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Student Advantage Press Releases

Press Releases: Student Advantage' Posts Record Results in First Quarter 2000


Major Milestones Achieved for Revenue, Membership Growth,
and Online Traffic

BOSTON - April 27, 2000 -- Student Advantage, Inc. (Nasdaq: STAD) today reported record results for the first quarter 2000. Revenues of $11.1 million for the first quarter ended March 31, 2000, increased 127% over revenues of $4.9 million generated during the first quarter ended March 31, 1999, and exceeded analysts' expectations by 36%. Net loss for the quarter was $5.5 million, or ($0.15) per share compared to a net loss of $3.9 million, or ($0.21) ($0.14 on a pro forma basis) for the same period in 1999.

"We are thrilled about our tremendous first quarter results, which clearly reflect the strength and long-term effectiveness of our business model," said Student Advantage Founder and Chief Executive Officer, Raymond Sozzi. "We achieved milestones across nearly every one of our key performance metrics, setting new records for revenue, membership and online traffic. With nearly $28 million in cash on our balance sheet, revenues increasing year over year at rapid rates, and gross margins increasing to over 50%, we are well-positioned to continue to enhance our market leadership position while driving towards profitability."


First Quarter Highlights:

New Membership Milestone Reached: Student Advantage's Membership Program reached over 1.85 million card members in the first quarter of 2000, surpassing the peak for the 1998-99 school year by 44%, or approximately 600,000 members, making this the company's highest recorded membership number to date. These results bolster Student Advantage's leadership position among the four-year, full-time undergraduate college student market, and increase the Company's ability to drive growth in commerce transactions and media revenue streams.

Online Traffic Hits New Levels: Traffic to the Student Advantage Network reached new levels in the first quarter, tracking more than 1.4 million unique visitors in March, according to Media Metrix, making the Student Advantage Network the largest student-focused online network of wholly-owned sites.

Product Offerings Enhanced: In the first quarter, Student Advantage announced the debut of Student Advantage Research, a suite of online research tools developed in partnership with Northern Light Technology, Inc., who recently reported that over 130,000 searches were performed on Student Advantage Research in the month of March alone.

Traffic-Driving Promotions Launched: Student Advantage capitalized on several college-oriented seasonal events with integrated offline and online promotions such as the February Valentine's Day promotion, Qpid, and two Spring Break promotions, "Spring Break Revealed" and the Baywatch Search 2000. Also in March, Student Advantage's FANSonly Network launched the "Big Dance 2000" promotion which featured comprehensive online coverage of NCAA tournament games, a Million Dollar Challenge sweepstakes, and the ability to purchase team merchandise online. Results from related online purchasing included a 38% increase in orders and 137% increase in merchandise sales revenue over the previous quarter.

Management Team Bolstered: Student Advantage made a number of strategic additions to its management team. In March, the Company appointed Frederick A. Rogers to Vice President of University Strategy and Partnerships. Formerly the Chief Financial Officer at Cornell University, Rogers is expanding Student Advantage's business-to-business solutions for the higher education market by deepening current university relationships and identifying opportunities to partner with universities. Student Advantage also made key appointments in other areas, including John Blake to Vice President, Integrated Sales and Corporate Sponsorships, Kevin Roche to Vice President, Human Resources, and Laurie Jamieson to General Counsel.

Conference Call: Student Advantage's first quarter 2000 financial results conference call will be broadcast live on the Internet. The call will be held Thursday, April 27 at 5:30 PM EDT and will be available on Student Advantage's Web site, located at studentadvantage.com and on Street Events, located at www.streetevents.com. A replay of the conference call will be available on studentadvantage.com for 30 days.



About Student Advantage

Founded in 1992, Student Advantage, Inc. (Nasdaq: STAD) is the leading offline and online portal to the higher education community. Student Advantage, Inc. reaches their constituents through its Student Services, University Services and Business Services groups. The overall mission of Student Advantage is to help students save money, work smarter, and make more informed life decisions.

