-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AiZOp/fUow2EEA2AZEu3CTRbGJMWxlhgnEVY3paNbT46Qdq769cV6JF4izFUap/W EjqGQn2jM/qny3ND9xrTqw== 0000950117-04-002077.txt : 20040601 0000950117-04-002077.hdr.sgml : 20040601 20040601170117 ACCESSION NUMBER: 0000950117-04-002077 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20030424 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: THESTREET COM CENTRAL INDEX KEY: 0001080056 STANDARD INDUSTRIAL CLASSIFICATION: NEWSPAPERS: PUBLISHING OR PUBLISHING & PRINTING [2711] IRS NUMBER: 061515824 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25779 FILM NUMBER: 04841971 BUSINESS ADDRESS: STREET 1: 14 WALL ST 14TH FL CITY: NEW YORK STATE: NY ZIP: 10005 BUSINESS PHONE: 2122714004 MAIL ADDRESS: STREET 1: 14 WALL ST 14TH FL CITY: NEW YORK STATE: NY ZIP: 10005 8-K 1 a37809.txt THESTREET.COM UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 24, 2003 THESTREET.COM, INC. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE - ------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-25779 06-1515824 - ----------------------------- --------------------------------------- (Commission File Number) (IRS Employer Identification No.) 14 WALL STREET 15TH FLOOR NEW YORK, NEW YORK 10005 - ------------------------------------------------------------------------------- (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (212) 321-5000 NA - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 12. Results of Operations and Financial Condition. Attached as Exhibits 99.1-5 are previously released earnings press releases of TheStreet.com, Inc. Item 7. Exhibits. Exhibit 99.1 Press Release dated April 24, 2003 Exhibit 99.2 Press Release dated July 18, 2003 Exhibit 99.3 Press Release dated October 16, 2003 Exhibit 99.4 Press Release dated February 18, 2004 Exhibit 99.5 Press Release dated April 22, 2004 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THESTREET.COM, INC. (Registrant) By: /s/ Thomas J. Clarke, Jr. ------------------------------- Thomas J. Clarke, Jr. June 1, 2004 Chairman and Chief Executive Officer - ------------------------ Date Exhibit Index Exhibit Number Description - -------- ----------- 99.1 Press Release dated April 24, 2003 99.2 Press Release dated July 18, 2003 99.3 Press Release dated October 16, 2003 99.4 Press Release dated February 18, 2004 99.5 Press Release dated April 22, 2004 EX-99.1 2 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 TheStreet.com Reports Quarterly Subscription Revenue Increase of 42% Year-over-Year; Independent Research Group LLC Approved as Registered Broker-Dealer NEW YORK, April 24, 2003 --TheStreet.com, Inc. (Nasdaq: TSCM), a leading multimedia provider of financial commentary, analysis, research and news, today announced its financial results for the first quarter 2003 which included subscription revenue of $4.3 million, a 42 percent year-over-year increase. Independent Research Group LLC ("IRG"), a wholly owned subsidiary of TheStreet.com, was approved by the SEC and admitted for membership in the NASD on Tuesday as a registered broker-dealer. Net revenue was $5.7 million in the first quarter 2003, a 39 percent increase over the first quarter 2002. Net loss under generally accepted accounting principles was ($2.1) million or ($0.09) per share for the quarter, an improvement of 44 percent over the same period last year of ($3.7) million or ($0.16). Total cash burn in the first quarter 2003 was $1.1 million. This was an improvement of 58 percent over the first quarter 2002 cash burn of $2.6 million. Subscription bookings for the first quarter 2003 totaled $5.5 million, a sequential increase of 30 percent over the fourth quarter 2002, and a 10 percent year-over-year increase. Deferred revenue reached $6.7 million, a 28 percent increase over the same period of last year. Both subscription bookings and deferred revenue marked the highest levels in the Company's history. "Our solid first quarter 2003 earnings are in line with our plans," said Thomas J. Clarke Jr., chairman and chief executive officer of TheStreet.com. "Therefore, our goal of achieving profitability by the end of 2003 remains unchanged." Becoming a registered broker-dealer paves the way for new revenue opportunities for both IRG as a supplier of independent and insightful research to the institutional community and TheStreet.com. In addition to its own proprietary research products, IRG can now provide the two additional institutional products produced by TheStreet.com to its clients, giving them a new commission-payment option, in addition to the direct cash payments and soft-dollar arrangements previously in place. "Consistent with our long-term strategy of offering more products and services to the professional market, I am very pleased that IRG has been approved as a registered broker-dealer," said Clarke. "Hedge funds and buy-side institutions have traditionally paid for products through broker commissions generated in their daily trading. Now that broker-dealer approval has been received, IRG can now be compensated by its clients in a manner consistent with their normal operational procedures." Subscription Subscription revenue for the first quarter 2003 was $4.3 million, an increase of 42 percent over the same period last year and up slightly from the fourth quarter 2002. Advertising Advertising revenue was $1.2 million for the first quarter 2003, an increase of 69 percent over the same period last year and a decrease of 12 percent from the fourth quarter 2002. Expenses Total expenses for the first quarter totaled $7.8 million, a 4 percent improvement over the same period last year and an 8 percent increase from the fourth quarter 2002. Cash burn for the quarter was $1.1 million, a 58 percent improvement over the same period last year of $2.6 million. Cash, restricted cash and short-term investments as of March 31, 2003, decreased 4 percent from the previous quarter and stands at approximately $28 million. The quarter-over-quarter increase in cash burn and expenses is a result of costs incurred in the formation of IRG. Excluding IRG's planned first quarter expenditures, the cash burn would have been $0.7 million, a 13 percent improvement