CORRECTING AND REPLACING -- ICG Announces Fourth Quarter and Annual Financial Results

CORRECTING AND REPLACING -- ICG Announces Fourth Quarter and Annual Financial
Results

RADNOR, Pa., Feb. 21, 2013 (GLOBE NEWSWIRE) -- In a press release issued
earlier today by ICG Group, Inc. (Nasdaq:ICGE) ("ICG"), there was an incorrect
statement in the 2013 Guidance section. The first sentence of this section
should read, "In 2013, ICG expects GAAP revenue in the range of between $210
and $220 million, an increase of between 26% and 32% over 2012, and we expect
to generate $0.01 to $0.05 of non-GAAP net income per share." The corrected
release follows:

          Company reports record annual revenue, exceeding guidance

     Expects to be non-GAAP net income (loss) per share positive in 2013

ICG Group, Inc. (Nasdaq:ICGE) ("ICG") today reported its results for the
quarter and year ended December 31, 2012.

"2012 was a year of remarkable accomplishments at ICG from both an operational
and strategic perspective," said Walter Buckley, ICG's Chief Executive
Officer. "We exceeded our revenue guidance and entered 2013 with a strong
recurring revenue base that provides the foundation for continued growth and
profitability."

Highlights

Financial Achievements:

  *Exceeded revenue guidance and achieved the high end of EBITDA guidance
    range
  *Repurchased 930,225 shares of ICG common stock at a weighted average price
    of $8.94 per share for $8.3 million
  *Sold Investor Force to MSCI in early 2013 for $23.5 million, with ICG cash
    proceeds of $20.7 million
  *Sold Channel Intelligence to Google in early 2013 for $125 million, with
    ICG realizing $60.5 million of cash

Operational Initiatives:

  *Acquired 96% ownership in MSDSonline, ICG's recurring revenue compliance
    platform
  *Increased ownership in SeaPass to 53%, bringing SeaPass into ICG's group
    of consolidated companies as ICG's recurring revenue insurance platform
  *Invested substantially in sales and marketing, driving record bookings at
    Procurian, GovDelivery and MSDSonline and resulting in a strong recurring
    revenue base going into 2013
  *Re-branded Procurian to capitalize on its unique, industry-leading value
    proposition
  *Acquired Media IQ and UAI, accretive tuck-in acquisitions, strengthening
    Procurian's industry-leading marketing and energy practices
  *Completed tender offer for Procurian shares, which increased ICG's
    ownership in Procurian to 85%
  *Expanded globally, winning an entry global account at Procurian,
    establishing European sales team in the UK and opening Procurian delivery
    centers in Buenos Aires and Shanghai

Financial Information

Net income for the fourth quarter of 2012 was $14.7 million, or $0.40 per
diluted share, compared to $17.9 million, or $0.49 per diluted share, in the
corresponding 2011 period.Net income for the fourth quarter of 2012 included
gains primarily related to a gain on previous equity interest recorded upon
the consolidation of SeaPass.Net income for 2012 was $23.0 million, or $0.63
per diluted share, as compared to $27.6 million, or $0.74 per diluted share,
for 2011.

Investor Force and Channel Intelligence are both presented within discontinued
operations for all periods presented.To aid the guidance comparisons, we
provide the following reconciliation ($s in millions):

                                                    Q4          Year Ended
                                                    2012  2011  2012   2011
                                                                    
Core consolidated revenue                            $53.6 $36.1 $191.5 $140.5
Impact of Investor Force and Channel Intelligence    (8.9) (1.7) (19.7) (7.1)
dispositions
Impact of acquired business' deferred revenue        (1.1) —     (5.2)  —
                                                                    
GAAP revenue                                         $43.6 $34.4 $166.6 $133.4
                                                                    
                                                                    
Core consolidated EBITDA                             $4.7 $5.6 $19.7 $17.7
                                                                    

2013 Guidance

In 2013, ICG expects GAAP revenue in the range of between $210 and $220
million, an increase of between 26% and 32% over 2012, and we expect to
generate $0.01 to $0.05 of non-GAAP net income per share.

"We enter 2013 with a base of annual recurring revenue and a strong pipeline
that provides a solid foundation for our performance in 2013 and beyond," said
Kirk Morgan, Chief Financial Officer. "Importantly, we expect to achieve this
growth and profitability while making continued investments in key areas,
including over $35 million into sales and marketing, an increase of
approximately 60% compared to 2012."

A reconciliation of the most comparable GAAP financial measures to the
non-GAAP measures used above is included with the financial tables at the end
of this release.

Please see ICG's website at www.icg.com for more information on ICG, its
companies and its fourth quarter and annual 2012 results.

ICG will host a webcast at 10:00 a.m. ET today to discuss its financial
results.As part of the live webcast for this call, ICG will post a slide
presentation to accompany the prepared remarks.The webcast can be accessed at
www.icg.com/investors/events-and-presentations/.Please log on to the website
approximately ten minutes prior to the call to register and download and
install any necessary audio software.The conference call is also accessible
through listen-only mode by dialing 866-730-5762 or 857-350-1586.The passcode
is 64646806.

For those unable to participate in the conference call, a replay will be
available from February 21, 2013 at 12:00 p.m. ET until February 28, 2013 at
11:59 p.m. ET.To access the replay, dial888-286-8010 or 617-801-6888.The
pass code is 92126304. The replay and slide presentation also can be accessed
in the investor relations section of the ICG website at
www.icg.com/investors/events-and-presentations/.

About ICG

ICG provides leading cloud-based software and solutions in procurement,
government, compliance and insurance. ICG's software platforms automate
industry-specific processes that drive growth, cost savings and compliance for
its customers globally. Headquartered in Radnor, Pennsylvania, ICG has more
than 1,000 employees worldwide. For more information, please go to
www.icg.com.

The ICG logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7794

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical facts
are forward-looking statements that involve certain risks and uncertainties,
including, but not limited to, risks associated with the effect of economic
conditions generally, capital spending by our companies' customers, our
companies' collective ability to retain existing customer relationships and
secure new ones, our companies' ability to compete successfully against their
respective competitors, our companies' ability to timely and effectively
respond to technological developments, our and our companies' collective
ability to retain key personnel, our ability to have continued access to
capital and to deploy capital effectively and on acceptable terms, our ability
to maximize value in connection with divestitures, and other risks and
uncertainties detailed in ICG's filings with the Securities and Exchange
Commission.These and other factors may cause actual results to differ
materially from those projected.

ICG Group, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                                
                                   Three Months Ended 12 Months Ended
                                   December 31,       December 31,
                                   2012       2011      2012       2011
                                                                
                                                                
Revenue                           $43,584  $34,435 $ 166,593 $133,437
                                                                
Operating Expenses                                             
Cost of revenue                   28,403    20,589   105,762   81,281
Sales and marketing               6,078     3,665    21,920    13,466
General and administrative        10,642    6,945    38,805    29,228
Research and development          4,106     2,174    14,175    9,157
Amortization of intangibles       1,901     399      5,590     1,412
Impairment related and other      521       367      1,548     753
Total operating expenses          51,651    34,139   187,800   135,297
                                                                
Operating income (loss)           (8,067)   296      (21,207)  (1,860)
                                                                
Other income (expense):                                        
Other income (loss), net          23,899    16,440   56,919    42,624
Interest income                   108       95       442       393
Interest expense                  (171)     (100)    (526)     (577)
                                                                
Income (loss) before income taxes,
equity loss and discontinued        15,769    16,731   35,628    40,580
operations
                                                                
Income tax benefit (expense)      (334)     4,926    (1,336)   4,287
Equity loss                       (961)     (1,958)  (8,107)   (11,964)
                                                                
