United Online 4Q04 results and guidance details

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 |  About: United Online, Inc. (UNTD)
by: David Jackson

United Online, which provides Internet access through its NetZero, Juno and Classmates brands, beat consensus estimate for Q4 and provided above-consensus guidance for Q1. The stock rose by about 3% in late trading. Details:


Q4 Results:

  • Adjusted EPS of $0.26 beat consensus by a penny and was up from $0.26 per share a year earlier.
  • Revenues were $119.6 million, up 23% year over year, and beat the consensus estimate of $110.6 million.
  • Operating income was $19.0 million, or 15.9% of revenues, up 1% year over year but lower than the 19.5% of revenues in the year-ago quarter.
  • Adjusted operating income before depreciation and amortization (or "OIBDA") was $30.0 million, or 25.1% of revenues, up 23% year over year but lower in percentage terms than the 25.2% a year earlier.
  • Pay accounts increased by 1.59 million to 4.8 million; subscriptions increased by 1.64 million to 6.0 million; active accounts totaled 15.2 million at quarter-end. These numbers include Classmates, which was acquired in November with 1.45 million pay accounts (and subscriptions) and 8.7 million active accounts. Organic pay account growth was 142,000.
  • Adjusted net income was $16.6 million, up 15% year over year.
  • Cash flows from operations were $31.7 million for the quarter, up 9% from $29.0 million for the year-ago quarter.
  • Free cash flow(6) for the quarter was $30.6 million, versus $25.5 million for the year-ago quarter.

Q1 Guidance

  • Revenue of $126-129 million, versus current consensus of $112.6.
  • 4.85-4.95 million total pay accounts at quarter-end, versus 4.5 million at end-Q4.

UNTD chart below.
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