SAN FRANCISCO, Nov 12, 2009 (BUSINESS WIRE) ----Banks.com, Inc. (NYSE Amex:BNX), operator of leading financial services focused online media properties, today announced its results for the third quarter of 2009.

Financial Highlights

For the third quarter of 2009, Banks.com, Inc. (the "Company", "Banks.com") reported revenue of $2.6 million compared to revenue of $1.4 million reported for the third quarter of 2008. GAAP(1) net income was $326 thousand or $0.01 per diluted share versus a GAAP net loss of $956 thousand or $0.04 per diluted share for the third quarter of 2008. Adjusted EBITDA(2) was $546 thousand for the third quarter of 2009, compared to Adjusted EBITDA of negative $579 thousand for the third quarter of 2008.

"I am pleased with our third quarter performance as we delivered financial results at the high end of both our forecasted revenue and EBITDA ranges. Additionally, the significant improvement in our quarterly results compared to the same period a year ago reflects the results of our continuing efforts to improve our business model and strategy," said Dan O'Donnell, Chief Executive Officer of Banks.com. "We continue to make good progress in expanding our advertising distribution network and enhancing our content and services on the Banks.com domain, particularly on the Banks.com Tax Center. We believe these efforts leave us well positioned for the upcoming tax season."

Select Business Highlights

-- Launched a new Tax Preparer Directory on the Banks.com Tax Center to assist individuals searching for local tax preparers.

-- Rolled out individual State Tax Guides and Tax Form Center on the Banks.com Tax Center.

-- Launched four new distribution partners on our advertising network increasing our traffic volumes by approximately 25%.

-- Received notice from the NYSE Amex indicating that the Company has resolved the continued listing deficiency identified in the Exchange's letter to the Company dated October 10, 2008.

-- As of September 30, 2009, have paid off approximately 62% of the original $7 million principal balance on the Company's 13.50% Senior Subordinated Notes due June 30, 2010.

Fourth Quarter 2009 Business Outlook

-- For the fourth quarter of 2009, the Company expects revenue to be in the range of $2.4 million to $2.7 million.

-- For the fourth quarter of 2009, the Company expects Adjusted EBITDA to be in the range of $400 thousand to $600 thousand.

Conference Call

Banks.com will host a conference call today at 2:00 PM PT / 5:00 PM ET to discuss its third quarter 2009 results. To listen to the call and have the opportunity to ask questions, please dial 866-730-5767 (domestic) or 857-350-1591 (International) five to ten minutes before the call and reference the Passcode 50525343. A replay of the call will be available by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and referencing Passcode 58495528. Questions for the conference call will also be taken via email at: stockwatch@banks.com and can be sent any time prior to the conference call's starting time. Investors will also have the opportunity to listen to the conference call and the replay on the Investor Relations section of the Banks.com website at: www.Banks.com.

Forward Looking Statements

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. Forward looking statements, which are based on management's current expectations, are generally identifiable by the use of terms, such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "possible," "potential," "predicts," "projects," "should," "would" and similar expressions. The forward looking statements in this press release include statements regarding: management's expectations regarding our strategy, management's expectations regarding our financial results for the fourth quarter of 2009, the effect of recent events, the success of our Tax Preparer Directory, our ability to maintain compliance with NYSE Amex continued listing standards, our ability to repay our indebtedness, and the outlook for our business. The potential risks and uncertainties that could cause actual results to differ materially from those expressed or implied herein include, among others, slowdown in the financial services vertical; market acceptance of the enhanced version of the Banks.com website; introduction of additional competitors in the Internet search services space; diversion of advertising dollars away from the Internet; slower than anticipated growth rate of our advertising base; dependence on our search providers; market development of Internet advertising and paid search services; the stability of our infrastructure; and continued weak economic conditions. Further information on the factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008, our quarterly reports on Form 10-Q and our Current Reports on Form 8-K. Except as required by law, we assume no responsibility to update these forward looking statements publicly, even if new information becomes available in the future.