Income (loss) from continuing      14,474    19,699   26,185    32,903
operations
Income (loss) from discontinued    (33)      (539)    (2,999)   (3,102)
operations
Net income (loss)                 14,441    19,160   23,186    29,801
Less: Net income (loss)
attributable to the noncontrolling  (221)     1,294    197       2,235
interest
Net income (loss) attributable to  $14,662  $17,866 $22,989  $27,566
ICG
                                                                
Amounts attributable to ICG common                              
shareholders:
Net income (loss) from continuing  $15,272  $18,291 $26,212  $30,013
operations
Net income (loss) from             (610)     (425)    (3,223)   (2,447)
discontinued operations
Net income (loss) attributable to  $14,662  $17,866 $22,989  $27,566
ICG common shareholders
                                                                
Basic net income (loss) per                                     
share:
Income (loss) from continuing
operations attributable to ICG      $0.43    $0.50   $0.73    $0.82
common shareholders
Income (loss) from discontinued
operations attributable to ICG      (0.02)    (0.01)   (0.09)    (0.07)
common shareholders
Income (loss) attributable to ICG  $0.41    $0.49   $0.64    $0.75
common shareholders
                                                                
Diluted net income (loss) per                                   
share:
Income (loss) from continuing
operations attributable to ICG      $0.42    $0.50   $0.72    $0.80
common shareholders
Income (loss) from discontinued
operations attributable to ICG      (0.02)    (0.01)   (0.09)    (0.06)
common shareholders
Income (loss) attributable to ICG  $0.40    $0.49   $0.63    $0.74
common shareholders
                                                                
Shares used in computation of
basic net income (loss) per common  35,840    36,170   35,890    36,656
share attributable to ICG common
shareholders
Shares used in computation of
diluted net income (loss) per       36,912    36,633   36,554    37,460
common share attributable to ICG
common shareholders


ICG Group, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                                              
                                                              
                                                December 31, December 31,
                                                2012         2011
                                                              
ASSETS                                                       
Cash and cash equivalents                      $45,526      $121,871
Restricted cash                                827           133
Accounts receivable, net                       47,315        30,384
Other receivables                              405           22,679
Deferred tax asset                             348           613
Prepaid expenses and other current assets      6,132         2,509
Assets of discontinued operations              83,552        3,866
Total current assets                           184,105       182,055
Marketable securities                          327           --
Fixed assets, net                              13,781        5,682
Ownership interests                            12,913        39,052
Goodwill and Intangibles, net                  187,715       36,274
Deferred tax asset                             30,332        31,940
Cost method investments                        13,007        10,820
Other assets, net                              3,338         997
Total Assets                                   $445,518     $306,820
                                                              
                                                              
                                                              
LIABILITIES AND EQUITY                                       
Current maturities of other long-term debt     $5,336       $4,616
Accounts payable                               7,016         2,116
Accrued expenses                               9,048         5,786
Accrued compensation and benefits              19,658        11,737
Deferred revenue                               18,324        11,425
Liabilities of discontinued operations         10,894        3,329
Total current liabilities                      70,276        39,009
Long-term debt                                 27,983        10,681
Other non-current liabilities                  5,853         2,255
Total Liabilities                              104,112       51,945
Redeemable noncontrolling interest             3,505         1,378
Equity:                                                      
Controlling (ICG) equity                       265,668       245,884
Noncontrolling interest                        72,233        7,613
Total Equity                                   337,901       253,497
Total Liabilities, Redeemable noncontrolling    $445,518     $306,820
interest and Equity


ICG Group, Inc.
Reconciliation of GAAP Financial Measure to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
                                                                                            
               2011                                  2012                                  Full Year
               Q1        Q2       Q3       Q4        Q1       Q2       Q3        Q4        2011      2012
GAAP Revenue:   $32,044   $33,531  $33,427  $34,435   $34,698  $42,822  $45,489   $43,584   $133,437  $166,593
Add back:
Acquired
businesses'     --      --     --     --      --     2,537   1,593    1,062    --      5,192
deferred
revenue
Add back:
Impact of       1,910    1,797   1,715   1,668    1,932   2,256   6,545    8,944    7,090    19,677
discontinued
operations
Non-GAAP       $33,954   $35,328  $35,142  $36,103   $36,630  $47,615  $53,627   $53,590   $140,527  $191,462
revenue
                                                                                            
                                                                                            
GAAP Net income
(loss)          $15,890   ($3,233) ($2,957) $17,866   ($7,020) ($5,994) $21,341   $14,662   $27,566   $22,989
attributable to
ICG:
Add back:                                                                                   
Share-based    733      925     1,012   1,590    1,638   1,739   1,811    1,738    4,260    6,926
compensation
Amortization   337      338     338     338      424     1,436   1,829    1,901    1,351    5,590
of intangibles
Impairment
related and     37       82      267     367      127     160     739      521      753      1,547
other
Other (income) (24,946) (1,612) 374     (16,440) (397)   (1,054) (31,570) (23,899) (42,624) (56,920)
loss, net
Acquired
businesses'     --      --     --     --      --     2,537   1,593    1,062    --      5,192
deferred
revenue
Equity loss    3,576     3,185    3,245    1,958     2,303    3,236    1,608     961       11,964   8,108
Income tax
expense         2,620    (1,124) (1,598) (4,214)  279     71      5        (222)    (4,316)  133
(benefit) -
deferred
Impact of
discontinued    1        101     130     7        1       204     1,854    423      239      2,482
operations
Non-GAAP net   ($1,752)  ($1,338) $811     $1,472    ($2,645) $2,335   ($790)    ($2,853)  ($807)    ($3,953)
income (loss)
Net income
(loss)
attributable to 352      254     335     1,294    152     652     (387)    (222)    2,235    195
non-controlling
interests
Interest
(income)        62       62      55      5        (29)    (5)     55       89       184      110
expense, net
Depreciation    717      730     762     852      770     832     1,133    1,804    3,061    4,539
Corporate/other $4,114    $3,882   $2,089   $2,581    $4,442   3,403   $4,096    $5,401    $12,666   $17,342
Income tax
expense         $320      $161     $260     ($712)    $261     $321     $66       $555      $29       $1,203
(benefit) -
current
Impact of
discontinued    $72       $77      $80      $83       $81      $61      $132      ($37)     $312      $237
operations
Core
Consolidated
EBITDA
(excluding      $3,885    $3,828   $4,392   $5,575    $3,032   $7,599   $4,305    $4,737    $17,680   $19,673
share-based
compensation
and unusual
items)
                                                                                            
                                                                                            
GAAP Net income
(loss) per      $0.42     ($0.09)  ($0.08)  $0.49     ($0.19)  ($0.17)  $0.59     $0.40     $0.74     $0.63
diluted share:
Add back:                                                                                   
Share-based    $0.02     $0.03    $0.03    $0.04     $0.05    $0.05    $0.05     $0.05     $0.12     $0.19
compensation
Amortization   $0.01     $0.01    $0.01    $0.01     $0.01    $0.04    $0.05     $0.05     $0.04     $0.16
of intangibles
Impairment
related and     $0.00     $0.00    $0.01    $0.01     $0.00    $0.00    $0.02     $0.01     $0.02     $0.04
other
Other (income) ($0.68)   ($0.04)  $0.01    ($0.45)   ($0.01)  ($0.03)  ($0.89)   ($0.67)   ($1.16)   ($1.57)
loss, net
Acquired
businesses'     $0.00     $0.00    $0.00    $0.00     $0.00    $0.07    $0.04     $0.03     $0.00     $0.14
deferred
revenue
Equity loss    $0.10     $0.09    $0.09    $0.05     $0.06    $0.09    $0.05     $0.03     $0.32     $0.22
Income tax
expense         $0.07     ($0.03)  ($0.04)  ($0.12)   $0.01    $0.00    $0.00     ($0.01)   ($0.12)   $0.00
(benefit) -
deferred
Discontinued   $0.00     $0.00    $0.00    $0.00     $0.00    $0.01    $0.05     $0.01     $0.01     $0.07
Operations
Non-GAAP net
income (loss)   ($0.06)   ($0.04)  $0.02    $0.04     ($0.07)  $0.06    ($0.03)   ($0.09)   ($0.03)   ($0.11)
per diluted
share
                                                                                            