Today, Student Advantage, Inc. reaches millions of students and counts over 1.5 million members enrolled in the Student Advantage Membership Program. The Company has proprietary commerce relationships with more than 50 national retailers and 15,000 local participating locations in 125 cities throughout the country, including AT&T, Amtrak, Staples, Textbooks.com and Tower Records.


# # #

This announcement contains forward-looking statements, which are based on current expectations and involve a number of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by Student Advantage. Investors are directed to consider the risks of doing business on the Internet, the volatility of Internet stocks in general, the cyclical nature of Student Advantage's business and other risks and uncertainties discussed in documents filed by Student Advantage with the Securities and Exchange Commission including, without limitation, under "Risk Factors" set forth in Student Advantage's Form 10-K and other periodic reports. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


For more information, contact:

Christopher Andrews
Chief Financial Officer
Student Advantage, Inc.
617.880.1755
scandrews@studentadvantage.com

Andrea Abegglen
Vice President, Corporate Communications
Student Advantage, Inc.
617.912.2006
andrea@studentadvantage.com

Student Advantage, Inc.
Consolidated Statement of Operations
(in thousands, except per share data)

 

Three Months Ended

March 31,

2000

1999

 

(unaudited)

(unaudited)

Revenue

Subscription

$ 2,485

$ 1,668

Other

8,657

3,239

Total revenue

11,142

4,907

Costs and expenses

Cost of subscription revenue

556

320

Cost of other revenue

4,538

2,676

Product development

3,747

1,257

Sales and marketing

4,676

2,120

General and administrative

2,304

1,823

Depreciation and amortization

1,007

370

Stock-based compensation

241

273

Total costs and expenses

17,069

8,839

Loss from operations

(5,927)

(3,932)

Interest income (expense), net

473

73

Net loss

$ (5,454)

$ (3,859)

Basic and diluted net loss per share

$ (0.15)

$ (0.21)

Shares used in computing basic and diluted net loss per share

35,590

18,556

Unaudited pro forma basic and diluted net loss per share

$ (0.15)

$ (0.14)

Shares used in computing unaudited pro forma basic and diluted net loss per share

35,590

26,797

  • The financial results for the three-month period ended March 31, 1999, have been restated to reflect the acquisition of University Netcasting, Inc. in June 1999, which was accounted for as a pooling of interests.

Student Advantage, Inc.

Condensed Consolidated Balance Sheets

 

March 31,

December 31,

2000

1999

ASSETS (in thousands, except share data)

Current assets

(Unaudited)

Cash, cash equivalents and marketable securities

$ 27,681

$ 35,916

Accounts receivable, net

6,653

4,527

Prepaid expenses and other current assets

2,786

2,698

Total current assets

37,120

43,141

Property and equipment, net

4,295

4,038

Investment

5,262

4,262

Intangible and other assets, net

8,628

9,355

Total assets

$ 55,305

$ 60,796

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

   

Accounts payable

$ 2,723

$ 3,329

Accrued compensation

1,044

1,523

Other accrued expenses

5,608

4,574

Deferred revenue

9,213

9,576

Total current liabilities

18,588

19,002

Notes payable

100

100

Total liabilities

18,688

19,102

Stockholders' equity (deficit)

Preferred Stock, $0.01 par value, 5,000,000 shares authorized, 0 shares issued and outstanding

Common stock, $0.01 par value; Authorized: 150,000,000 shares; Issued and Outstanding:

35,689,300 and 35,435,398 at March 31, 2000 and December 31, 1999, respectively

356

354

Additional paid-in capital

87,795

87,690

Accumulated deficit

(49,512)

(44,058)

Notes receivable from stockholders

(50)

(79)

Deferred compensation

(1,972)

(2,213)

Total stockholders' equity (deficit)

36,617

41,694

Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

$ 55,305

$ 60,796

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