WESTLAKE VILLAGE, Calif., Apr. 4, 2002 (PRIMEZONE) -- United Online, Inc. (Nasdaq:UNTD), a leading provider of value-priced Internet access formed with the September 2001 merger of NetZero and Juno, today announced that its pro forma EBITDA(1) and pay subscriber growth will exceed previous guidance for its fiscal third quarter ended March 31, 2002. The company expects pro forma EBITDA profit for the March 2002 quarter to exceed $3 million and announced that it added more than 100,000 new pay subscribers during the quarter.
The company's previous guidance for its fiscal third quarter, provided on February 6, 2002, was for a pro forma EBITDA loss of between $1 million and $2 million, and for pay subscriber growth of between 80,000 and 100,000. Pro forma EBITDA represents the net income or loss before interest, taxes, depreciation, amortization, restructuring and merger-related charges, and other income, net.
"Achieving EBITDA profitability is an important milestone for United Online, and we are proud to have reached this major financial goal so soon after completing the merger," said Mark R. Goldston, chairman, CEO and president of United Online. "We believe these results reflect the potential for this company in the value-priced Internet access market, a segment that we feel offers major opportunities for growth."
The company also announced that it expects a pro forma net loss(2) in the March 2002 quarter of no more than $0.03 per share, presented on a basis consistent with the current analyst consensus estimate of a pro forma net loss of $0.14 per share as reported by First Call. The company has previously provided guidance of a pro forma net loss for the March 2002 quarter of between $0.12 and $0.15 per share. Pro forma net loss represents the net loss before amortization, restructuring and merger-related charges, and other income, net.
The net loss for the March 2002 quarter is expected to be no more than $9 million, or $0.23 per share.
United Online will be announcing results for its March 2002 quarter on May 9, 2002, and will host a conference call following the announcement at 2 p.m. PDT (5 p.m. EDT) to discuss the results. A live Web cast of the call will be available on the company's Web site at http://www.irconnect.com/untd/. A recording of the call will be available on the site for seven days.
About United Online
United Online is a leading provider of value-priced Internet access services. The company commenced operations in September 2001 as the result of the merger of NetZero and Juno Online Services -- two of the leading Internet access brands in the United States and Canada. Through its subsidiaries, United Online offers both free and value-priced Internet access services in more than 5,000 cities. The company is headquartered in Westlake Village, Calif., with offices in New York City and Hyderabad, India. United Online's common stock is traded on the Nasdaq National Market under the ticker symbol "UNTD." For more information about United Online and its Internet access services, please visit www.unitedonline.net.
Note 1: Pro forma EBITDA represents the net income or loss before interest, taxes, depreciation, amortization, restructuring and merger-related charges, and other income, net. The company believes that pro forma EBITDA is an additional meaningful measure of operating performance. Pro forma EBITDA is not indicative of cash provided or used by operations. Pro forma EBITDA is not determined in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to historical financial results presented in accordance with GAAP.
Note 2: Pro forma net loss represents the net loss before amortization, restructuring and merger-related charges, and other income, net. The company believes that pro forma net loss is an additional meaningful measure of operating performance. Pro forma net loss is not determined in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to historical financial results presented in accordance with GAAP.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These include statements regarding United Online's expected future financial performance, expected growth in its billable subscriber base and quotes from management in this press release. These statements are based on management's current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties include, among others: United Online's unproven business model and limited operating history; the company's inability to integrate Juno and NetZero and to realize anticipated cost savings and other benefits associated with the merger; that merger and restructuring costs will be greater than anticipated; that the company will not improve financial results, generate positive cash flow or report positive EBITDA as anticipated, or maintain any of the foregoing if achieved; and the company's inability to maintain or grow its pay and free user bases. More information about potential factors that could affect the company's business and financial results is included in the company's Form 10-Q and other filings with the Securities and Exchange Commission (http://www.sec.gov) including (without limitation) information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors."