Company Updates Guidance
Local Corporation (NASDAQ: LOCM), a leading online local media
company, today reported its financial results for the third quarter
2013.
“We are pleased to report that third quarter 2013 revenue
increased 4 percent sequentially to $23.5 million from $22.7
million, which was the third consecutive quarter of revenue growth.
GAAP net loss fell 51 percent, while Adjusted EBITDA increased 12
percent from the second quarter. Positive third quarter trends
include a 190 percent year-over-year increase in Network revenue,
substantial progress in adding product inventory to our shopping
data business, Krillion®, and the development of our mobile
shopping app, which we expect to launch during the fourth quarter,”
said Heath Clarke, Local Corporation chairman and CEO. “Third
quarter O&O revenue trend was unfavorable, due to continued RPC
softness from one of our larger ad partners, and although the
fourth quarter is our seasonally strong quarter, we do expect some
slowing in Network revenue growth and additional RPC softness.
Accordingly, we now expect full-year revenue to come in at the
lower end of prior guidance, and adjusted EBITDA of approximately
$4.5 million. We have spent the second half of 2013 making
investments that enable us to enter 2014 with unique shopping
search and mobile assets that we believe will give us direct
relationships with large advertisers and consumers, and allow us,
for the first time, to partner with some of the largest publishers
on the Internet. We remain firmly focused on growth and leveraging
our many IP resources.”
SUMMARY RESULTS
(in thousands, except per share
amounts)
Q3 2013 Q2 2013
Q3 2012 Consumer Properties: Owned & Operated $ 8,807 $
10,917 $ 18,340 Network 14,540 11,590 4,961 Business Solutions
125 149 1,064 Revenue $
23,472 $ 22,656 $ 24,365 Adjusted
EBITDA* $ 1,320 $ 1,175 $ 211 Plus interest and other income
(expense), net (537 ) (420 ) (131 ) Less (provision for) benefit
from income taxes 109 (159 ) (22 ) Less non-cash depreciation,
amortization and
stock compensation
(1,514 ) (1,691 ) (3,274 ) Less revaluation of derivatives (413 )
638 65 Less net loss from discontinued operations (154 ) (3,264 )
(507 ) Plus accrual for lease (liability)/asset - 155 - Less
severance charges (5 ) (20 ) (144 ) Less settlement accrual
(550 ) - - GAAP net loss $ (1,744 ) $
(3,586 ) $ (3,802 ) Diluted Adjusted EBITDA per share* $
0.06 $ 0.05 $ 0.01 Diluted GAAP net loss per share $ (0.08 ) $
(0.16 ) $ (0.17 )
Diluted weighted average shares used for Adjusted EBITDA per share
23,191 23,051 22,245 Diluted weighted average shares used for GAAP
net loss per share 22,962 22,877 22,092 Cash $ 4,847 $ 4,806
$ 3,706
* See detailed reconciliation of GAAP to
non-GAAP measures in the financial tables attached to this
release.
Adjusted EBITDA is defined as net income (loss) excluding:
provision for income taxes; interest and other income (expense),
net; depreciation; amortization; stock-based compensation charges;
gain or loss on derivatives’ revaluation; net income (loss) from
discontinued operations; accrued lease liability/asset; severance
charges; and cost related to a settlement accrual.
An explanation of the company’s use of non-GAAP financial
measures, including the limitations of such measures relative to
GAAP measures, is included below, and a reconciliation between GAAP
and non-GAAP measures, where appropriate, is included in the
financial tables attached to this release.
Third Quarter 2013 Results
Highlights:
“We were pleased to see another quarter of sequential revenue
growth in the third quarter 2013, coupled with improved bottom-line
results and positive cash flow,” added Ken Cragun, Local
Corporation chief financial officer.
• Revenue – Third quarter 2013 revenue of $23.5 million
represents an increase of 4 percent over second quarter 2013
revenue of $22.7 million and a 4 percent decrease from third
quarter 2012 revenues of $24.4 million.
