Website Pros Reports Third Quarter 2007 Financial Results

November 6, 2007

JACKSONVILLE, Fla., Nov 6, 2007 (PrimeNewswire via COMTEX News Network) -- Website Pros, Inc. (Nasdaq:WSPI), a leading provider of Web and marketing services for small and medium-sized businesses, today announced results of operations for the quarter ended September 30, 2007. The financial results below do not include results for Web.com, which was acquired on September 30, 2007.



 Summary of Third Quarter 2007 Results:

 * Total revenue for the third quarter was a record $17.8 million,
   an increase of 48% compared to $12.0 million year-over-year.

 * GAAP operating income, determined in accordance with generally
   accepted accounting principles (GAAP), for the third quarter was
   $0.8 million, compared to $0.7 million year-over-year.

 * GAAP net income for the third quarter was $0.4 million compared to
   $1.4 million year-over-year. Fully diluted GAAP earnings per share
   were $0.02 per share for the third quarter of 2007 compared to
   $0.07 per share year-over-year. GAAP net income and GAAP earnings
   per share in the third quarter included approximately $2.5 million
   in non-cash or non-recurring expenses, including an income tax
   provision of $0.94 million, pre-tax non-cash stock compensation of
   $0.9 million, pre-tax amortization of acquisition intangibles of
   $0.4 million, and pre-tax non-recurring restructuring charges of
   $0.24 million, compared to an income tax provision of $0, pre-tax
   non-cash stock compensation of $0.56 million, pre-tax amortization
   of acquisition intangibles of $0.18 million, and pre-tax
   non-recurring restructuring charges of $0 in the third quarter of
   2006.

 * Non-GAAP operating income for the third quarter was a record $2.4
   million, representing a 14% non-GAAP operating margin, and an
   increase of 74% compared to $1.4 million year-over-year.

 * Non-GAAP net income for the third quarter was a record $2.9
   million, an increase of 39% as compared to $2.1 million
   year-over-year.

 * Non-GAAP diluted net income per share for the third quarter was a
   record $0.15, an increase of 36% from $0.11 year-over-year.

"Our third quarter results were highlighted by solid revenue growth and better-than-expected non-GAAP diluted net income per share, marking the 9th consecutive quarter that profitability has met or exceeded our guidance," stated David Brown, Chairman and CEO of Website Pros. "Equally important, we believe the addition of Web.com creates a clear market leader with a large customer base, powerful and growing brands and an-industry leading array of technology solutions to service the growing base of approximately 27 million small businesses in the United States alone. The market for serving the broad Internet solution needs of the small business market is highly fragmented, and we believe the combination of Website Pros and Web.com positions us well to emerge as the ultimate market winner."

"As a result of the merger, Web.com did not report financials for the third quarter; however, it is important to note that for the fifth consecutive quarter, Web.com continued revenue and subscriber growth driven by both direct marketing and partnerships," stated Jeff Stibel, President of Website Pros. "Looking ahead, we maintain our optimism for the combined company and will continue to identify growth prospects from both inside and outside the new company."



 OTHER FINANCIAL HIGHLIGHTS:

 * On a stand-alone basis, Website Pros' total net subscribers were
   approximately 82,000 at the end of the third quarter, an increase
   from approximately 80,700 at the end of the second quarter of 2007.
   Including Web.com's subscribers, the total number of net
   subscribers for the combined company was approximately 255,000 at
   the end of the third quarter 2007.

 * Churn was 5.2%, down from 6.2% on a year-over-year basis and up
   from 4.8% in the previous quarter.

 * On September 30, 2007, Website Pros completed its transaction with
   Web.com pursuant to the Merger Agreement between the companies
   dated June 26, 2007.

Conference Call Information

Management will host a conference call to discuss Website Pros' results and other matters related to the Company's business today, November 6, 2007, at 5:00 p.m. (Eastern Time). To access this call, dial 888-663-2242 (domestic) or 913-312-1270 (international). A replay of this conference call will be available for a limited time at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 1211438. A webcast of this conference call will also be available for a limited time on the "Investor Relations" page of the Company's Web site, www.websitepros.com.

All per share numbers for non-GAAP net income per share are expressed on a weighted-average diluted per share basis. Non-GAAP net income excludes stock-based compensation expense, amortization expense related to acquisitions, income tax expense, and includes an estimated cash tax rate to be paid during 2007. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in the press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

About Website Pros

Website Pros, Inc. (Nasdaq:WSPI) is a leading provider of Do-It-For-Me and Do-It-Yourself website building tools, Internet marketing, lead generation and technology solutions that enable small and medium-sized businesses to maintain an effective Internet presence. Website Pros offers a full range of Web services, including website design and publishing, Internet marketing and advertising, search engine optimization, lead generation, home contractor specific leads and shopping cart solutions, meeting the needs of these businesses anywhere along their lifecycles - from those just establishing a Web presence to more sophisticated online eCommerce sites. For more information on the company, please visit http://www.websitepros.com or http://www.web.com or call 1-800-GETSITE.

Note to Editors: Website Pros and Web.com are registered trademarks of Website Pros, Inc.

Use of Non-GAAP Financial Measures

Some of the measures in this press release are non-GAAP financial measures within the meaning of the SEC Regulation G. Website Pros believes presenting non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders and non-GAAP operating margin is useful to investors, because it describes the operating performance of the company and helps investors gauge the company's ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Company management uses these non-GAAP measures as important indicators of the company's past performance and to plan and forecast performance in future periods. The non-GAAP financial information Website Pros presents may not be comparable to similarly-titled financial measures used by other companies, and investors should not consider non-GAAP financial measures in isolation from, or in substitution for, financial information presented in compliance with GAAP.

Forward-Looking Statements

This press release includes certain "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. These statements are sometimes identified by words such as "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. As a result of the ultimate outcome of such risks and uncertainties, Website Pros' actual results could differ materially from those anticipated in these forward-looking statements. These statements are based on our current beliefs or expectations, and there are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements, including without limitation our ability to integrate the Website Pros and Web.com businesses, our ability to maintain our sales efficiency, our ability to maintain our existing, and develop new, strategic relationships, the number of our net subscriber additions and, our monthly customer turnover and those risks set forth under the caption "Risk Factors" in Website Pros' Annual Report on Form 10-K for the year ended December 31, 2006 and in Website Pros' Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, as filed with the Securities and Exchange Commission. These filings are available on a Website maintained by the Securities and Exchange Commission at www.sec.gov. Website Pros does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.



                          Website Pros, Inc.
                 Consolidated Statements of Operations
                 (in thousands except per share data)
                              (unaudited)

                            Three Months Ended     Nine Months Ended
                               September 30,          September 30,
                           --------------------   --------------------
                             2007        2006       2007        2006
                           --------    --------   --------    --------
 Revenue:
  Subscription             $ 16,820    $ 11,272   $ 48,006    $ 31,881
  License                       383         442      2,095       2,531
  Professional
   services                     613         325      1,539       1,277
                           --------    --------   --------    --------
    Total revenue            17,816      12,039     51,640      35,689

 Cost of revenue
  (excluding
  depreciation and
  amortization shown
  separately below):
   Subscription (a)           7,124       4,859     21,225      13,945
   License                      190         190        667         672
   Professional services        347         333        947       1,044
                           --------    --------   --------    --------
    Total cost
     of revenue               7,661       5,382     22,839      15,661
                           --------    --------   --------    --------

 Gross profit                10,155       6,657     28,801      20,028

 Operating expenses:
  Sales and
   marketing (a)              4,202       2,972     12,413       8,651
  Research and
   development (a)              915         479      2,637       1,468
  General and
   administrative (a)         3,271       2,194      9,348       6,993
  Restructuring
   charges                      242          --        242          --
  Depreciation and
   amortization                 719         339      2,113       1,042
                           --------    --------   --------    --------
    Total operating
     expenses                 9,349       5,984     26,753      18,154
                           --------    --------   --------    --------
 Income from operations         806         673      2,048       1,874

 Other income (expense):
  Interest, net                 528         710      1,539       1,887
  Other                          --          --         --          --
                           --------    --------   --------    --------
 Income before income
  taxes                       1,334       1,383      3,587       3,761
 Income tax expense            (942)         --     (2,011)         --
                           --------    --------   --------    --------
 Net income                $    392    $  1,383   $  1,576    $  3,761
                           ========    ========   ========    ========
 Net income per
  common share
   Basic                   $   0.02    $   0.08   $   0.09    $   0.23
                           ========    ========   ========    ========
   Diluted                 $   0.02    $   0.07   $   0.08    $   0.19
                           ========    ========   ========    ========
 Weighted-average
  number of shares
  used in per share
  amounts:
   Basic                     17,989      16,846     17,603      16,663
                           ========    ========   ========    ========
   Diluted                   19,944      19,335     19,768      19,340
                           ========    ========   ========    ========

 (a) Stock based compensation
     included above:

