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Joseph D. Frehe
Chief Financial Officer
For immediate release:
ALLOY REPORTS THIRD QUARTER FISCAL 2009 RESULTS
Revenue of $60.8 million versus $69.9 million in the prior year quarter
Adjusted EBITDA of $7.7 million versus $11.9 million in the prior year quarter
Updated Fiscal 2009 Full Year Financial Guidance:
Revenue of $198.0 - $203.0 Million
Adjusted EBITDA of $11.0 - $12.0 Million
New York, NY December 2, 2009Alloy, Inc. (the Company) (NASDAQ: ALOY), one of the countrys largest providers of media and marketing programs reaching targeted consumer segments, today reported financial results for its third fiscal quarter ended October 31, 2009.
Consolidated Results for the Three Months Ended October 31, 2009
Revenue for the third quarter of the fiscal year ending January 31, 2010 (fiscal 2009) decreased $9.1 million, or 13%, to $60.8 million, from $69.9 million in the third quarter of the fiscal year ended January 31, 2009 (fiscal 2008). Revenue decreased in each of the Companys reporting segments.
Adjusted EBITDA is defined by the Company as operating income (loss) plus depreciation and amortization and non-cash stock-based compensation. Adjusted EBITDA for the third quarter of fiscal 2009 decreased $4.2 million, or 35%, to $7.7 million, from $11.9 million in the third quarter of fiscal 2008. Adjusted EBITDA decreased in each of the Companys reporting segments.
Commenting on Alloys performance and outlook, Matt Diamond, the Companys Chairman and Chief Executive Officer, stated, Our overall third quarter results are in line with the expectations that we communicated in September. While we believe that our Media segment will report increased Adjusted EBITDA of 10% to 15% for the full year fiscal 2009, we are updating our full year guidance. This is largely due to a projected decrease in revenue in the Placement and Promotion segments and increased employee benefit expense in the Corporate segment. We continue to maintain a strong financial position with $30.0 million in cash and no debt.
Free cash flow is defined by the Company as net cash used in or provided by operating activities, plus changes in operating assets and liabilities, minus capital expenditures. Free cash flow for the third quarter of fiscal 2009 was $7.4 million, or $0.60 per diluted share, as compared to $10.7 million, or $0.78 per diluted share, in the third quarter of fiscal 2008, primarily due to lower profitability partially offset by lower capital expenditures.
Operating income for the third quarter of fiscal 2009 decreased $5.6 million, or 61%, to $3.6 million, from $9.2 million for the third quarter of fiscal 2008, primarily due to lower Adjusted EBITDA and increased depreciation, amortization and stock compensation expenses.
Interest expense and other for the third quarter of fiscal 2009 decreased $0.1 million to $0, from $0.1 million in the third quarter of fiscal 2008. Interest income for the third quarter of fiscal 2009 decreased $0.1 million, to $0, from $0.1 million in the third quarter of fiscal 2008, primarily due to lower yields on the Companys cash balances.
The following information was filed by Alloy Inc on Wednesday, December 2, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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