• GAAP Net Loss – Third quarter 2013 GAAP Net Loss was
$1.7 million, or ($0.08) per diluted share, compared to a second
quarter 2013 GAAP Net Loss of $3.6 million, or ($0.16) per diluted
share. This included a net loss from discontinued operations of
$154,000, a loss on the revaluation of derivatives of $413,000, and
an increase in general and administrative expense due to an
estimated accrual of $550,000 relating to litigation regarding
licensing fees and an increase in the allowance for doubtful
accounts of $450,000.
• Adjusted EBITDA – The company reported positive
Adjusted EBITDA for the third quarter of 2013 of $1.3 million, or
$0.06 per diluted share, a 12 percent increase over the second
quarter 2013 positive Adjusted EBITDA.
• Cash – The company’s cash balance was $4.8 million as
of September 30, 2013, an increase compared to its June 30, 2013,
cash balance.
• Debt – On September 30, 2013, the company had
borrowings of $8.7 million outstanding under its Square 1 Bank
credit facility with availability of $3.3 million. The company also
had $5 million due related to senior secured convertible notes.
Third Quarter 2013 Operating
Highlights:
• Overall, Organic and Mobile Traffic – Overall traffic
on the site and network was 80 million monthly unique visitors
(MUVs) in the third quarter of 2013, down 14 percent from second
quarter 2013 traffic and down 21 percent from the year ago period.
Organic traffic on the site and network was 35.1 million MUVs in
the third quarter of 2013, down 18 percent from the second quarter
of 2013 and down 10 percent from the year ago period. Organic
traffic is defined as all non-SEM sourced traffic. Overall mobile
traffic was 32 million MUVs in the third quarter of 2013, down 6
percent from the second quarter of 2013 and up 30 percent from the
year ago period. The decrease in traffic during the third quarter
of 2013 is due to seasonality and adjustments made to the company’s
search engine marketing campaigns in response to market
conditions.
Consumer Properties:
Owned & Operated (O&O):
• Revenue – Third quarter 2013 total revenue related to
the O&O business unit was $8.8 million, down 19 percent from
second quarter of 2013 O&O revenue of $10.9 million and down 52
percent from the third quarter of 2012 O&O revenue of $18.3
million. The decline in O&O revenue relates to lower revenue
per click from a large ad partner coupled with lower traffic and
seasonality. We anticipate a seasonally strong fourth quarter.
• Monetization of Traffic – Revenue per thousand visitors
(RKV) for the third quarter of 2013 was $180, down 10 percent from
the second quarter of 2013 RKV of $199 and down 35 percent from the
third quarter 2012 RKV of $276. This decline was primarily due to
lower revenue per click from a large ad partner.
Network:
• Revenue – Third quarter 2013 total revenue related to
the Network business unit was $14.5 million, up 25 percent from the
$11.6 million Network revenue recorded in the second quarter of
2013 and up 190 percent from the $5 million Network revenue
recorded in the third quarter of 2012. The increase in Network
revenue is mainly due to the increase in the number of Network
sites during the quarter from over 1,600 in the second quarter
2013, to over 2,100 for the third quarter of 2013 as we executed on
our stated goal to expand number of sites via our business
development team.
• Network Revenue ex-TAC – Third quarter 2013 total
Network revenue ex-TAC was $ 6.8 million, up 42 percent from the
$4.8 million Network revenue ex-TAC recorded in the second quarter
of 2013 and up 134 percent from the $2.9 million Network revenue
ex-TAC recorded in the third quarter of 2012.
Network Revenue ex-TAC is defined as GAAP Network revenue less
network traffic acquisition cost. An explanation of the company’s
use of non-GAAP financial measures, including the limitations of
such measures relative to GAAP measures, is included below and a
reconciliation between GAAP and non-GAAP measures, where
appropriate, is included in the financial tables attached to this
release.
• Network Sites – The Network business unit ended the
third quarter of 2013 with over 2,100 Network partner sites.
Business Solutions:
• Revenue – Third quarter 2013 revenue was $125,000, down
16 percent from second quarter 2013 revenue of $149,000. This
decline is expected after the company’s decision to cease its
direct sales efforts. Due to the immateriality, the company will no
longer be separately reporting its Business Solutions revenue.
