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 ###