ValueClick, owner of the Commission Junction affiliate network, is on target to achieve 2012 predictions after it announced revenues of $161 million. The figure is up 29% on the same quarter (Q2) from 2011.
EBITDA, which gives a good indication of the operational profitability of the business, also showed a substantial rise of 33% to $49.5 million compared with Q2 2011. The EBITDA margin divides the EBITDA by the total revenue: it yields a year-on-year increase of 30.7% from 29.6% for the same period a year ago.
Cash and debt take a hit
However, cash levels at ValueClick have dwindled from $107.7 million in this year’s first quarter to $88.2 million as of June 30th. News of the company’s total debt isn’t particularly rosy either: it has swelled from $105.5 million in the first three months of 2012 to $172.5 million in Q2.
Two major factors have likely contributed to the significant change in ValueClick’s cash and total debt. Firstly, it repurchased of 5.9 million shares of the company's outstanding common stock in Q2 2012 and a $100 million increased authorisation of the share repurchase program. ValueClick also sought to increase its credit facility by $50 million.
Chief Executive Operating Officer, James R Zarley, commented on the share repurchasing scheme. "As illustrated in our share repurchase activity, we remain confident in our ability to become the partner of choice for the largest, most sophisticated digital advertisers and capitalise on the growth opportunities in our industry," he explained.