Recent News Highlights:
• Named New VP of Technology – In October 2013, the
company announced the appointment of Joe Lindsay as its new vice
president of technology. He brings over 25 years of experience
leading technology and engineering for well-known public and
private companies. Lindsay will be instrumental in leading the
company's strategic focus on mobile and the expansion of its
powerful, next generation Krillion local shopping platform, in
addition to other technology initiatives.
• Krillion Platform Powers Shopping Channel for Pittsburgh
Post-Gazette – In October 2013, the company announced that it
is powering a new local shopping channel for the Pittsburgh
Post-Gazette through its online property, post-gazette.com. Local
Corporation’s new local shopping channel enables publishers to
drive new digital revenue and traffic through the integration of
dynamic local shopping content from the company’s patented Krillion
local shopping platform.
• Launched Next Generation Krillion Local Shopping Platform
– In September 2013, the company announced that it launched the
next generation of its Krillion local shopping platform, which
provides dynamic location-based product search data for millions of
local consumers nationwide.
• Announced Agreement to Provide Location-Based Product
Data – In September 2013, the company announced that it signed
an agreement with a major search engine to provide location-based
local product data. As part of the agreement, Local Corporation's
Krillion shopping data platform is helping power local product
search results, including relevant retail locations, brands,
categories, and product availability data and details.
• Appointed New VP of Product – In August 2013, the
company announced the appointment of Jesus Gaytan as its new vice
president of product management. Gaytan is responsible for leading
the company's product management and development initiatives,
including the company's strategic focus on mobile and the expansion
of products connected to its growing local shopping platform.
Gaytan brings over 14 years of product strategy experience managing
digital product portfolios for both Fortune 500 and start-up
companies.
Fiscal 2013 Financial
Guidance:
During the fourth quarter, the company is seeing
lower-than-expected RPCs from a large ad partner and slower growth
in the Network business, due to its continuing efforts to maintain
quality traffic for its advertising partners. As a result, the
company is updating its 2013 financial guidance.
Revenue - The company now expects
2013 revenue at the low end of the previously provided guidance of
between $95 million and $97 million.
Adjusted EBITDA – Positive Adjusted
EBITDA for 2013 is now expected to be approximately $4.5 million.
**
Projected 2013 Adjusted EBITDA Factors:
- Interest and other income (expense),
net of $2.1 million;
- Income tax provision of $200,000;
- Depreciation expense of $3.8
million;
- Amortization expense of $1.1
million;
- Stock compensation expense of $1.7
million;
- Severance and non-recurring charges of
$1.7 million;
- Loss from discontinued operations of
$3.6 million; and
- Warrant and conversion option
revaluation expense items are undeterminable, but may be
significant non-cash gains or losses**
** The valuation of the warrant liability and the conversion
option liability is based in large part on the underlying price and
volatility of the company’s common stock during the period. Since
the company cannot predict this, the company cannot project the
non-cash gain or loss in connection with these warrants and the
conversion option, and therefore, cannot reasonably project its
GAAP net income (loss). Therefore, the company cannot provide GAAP
guidance, but does report GAAP results.
As previously announced, the company will no longer provide
quarterly guidance.
Conference Call
Information:
Chairman and CEO Heath Clarke and CFO Ken Cragun will host a
conference call today at 5 p.m. ET to discuss the results and
outlook. Investors and analysts can participate in the call by
dialing 1-877-454-9136 or 1-617-826-1724, passcode #
87115923. To listen to the webcast, or to view the press
release, please visit the Investor Relations section of the Local
Corporation website at: http://ir.local.com. Institutional
investors can access the call via Thomson/CCBN's password-protected
event management site, StreetEvents, at: www.streetevents.com.
The replay can be accessed for approximately one week starting
at 7:30 p.m. Eastern Time the day of the call by dialing
1-800-585-8367 or 1-404-537-3406, passcode # 87115923. A
replay of the webcast will be available for approximately 90 days
on the company's website, starting approximately one hour after the
completion of the call.
About Local Corporation
Local Corporation (NASDAQ:LOCM) is a leading online local media
company that connects brick-and-mortar businesses with over a
million online and mobile consumers each day using a variety of
innovative digital marketing products. To advertise, or for more
information, visit: http://www.localcorporation.com.
