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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


x

Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2005.

or

o

Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________

Commission file number:             000-26393


Jupitermedia Corporation

(Exact name of Registrant as specified in its charter)


Delaware

 

06-1542480

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

23 Old Kings Highway South

 

 

Darien, Connecticut

 

06820

(Address of principal executive offices)

 

(Zip Code)

(203) 662-2800

(Registrant s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x

No o

 

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes x

No o

 

The number of outstanding shares the Registrant s common stock, par value $.01 per share, as of May 5, 2005 was 34,161,066.

 


 

 



 

 

Jupitermedia Corporation

 

Index

 

 

 

 

Page

PART I.

Financial Information

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Unaudited Consolidated Condensed Balance Sheets December 31, 2004 and March 31, 2005

 

3

 

 

 

 

Unaudited Consolidated Condensed Statements of Operations For the Three Months Ended March 31, 2004 and 2005

4

 

 

 

 

Unaudited Consolidated Condensed Statements of Cash Flows For the Three Months Ended March 31, 2004 and 2005

5

 

 

 

 

Notes to Consolidated Condensed Financial Statements

6

 

 

 

Item 2.

Management s Discussion and Analysis of Financial Condition and Results of Operations

14

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

 

 

 

Item 4.

Controls and Procedures

27

 

 

 

 

 

 

 

 

 

PART II.

Other Information

 

 

 

 

Item 1.

Legal Proceedings

28

 

 

 

Item 2.

Changes in Securities

28

 

 

 

Item 3.

Defaults Upon Senior Securities

28

 

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

29

 

 

 

Item 5.

Other Information

29

 

 

 

Item 6.

Exhibits

29

 

 

 

Signatures

 

30

 

 



 

 

Jupitermedia Corporation

Unaudited Consolidated Condensed Balance Sheets

December 31, 2004 and March 31, 2005

(in thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

December 31, 2004

 

 

 

March 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

30,179

 

 

 

$

19,586

 

Accounts receivable, net of allowances of $966 and $1,550, respectively

 

 

 

 

15,385

 

 

 

 

20,496

 

Unbilled accounts receivable

 

 

 

 

1,530

 

 

 

 

1,580

 

Prepaid expenses and other

 

 

 

 

2,713

 

 

 

 

3,970

 

Total current assets

 

 

 

 

49,807

 

 

 

 

45,632

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $9,256 and $9,495, respectively

 

 

 

 


2,339

 

 

 

 


8,645

 

Intangible assets, net

 

 

 

 

20,939

 

 

 

 

28,695

 

Goodwill

 

 

 

 

42,015

 

 

 

 

95,259

 

Investments and other assets

 

 

 

 

1,197

 

 

 

 

1,336

 

Total assets

 

 

 

$

116,297

 

 

 

$

179,567

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

2,277

 

 

 

$

9,423

 

Accrued payroll and related expenses

 

 

 

 

1,785

 

 

 

 

2,525

 

Accrued expenses and other

 

 

 

 

5,037

 

 

 

 

7,263

 

Deferred revenues

 

 

 

 

14,183

 

 

 

 

19,457

 

Current portion of long-term debt

 

 

 

 

 

 

 

 

6,667

 

Total current liabilities

 

 

 

 

23,282

 

 

 

 

45,335

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

 

 

 

 

 

 

13,333

 

Deferred revenues

 

 

 

 

510

 

 

 

 

586

 

Deferred income tax liabilities

 

 

 

 

121

 

 

 

 

606

 

Other long-term liabilities

 

 

 

 

225

 

 

 

 

197

 

Total liabilities

 

 

 

 

24,138

 

 

 

 

60,057

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued

 

 

 

 

 

 

 

 

 


 

Common stock, $.01 par value, 75,000,000 shares authorized, 32,378,361 and 33,912,127 shares issued at December 31, 2004 and March 31, 2005, respectively

 

 

 

 

324