Industry Leader Achieves 18 Percent Revenue Growth, 91 Percent Increase in Net Income
and Raises 2004 Guidance
SEATTLE, July 21, 2004 – Getty Images, Inc. (NYSE:GYI), the world’s leading imagery company,today reported results for the second quarter ended June 30, 2004.
• Revenue increased 17.7 percent over the second quarter of 2003
• Operating income grew 67.6 percent over the prior year to $39.8 million, or a margin of 26.5 percent of revenue
• Earnings per diluted share increased 78.3 percent over the year-ago period to $0.41
“The positive momentum we experienced in the first quarter continued into the second quarter, resulting in revenue growth of nearly 18 percent,” said Jonathan Klein, Getty Images’ co-founder and CEO. “During the quarter, we added e-commerce functionality to the editorial section of our site, launched our Japanese website and continued to cement our position as the de facto home page for creative and publishing professionals by adding content and growing our assignment, asset management and related services. Our leadership in the visual content market continues to grow in all segments.”
Revenue grew 17.7 percent to $150.3 million compared to $127.7 million in the second quarter of 2003, and included a 6.0 percent benefit from foreign currency translation. Operating income for the second quarter of 2004 grew 67.6 percent to $39.8 million, or 26.5 percent of revenue, compared to $23.8 million, or 18.6 percent of revenue, in the same quarter last year. Net income for the second quarter was up 91.0 percent to $25.2 million, or $0.41 per diluted share, compared to $13.2 million, or $0.23 per diluted share, for the same quarter in 2003. Gross margin for the quarter was 72.2 percent compared to 71.6 percent in the second quarter of 2003. Selling, general and administrative expenses (SG&A) totaled $54.4 million, up $2.6 million from the second quarter last year, primarily due to the effects of currency translation. On a currency-neutral basis there was no year-over-year increase in SG&A. As a percentage of revenue, SG&A declined to 36.2 percent from 40.6 percent in the second quarter of 2003.
Cash and short-term investment balances increased more than $65 million from $356.6 million at the end of the first quarter to $422.1 million at June 30, 2004.
For the first six months of 2004, net cash provided by operating activities was $100.3 million, compared to $61.2 million in the first half of 2003. The acquisition of property and equipment was $18.1 million in the first half of 2004, compared to $15.0 million in the same period of 2003.
Business Outlook
The following forward-looking statements reflect Getty Images’ expectations as of July 21, 2004.
The company remains positive about business conditions, and expects continued strength in financial results in the second half of 2004. For the third quarter of 2004, the company expects to report revenue in the range of $152 million to $155 million and earnings per diluted share of $0.40 to $0.42.
The company is raising guidance for 2004 and expects revenue in the range of $605 million to $615 million and earnings per diluted share of $1.60 to $1.70.
[Full Release here: "Getty Images Reports Financial Results For The Second Quarter of 2004"]