Forward Looking Statements
This press release contains certain “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words or
expressions such as 'anticipate,' 'believe,' 'estimate,' 'plans,'
'expect,' 'intend,' ‘project,’ ‘forecast,’ ‘potential,’ ‘feel’ and
similar expressions and phrases are intended to identify such
forward-looking statements. Any forward-looking statements are
based on the beliefs of our management as well as assumptions made
by and information currently available to our management. Actual
results could differ materially from those contemplated by the
forward-looking statements as a result of certain factors,
including, but not limited to, our advertising partners paying less
revenue per click and revenues to us for our search results, our
ability to purchase advertising from third parties to drive users
to our sites, including at a profit, our ability to adapt our
business following the shifts in our monetization partners, our
ability to monetize the Local.com domain, including at a profit,
our ability to retain a monetization partner for the Local.com
domain and other web properties under our management that allows us
to operate profitably, our ability to develop, market and operate
our local-search technologies, our ability to maintain and grow the
number of Network partner sites and the aggregate levels of user
traffic from such Network partner sites, our ability to market the
Local.com domain as a destination for consumers seeking
local-search results, our ability to adapt to policy changes
promulgated by our advertising partners and traffic acquisition
partners, our ability to grow our business by enhancing our
local-search services, including through businesses we acquire, the
integration and future performance of our Krillion business, the
possibility that the information and estimates used to predict
anticipated revenues and expenses associated with the businesses we
acquire are not accurate, difficulties executing integration
strategies or achieving planned synergies, the possibility that
integration costs and go-forward costs associated with the
businesses we acquire will be higher than anticipated, the
possibility of impairment of assets associated with the businesses
we have acquired, our ability to successfully expand our sales
channels for new and existing products and services, our ability to
increase the number of businesses that purchase our advertising
products, our ability to expand our advertiser and distribution
networks, our ability to integrate and effectively utilize our
acquisitions' technologies, our ability to develop our products and
sales, marketing, finance and administrative functions and
successfully integrate our expanded infrastructure, as well as our
dependence on major advertisers, our ability to successfully assert
our intellectual property rights, competitive factors and pricing
pressures, changes in legal and regulatory requirements, and
general economic conditions. Any forward-looking statements reflect
our current views with respect to future events and are subject to
these and other risks, uncertainties and assumptions relating to
our operations, results of operations, growth strategy and
liquidity. All subsequent written and oral forward-looking
statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by this paragraph. Unless
otherwise stated, all site traffic and usage statistics are from
third-party service providers engaged by the company.
Our most recent Annual Report on Form 10-K, recent Current
Reports on Form 8-K and Form 8-K/A, and other Securities and
Exchange Commission filings discuss the foregoing risks as well as
other important risk factors that could contribute to such
differences or otherwise affect our business, results of operations
and financial condition. The forward-looking statements in this
release speak only as of the date they are made. We undertake no
obligation to revise or update publicly any forward-looking
statement for any reason.
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure of
“Adjusted EBITDA” which we define as net income (loss) excluding:
provision for income taxes; interest and other income (expense),
net; depreciation; amortization; stock based compensation charges;
gain or loss on derivatives’ revaluation; net income (loss) from
discontinued operations; accrued lease liability/asset; severance
charges; and an expense related to a settlement accrual. Adjusted
EBITDA, as defined above, is not a measurement under GAAP. Adjusted
EBITDA is reconciled to net income (loss) which we believe is the
most comparable GAAP measure. A reconciliation of net income (loss)
to Adjusted EBITDA is set forth at the end of this press
release.
Management believes that Adjusted EBITDA provides useful
information to investors about the company’s performance because it
eliminates the effects of period-to-period changes in income from
interest on the company’s cash, expense from the company’s
financing transactions and the costs associated with income tax
expense, capital investments, stock-based compensation expense, net
income (loss) from discontinued operations, derivatives’
revaluation charges; accrued lease liability/asset; severance
charges; and an expense related to a settlement accrual; which are
not directly attributable to the underlying performance of the
company’s business operations. Management uses Adjusted EBITDA in
evaluating the overall performance of the company’s business
operations.
A limitation of non-GAAP Adjusted EBITDA is that it excludes
items that often have a material effect on the company’s net income
and earnings per common share calculated in accordance with GAAP.
Therefore, management compensates for this limitation by using
Adjusted EBITDA in conjunction with net income (loss) and net
income (loss) per share measures. The company believes that
Adjusted EBITDA provides investors with an additional tool for
evaluating the company’s core performance, which management uses in
its own evaluation of overall performance, and as a base-line for
assessing the future earnings potential of the company. While the
GAAP results are more complete, the company prefers to allow
investors to have this supplemental metric since, with
reconciliation to GAAP; it may provide greater insight into the
company’s financial results. The non-GAAP measures should be viewed
as a supplement to, and not as a substitute for, or superior to,
GAAP net income (loss) or earnings (loss) per share.
This press release also includes the non-GAAP measure of
“Network revenue ex-TAC” which we define as GAAP network revenue
less traffic acquisition cost. Network revenue ex-TAC, as defined
above, is not a measurement under GAAP. Network revenue ex-TAC is
reconciled to GAAP network revenue which we believe is the most
comparable GAAP measure. A reconciliation of GAAP network revenue
to Network revenue ex-TAC is set forth at the end of this press
release.
Management believes that Network revenue ex-TAC provides useful
information to investors about the company’s performance because it
eliminates the costs associated with acquiring traffic to our
Network websites, which we pay to our Network publisher partners
and which can vary, as new partners are added or as we experience
attrition in our partners. Management uses Network revenue ex-TAC
as a means of evaluating the overall performance of the company’s
Network business.
A limitation of non-GAAP Network revenue ex-TAC is that it
excludes a portion of our Revenue that is material to the
calculation of the Company’s overall Revenue. Therefore, management
compensates for this limitation by using Network revenue ex-TAC in
conjunction with GAAP network revenue. The company believes that
Network revenue ex-TAC provides investors with an additional tool
for evaluating core performance of the company’s Network business,
which management uses in its own evaluation of Network’s
performance. While the GAAP results are more complete, the company
prefers to allow investors to have this supplemental metric since,
with reconciliation to GAAP; it may provide greater insight into
the company’s financial results. The non-GAAP measures should be
viewed as a supplement to, and not as a substitute for, or superior
to GAAP network revenue.
LOCAL CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except par value)
(Unaudited)
September 30, December 31, 2013
2012 ASSETS Current assets: Cash $ 4,847 $ 3,696
Restricted cash - 42 Accounts receivable, net of allowances of $548
and $250, respectively 14,885 10,618 Note receivable 167 319
Prepaid expenses and other current assets 1,405 648 Assets held for
sale - 3,452 Total current assets
21,304 18,775 Property and equipment, net 5,992 6,467
Goodwill 19,281 19,281 Intangible assets, net 2,664 3,351 Long term
receivable, net of allowances of $1,710 and $1,710, respectively
1,722 1,585 Escrow receivable 390 390 Deposits 72
58 Total assets $ 51,425 $ 49,907
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 10,470 $ 8,367 Accrued compensation
1,264 829 Deferred rent 371 452 Warrant liability 766 5 Conversion
option liability 1,192 - Other accrued liabilities 3,244 1,315
Revolving line of credit 6,417 10,000 Current portion of term loan
1,500 - Deferred revenue 162 203 Total
current liabilities 25,386 21,171 Long-term portion of term
loan 750 - Senior secured convertible notes, net of debt discount
of $1,773 3,227 - Deferred income taxes 302
302 Total liabilities 29,665 21,473
Stockholders’ equity: Convertible preferred
