BANKS.com, Inc. Investor FAQs

Investor FAQs

  1. What does BANKS.com do?
  2. How does BANKS.com generate revenues?
  3. What are the key sources of Internet traffic monetized by BANKS.com?
  4. How many domain properties does BANKS.com own?
  5. How does BANKS.com plan to grow?
  6. What is BANKS.com’s acquisition strategy?
  7. When does BANKS.com’s fiscal year end?
  8. How much did BANKS.com generate in revenues in FY09?
  9. What were the Company’s earnings in FY09?
  10. What were the Company’s revenues and earnings in the most recent fiscal quarters?
  11. Where can I get copies of BANKS.com’s most recent SEC filings?
  12. How many shares does BANKS.com have outstanding?

Corporate Information

  1. Where are the Company’s facilities located?
  2. How many employees does BANKS.com have?
  3. On which stock exchange does BANKS.com trade and what is its ticker symbol?
  4. When did BANKS.com become a public company?
  5. Does the Company have a direct purchase plan for its common stock?
  6. Does the Company issue dividends?
  7. Who is the Company’s transfer agent?
  8. How do I change the address on my stock certificate?
  9. When have stock splits occurred?
  10. Who are the Company’s independent accountants?
  11. Where can I find earnings information for BANKS.com?

Investor FAQs

  1. What does BANKS.com do?
    We operate an Internet media property that provides targeted online advertising and services in the financial services sector. In November 2007, we changed our name to Banks.com, Inc. in connection with our decision to focus on becoming a leading provider of targeted traffic in the financial services vertical of online advertising. We are continuing to build a cohesive business around our flagship domain property banks.com. Through this web property, we provide access to current financial content, including financial news, business articles, interest-rate tables, stock quotes, stock tracking and financial calculators. We also provide users access to online financial services including tax preparation, and online stock brokerage through our MyStockFund.com subsidiary. We believe that focusing our content and services in the high-traffic financial services vertical will allow us to provide our advertisers operating in that vertical access to highly relevant traffic. In addition to banks.com, we operate other proprietary websites including look.com. We generate revenue on these sites primarily via traffic generation and search engine marketing efforts. We also provide Internet technology professional services to Fortune 500 and other companies operating in the financial services sector.
  2. How does BANKS.com generate revenues?
    BANKS.com monetizes Internet traffic by aggregating and driving users to an extensive network of direct advertisers and major paid search providers. The company primarily generates revenues based on a Pay-per-Click model. In addition, the company generates revenue on a subscription basis through its white labeled Online Tax Preparation, Tax Extension, Tax Preparer Directory and MyStockFund product offerings, as well as Professional services revenues driven primarily by hours billed and billing rates.
  3. What are the key sources of Internet traffic monetized by BANKS.com?
    The company’s search business monetizes online traffic that falls into two key categories. First, is the proprietary traffic that is driven to BANKS.com-owned domains through (a) direct navigation, (b) by placing paid ads on the third-party websites and (c) by BANKS.com domain content being picked up by algorithmic search.
  4. How many domain properties does BANKS.com own?
    BANKS.com owns over 100 websites, including irs.com and look.com, etc.
  5. How does BANKS.com plan to grow?
    BANKS.com’s strategy is focused on growing revenues generated by organic traffic to its Internet properties. This will be primarily achieved through a deep content strategy that allows us to take advantage of our rankings in algorithmic search listings. In addition, our Tax Preparer directory allows users to locate local tax preparation professionals. Tax Professionals pay us an annual fee to be listed in the directory.
  6. What is BANKS.com’s acquisition strategy?
    On the acquisition front, BANKS.com is always looking for finance related category-level domains with high appeal to direct advertisers and network partners. Also, given the pronounced seasonality of irs.com, BANKS.com is looking to smooth out revenue patterns by adding new properties to its portfolio of domains.
  7. When does BANKS.com’s fiscal year end?
    December 31st
  8. How much did BANKS.com generate in revenues in FY09
    2009 revenue was $11.5 million, a 4% increase compared to $11.1 million in FY08.
  9. What were the Company’s earnings in FY09?
    The company reported Adjusted EBITDA of $3 million, and GAAP net income of $286,000 or $0.01 per share. Adjusted EBITDA is defined as Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Compensation expense.
  10. What were the Company’s revenues and earnings in the most recent fiscal quarters?
    In the first quarter of FY10, ended March 31, BANKS.com reported revenue of $4.2 million, up 46% from revenue of $2.9 million in the prior year period and Adjusted EBITDA of $1.4 million, up 41% compared to Adjusted EBITDA of $961,000 for the quarter ended March 31, 2009.
  11. Where can I get copies of BANKS.com’s most recent SEC filings?
    Copies of BANKS.com’s most recent filings are available here.
  12. How many shares does BANKS.com have outstanding?
    As of April 30, 2010 BANKS.com had 26,121,151 shares of common stock and 3,000,000 shares of Series C Preferred stock outstanding. The Series C Preferred is convertible into 1,000,000 shares of common stock. As of March 31, 2010 the company also had 1,827,031 outstanding options at an average exercise price of $0.80 of which 517,651 were exercisable at an average price of $1.31. Also as of March 31, 2010, the company had 6,327,435 warrants outstanding at an average exercise price of $1.20 of which 5,811,372 expire on September 29, 2010.

Corporate Information

  1. Where are the Company’s facilities located?
    BANKS.com is headquartered in San Francisco, California at 425 Market Street, Suite 2200.
  2. How many employees does BANKS.com have?
    24 (as of March 1, 2010)
  3. On which stock exchange does BANKS.com trade and what is its ticker symbol?
    BANKS.com is trading on the NYSE Amex under the symbol BNX.
  4. When did BANKS.com become a public company?
    BANKS.com became an SEC reporting public company in February, 2006.
  5. Does the Company have a direct purchase plan for its common stock?
    No. Purchases can only be made through brokers on the standard exchanges.
  6. Does the Company issue dividends?
    No. Cash dividends have not been paid in the past, and none are being considered for the future.
  7. Who is the Company’s transfer agent?
    BANKS.com’s transfer agent is:
    Transfer Online, Inc.
    512 SE Salmon Street
    Portland, OR 97214
    Phone: (503) 227-2950
    Fax: (503) 227-6874
    www.transferonline.com
  8. How do I change the address on my stock certificate?
    Contact the transfer agent above.
  9. When have stock splits occurred?
    No forward or reverse stock splits have been executed since the company became an SEC reporting company in February 2006.
  10. Who are the Company’s independent accountants?
    Burr Pilger Mayer, Inc.
  11. Where can I find earnings information for BANKS.com?
    BANKS.com typically posts information regarding upcoming earnings announcements on its investor relations website, approximately one week prior to the earnings announcement. After earnings are announced, BANKS.com posts its earnings press release and a webcast on the investor relations website.