Shares used in
calcuation of
GAAP net income
(loss) per                                                                                   
share
attributable to
ICG:
Basic           36,944   36,961  36,556  36,170   36,156  35,917  35,650   35,840   36,656   35,890
Diluted         37,991   36,961  36,556  36,633   36,156  35,917  36,273   36,912   37,460   36,554
                                                                                            
Shares used in
calcuation of
non-GAAP net
income (loss)                                                                                
per share
attributable to
ICG:
Basic           36,944   36,961  36,556  36,170   36,156  35,917  35,650   35,840   36,656   35,890
Diluted         36,944   36,961  37,265  36,633   36,156  36,422  35,650   35,840   36,656   35,890

About ICG's Non-GAAP Financial Measures

This release contains non-GAAP financial measures. The tables above reconcile
these non-GAAP financial measures to the most directly comparable GAAP
financial measures.

Non-GAAP financial measures should not be considered as a substitute for, or
as superior to, measures of financial performance prepared in accordance with
GAAP. ICG strongly urges investors and potential investors in our securities
to review the reconciliation of our non-GAAP financial measures to the
comparable GAAP financial measures that are included in this release.

ICG's management believes that its non-GAAP financial measures provide useful
information to investors because they allow investors to view the business
through the eyes of management and provide meaningful supplemental information
regarding ICG's operating results, as they exclude amounts that ICG excludes
as part of its monitoring of operating results and assessment of the
performance of the business. 

ICG presents the following non-GAAP financial measures in this release: (1)
non-GAAP revenue, (2) non-GAAP net income (loss), (3) non-GAAP net income
(loss) per share and (4) core consolidated EBITDA (excluding stock based
compensation and unusual items). ICG includes or excludes items from these
non-GAAP financial measures as described below.

Non-GAAP revenue includes the following item:

  *Acquired businesses' deferred revenue. ICG includes acquired businesses'
    previously deferred revenues that are not recognized under GAAP because
    ICG considers them a part of ongoing operating results when assessing the
    performance of its business and believes it is useful for investors to
    understand the effects of these items on its operations.
    
  *Impact of discontinued operations.ICG includes revenues associated with
    discontinued operations given direct correlation with respect to existing
    core consolidated revenue guidance range.ICG does not consider them a
    part of ongoing operating results but believes it is useful for investors
    to understand the effect of this item for all periods presented as
    compared to what has historically been provided. 

Non-GAAP net income (loss), in addition to deferred revenue adjustments
inclusion above, excludes the additional following items:

  *Share-based compensation. ICG excludes share-based compensation expenses
    associated with equity granted to employees and non-employee directors
    primarily because they are non-cash expenses that ICG does not consider
    part of ongoing operating results when assessing the performance of its
    business, and the exclusion of these expenses facilitates the comparison
    of results over different time periods and the comparison of ICG's results
    with results of other companies.
    
  *Amortization of intangibles. ICG excludes amortization of acquired
    intangibles, primarily customer relationships and technology, because they
    are expenses that ICG does not consider part of ongoing operating results
    when assessing the performance of its business, and ICG believes that
    doing so facilitates comparisons to its historical operating results and
    to the results of other companies.
    
  *Impairment-related and other costs. ICG excludes the effect of
    impairment-related and other costs, which primarily include impairment
    charges, revaluation of contingent consideration, restructuring and
    severance fees, acquisition related costs, legal and settlement costs and
    other one-time costs, because ICG does not consider them part of ongoing
    operating results when assessing the performance of its business and
    believes it is useful for investors to understand the effects of these
    items on ICG's operations.
    
