NetZero Dial Up and High Speed Internet United Online Reports Third-Quarter 2006 Results.

High Speed Internet Service Specials & Deals

Click "Check Now" above to match your location with available DSL, Cable, Satellite and Wireless high speed internet service provider specials by Broadband National. A home telephone number is required to match you with DSL internet service providers, because DSL is connected through your home telephone line. Name and valid email address is required for support and to confirm any orders. A street address is required to check availability of Cable, Satellite, and Wireless internet service deals. All internet services are managed and billed by your internet service provider.

November 2, 2006 — Woodland Hills, California - United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer Internet and media services, today reported financial results for its third quarter ended September 30, 2006.

“We are pleased to report stronger than anticipated adjusted OIBDA in the third quarter, due to ongoing improvements in the cost structure of our Communications segment, while revenues were in-line with our expectations,” said Mark R. Goldston, chairman and chief executive officer of United Online. “Our diversification strategy resulted in Content&Media representing 44 percent of all pay accounts at quarter end, up from 35 percent a year ago.”

Third-Quarter 2006 Consolidated Results:

• Net Income Grows 7% Year-Over-Year
• Content&Media Pay Accounts Rise to 44% of All Pay Accounts
• Total revenues were $129.6 million, versus $132.8 million in the year-ago quarter.
• Operating income was $21.9 million, or 16.9% of revenues, versus $22.6 million, or 17.0% of revenues, in the year-ago quarter.
• Adjusted operating income before depreciation and amortization (OIBDA)(1) increased 7% to $36.8 million, or 28.4% of revenues, versus $34.4 million, or 25.9% of revenues, in the year-ago quarter.
• Pay accounts(2) decreased by 84,000 during the quarter to 4.9 million, and active accounts(2) totaled 20.8 million at September 30, 2006.
• Net income increased 7% to $13.4 million (including $3.2 million of stock-based compensation, net of tax, recorded under FAS 123R), versus net income of $12.6 million (including $2.3 million of stock-based compensation, net of tax, recorded under the intrinsic value method). On a diluted per share basis, net income was $0.20 in the third quarter of 2006, versus $0.20 in the year-ago quarter.
• Adjusted net income(3) was $19.7 million, an increase of 6% versus $18.6 million for the year-ago quarter. On a diluted per share basis, adjusted net income for the quarter was $0.29 per share, an increase of 4%, versus $0.28 per share for the year-ago quarter. Adjusted net income is calculated in a manner consistent with the consensus estimate as reported by First Call.

“Our Communications segment delivered one of its best-ever adjusted OIBDA performances in the third quarter. The stable profitability of this segment has allowed United Online to diversify into Content & Media services while consistently delivering strong bottom line results,” said Charles S. Hilliard, president and chief financial officer of United Online.

Third Quarter 2006 Segment Results:

Communications: Internet access, email and VoIP

• Communications revenues were $92.2 million, or 71.1% of consolidated revenues, versus $108.3 million, or 81.6% of consolidated revenues, in the year-ago quarter.
• Communications adjusted OIBDA(1) was $36.1 million, or 39.1% of Communications revenues, versus $34.9 million, or 32.2% of Communications revenues, in the year-ago quarter.
• Communications pay accounts decreased by 138,000 during the quarter to 2.7 million, or 55.9% of consolidated pay accounts.

Content & Media: Social networking, online loyalty marketing, Web hosting and photo sharing

• Content&Media revenues grew 53% to $37.5 million, or 28.9% of consolidated revenues, versus $24.4 million, or 18.4% of consolidated revenues, in the year-ago quarter.
• Content&Media adjusted OIBDA(1) was $5.0 million, or 13.3% of Content&Media revenues, versus $4.3 million, or 17.7% of Content&Media revenues, in the year-ago quarter.
• Content&Media pay accounts increased by 54,000 during the quarter to 2.2 million, or 44.1% of consolidated pay accounts.
• Other reconciling items (unallocated corporate expenses) to arrive at consolidated adjusted OIBDA were ($4.3) million, versus ($4.8) million in the year-ago quarter.

Additional Highlights:

• Cash balances at September 30, 2006 were $160.9 million, including cash, cash equivalents, short-term investments and restricted cash.
• Cash flows from operations were $25.7 million, versus $41.9 million in the year-ago quarter. In connection with the adoption of FAS 123R, certain tax benefits from exercised stock options that were previously reflected in the operating section of the company's statement of cash flows are now presented in the financing section.
• Free cash flow(4) was $24.6 million, versus $33.9 million in the year-ago quarter.

Business Outlook:

The following forward-looking information includes certain projections made by management as of the date of this press release. United Online does not intend to revise or update this information and may not provide this type of information in the future. Due to a variety of factors, actual results may differ significantly from those projected. Factors include, without limitation, the factors referenced later in this announcement under the caption “Cautionary Information Regarding Forward-Looking Statements. ”These and other factors are discussed in more detail in the company's filings with the Securities and Exchange Commission.

About United Online

United Online, Inc. (Nasdaq:UNTD) is a leading provider of consumer Internet and media services. The company's Content&Media services include social networking (Classmates) and online loyalty marketing (MyPoints). Its Communications services include Internet access (NetZero, Juno), email and VoIP. United Online is headquartered in Woodland Hills, CA, with offices in New York, NY; Fort Lee, NJ; Renton, WA; San Francisco, CA; Schaumburg, IL; Orem, UT; Erlangen, Germany; and Hyderabad, India. For more information about United Online, please visit www.unitedonline.com.

SOURCE: United Online

page top

Related Internet Service Deals Web Pages
» Dial Up Internet Service Access Specials
» High Speed Internet Service Specials
» Internet Faxing Software Free Trials
» Internet Service Providers By State
» Internet Service Articles Lessons And Tutorials