Non-GAAP Financial Measures

This press release includes the following financial measure defined as a non-GAAP financial measure by the Securities and Exchange Commission: Adjusted EBITDA. This supplemental financial measure is not required by GAAP, nor is the presentation of this financial information intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with Banks.com's earnings results as determined in accordance with GAAP. However, for the reasons described below, management uses this non-GAAP measure to evaluate the performance of Banks.com's business. Banks.com's management believes that it is important to provide investors with these same tools, together with a reconciliation to GAAP, for evaluating the performance of Banks.com's business, as it may provide additional insight into Banks.com's financial results. See "Reconciliation of GAAP Net Earnings to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (Adjusted EBITDA)" table included in this press release for further information regarding these non-GAAP financial measures. In addition, Adjusted EBITDA is presented because management believes it is frequently used by securities analysts, investors and others in the evaluation of companies.

Adjusted EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization to net earnings, adjusted for certain items management believes should be excluded in order to reflect a more meaningful representation of Banks.com's financial performance, including stock compensation expense. Banks.com's management excludes the impact of equity-based compensation to eliminate the effects of this non-cash item, which, because it is based upon estimates on the grant dates, may bear little resemblance to the actual values realized upon the future exercise, expiration, termination or forfeiture of the stock-based compensation. Adjusted EBITDA is not defined under GAAP and should not be considered in isolation or as a substitute for net earnings and other consolidated earnings data prepared in accordance with GAAP or as a measure of Banks.com's profitability.

About Banks.com

Banks.com, Inc. operates an Internet media property that provides targeted online advertising and services in the financial services sector. Through the Banks.com network, the Company provides access to financial content, including financial news, blogs, business articles, interest-rate tables, stock quotes, stock tracking and financial calculators. It also provides users access to online financial services, including tax preparation through the Banks.com Tax Center and stock brokerage through MyStockFund.com, its online broker-dealer subsidiary. In addition to Banks.com, it operates other search related websites including Look.com. Banks.com, Inc. is headquartered in San Francisco, California at 222 Kearny Street, Suite 550 and can be reached at 415.962.9700. More information about Banks.com, Inc. can be found at: www.Banks.com.

(1) Generally accepted accounting principles in the United States of America.

(2) Adjusted EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization to net earnings, adjusted for certain items management believes should be excluded in order to reflect a more meaningful representation of our financial performance, including stock compensation expense. Adjusted EBITDA is a non-GAAP financial measure. This measure may be different from non-GAAP financial measures used by other companies. We encourage investors to review the section below entitled "Non-GAAP Financial Measures" and to review the reconciling adjustments between the GAAP and non-GAAP measures attached to this press release.

BANKS.COM, INC. AND SUBSIDIARIES
   Condensed Consolidated Statements of Operations
   (In thousands, except per share data)
   (Unaudited)
   Three Months Ended
   September 30,
   2009         2008
   Revenues                                       $     2,583  $     1,363
   Cost of revenues                                     1,032        548
   Gross profit                                         1,551        815
   Operating expenses:
   Sales and marketing expense                          237          233
   General and administrative expense                   505          1,749
   Total operating expenses                             742          1,982
   Earnings (loss) from operations                      809          (1,167 )
   Interest expense                                     233          282
   Earnings (loss) before income taxes (benefit)        576          (1,449 )
   Income taxes (benefit)                               250          (493   )
   Net earnings (loss)                            $     326    $     (956   )
   Basic earnings (loss) per common share         $     0.01   $     (0.04  )
   Diluted earnings (loss) per common share       $     0.01   $     (0.04  )
   Nine Months Ended
   September 30,
   2009         2008
   Revenues                                       $     8,468  $     9,542
   Cost of revenues                                     2,936        4,487
   Gross profit                                         5,532        5,055
   Operating expenses:
   Sales and marketing expense                          609          884
   General and administrative expense                   3,262        6,227
   Total operating expenses                             3,871        7,111
   Earnings (loss) from operations                      1,661        (2,056 )
   Interest expense                                     940          878
   Earnings (loss) before income taxes (benefit)        721          (2,934 )
   Income taxes (benefit)                               330          (934   )
   Net earnings (loss)                       $ 391   $ (2,000 )
   Basic earnings (loss) per common share    $ 0.01  $ (0.08  )
   Diluted earnings (loss) per common share  $ 0.01  $ (0.08  )
   

