BETHESDA, MD -- CoStar Group, Inc. (NASDAQ: CSGP) revenues increased 18.6% and EBITDA (earnings before interest, taxes, depreciation and amortization) increased 108% in the second quarter of 2003 over the second quarter of 2002, the Company announced today. In addition, cash balances grew by $5.3 million during the second quarter of 2003 over the first quarter of 2003.
CoStar Group, based in Bethesda, MD, is the leading provider of information services to the commercial real estate industry in the United States and the United Kingdom.
Revenues for the second quarter of 2003 were $23.2 million, an increase of 18.6% compared to the second quarter of 2002. In addition, revenues increased sequentially by 2.7% for the second quarter of 2003 over the first quarter of 2003. CoStar has reported revenue increases in 20 consecutive quarters since its IPO.
"Our subscription-based model has produced consistent quarterly increases in revenues, which have translated into consistent earnings growth," stated CoStar President & CEO Andrew C. Florance. "The investments we have made in developing our products and our infrastructure are now paying off with strong EBITDA and cash flow."
For the quarter ended June 30, 2003, pro forma net income, which excludes only purchase amortization, improved to $1.4 million or $0.09 per share versus pro forma net income of $256,000 or $0.02 per share for the same quarter in 2002. EBITDA increased to $2.9 million for the second quarter of 2003 compared to EBITDA of $1.4 million in the second quarter of 2002. The Company's GAAP-basis net loss for the second quarter of 2003 narrowed to ($367,000) or $(0.02) per share, compared to a net loss of $(1.3) million or $(0.08) per share for the second quarter of 2002.
As of June 30, 2003, the Company had $31.6 million in cash, cash equivalents, and short-term investments, an increase of $5.3 million or 20% compared to March 31, 2003. This substantial increase resulted from strong operating cash flows and proceeds of approximately $2.2 million from stock option exercises for approximately 122,000 shares of common stock. In addition, the Company continues to have no long-term debt.
"The new product platform we released in December 2002 has been very well received," Florance added. "Usage of CoStar Property 8.0, our flagship leasing and analysis product, increased 79% in the second quarter of 2003 from an average of approximately 1.4 million weekly page views at the end of March 2003 to an average of approximately 2.5 million weekly page views at the end of June 2003. We believe that our new generation of products, together with our strong balance sheet and experienced team, positions us very well for continued growth."
"For the third quarter of 2003, we expect overall sequential quarterly revenue growth of approximately 2.5% to 3.0% over the second quarter of 2003, and pro forma net income of approximately $0.12 per share," said Frank Carchedi, CoStar's Chief Financial Officer. "Adjusting these pro forma amounts for purchase amortization, which we anticipate will be consistent with the charges for the second quarter of 2003, we expect to have GAAP-basis net income of approximately $0.01 per share in the third quarter of 2003."
Management will conduct a conference call to discuss earnings results for the quarter ended June 30, 2003 and financial outlook for 2003 at 11:00 am ET, Wednesday, July 23, 2003. This conference call will be broadcast live over the Internet at http://www.costar.com/corporate/investor. If you would like to join by telephone, please call (800) 329-4405 within the United States or (706) 634-0964 outside the United States. A telephonic replay of the conference call will be available two hours after the live call concludes through midnight on August 1, 2003. The replay telephone number is (800) 642-1687 within the United States or (706) 645-9291 outside the United States. Refer to Conference ID 1429694. The replay will also be available over the Internet at http://www.costar.com/corporate/investor for a period of time following the call.
About CoStar Group, Inc.
coStar Group, Inc., (NASDAQ: CSGP) is the leading provider of information services to commercial real estate professionals in the United States and the United Kingdom. CoStar's suite of products offers customers access via the Internet to the most comprehensive, verified database of commercial real estate information on 50 U.S. markets, London and the United Kingdom. Based in Bethesda, MD, the company has approximately 800 employees in 34 offices throughout the United States and the United Kingdom, including the largest professional research organization in the industry.