over the fourth quarter total burn of $0.8 million. "Although our net loss increased sequentially, it is in line with our first quarter expectations," noted Clarke. "This was primarily due to our previously announced investment in IRG and the associated build up of its institutional sales force, which accounted for approximately two thirds of the increase. The expected seasonal dip in advertising accounted for most of the remainder." "As always, we remain focused on costs and flexible on strategy in order to navigate the financial environment as we move towards profitability by the end of the year," said Clarke. First quarter 2003 Business Highlights Some of the Company's accomplishments during the quarter include: - -- "RealMoney Pro" was re-launched as "Street Insight," a subscription web site for investment professionals seeking macro and micro information on the flow of funds that move markets. - -- The launch of two new subscription products including: --"The Short Report" provides information on how to short stocks and advice from experts on how to identify shorting opportunities. -- "The Save Safe Plan" offers advice on establishing and maintaining a well-balanced long-term portfolio to help investors create a secure financial plan. - -- IRG hired four research analysts to cover small to mid cap stocks in the communications, technology, consumer and retail and biotech sectors. A financial services analyst and a media analyst are set to be in place by mid-year. TheStreet.com will conduct a conference call today, April 24, 2003, at 11:00 a.m. EST to discuss these results. The Company welcomes all interested parties to listen to the Web cast of its call at http://www.vcall.com/EventPage.asp?ID=83774 About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM) is a leading multimedia provider of independent research, financial commentary, analysis and news. Founded in 1996, the Company completed its initial public offering in May 1999. On the Internet, its premium, subscription-based website, "RealMoney.com," is accompanied by the professionally oriented subscription sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site, "TheStreet.com." The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings), which could cause actual results to differ. THESTREET.COM, INC. BALANCE SHEETS ($ in thousands)
March 31, 2003 December 31, 2002 -------------- ----------------- ASSETS Current Assets: Cash, restricted cash and short-term investments $25,670 $26,749 Accounts receivable - net 1,599 1,677 Other receivables 486 197 Prepaid expenses and other current assets 823 1,020 ------- ------- Total current assets 28,578 29,643 Property and equipment - net 3,140 3,643 Other assets 457 698 Goodwill and intangibles - net 2,979 3,144 Restricted cash 2,300 2,300 ------- ------- Total assets $37,454 $39,428 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 2,880 $ 4,393 Deferred revenue 6,745 5,513 Note payable 84 84 Other current liabilities 19 18 ------- ------- Total current liabilities 9,728 10,008 Note payable 291 311 ------- ------- Total liabilities 10,019 10,319 ------- ------- Stockholders' Equity: Stockholders' equity 27,435 29,109 ------- ------- Total liabilities and stockholders' equity $37,454 $39,428 ======= ======= Note: The Company has pledged certain cash amounts as security deposits for operating leases. Accordingly, a portion of this cash is classified as a noncurrent asset, and our cash is classified in two places on the above balance sheet. Cash, restricted cash, and short-term investments $25,670 $26,749 Restricted cash 2,300 2,300 ------- ------- Total cash, current and noncurrent restricted cash and short-term investments $27,970 $29,049 ======= =======
THESTREET.COM, INC. STATEMENTS OF OPERATIONS ($ in thousands, except per share data)
For the Three Months Ended March 31, -------------------------- 2003 2002 ---- ---- Net revenues: Subscription revenues $ 4,273 $ 3,001 Advertising and e-commerce revenues 1,201 710 Other revenues 182 362 ------ ------ Total net revenues 5,656 4,073 Operating expenses: Cost of services 3,412 3,350 Sales and marketing expenses 1,658 1,457 General and administrative expenses 1,755 1,979 Depreciation and amortization 766 1,189 Noncash compensation expense 239 243 Restructuring income - (31) ------ ------- Total operating expenses 7,830 8,187 ------ ------- Interest income, net 118 220 ------ ------- Net loss from continuing operations (2,056) (3,894) Gain on disposal of discontinued operations - 193 ------ ------- Net loss $(2,056) $(3,701) ======= ======= Net (loss) gain per share - basic and diluted: Continuing operations $ (0.09) $ (0.17) Discontinued operations - 0.01 ------- ------- Net loss $ (0.09) $ (0.16) ======= ======= Weighted average basic and diluted shares outstanding 23,652 23,527 ====== ======
Contact: TheStreet.com, Inc., New York Wendy Tullo 212/321-5493 wendy.tullo@thestreet.com ### EX-99.2 3 ex99-2.txt EXHIBIT 99.2 Exhibit 99.2 THESTREET.COM REPORTS FIRST POSITIVE CASH FLOW QUARTER NEW YORK, July 18, 2003 --TheStreet.com, Inc. (Nasdaq: TSCM), a leading multimedia provider of financial commentary, analysis, research and news, today announced its financial results for the second quarter 2003, which includes the Company's first quarterly positive cash flow. In addition, net revenue, subscription revenue and deferred revenue for the quarter set new historical highs. The Company's net revenue was $6.4 million in the second quarter 2003, a 17 percent increase over the second quarter 2002 and a 13 percent increase from the previous quarter. Net loss under generally accepted accounting principles was ($1.3) million, or ($0.05) per share for the quarter, an improvement of 36 percent over the same period last year of ($2.0) million. This represents a sequential improvement of 38 percent or ($0.8) million from the previous quarter. Total cash flow in the second quarter 2003 was $0.3 million. Subscription bookings for the second quarter 2003 totaled $4.7 million, a 6 percent increase year-over-year and a 14 percent decrease from the first quarter. Deferred revenue was $6.9 million, a 21 percent increase over the same period last year and a 2 percent increase