Internet Capital Group Inc. (ICGE, Financial) filed Quarterly Report for the period ended 2009-03-31.
Internet Capital Group is an Internet holding company actively engaged in business-to-business e-commerce through a network of Partner Companies. It provides operational assistance capital support expertise and a strategic network of business relationships intended to maximize the long-term market potential of business-to-business e-commerce Partner Companies. (PRESS RELEASE) Internet Capital Group Inc. has a market cap of $189.4 million; its shares were traded at around $5.16 with and P/S ratio of 2.7.
Revenue increased $5.7 million to $21.7 million in 2009 from $16.0 million in 2008. This revenue increase was primarily driven by a 19% increase in revenues at ICG Commerce from the first quarter of 2008 to the comparable period in 2009 from new and existing customers, as well as the consolidation of Vcommerce since May 2008.
Operating expenses increased $4.5 million, from $16.1 million in the three months ended March 31, 2008 to $20.6 million in the three months ended March 31, 2009. Approximately $2.4 million of the operating expense increase related to the addition of Vcommerce as a consolidated partner company. The remaining $2.1 million increase was primarily due to overall higher operating expenses at ICG Commerce which resulted from increases in sales activity in the second half of 2008 and the first quarter of 2009. The increased sales activity was partially offset by timing of employee related expenses in the first quarter of 2009 compared with the 2008 period.
Our general and administrative expenses decreased $0.8 million for the three months ended March 31, 2009 from the comparable 2008 period, primarily due to a $0.4 million reduction in employee-related expenses, most notably salary and bonus expense, a $0.5 million decrease in equity-based compensation. These decreases were offset partially by an increase in expenses associated with professional services of $0.1 million for the three months ended March 31, 2009 compared with the three months ended March 31, 2008.
Other income (loss), net, was a loss of $1.9 million in the three months ended March 31, 2009 and income of $5.9 million in the comparable 2008 period. Other income in the three months ended March 31, 2008 was primarily driven by our Blackboard hedges, while a loss in the value of our Blackboard hedges drove other income (loss) in the 2009 period. See Note 4 to our Consolidated Financial Statements. The loss in the three months ended March 31, 2009 resulting from the Blackboard hedges was partially offset by gains of $1.4 million related to distributions of ownership interests in partner companies and a $0.2 million gain on the sale of marketable securities. See Note 8 to our Consolidated Financial Statements.
The decrease in noncontrolling interest, formerly minority interest, to a loss of $0.4 million in the three months ended March 31, 2009 from a loss of $0.5 million in the comparable 2008 period is primarily related to the adoption of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, on January 1, 2009, which amends existing guidance to require the noncontrolling interest to recognize its share of losses even if the result is a deficit noncontrolling interest balance. Previous guidance required the minority interest to reflect losses only up to the minority interest in the equity capital of the subsidiary and any excess was charged against the majority interest. This guidance in SFAS No. 160 is being applied prospectively from our adoption date, January 1, 2009. For the three months ended March 31, 2009, the share of the losses that resulted in a deficit noncontrolling interest balance was not material.
Read the The complete ReportICGE is in the portfolios of Robert Bruce of Bruce & Co., Inc., Arnold Schneider of Schneider Capital Management.
Internet Capital Group is an Internet holding company actively engaged in business-to-business e-commerce through a network of Partner Companies. It provides operational assistance capital support expertise and a strategic network of business relationships intended to maximize the long-term market potential of business-to-business e-commerce Partner Companies. (PRESS RELEASE) Internet Capital Group Inc. has a market cap of $189.4 million; its shares were traded at around $5.16 with and P/S ratio of 2.7.
Highlight of Business Operations:
We believe existing cash and cash equivalents and proceeds from the potential sales of all or a portion of our interests in certain marketable securities and partner companies to be sufficient to fund our cash requirements for the foreseeable future, including any future commitments to partner companies, debt obligations and general operating requirements. On February 3, 2009, we entered into certain arrangements under which we guaranteed approximately $3.6 million of debt for StarCite. Under these arrangements, we placed approximately $3.6 million in a bank account to be used to repay the StarCite debt when it matured or otherwise became due and payable. This amount was classified as restricted cash as of March 31, 2009. In May 2009, the underlying debt was repaid in full with funds being held in the bank account. As a result, we are entitled to receive additional preferred ownership interests in StarCite. As of the date of this filing, we were not obligated for any other material funding and guarantee commitments to existing partner companies. We will continue to evaluate acquisition opportunities and may acquire additional ownership interests in new and existing partner companies in the next twelve months; however, such acquisitions will generally be made at our discretion.Revenue increased $5.7 million to $21.7 million in 2009 from $16.0 million in 2008. This revenue increase was primarily driven by a 19% increase in revenues at ICG Commerce from the first quarter of 2008 to the comparable period in 2009 from new and existing customers, as well as the consolidation of Vcommerce since May 2008.
Operating expenses increased $4.5 million, from $16.1 million in the three months ended March 31, 2008 to $20.6 million in the three months ended March 31, 2009. Approximately $2.4 million of the operating expense increase related to the addition of Vcommerce as a consolidated partner company. The remaining $2.1 million increase was primarily due to overall higher operating expenses at ICG Commerce which resulted from increases in sales activity in the second half of 2008 and the first quarter of 2009. The increased sales activity was partially offset by timing of employee related expenses in the first quarter of 2009 compared with the 2008 period.
Our general and administrative expenses decreased $0.8 million for the three months ended March 31, 2009 from the comparable 2008 period, primarily due to a $0.4 million reduction in employee-related expenses, most notably salary and bonus expense, a $0.5 million decrease in equity-based compensation. These decreases were offset partially by an increase in expenses associated with professional services of $0.1 million for the three months ended March 31, 2009 compared with the three months ended March 31, 2008.
Other income (loss), net, was a loss of $1.9 million in the three months ended March 31, 2009 and income of $5.9 million in the comparable 2008 period. Other income in the three months ended March 31, 2008 was primarily driven by our Blackboard hedges, while a loss in the value of our Blackboard hedges drove other income (loss) in the 2009 period. See Note 4 to our Consolidated Financial Statements. The loss in the three months ended March 31, 2009 resulting from the Blackboard hedges was partially offset by gains of $1.4 million related to distributions of ownership interests in partner companies and a $0.2 million gain on the sale of marketable securities. See Note 8 to our Consolidated Financial Statements.
The decrease in noncontrolling interest, formerly minority interest, to a loss of $0.4 million in the three months ended March 31, 2009 from a loss of $0.5 million in the comparable 2008 period is primarily related to the adoption of SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, on January 1, 2009, which amends existing guidance to require the noncontrolling interest to recognize its share of losses even if the result is a deficit noncontrolling interest balance. Previous guidance required the minority interest to reflect losses only up to the minority interest in the equity capital of the subsidiary and any excess was charged against the majority interest. This guidance in SFAS No. 160 is being applied prospectively from our adoption date, January 1, 2009. For the three months ended March 31, 2009, the share of the losses that resulted in a deficit noncontrolling interest balance was not material.
Read the The complete ReportICGE is in the portfolios of Robert Bruce of Bruce & Co., Inc., Arnold Schneider of Schneider Capital Management.