     Subscription
      (cost of revenue)    $     57    $     33   $    168    $     90
     Sales and
      marketing                 175          88        508         234
     Research and
      development                67          54        206         141
     General and
      administration            618         385      1,718         902
                           --------    --------   --------    --------
 Total                     $    917    $    560   $  2,600    $  1,367
                           ========    ========   ========    ========

                          Website, Pros, Inc.
                      Consolidated Balance Sheets
                 (in thousands except per share data)

                                           September 30,   December 31,
                                                2007           2006
                                             ---------      ---------
 Assets
 Current assets:
  Cash and cash equivalents                  $  56,622      $  42,155
  Restricted cash                                  304             --
  Accounts receivable, net of
   allowance $729 and $280, respectively         7,059          4,202
  Other receivables                              1,445             --
  Inventories net of reserves of
   $65 and $48, respectively                        30             69
  Prepaid expenses                               4,398            616
  Prepaid marketing fees and other
   current assets                                1,029            986
  Deferred taxes                                   531            531
                                             ---------      ---------
 Total current assets                           71,418         48,559

 Restricted cash                                 6,438             --
 Property and equipment net                      7,460          2,337
 Goodwill                                      109,800         31,587
 Intangible assets, net                         63,900          7,590
 Other assets                                      771            618
 Non-current deferred taxes                        794          2,669
                                             ---------      ---------
 Total assets                                $ 260,581      $  93,360
                                             =========      =========

 Liabilities and stockholders' equity
 Current liabilities:
  Accounts payable                           $   2,545      $     920
  Accrued expenses                              10,574          2,581
  Accrued merger costs                          25,911             --
  Accrued restructuring costs                   13,550             --
  Deferred revenue                               9,215          4,594
  Accrued marketing fees                           647            681
  Notes payable, current                         2,070             95
  Obligations under capital lease, current          --             52
  Other liabilities                                159            102
                                             ---------      ---------
 Total current liabilities                      64,671          9,025

 Accrued rent expense                              126            158
 Deferred revenue                                  115             --
 Notes payable, long term                          457            162
 Obligations under capital leases, long term        --             32
 Other long term liabilities                       749             27
                                             ---------      ---------
 Total liabilities                              66,118          9,404


 Stockholders' equity
 Common stock, $0.001 par value;
  150,000,000 shares authorized at
  September 30, 2007 and December 31, 2006;
  27,210,405 shares and 17,331,626 shares
  issued and outstanding at June 30, 2007
  and December 31, 2006, respectively               27             17
 Additional paid-in capital                    252,022        143,101
 Accumulated deficit                           (57,586)       (59,162)
                                             ---------      ---------
 Total stockholders' equity                    194,463         83,956
                                             ---------      ---------
 Total liabilities and stockholders' equity  $ 260,581      $  93,360
                                             =========      =========


                          Website, Pros, Inc.
              Reconciliation of GAAP to Pro Forma Results
                 (in thousands except per share data)
                              (unaudited)

                             Three Months Ended     Nine Months Ended
                                September 30,         September 30,
                             -------------------   -------------------
                               2007       2006       2007       2006
                             --------   --------   --------   --------
 Reconciliation of GAAP
  net income attributable
  to common stockholders
  to non-GAAP pro forma
  net income
 GAAP Net income             $    384   $  1,383   $  1,576   $  3,761
 Amortization of
  intangibles                     448        176      1,322        418
 Income tax expense               950         --      2,011         --
 Cash income tax expense          (38)        --        (92)        --
 Fair value adjustment
  to deferred revenue              32         --        105         --
 Restructuring charges            242         --        242         --
 Stock based compensation         917        560      2,600      1,367
                             --------   --------   --------   --------
 Non-GAAP proforma
  net income                 $  2,935   $  2,119   $  7,764   $  5,546
                             ========   ========   ========   ========

 Reconciliation of GAAP
  basic net income per
  share to non-GAAP pro
  forma net income per share
 Basic                       $   0.02   $   0.08   $   0.09   $   0.23
 Amortization of
  intangibles per share          0.03       0.02       0.08       0.02
 Income tax expense
  per share                      0.05         --       0.11         --
 Cash income tax expense
  per share                     (0.00)        --      (0.01)        --
 Fair value adjustment to
  deferred revenue per share     0.00         --       0.01         --
 Restructuring charges           0.01         --       0.01         --
 Stock based compensation
  per share                      0.05       0.03       0.15       0.08
                             --------   --------   --------   --------
 Non-GAAP pro-forma net
  income per share
 Basic                       $   0.16   $   0.13   $   0.44   $   0.33
                             ========   ========   ========   ========
 Reconciliation of GAAP
  diluted net income per
  share to non-GAAP pro
  forma net income per
  share Fully diluted shares:
 Common stock                  17,989     16,846     17,603     16,663
 Diluted stock options          1,485      2,287      1,695      2,432
 Warrants                         193        199        192        244
 Escrow shares                    277          3        278          1
                             --------   --------   --------   --------
     Total                     19,944     19,335     19,768     19,340
                             ========   ========   ========   ========