from the previous quarter. "We are very pleased to report our first quarter of positive cash flow," said Thomas J. Clarke Jr., Chairman and Chief Executive Officer, TheStreet.com. "The investment we have made in Independent Research Group LLC (IRG), our broker dealer-subsidiary, is beginning to reward us. Since IRG was cleared to receive trading commissions in mid-May, we can now include commission revenue as part of our mosaic of revenue streams. With the commission payments IRG receives from both hedge funds and money management firms, we can now view both subscription and commission revenue as compensation for our premium content." Revenue Streams Subscription revenue for the second quarter 2003 was $4.3 million, an increase of 19 percent over the same period last year and up 2 percent from the first quarter 2003. Commission revenue for the period covering May 13, 2003 - June 30, 2003 was $0.2 million. Advertising revenue reached $1.5 million for the second quarter 2003, an increase of 19 percent over the same period last year and an increase of 23 percent from the first quarter 2003. Expenses Total expenses for the second quarter totaled $7.8 million, a 2 percent increase over the same period last year and a 1 percent decrease from the first quarter 2003. The sequential decrease in expenses was achieved while continuing to invest in the development of IRG. Cash flow for the quarter was $0.3 million, an improvement of 138 percent over the same period last year's burn of ($0.7) million and a 123 percent improvement from the previous quarter's burn of ($1.1) million. Cash, restricted cash and short-term investments as of June 30, 2003, increased 1 percent from the previous quarter and stands at approximately $28 million. "Our second quarter results demonstrate our ability to grow our existing business as well as transition into new business lines quickly and effectively," added Clarke. "With this in mind, the transformation of our professional business into one in which brokerage commissions are an integral part of the revenue stream, validates our broker-dealer initiative. We will continue to invest in the business in ways that will bring maximum long-term return." SECOND QUARTER 2003 BUSINESS HIGHLIGHTS Some of the Company's accomplishments during the quarter include: Independent Research Group LLC (IRG), a wholly owned subsidiary of TheStreet.com, was approved by the SEC and admitted for membership in the NASD as a registered broker-dealer. IRG released its first institutional research report on April 15, 2003. As of June 30, 2003, IRG has initiated coverage on 11 stocks and issued 23 reports. IRG began receiving trading commissions from its institutional clients on May 13, 2003. "TheStreet.com's Second Annual Hedge Fund Event 2003" took place in May at the Doral Golf Resort and Spa in Miami. The Conference provided hedge fund managers, fund of funds managers and senior executives in the alternative investment industry with proprietary investment ideas and insight into the latest market trends. TheStreet.com's advertising platform continues to attract advertisers looking to reach the most affluent, self-directed investors online and a critical advertising outlet for non-endemic companies attracted to our strong demographics. Year-to-date, we have launched 75 new advertising programs, 38 of which are from companies that have not advertised with us in the past. The Company launched a membership program designed to enhance one of TheStreet.com's most proprietary assets; its extensive database of email addresses of consumers and professionals interested in financial information and services. The core components of this initiative include the latest "TSC Membership" program which includes the introduction of four new free newsletters and the newly redesigned TheStreet.com bulletin. Jim Cramer's RealMoney financial radio program began airing every weekday on WOR 710 AM (New York) on June 16, 2003. A 50,000 watt heritage station, WOR's signal reaches listeners in New York, New Jersey, Connecticut and Pennsylvania, enabling the Company to reach listeners and potential subscribers more cost effectively. The program now reaches approximately 1.5 million listeners daily. TheStreet.com will conduct a conference call today, July 18, 2003, at 11:00 a.m. EDT to discuss these results. The Company welcomes all interested parties to listen to the Web cast of its call at http://www.thestreet.com/earnings . About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM), a registered investment advisor, is a leading provider of independent and insightful investment commentary, advice, research and news. Founded in 1996, the Company completed its initial public offering in May 1999. On the Internet, its premium, subscription-based website, "RealMoney.com" is accompanied by the professionally oriented subscription sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site, "TheStreet.com." The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings), which could cause actual results to differ. THESTREET.COM, INC. BALANCE SHEETS ($ in thousands)
June 30, Dec. 31, 2003 2002 -------- -------- ASSETS Current Assets: Cash, restricted cash and short-term investments $25,924 $26,749 Accounts receivable - net 1,449 1,677 Other receivables 436 197 Prepaid expenses and other current assets 1,464 1,020 -------- -------- Total current assets 29,273 29,643 Property and equipment - net 2,761 3,643 Other assets 461 698 Goodwill and intangibles - net 2,814 3,144 Restricted cash 2,300 2,300 -------- -------- Total assets $37,609 $39,428 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 3,887 $ 4,393 Deferred revenue 6,907 5,513 Note payable 87 84 Other current liabilities 19 18 -------- -------- Total current liabilities 10,900 10,008 Note payable 267 311 -------- -------- Total liabilities 11,167 10,319 -------- -------- Stockholders' Equity: Stockholders' equity 26,442 29,109 -------- -------- Total liabilities and stockholders' equity $37,609 $39,428 ======== ======== Note: The Company has pledged certain cash amounts as security deposits for operating leases. Accordingly, a portion of this cash is classified as a noncurrent asset, and our cash is classified in two places on the above balance sheet. Cash, restricted cash, and short-term investments $25,924 $26,749 Restricted cash 2,300 2,300 -------- -------- Total cash, current and noncurrent restricted cash and short-term investments $28,224 $29,049 ======== ========
THESTREET.COM, INC. STATEMENTS OF OPERATIONS ($ in thousands, except per share data)
For the Three For the Six Months Ended Months Ended June 30, June 30, ----------------- ----------------- 2003 2002 2003 2002 -------- -------- -------- -------- Net revenues: Subscription revenues $4,350 $3,652 $8,622 $6,653 Advertising revenues 1,476 1,236 2,677 1,946 Commission revenues 167 - 167 - Other revenues 401 599 584 961 -------- -------- -------- -------- Total net revenues 6,394 5,487 12,050 9,560 Operating expenses: Cost of services 3,582 3,019 6,993 6,368 Sales and marketing expenses 1,694 1,473 3,353 2,930 General and administrative expenses 1,860 1,870 3,616 3,849 Depreciation and amortization 607 1,006 1,373 2,195 Noncash compensation expense 33 236 271 480 Restructuring expense - 50 - 19 -------- -------- -------- -------- Total operating expenses 7,776 7,654 15,606 15,841 -------- -------- -------- -------- Interest income, net 109 184 227 404 -------- -------- -------- -------- Net loss from continuing operations (1,273) (1,983) (3,329) (5,877) Gain on disposal of discontinued operations - 5 - 198 -------- -------- -------- -------- Net loss $(1,273) $(1,978) $(3,329) $(5,679) ======== ======== ======== ======== Net (loss) gain per share - basic and diluted: Continuing operations $(0.05) $(0.08) $(0.14) $(0.25) Discontinued operations - - - 0.01 -------- -------- -------- -------- Net loss $(0.05) $(0.08) $(0.14) $(0.24) ======== ======== ======== ======== Weighted average basic and diluted shares outstanding 23,853 23,581 23,753 23,554 ======== ======== ======== ========
CONTACT: TheStreet.com, Inc., New York Wendy Tullo, 212-321-5493 wendy.tullo@thestreet.com SOURCE: TheStreet.com, Inc. ### EX-99.3 4 ex99-3.txt EXHIBIT 99.3 Exhibit 99.3 THESTREET.COM ANNOUNCES Q3 2003 FINANCIAL RESULTS Company Records Lowest Net Loss and Tenth Sequential Quarter of Increased Subscription Revenue NEW YORK, October 16, 2003 --TheStreet.com, Inc. (Nasdaq: TSCM), a leading multimedia provider of financial commentary, analysis, research and news, today announced its financial results for the third quarter 2003, which includes the Company's lowest net loss, tenth sequential quarter of increased subscription revenue and second consecutive cash flow positive quarter. Net revenue in the third quarter 2003 totaled $6.7 million, a 25% increase over the same period in 2002 and 4% increase from the previous quarter. Net loss was ($865,000), or ($0.04) per share for the quarter, a 53% improvement over the ($1.8) million loss in the same period in 2002, and a 32% improvement from last quarter's ($1.3) million loss. Total cash flow in the third quarter 2003 was $325,000, an improvement from the ($659,000) burn in the third quarter 2002, and a 28% improvement from the cash flow in the second quarter 2003 of $253,000. Cash, restricted cash and short-term investments as of September 30, 2003 continues to stand at more than $28 million. Subscription bookings for the third quarter 2003 totaled $4.9 million, a 22% increase over the third quarter 2002 and an increase of 4% from the second quarter 2003. Deferred revenue was $6.9 million, a 26% increase over the same period last year and effectively flat from the previous quarter. "Our strong third quarter results, which include our tenth sequential quarter of increased subscription revenue, are a direct result of the successful implementation of the growth strategy we began executing three years ago," said Thomas J. Clarke Jr., chairman and chief executive officer of TheStreet.com. "Our revenue mix continues to evolve. With the recent introduction of commission revenue from our broker-dealer subsidiary Independent Research Group LLC, we have added another piece to the revenue portfolio, which will help us meet our long-term objective of consistent and sustainable growth." Revenue Streams Subscription revenue for the third quarter 2003 totaled $4.8 million, an increase of 21% over the same period last year and an increase of 11% from the second quarter 2003. Advertising revenue was $1.2 million in the third quarter, a 16% increase over the same period last year and an expected seasonal decline of 17% from the second quarter 2003. In May 2003, Independent Research Group was cleared to receive trading commissions from its institutional clients. This quarter commission revenue totaled $313,000, an 87% increase from the second quarter 2003. Total expenses for the third quarter totaled $7.6 million, a 1% increase over the same period last year and a 2% improvement from the second quarter 2003. This sequential improvement in expenses was achieved despite the continuing investment in the development of Independent Research Group. "Our record quarterly results affirm the continued improvement we have made in the fundamentals of the business," said Lisa Mogensen, chief financial officer of TheStreet.com. "In particular, our deliberate cultivation of multiple revenue streams and our steadfast vigilance in the area of cost control has yielded results." THIRD QUARTER 2003 BUSINESS HIGHLIGHTS Some of the Company's accomplishments in the third quarter 2003 include: - - TheStreet.com and Bloomberg, the global financial news and information company, reached an agreement to distribute several of TheStreet.com products to Bloomberg financial professional users worldwide, via the Bloomberg Professional(R)Service. Two of TheStreet.com premium products to be distributed are "Street Insight," for investment professionals seeking real-time macro and micro trading information and "RealMoney," produced for active market participants and self-directed investors looking for unbiased, action-oriented market analysis and investment ideas. The alliance is in the form of a revenue sharing agreement that will broaden TheStreet.com's subscriber base, while providing Bloomberg with additional depth and breadth to its content offerings. - - Independent