BANKS.COM, INC. AND SUBSIDIARIES
   Condensed Consolidated Balance Sheets
   (In thousands)
   (Unaudited)
   September 30,  December 31,
   2009           2008
   Assets
   Current assets:
   Cash                                        $      342     $      479
   Accounts receivable                                1,578          747
   Prepaid expenses and other                         268            253
   Refundable income taxes                            -              1,331
   Deferred income taxes                              285            78
   Total current assets                               2,473          2,888
   Property and equipment, net                        768            1,065
   Debt issuance costs, net                           264            493
   Patents and trademarks, net                        28             31
   Domains, net                                       11,160         11,937
   Other intangible assets, net                       812            998
   Other assets                                       -              125
   Deferred income taxes                              501            789
   Total Assets                                $      16,006  $      18,326
   Liabilities and Stockholders' Equity
   Current liabilities:
   Accounts payable                                   1,076          544
   Accrued liabilities                                601            532
   Accrued contributions                              -              764
   Deferred revenue                                   4              4
   Notes payable, net of discount                     2,525          5,517
   Total current liabilities                          4,206          7,361
   Total liabilities                                  4,206          7,361
   Stockholders' equity:
   Preferred stock                                    3              -
   Common stock                                       26             25
   Additional paid-in capital                         10,779         10,316
   Retained earnings                                  992            624
   Total stockholders' equity                         11,800         10,965
   Total Liabilities and Stockholders' Equity  $      16,006  $      18,326
   

BANKS.COM, INC. AND SUBSIDIARIES
   Reconciliation of GAAP Net Earnings to Adjusted Earnings Before
   Interest, Taxes, Depreciation, Amortization, and Stock Compensation
   Expense (Adjusted EBITDA)
   (In thousands)
   (Unaudited)
   Three Months Ended
   September 30,
   2009               2008
   Net earnings (loss)                                             $       326        $       (956    )
   Income taxes (benefit)                                                  250                (493    )
   Earnings (loss) before income taxes                                     576                (1,449  )
   Interest expense                                                        233                282
   Earnings (loss) from operations                                         809                (1,167  )
   Depreciation                                                            116                123
   Amortization                                                            322                338
   Stock compensation expense                                              63                 127
   Employee stock ownership plan contribution accrual (reversal)           (764    )          -
   Adjusted earnings before interest, taxes, depreciation,         $       546        $       (579    )
   amortization, and stock compensation expense (Adjusted EBITDA)
   Nine Months Ended
   September 30,
   2009               2008
   Net earnings (loss)                                             $       391        $       (2,000  )
   Income taxes (benefit)                                                  330                (934    )
   Earnings (loss) before income taxes                                     721                (2,934  )
   Interest expense                                                        940                878
   Earnings (loss) from operations                                         1,661              (2,056  )
   Depreciation                                                            355                353
   Amortization                                                            966                1,005
   Stock compensation expense                                              213                387
   Employee stock ownership plan contribution accrual (reversal)           (764    )          -
   Adjusted earnings before interest, taxes, depreciation,         $       2,431      $       (311    )
   amortization, and stock compensation expense (Adjusted EBITDA)
   

SOURCE: Banks.com, Inc.

   Banks.com, Inc. 
   Daniel O'Donnell, 415-962-9700 
   President and Chief Executive Officer
   

Copyright Business Wire 2009