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Exhibit 99.1
[CIRCLE.COM LOGO APPEARS HERE]
For Immediate Release
Investor Contact David Pauken Media Contact John Isaf
Chief Financial Officer Arnold Public Relations
Snyder Communications 617-587-8923
301/571-6265
NEWS Circle.com Reports Third Quarter Results
Baltimore, Md. (November 14, 2000) -Circle.com (Nasdaq: CIRC), an
international e-commerce consultancy, today reported financial results for
its third quarter ended September 30, 2000, reflecting a 3% sequential
quarterly decline in revenues from its second quarter ended June 30, 2000
and a 68% increase in revenues compared to the same period last year. The
Company reported net revenues for the quarter of $17.2 million, compared to
$17.7 million in the second quarter of 2000 and $10.2 million for the same
quarter of 1999. Circle.com is a business unit of Snyder Communications,
Inc.
The Company also reported a gross profit margin of 40% in the third quarter
2000 compared to 43% in the second quarter of 2000 and 39% in the third
quarter of 1999.
The Company reported an EBITDA loss of $3.2 million versus a loss of $2.2
million in the second quarter of 2000 and an EBITDA loss of $3.3 million in
the third quarter of 1999. The net loss attributed to Circle.com
shareholders for the quarter increased to $5 million or a loss of $0.22 per
diluted share.
Circle.com also announced that Snyder Communications and its parent, Havas
Advertising, reached a mutual resignation agreement with two senior
executives at Circle.com. Robert Wilke, chief executive officer, and
Victor Mandel, executive vice president, finance and development, resigned
from their posts due to differences of opinion concerning performance with
the board of directors and management of Snyder Communications and its
parent, Havas Advertising. The Company has assigned a transition management
team consisting of the five senior most executives of Circle.com. On an
interim basis, Charlie Tarzian, formerly the chief strategic officer of the
Company will fulfill CEO responsibilities; Tim Beckett, formerly the
executive vice president and general manager of Circle.com's U.K. office
will serve as
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president; Douglas Lombardo, formerly the vice president and controller of
the Company will fulfill CFO responsibilities; and Eric Snyder, chief
marketing officer and Roger Black, chief creative officer, will also serve
on the management transition team.
"We are clearly in a very challenging market for e-consultants right now,"
said Alain de Pouzilhac, chairman and chief executive officer of Snyder
Communications and Havas Advertising. "The board of directors and
management of Snyder and Havas Advertising are reviewing the strategic
direction of Circle.com and the changing demands of the e-consultant market
to meet our objectives of increasing long-term shareholder value for this
business. We expect to complete the review on or before year-end.
"Circle.com has an incredible talent base of individuals who are producing
fundamental success for Circle.com's clients," said de Pouzilhac.. "A
central theme of Circle.com's strategic plan will be our efforts to
capitalize on our people's talents and the end-to-end foundation the
Company is building to move this business toward profitability. The
fundamentals for a successful relationship between Havas Advertising and
Circle.com are in place. Moving forward, we expect to leverage this
relationship to present a comprehensive e-consulting offering to businesses
looking for innovation balanced with results."
New Clients - Q3
In the third quarter, Circle.com won several new client engagements,
including Goldman Sachs, a global investment banking and securities firm,
Lockheed Martin, the largest U.S. Defense Dept. contractor, the Campbell
Soup Company, an international provider of prepared foods, the New York
Daily News, one of New York's largest newspapers, Chandon Estates, a
leading provider of sparkling wines, NEBS (New England Business Service),
HPSC, a leading provider of equipment financing for physicians and
dentists, LifeFX, a leading developer of interactive, photo-realistic 3-D
digital humans for the Internet, and Navigator Consulting Group, an
investment management Web site.
About Circle.com
http://www.circle.com
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Circle.com (NASDAQ: CIRC) is an e-consultant providing complete end-to-end
Web-enabling solutions for its Fortune 2500 and emerging clients worldwide.
Circle.com employs over 550 people in 13 offices worldwide, and is
headquartered in Baltimore, Maryland. Clients include American Legacy
Foundation, Budweiser, EagleStar Financial, GTE, Guiness, IBM, Lexmark,
MSNBC.com, OfficeDepot.com, Peugeot,
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PNC Financial Services, Schlumberger, Symantec, and Talbots.
About Havas Advertising
Havas Advertising (Paris Stock Exchange: HAV.PA; Nasdaq: HADV), a global
leader in interactive services, is the world's fourth largest
communications group.* Based in Paris, Havas Advertising has four operating
divisions -- Euro RSCG Worldwide, headquartered in New York, NY, Media
Planning Group in Barcelona, Spain, Diversified Agencies Group in Paris,
France and Arnold Worldwide Partners, headquartered in Boston,
Massachusetts. Havas Advertising brings a multicultural approach to its
business that distinguishes it from other major communications companies.
Havas Advertising has a presence in 75 countries. Havas Advertising offers
a complete line of communications services, including general advertising,
direct marketing, media planning and buying, corporate communications,
sales promotion, design, sports marketing, human resources, multimedia
interactive communications and public relations. Havas Advertising has a
worldwide presence of over 250 agencies and a staff of approximately
20,000.
Further information on Havas Advertising can be found on the company's web
site at: http://www.havas-advertising.com or in Havas Advertising's
registration statement on Form F-4 filed with the SEC (SEC file #333-
43362), which may be obtained free of charge at the SEC's website,
http://www.sec.gov.
* Advertising Age Annual Agency Report ranking, April 24, 2000.
Matters discussed in this release may include forward-looking statements
that involve risks and uncertainties, and actual results may be materially
different. Factors that could cause actual results to differ are stated in
Snyder Communications' reports and other documents filed from time to time
with the Securities and Exchange Commission including the prospectus
included in its Form S-4 Registration Statement dated October 5, 1999, its
1999 10-K, and its 2000 10-Qs. These results should be read in conjunction
with the financial results of Snyder Communications, Inc. being released
today.
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Circle.com
(amounts in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net revenues $ 17,164 $ 10,208 $ 51,561 $ 22,555
Professional services 10,317 6,256 30,388 13,384
-------- -------- -------- --------
Gross Profit 6,847 3,952 21,173 9,171
Operating expenses:
Office and general 10,088 7,232 30,072 13,119
Amortization of intangibles 2,388 1,266 7,186 1,979
Depreciation 765 260 2,206 677
-------- -------- -------- --------
Total operating expenses 13,241 8,758 39,464 15,775
Loss from operations (6,394) (4,806) (18,291) (6,604)
Interest expense, net (1,203) (229) (3,014) (229)
-------- -------- -------- --------
Loss before income taxes (7,597) (5,035) (21,305) (6,833)
Income tax benefit (1,595) (2,300) (4,474) (1,708)
-------- -------- -------- --------
Net loss (6,002) (2,735) (16,831) (5,125)
Less: Loss related to SNC's retained interest (994) (547) (2,787) (1,025)
-------- -------- -------- --------
Loss attributable to Circle.com stockholders $ (5,008) $ (2,188) $(14,044) $ (4,100)
======== ======== ======== ========
Diluted loss per share (a) $ (0.22) $ (0.11) $ (0.62) $ (0.21)
======== ======== ======== ========
Circle.com shares (b) 22,585 20,536 22,542 19,176
======== ======== ======== ========
</TABLE>
(a) Circle.com per share amounts exclude the portion of Circle.com's loss
which is attributed to SNC's retained interest.
(b) 1999 shares have been computed using the shares of Circle.com stock that
would have been outstanding if the recapitialization of Snyder
Communications had occurred at the beginning of 1999.
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