 GAAP net income per share
 Diluted                     $   0.02   $   0.07   $   0.08   $   0.19
 Amortization of
  intangibles per share          0.02       0.01       0.07       0.03
 Income tax expense
  per share                      0.05         --       0.10         --
 Cash income tax expense
  per share                     (0.00)        --      (0.00)        --
 Fair value adjustment
  to deferred revenue
  per share                      0.00         --       0.01         --
 Restructuring charges           0.01         --       0.01         --
 Stock based compensation
  per share                      0.05       0.03       0.12       0.07
                             --------   --------   --------   --------
 Non-GAAP pro-forma net
  income per share
 Diluted                     $   0.15   $   0.11   $   0.39   $   0.29
                             ========   ========   ========   ========

 Reconciliation of GAAP
  operating income to
  non-GAAP pro forma
  operating income
 GAAP operating income       $    806   $    673   $  2,048   $  1,874
 Amortization of intangibles      448        176      1,322        418
 Fair value adjustment
  to deferred revenue              32         --        105         --
 Restructuring charges            242         --        242         --
 Stock based compensation         917        560      2,600      1,367
                             --------   --------   --------   --------
 Non-GAAP proforma
  operating income           $  2,445   $  1,409   $  6,317   $  3,659
                             ========   ========   ========   ========

 Reconciliation of GAAP
  operating margin to
  non-GAAP pro forma
  operating margin
 GAAP operating margin              5%         6%         4%         5%
 Amortization of
  intangibles                       3%         1%         3%         1%
 Fair value adjustment
  to deferred revenue               0%         0%         0%         0%
 Restructuring charges              1%         0%         0%         0%
 Stock based compensation           5%         5%         5%         4%
                             --------   --------   --------   --------
 Non-GAAP proforma
  operating margin                 14%        12%        12%        10%
                             ========   ========   ========   ========


                          Website, Pros, Inc.
                 Consolidated Statement of Cash Flows
                            (in thousands)
                              (unaudited)
                                               Nine Months Ended
                                                  September 30,
                                             2007           2006
                                           --------       --------
 Cash flows from operating activities
 Net income                                $  1,576       $  3,761
 Adjustments to reconcile net
  income to net cash provided
  by operating activities:
 Depreciation and amortization                2,113          1,042
 Stock-based compensation expense             2,600          1,367
 Restructuring costs                            242             --
 Deferred income tax                          1,875             --
 Changes in operating assets
  and liabilities:
   Accounts receivable                          (13)        (1,335)
   Inventories                                   39             51
   Prepaid expenses and other assets             (2)           128
   Accounts payable, accrued
    expenses and other liabilities               84           (942)
   Deferred revenue                             341             74
                                           --------       --------
 Net cash provided by
  operating activities                        8,855          4,146

 Cash flows from investing activities
 Business acquisition, net of
  cash received                               7,812        (20,008)
 Purchase of property and equipment          (3,190)        (1,022)
 Investment in intangible assets               (102)            --
                                           --------       --------
 Net cash provided by (used in)
  investing activities                        4,520        (21,030)

 Cash flows from financing activities
 Proceeds from issuance of
  common stock, net                              --          1,122
 Payment of debt obligations                   (156)           (49)
 Proceeds from exercise of
  stock options                               1,248            271
                                           --------       --------
 Net cash provided by financing
  activities                                  1,092          1,344
                                           --------       --------
 Net increase (decrease) in cash
  and cash equivalents                       14,467        (15,540)
 Cash and cash equivalents,
  beginning of period                        42,155         55,746
                                           --------       --------
 Cash and cash equivalents,
  end of period                            $ 56,622       $ 40,206
                                           ========       ========

 Supplemental cash flow
  information:
   Interest paid                           $     13       $     --
                                           ========       ========
   Income tax paid                         $    199       $     --
                                           ========       ========

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Website Pros Inc.

Website Pros, Inc.
         Peter Delgrosso
         404-260-2500
         investor@corp.web.com

(C) Copyright 2007 PrimeNewswire, Inc. All rights reserved.

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