Research Group coverage was listed in the First Call earnings database and included in the First Call consensus. This distribution channel exposes Independent Research Group to more than 55,000 institutional investors worldwide and third-party distribution sites including Bloomberg, Factset, Bridge and Compustat. For every stock Independent Research Group covers, First Call subscribers will have access to an Independent Research Group analyst's call, price target, earnings estimates and growth-rates estimates, maximizing visibility within the financial community. - - "Jim Cramer's RealMoney" financial radio program, which TheStreet.com co-produces and syndicates through the WOR Radio Network, continues to expand. The program is now heard in six of the top ten and nine of the top 20 Arbitron Metro rated markets nationwide. - - Independent Research Group has completed individual U.S. state blue sky registrations and is now licensed by 49 states and the District of Columbia as a registered broker-dealer. - - Independent Research Group began distributing an online version of "TheStreetTMView," a long/short equity research product created to provide the hedge fund community with unbiased and independent trading and investment ideas. The enhanced online version allows subscribers to search for companies by ticker, contributor and publication date range, easing the information gathering process. - - TheStreet.com was named to the Deloitte & Touche 2003 "New York Technology Fast 50" list, the firm's annual ranking of the 50 fastest growing companies in the New York City area. - - TheStreet.com was added to the Russell 2000 and Russell 3000 Indexes following the Frank Russell Company's annual reconstitution. Index membership began on July 1 and is effective for one year. TheStreet.com will conduct a conference call today, October 16, 2003 at 11:00 a.m. EDT to discuss these results. The Company welcomes all interested parties to listen to the Web cast of its call at http://www.thestreet.com/earnings. About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM) is a leading provider of independent and insightful investment commentary, advice, research and news. The Company is a registered investment advisor. Founded in 1996, TheStreet.com completed its initial public offering in May 1999. On the Internet, its premium, subscription-based website, "RealMoney.com" is accompanied by the professionally oriented subscription sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site, "TheStreet.com." The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. TheStreet.com's wholly-owned subsidiary, Independent Research Group LLC (IRG), develops independent research and services focused exclusively on meeting the performance needs of hedge funds and money managers. IRG's proprietary equity research provides in-depth, action-oriented investment ideas from its in-house, top-tier industry analysts, without the conflicts created by investment banking, underwriting and proprietary trading. Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings), which could cause actual results to differ. THESTREET.COM, INC. BALANCE SHEETS ($ in thousands)
September 30, December 31, 2003 2002 --------- ----------- ASSETS Current Assets: Cash, restricted cash and short-term investments $26,249 $26,749 Accounts receivable - net 1,292 1,677 Other receivables 415 197 Prepaid expenses and other current assets 1,215 1,020 ------- ------- Total current assets 29,171 29,643 Property and equipment - net 2,727 3,643 Other assets 407 698 Goodwill and intangibles - net 2,649 3,144 Restricted cash 2,300 2,300 ------- ------- Total assets $37,254 $39,428 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 4,169 $ 4,393 Deferred revenue 6,904 5,513 Note payable 88 84 Other current liabilities 69 18 ------- ------- Total current liabilities 11,230 10,008 Note payable 244 311 Other liabilities 56 - ------- ------- Total liabilities 11,530 10,319 ------- ------- Stockholders' Equity: Stockholders' equity 25,724 29,109 ------- ------- Total liabilities and stockholders' equity $37,254 $39,428 ======= ======= Note: The Company has pledged certain cash amounts as security deposits for operating leases. Accordingly, a portion of this cash is classified as a noncurrent asset, and our cash is classified in two places on the above balance sheet. Cash, restricted cash, and short-term investments $26,249 $26,749 Restricted cash 2,300 2,300 ------- ------- Total cash, current and noncurrent restricted cash and short-term investments $28,549 $29,049 ======= =======
THESTREET.COM, INC. STATEMENTS OF OPERATIONS ($ in thousands, except per share data)
For the Three For the Nine Months Ended Months Ended September 30 September 30 ------------------ ------------------ 2003 2002 2003 2002 --------- -------- -------- -------- Net revenue: Subscription $ 4,827 $ 3,984 $13,449 $10,637 Advertising 1,222 1,058 3,899 3,004 Commission 313 - 480 - Other 304 292 888 1,253 ------- ------- ------- ------- Total net revenue 6,666 5,334 18,716 14,894 Operating expense: Cost of services 3,483 2,757 10,476 9,125 Sales and marketing 1,856 1,720 5,209 4,651 General and administrative 1,763 1,831 5,379 5,680 Depreciation and amortization 465 955 1,838 3,150 Noncash compensation 33 237 304 716 Restructuring - - - 19 ------- ------- ------- ------- Total expense 7,600 7,500 23,206 23,341 ------- ------- ------- ------- Interest and investment income, net 69 313 296 717 ------- ------- ------- ------- Net loss from continuing operations (865) (1,853) (4,194) (7,730) Gain on disposal of discontinued operations - 3 - 201 ------- ------- ------- ------- Net loss $ (865) $(1,850) $(4,194) $(7,529) ======= ======= ======= ======= Net (loss) income per share - basic and diluted: Continuing operations $ (0.04) $ (0.08) $ (0.18) $ (0.33) Discontinued operations - - - 0.01 ------- ------- ------- ------- Net loss $ (0.04) $ (0.08) $ (0.18) $ (0.32) ======= ======= ======= ======= Weighted average basic and diluted shares outstanding 23,947 23,553 23,818 23,554 ======= ======= ======= ======= CONTACT: TheStreet.com, Inc. Wendy Tullo, 212-321-5493 wendy.tullo@thestreet.com SOURCE: TheStreet.com, Inc.
