United Online® Reports Fourth Quarter and Full-Year 2008 Results

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer products and services over the Internet, today reported financial results for its fourth quarter and year ended December 31, 2008. The 2008 fourth quarter results include three months of operations from FTD Group, Inc. (“FTD”), acquired on August 26, 2008, that were not included in the company’s financial results for the fourth quarter ended December 31, 2007.

“United Online achieved new record levels of quarterly and annual adjusted OIBDA in the fourth quarter and full-year 2008, excluding the recent FTD acquisition to ensure comparability with prior-year periods, which marks our seventh consecutive year of record adjusted OIBDA,” commented Mark R. Goldston, Chairman, President and Chief Executive Officer of United Online. “Considering the challenging economic environment, it is gratifying to achieve such strong performance in adjusted OIBDA and cash flow, which has become a hallmark of the company.”

“Our Classmates Media and Communications segments once again performed very well in the fourth quarter, further demonstrating their attractive value propositions for consumers and the resiliency of their subscription business models,” Goldston added. “Driven by the continued success of our social networking business, our Classmates Media segment delivered a strong fourth quarter that increased our segment adjusted OIBDA for the full year 2008 to a record $60.1 million, up 71% versus the prior year. In addition, in the fourth quarter, our Communications business, which we continue to operate for profitability and cash flows, experienced its lowest decline in net pay accounts in over three years.”

“Our FTD segment results for the fourth quarter reflect both the weakening consumer spending environment, which we have continued to experience in the first quarter of 2009, and the strengthening of the U.S. Dollar against the British Pound throughout the fourth quarter. We expect that adverse macroeconomic factors in both the U.S. and U.K. will continue to negatively impact the FTD segment, at least in the near term, which is reflected in our adjusted OIBDA guidance for the first quarter. Primarily as a result of the adverse change in economic conditions and equity market dynamics since we acquired FTD in August 2008, we recorded non-cash impairment charges of $175.9 million during the fourth quarter to write down the carrying value of goodwill and certain intangible assets of FTD. However, we continue to be excited about our new marketing initiatives within the FTD segment and our ability to enhance our competitive position.”

By Admin with No comments