Ancestry.com

The following is from the finance.yahoo.com website:

2013 Total Non-GAAP Revenue $561.5 million, Up 15% Year-Over-Year – 2013 Adjusted EBITDA $211.6 million, Up 18% Year-Over-Year

PROVO, Utah, Feb. 20, 2014 (GLOBE NEWSWIRE) — Ancestry.com LLC reported financial results for the fourth quarter and full year ended December 31, 2013. Financial performance for the periods was consistent with the preliminary results reported by the Company on January 29, 2014.

“2013 was a successful year for Ancestry.com. We delivered strong financial performance highlighted by improved profit margins and growth in cash flows,” said Tim Sullivan, Chief Executive Officer of Ancestry.com. “We have a busy 2014 planned as we position the company to capitalize on its long-term growth opportunities. Key areas of activity and investment include areas such as product development initiatives; international expansion; our exclusive agreement with FamilySearch; and the continued growth of our popular AncestryDNA product, among others. We enjoy a solid foundation from which to pursue these initiatives, with a total subscriber base of more than 2.7 million across all websites and a profitable and healthy business model.”

Fourth Quarter and Full Year 2013 Financial Highlights1

  • Total revenues for the fourth quarter and full year 2013 were $145.0 million and $540.4 million, respectively.
  • Non-GAAP revenues2 for the fourth quarter of 2013 were $145.9 million, an increase of 10.8% over $131.7 million in the fourth quarter of 2012. For the full year 2013, total non-GAAP revenues were $561.5 million, an increase of 15.1% over the full year 2012, driven by growth in revenues from the Company’s core Ancestry.com branded websites, Archives.com and AncestryDNA.
  • Net loss for the fourth quarter of 2013 was $(23.3) million compared to net loss of $(60.3) million in the fourth quarter of 2012. For the full year 2013, net loss was $(79.7) million compared to a net loss of $(1.9) million for the full year 2012.
  • Adjusted EBITDA3 for the fourth quarter of 2013 was $53.6 million, compared to $50.1 million in the fourth quarter of 2012. Adjusted EBITDA margin for the fourth quarter of 2013 was 36.7%, compared to 38.2% in the fourth quarter of 2012. For the full year 2013, adjusted EBITDA was $211.6 million, compared to $178.8 million for the full year 2012. Adjusted EBITDA margin for the full year 2013 was 37.7%, compared to 36.7% for the full year 2012. The quarter and year-to-date periods included $2.0 and $5.6 million, respectively, of general legal and professional fees related to litigation, establishing the Company’s new corporate structure, registering the 2020 notes with the SEC and the dividend declared in September 2013 by the Company’s owners, and costs related to the settlement of litigation.
  • Free cash flow4 totaled $132.9 million for the full year 2013 compared to $106.0 million for the full year 2012.
  • Cash and cash equivalents totaled $86.6 million as of December 31, 2013.
  • Obligations under long-term debt5 totaled $906.4 million as of December 31, 2013.

Recent Business Highlights

  • Subscribers of Ancestry.com websites totaled approximately 2,140,000 as of December 31, 2013, a 6.2% increase over the end of the fourth quarter of 2012 and a 1.6% decrease from the end of the third quarter of 2013.
  • The Company ended the year with approximately 12.7 billion records, having added more than 1.2 billion new records in 2013. New collections added in Q4 included:
  • – West Yorkshire, England, Electoral Registers, 1840-1962 — 22.6 million records
    – Surrey, England, Electoral Registers, 1918-1945 — 10.5 million records
    – Ireland Census, 1901 & 1911 — 8.7 million records
    – Netherlands Death Records, 1779-2013 — 3.5 million records
    – Texas Birth and Death Certificates, 1903-1982 — 6.9 million records
    – U.S. School Catalogs, 1756-1935 — 5.3 million records
    – Associated Press Card Index, 1905-2001 — 2.6 million records

  • User-generated content on Ancestry.com continued to grow significantly during the year, and at year-end more than 3.1 billion records had been attached to our users’ family members, including 191 million uploaded photos and more than 16 million uploaded stories.
  • Since launching in May 2012, AncestryDNA now has a database of more than 300,000 DNA samples, delivering an average of 50 fourth cousin DNA matches per customer.
  • The Ancestry app has been downloaded more than 10 million times across the Android and iOS platforms; additionally, our redesigned iOS app includes new features and other social capabilities.

1. Fourth quarter and full year 2012 results reflect the combined periods preceding and succeeding the acquisition of Ancestry.com Inc. by a company controlled by Permira funds and co-investors (the “Transaction”). The Transaction was consummated on December 28, 2012.

2. Non-GAAP revenues are defined as the revenues that would have been recognized, except for the write-down of deferred revenue to fair value as a result of the application of purchase accounting for the Transaction. Non-GAAP revenues is calculated as total revenues plus the effects of non-cash adjustments to revenue from purchase accounting.

3. Adjusted EBITDA is defined as net income (loss) plus non-cash purchase accounting adjustments to revenue, interest expense, net; other (income) expense; income tax expense (benefit); non-cash charges including depreciation, amortization, and stock-based compensation expense; and expenses associated with the Transaction.

4. Free cash flow subtracts from adjusted EBITDA capitalization of content databases, purchases of property and equipment and cash received (paid) for income taxes and interest.

5. This amount does not include $400.0 million in senior unsecured PIK notes issued by our parent company, Ancestry.com Holdings LLC as of the date of this release. While not required, Ancestry.com LLC intends to make dividends to our parent in order to fund cash interest payments of these notes.

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