### EX-99.4 5 ex99-4.txt EXHIBIT 99.4 Exhibit 99.4 THESTREET.COM REPORTS FOURTH QUARTER 2003 PROFITABILITY AND FULL YEAR FINANCIAL RESULTS Net Revenue Up 25% Over Prior Year NEW YORK, February 18, 2004 - TheStreet.com, Inc. (Nasdaq: TSCM), a leading provider of financial commentary, analysis, research and news, today announced its financial results for the fourth quarter and fiscal year ended 2003, which included achieving quarterly profitability. "We are extremely pleased to report the milestone of profitability for the first time in our public existence," said Thomas J. Clarke, Jr., chairman and chief executive officer of TheStreet.com. "The three year turnaround effort of TheStreet.com's core business is now complete, as that business now lies on a solid financial foundation. This platform is the springboard that will enable us to leverage our brand and capitalize on the many opportunities we see in the consumer and brokerage business to drive significant revenue growth in 2004 and beyond." Fourth Quarter 2003 Results o Net income for the quarter was $154,000 or $0.01 per share, a $1.3 million improvement over the same period last year and a $1.0 million improvement from last quarter. o Net revenue was $7.4 million in the fourth quarter 2003, a 24% increase over the same period last year and an 11% increase from last quarter. o Total cash burn for the quarter was ($90,000), an 89% improvement over fourth quarter 2002 burn and a $415,000 reduction from last quarter's cash flow of $325,000. The Company continues to build its wholly-owned subsidiary Independent Research Group LLC (IRG) with research analysts, institutional sales professionals and sales traders. TheStreet.com funded IRG with $2.8 million during the calendar year 2003. o Deferred revenue was $6.8 million, a 24% increase over the same quarter last year and effectively flat from last quarter. "Our record fourth quarter results not only validate the strength of the Company's current fundamentals, but also represents the attainment of our 2003 goal of fourth quarter profitability concurrent with the investment in our broker-dealer business," said Lisa A. Mogensen, chief financial officer of TheStreet.com. Full Year 2003 Results o Net revenue for the year was $26.1 million, a 25% increase over 2002. o Net loss for the year was ($4.0 million) or ($0.17) per share, an improvement of $4.6 million or 53% from the previous year's level. o For the full year 2003 the Company burned $591,000, an 87% improvement over the 2002 burn of $4.7 million. o Cash, restricted cash and investments as of Dec. 31, 2003, stood at $28.5 million. Revenue Streams o Subscription revenue for the fourth quarter 2003 was $5.1 million, an increase of 18% over the same quarter last year and a 5% increase from the third quarter. This increase marks the Company's eleventh consecutive quarter of subscription revenue growth. o Commission revenue for the quarter was $0.3 million, a 4% percent increase from the third quarter 2003. o Advertising revenue was $1.7 million for the fourth quarter 2003, an increase of 25% over the same quarter in 2002 and a 39% increase from last quarter. o Subscription bookings for the fourth quarter totaled $5 million, an increase of 18% over the same quarter in 2002 and a 2% increase from the third quarter 2003. "I am very proud of the considerable progress we have made on our strategic and fiscal objectives," added Clarke. "We recognized when we began building on our strategy of expanding our offerings to the professional sector and launched Independent Research Group that an unprecedented opportunity existed in the research/brokerage space. In a very short time period, IRG has achieved a lot. It now employs nine analysts, covers 28 companies and allows its clients to trade with them with its in-house trading desk. We are in a unique position to deliver sustainable long-term growth and I look forward to building on our success." o Subscription revenue for the year totaled $18.5 million, a 24% increase over 2002. o Advertising revenue for the year totaled $5.6 million, a 28% increase over 2002. o For the full year, subscription bookings totaled $20.0 million, an increase of 14% from 2002. o Commission revenue reached $0.8 million. IRG began receiving commissions on May 13, 2003. Expenses o Total expenses were $7.3 million in the fourth quarter 2003, an increase of 1% over the same period last year and a 4% decrease from the third quarter 2003. o Expenses equaled $30.5 million for 2003, effectively flat from the 2002 level. Fourth Quarter 2003 - Present Business Highlights o Independent Research Group LLC (IRG) launched an in-house trading desk. This will allow IRG's institutional clients the ability to trade directly with IRG, further enhancing the relationship to serve the client from idea generation to execution. IRG will execute trades strictly on an agency basis, trading solely on behalf of client orders and will not be committing its own capital. o "TheStreet.com Daily Briefing," a daily email service providing retail brokers and financial advisors with specific investment strategies and stock ideas, was introduced. o The Company developed the first phase of its dynamic ad serving initiative for its free flagship website "TheStreet.com" and premium website "RealMoney.com." The Company can now better utilize its traffic and maximize advertising revenue, performance and efficiency. o "Jim Cramer's RealMoney" financial radio program continues to expand. The program is heard in 9 of the top 10 and in 13 of the top 20 Arbitron Metro rated markets and reaches approximately 3 million listeners. TheStreet.com will conduct a conference call today, February 18, 2004 at 11:00 a.m. EST to discuss these results. The Company welcomes all interested parties to listen to the web cast of its call at http://www.thestreet.com/earnings About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM) is a leading provider of independent research, financial commentary, analysis and news. Founded in 1996, the Company completed its initial public offering in May 1999. On the Internet, its premium, subscription-based website, "RealMoney.com" is accompanied by the professionally oriented subscription sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site, "TheStreet.com." The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. TheStreet.com's wholly-owned subsidiary, Independent Research Group LLC (IRG), develops independent research and services focused exclusively on meeting the performance needs of hedge funds and money managers. IRG's proprietary equity research provides in-depth, action-oriented investment ideas from its in-house, top-tier industry analysts, without the conflicts created by investment banking, underwriting and proprietary trading. Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings), which could cause actual results to differ. THESTREET.COM, INC. BALANCE SHEETS ($ in thousands)
December December 31, 31, 2003 2002 -------- -------- ASSETS Current Assets: Cash, restricted cash and short-term investments $26,558 $26,749 Accounts receivable - net 1,638 1,677 Other receivables 417 197 Prepaid expenses and other current assets 1,304 1,020 -------- -------- Total current assets 29,917 29,643 Property and equipment - net 2,553 3,643 Other assets 343 698 Goodwill and intangibles - net 2,484 3,144 Restricted cash 1,900 2,300 -------- -------- Total assets $37,197 $39,428 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $3,932 $4,393 Deferred revenue 6,839 5,513 Note payable 90 84 Other current liabilities 72 18 -------- -------- Total current liabilities 10,933 10,008 Note payable 221 311 Other liabilities 56 - -------- -------- Total liabilities 11,210 10,319 -------- -------- Stockholders' Equity: Stockholders' equity 25,987 29,109 -------- -------- Total liabilities and stockholders' equity $37,197 $39,428 ======== ======== Note: The Company has pledged certain cash amounts as security deposits for operating leases. Accordingly, a portion of this cash is now classified as a noncurrent asset, and our cash is classified in two places on the above balance sheet. Cash, restricted cash, and short-term investments $26,558 $26,749 Restricted cash 1,900 2,300 -------- -------- Total cash, current and noncurrent restricted cash and short-term investments $28,458 $29,049 ======== ========
THESTREET.COM, INC. STATEMENTS OF OPERATIONS ($ in thousands, except per share data)
For the Three For the Months Ended Year Ended December 31, December 31, ---------------- ----------------- 2003 2002 2003 2002 ------- -------- -------- -------- Net revenue: Subscription $5,053 $4,272 $18,503 $14,909 Advertising 1,703 1,368 5,602 4,372 Commission 325 - 805 - Other 302 313 1,189 1,566 ------- -------- -------- -------- Total net revenue 7,383 5,953 26,099 20,847 Operating expense: Cost of services 3,015 2,640 13,491 11,766 Sales and marketing 1,859 1,669 7,067 6,319 General and administrative 1,963 1,858 7,342 7,538 Depreciation and amortization 447 881 2,285 4,031 Noncash compensation 19 282 323 998 Restructuring - (96) - (77) ------- -------- -------- -------- Total operating expense 7,303 7,234 30,508 30,575 ------- -------- -------- -------- Interest and investment income, net 74 115 370 832 ------- -------- -------- -------- Net income (loss) from continuing operations 154 (1,166) (4,039) (8,896) Gain on disposal of discontinued operations - 9 - 210 ------- -------- -------- -------- Net income (loss) $154 $(1,157) $(4,039) $(8,686) ======= ======== ======== ======== Net income (loss) per share - basic and diluted: Continuing operations $0.01 $(0.05) $(0.17) $(0.38) Discontinued operations - - - 0.01 ------- -------- -------- -------- Net income (loss) $0.01 $(0.05) $(0.17) $(0.37) ======= ======== ======== ======== Weighted average basic and diluted shares outstanding 23,998 23,573 23,864 23,559 ======= ======== ======== ========
CONTACT: TheStreet.com, New York Wendy Tullo, 212-321-5493 wendy.tullo@thestreet.com SOURCE: TheStreet.com ### EX-99.5 6 ex99-5.txt EXHIBIT 99.5 Exhibit 99.5 THESTREET.COM REPORTS FIRST QUARTER 2004 FINANCIAL RESULTS Net Revenue Up 40% Year over Year NEW YORK, April 22, 2004 - TheStreet.com, Inc. (Nasdaq: TSCM), a leading provider of independent research, financial commentary, analysis and news, today announced its financial results for the first quarter 2004, which includes a net revenue year over year increase of 40%. "We have been building upon our strategy of creating sustainable long-term growth for our shareholders and I am very pleased that the Company exhibited strong growth by most every measure, including the highest subscription and deferred revenue levels in the Company's history," said Thomas J. Clarke, Jr., chairman and chief executive officer of TheStreet.com. "With both our electronic publishing and securities research and brokerage segments reporting significant revenue growth, we are well positioned for a strong performance in 2004." First Quarter 2004 Results o Net revenue was $7.9 million in the first quarter 2004, a 40% increase over the same period last year and a 7% increase from last quarter. o Deferred revenue was $8.1 million, a 21% increase over the same quarter last year and up 19% from last quarter. This represents subscription bookings that will be recognized as revenue in future quarters. o The total number of subscribers was more than 74,000, an increase of 20% over the same period last year and up 9% over last quarter. The average annual revenue per subscriber reached $303, an increase of 14% from the first quarter of 2003 and a 1% increase from last quarter. The Company has increased its average annual revenue per subscriber in each of the past 17 quarters. o Total cash flow for the quarter was $1.5 million, a $2.6 million improvement over last year's first quarter burn of $1.1 million and a $1.6 million improvement over last quarter's cash burn of $90,000. o The Company ended the quarter with a cash balance of $29.9 million and no bank debt. o Net loss was ($1.6) million or ($0.06) per share, comparing favorably to a loss of ($2.1) million, or ($0.09) per share, for the same period of 2003. This improvement was achieved even with a cash investment in our wholly owned subsidiary Independent Research Group LLC (IRG) of $1.6 million,related to staffing, trading capabilities, and general infrastructure needs. We expect IRG to be self-funding in 2005. Revenue Streams "Our first quarter revenue surpassed even our expectations," said Lisa A. Mogensen, chief financial officer of TheStreet.com. "Not only do our record subscription revenue and deferred income levels confirm the strength of the Company's electronic publishing model, but the fact that our first quarter commission revenue increased 139% over last quarter and we achieved 96% of last year's total in this quarter, supports our continued investment in our securities research and brokerage business (IRG)." o Subscription revenue for the first quarter 2004 was $5.4 million, an increase of 27% over the same quarter last year and a 7% increase from the fourth quarter 2003. This increase marks the Company's twelfth consecutive quarter of subscription revenue growth. o Subscription bookings for the first quarter totaled $6.7 million, an increase of 22% over the same quarter in 2003 and a 33% increase from the fourth quarter 2003. o Advertising revenue was $1.4 million for the first quarter 2004, a 19% increase over the same quarter in 2003 and a seasonal decrease of 16% from last quarter. o Commission revenue for the quarter was $0.7 million, a 139% increase from the fourth quarter 2003. Expenses o Total expenses were $9.6 million in the first quarter 2004, an increase of 22% over the same period last year and a 31% increase from the fourth quarter 2003. This increase is primarily due to the previously mentioned investments in IRG, coupled with increased consumer marketing spending. First Quarter 2004 Business Highlights o IRG continues to expand. In addition to announcing an in-house trading desk in January, the firm's 10 analysts now cover 36 under-covered companies in 10 sectors. Its institutional sales force and sales trading teams also continue to grow. More than 75 hedge and mutual fund clients currently trade with IRG. o "Street Insight," TheStreet.com's subscription website aimed at professional investors, received "honorable mention" in the Premium Site category for "The Best of the Web" awards presented by Media Industry Newsletter, min's b2b and min magazine. Winners serve as benchmarks of online publishing excellence and effective brand extension. The company also received the Society of American Business Editors and Writers, Inc. (SABEW) 2004 Best in Business/Special Projects for excellence in business journalism. o The Company partnered with PointRoll, a leading provider of rich media marketing services, and joined the PointRoll Included network of online publishers. TheStreet.com is supporting its advertising partners with PointRoll rich media products to help them meet their desired results, increasing online ad spending. As part of the PointRoll Included network, TheStreet.com can offer online advertisers PointRoll's user initiated rich media ads and support services at no additional charge. o "Jim Cramer's RealMoney" financial radio program continues to expand its listening audience and is now heard in eight of the top 10 and 16 of the top 20 Arbitron Metro rated markets. It is heard on 95 stations nationally. TheStreet.com will conduct a conference call today, April 22, 2004 at 11:00 a.m. EST to discuss these results. The Company welcomes all interested parties to listen to the web cast of its call at http://www.thestreet.com/earnings About TheStreet.com, Inc. TheStreet.com, Inc. (Nasdaq: TSCM) is a leading provider of independent research, financial commentary, analysis and news. Founded in 1996, the Company completed its initial public offering in May 1999. On the Internet, its premium, subscription-based website, "RealMoney.com" is accompanied by the professionally oriented subscription sites, "Street Insight," "RealMoney Pro Advisor," and the free, flagship site, "TheStreet.com." The Company also produces a suite of subscription services for use by professionals and self-directed investors, each designed to help a specific segment of the investing public make better-informed investing and trading decisions. TheStreet.com's wholly-owned subsidiary, Independent Research Group LLC (IRG), develops independent research and services focused exclusively on meeting the performance needs of hedge funds and money managers. IRG's proprietary equity research provides in-depth, action-oriented investment ideas from its in-house, top-tier industry analysts, without the conflicts created by investment banking, underwriting and proprietary trading. Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings), which could cause actual results to differ. THESTREET.COM, INC. BALANCE SHEETS ($ in thousands)
March 31, December 31, 2004 2003 ----------- ------------ ASSETS Current Assets: Cash, restricted cash and short-term investments $ 28,030 $ 26,558 Accounts receivable - net 1,481 1,638 Other receivables 295 417 Prepaid expenses and other current assets 1,197 1,304 ----------- ---------- Total current assets 31,003 29,917 Property and equipment - net 2,544 2,553 Other assets 314 343 Goodwill and intangibles - net 2,484 2,484 Restricted cash 1,900 1,900 ----------- ---------- Total assets $ 38,245 $ 37,197 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $ 4,028 $ 3,932 Deferred revenue 8,148 6,839 Note payable 91 90 Other current liabilities 75 72 ----------- ---------- Total current liabilities 12,342 10,933 Note payable 198 221 Other liabilities 55 56 ----------- ---------- Total liabilities 12,595 11,210 ----------- ---------- Stockholders' Equity: Stockholders' equity 25,650 25,987 ----------- ---------- Total liabilities and stockholders' equity $ 38,245 $ 37,197 =========== ==========
Note: The Company has pledged certain cash amounts as security deposits for operating leases. Accordingly, a portion of this cash is now classified as a noncurrent asset, and our cash is classified in two places on the above balance sheet. Cash, restricted cash, and short-term investments $ 28,030 $ 26,558 Restricted cash 1,900 1,900 ----------- ---------- Total cash, current and noncurrent restricted cash and short-term investments $ 29,930 $ 28,458 =========== ==========
THESTREET.COM, INC. STATEMENTS OF OPERATIONS ($ in thousands, except per share data)
For the Three Months Ended March 31, -------------------------- 2004 2003 ---------- ---------- Net revenue: Subscription $ 5,409 $ 4,273 Advertising 1,428 1,201 Commission 777 - Other 306 182 ---------- ---------- Total net revenue 7,920 5,656 ---------- ---------- Operating expense: Cost of services 4,077 3,412 Sales and marketing 3,081 1,658 General and administrative 2,189 1,755 Depreciation and amortization 212 766 Noncash compensation - 239 ---------- ---------- Total operating expense 9,559 7,830 ---------- ---------- Interest income, net 71 118 ---------- ---------- Net loss $ (1,568) $ (2,056) ========== ========== Net loss per share - basic and diluted: $ (0.06) $ (0.09) ========== ========== Weighted average basic and diluted shares outstanding 24,240 23,652 ========== ==========
CONTACT: TheStreet.com Wendy Tullo, 212-321-5493 wendy.tullo@thestreet.com SOURCE: TheStreet.com ### -----END PRIVACY-ENHANCED MESSAGE-----