  *Other income (loss), net. ICG excludes the effect of other income (loss),
    net, which primarily includes transaction-driven gains and losses, as well
    as certain foreign currency impacts, because ICG does not consider them
    part of ongoing operating results when assessing the performance of its
    business and believes it is useful for investors to understand the effects
    of these items on ICG's operations.
    
  *Equity loss. In accordance with GAAP, ICG recognizes its share of the
    earnings or losses of each company accounted for under the equity method
    and adjusts the carrying amount for each such company for its share of the
    earnings or losses of the company. ICG excludes GAAP equity income (loss)
    because it is significantly impacted by factors outside its direct
    control.
    
  *Income tax expense (benefit) - deferred. ICG excludes the effect of
    deferred income tax expense (benefit) primarily because it is a non-cash
    expense that ICG does not consider a meaningful component of its operating
    results when assessing the performance of its business, and the exclusion
    of this item facilitates the comparison of results over different time
    periods.
    
  *Impact of discontinued operations.ICG includes the impact of discontinued
    operations as ICG believes it is useful for investors to understand the
    effect of this item for all periods presented as compared to what has
    historically been provided. 

Non-GAAP net income (loss) per share is calculated as follows:

  *Non-GAAP net income (loss) (as defined above) is the numerator.
    
  *Shares used in calculation of non-GAAP net income (loss) per share.For
    periods where GAAP and non-GAAP net income (loss) are both losses, ICG
    uses the same number of shares used to calculate GAAP and non-GAAP net
    loss per share.For periods where GAAP and non-GAAP net income (loss) are
    both income, ICG uses the same number of shares used to calculate GAAP and
    non-GAAP net income per share. For periods where GAAP net income (loss) is
    a loss but non-GAAP net income (loss) is income, ICG includes the impact
    of incremental dilutive securities for the period to determine non-GAAP
    net income per share.For periods where GAAP net income (loss) is income
    but non-GAAP net income (loss) is a loss, ICG excludes the impact of
    incremental dilutive securities for the period to determine non-GAAP net
    loss per share. 

Core consolidated EBITDA, excluding share-based compensation and unusual
items, is the sum of the earnings (losses) before interest, taxes,
depreciation and amortization, share-based compensation and unusual items of
ICG's core consolidated companies. ICG considers charges unusual when they are
transactional-driven or non-recurring.Core consolidated EBITDA excludes the
items described above, as well as the following:

  *Net income (loss) attributable to non-controlling interests. ICG excludes
    net income (loss) attributable to non-controlling interests primarily
    because non-controlling interest includes income or loss from operations
    due to non-controlling interests that are unrelated to ICG's ownership.
    
  *Corporate/other. ICG excludes corporate operating expenses and adjusts for
    other core consolidated non-operational items primarily because ICG
    considers this in assessing the performance of its core consolidated
    businesses.

ICG believes that the following considerations apply to the non-GAAP financial
measures that it presents:

  *ICG's management uses non-GAAP revenue, non-GAAP net income (loss),
    non-GAAP net income (loss) per share and core consolidated EBITDA,
    excluding share-based compensation and unusual items, in internal reports
    used by management in monitoring and making decisions regarding ICG's
    business, including in monthly financial reports prepared for management
    and in periodic reports to ICG's Board of Directors.
  *An important limitation of ICG's non-GAAP financial measures is that they
    exclude expenses, some of which may be significant, that are required by
    GAAP to be recorded. In addition, non-GAAP financial measures are subject
    to inherent limitations because they reflect the exercise of judgments by
    management about which charges to exclude from the non-GAAP financial
    measures.
    
  *To mitigate the limitations associated with non-GAAP financial measures,
    ICG reconciles its non-GAAP financial measures to the nearest comparable
    GAAP financial measures and recommends that investors and potential
    investors do not give undue weight to its non-GAAP financial measures.

CONTACT: Investor inquiries:
         Karen Greene
         ICG
         Investor Relations
         610-727-6900
         IR@icg.com

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