBITDA totaled $13.7 million for 2010, compared to $9.3 million for 2009.
ICG's corporate cash and cash equivalents were $72.9 million at December 31, 2010, and the value of ICG's holdings in GoIndustry-DoveBid (LSE.AIM: GOI) was $3.5 million. Additionally, as of December 31, 2010, ICG had an income tax receivable of $6.3 million.
ICG Commerce reported $28.5 million of revenue for the fourth quarter of 2010, representing an increase of 25% over the comparable 2009 period. ICG Commerce reported $101.1 million of revenue for 2010, representing an increase of 24% over 2009. ICG Commerce's EBITDA, excluding stock-based compensation and unusual items, for the quarter ended December 31, 2010 increased to $6.4 million, up from $4.9 million in the comparable 2009 period. ICG Commerce's EBITDA, excluding stock-based compensation and unusual items, for 2010 increased to $17.1 million, up from $13.4 million in 2009.
On February 17, 2011, the sale of Metastorm to Open Text Corporation was consummated. ICG's portion of the sale proceeds consisted of approximately $53 million, approximately $1.6 million of which has been placed in escrow in connection with a customary indemnification holdback. Subject to any indemnification claims that Open Text may assert, the escrowed sale proceeds will be released to ICG nine months following the closing of the transaction.
"As we look forward in 2011, we expect core consolidated revenue for the year to be in the range of $142 million to $148 million, representing 21% to 26% growth over 2010 revenue, and core consolidated EBITDA to be in the range of $16 million to $18 million as we continue to support key growth and expansion efforts at our consolidated partner companies," said Kirk Morgan, Chief Financial Officer at ICG. "Additionally, the proceeds from our recent sale of Metastorm will further strengthen our balance sheet, providing us greater financial flexibility to achieve our goals of owning majority stakes in companies and driving growth."
For information related to ICG's core equity companies, Channel Intelligence, Freeborders, StarCite and WhiteFence, please refer to the supplemental schedule on our website, as well as the slide presentation that will accompany today's earnings results webcast. See below for further details regarding the webcast.
Please see ICG's website at for more information on ICG, its partner companies and its fourth quarter and full year 2010 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 and click on the investor relations tab. Then click the link for the fourth quarter and full year 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 866-831-6247. The international dial-in number is 617-213-8856. The pass code is 42656308.
For those unable to participate in the conference call, a replay will be available from February 24, 2011 at 1:00 p.m. ET until March 3, 2011 at 11:59 p.m. ET. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international). The pass code is83619482. The replay and slide presentation also can be accessed in the investor relations section of the ICG website at .
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.
The Internet Capital Group, Inc. logo is available at
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties, including, but not limited to, risks associated with the effect of economic conditions generally, capital spending by our partner companies' customers, our partner companies' ability to compete successfully against their respective competitors, our partner companies' ability to timely and effectively respond to technological developments, our and our partner companies' collective ability to retain key personnel, our ability to have continued access to capital and to deploy capital effectively and on acceptable terms, our ability to maximize value in connection with divestitures, and other risks and uncertainties detailed in ICG's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.
CONTACT: Investor inquiries: Karen Greene ICG Investor Relations 610-727-6900 IR@icg.com