stock, $0.00001 par value; 10,000 shares authorized; none issued
and outstanding for all periods presented - - Common stock,
$0.00001 par value; 65,000 shares authorized; 23,035 and 22,172
issued and outstanding, respectively - - Additional paid-in capital
124,045 122,036 Accumulated deficit (102,285 )
(93,602 ) Stockholders’ equity 21,760 28,434
Total liabilities and stockholders’ equity $ 51,425 $
49,907
LOCAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30, 2013 2012
2013 2012 Revenue $ 23,472 $
24,365 $ 67,591 $ 75,399 Costs and expenses:
Cost of revenues 16,208 18,407 48,253 55,632 Sales and marketing
2,230 3,649 7,419 11,940 General and administrative 3,894 2,522
9,685 7,706 Research and development 1,664 1,240 4,900 3,666
Amortization of intangibles 225 1,754
687 3,211 Total operating
expenses 24,221 27,572 70,944
82,155 Operating income (loss) (749 )
(3,207 ) (3,353 ) (6,756 ) Interest and other income
(expense), net (537 ) (131 ) (1,799 ) (325 ) Change in fair value
of conversion option and warrant liability (413 ) 65
229 173 Income (loss)
from continuing operations before income taxes (1,699 ) (3,273 )
(4,923 ) (6,908 ) Provision for (benefit from) for income
taxes (109 ) 22 121 121
Net income (loss) from continuing operations (1,590 )
(3,295 ) (5,044 ) (7,029 ) Income (loss) from discontinued
operations (net of taxes) (154 ) (507 ) (3,639
) (9,322 ) Net income (loss) $ (1,744 ) $ (3,802 ) $ (8,683
) $ (16,351 ) Per share data: Basic and diluted net
income (loss) per share from continuing operations $ (0.07 ) $
(0.15 ) $ (0.22 ) $ (0.32 ) Basic and diluted net income (loss) per
share from discontinued operations $ (0.01 ) $ (0.02 ) $ (0.16 ) $
(0.42 ) Basic and diluted net income (loss) per share $ (0.08 ) $
(0.17 ) $ (0.38 ) $ (0.74 ) Basic and diluted
weighted average shares outstanding 22,962 22,092 22,802 22,087
LOCAL CORPORATION
SUPPLEMENTAL CONSOLIDATED STATEMENTS OF
OPERATIONS INFORMATION
STOCK-BASED COMPENSATION
EXPENSE
(in thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30, 2013 2012 2013
2012 Cost of revenues $ 26 $ 22 $ 85 $ 61 Sales and
marketing 83 207 333 657 General and administrative 192 320 787 988
Research and development 51 63 207 163
Total stock-based compensation expense* $ 352 $ 612 $ 1,412 $ 1,869
Basic and diluted net stock-based compensation expense per
share $ 0.02 $ 0.03 $ 0.06 $ 0.08
*- Excludes impact of discontinued
operations.
LOCAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended September 30, 2013
2012 Cash flows from operating activities: Net loss $
(8,683 ) $ (16,351 ) Adjustments to reconcile net loss to cash
provided by (used in) operating activities: Depreciation and
amortization 3,732 6,581 Provision for doubtful accounts 809 138
Stock-based compensation expense 1,431 2,176 Non-cash interest
expense 409 - Loss on exchange of warrants 723 - Change in fair
value of conversion option and warrant liability (229 ) (173 )
Impairment of goodwill and intangible assets 3,051 6,451 Changes in
operating assets and liabilities: Accounts receivable (4,866 ) 497
Long term receivable (137 ) (1,133 ) Note receivable 152 167
Prepaid expenses and other (411 ) 223 Accounts payable and accrued
liabilities 4,386 (2,248 ) Deferred revenue (41 ) (75
) Net cash provided by (used in) operating activities 326
(3,747 ) Cash flows from investing activities:
Capital expenditures (2,379 ) (2,553 ) Restricted cash 42
(32 ) Net cash used in investing activities
(2,337 ) (2,585 ) Cash flows from financing
activities: Proceeds from exercise of options 22 22 Proceeds from
issuance of senior secured convertible notes and warrants 5,000 -
Payment of financing related costs (527 ) (5 ) Proceeds (payment)
of revolving credit facility (583 ) (373 ) Payment of term loan
(750 ) - Net cash provided by (used in)
financing activities 3,162 (356 ) Net increase
(decrease) in cash 1,151 (6,688 ) Cash, beginning of period
3,696 10,394 Cash, end of period $ 4,847
$ 3,706 Supplemental Cash Flow Information:
Interest paid $ 426 $ 320 Income taxes paid $ 7
$ 12
Non-cash financing activities:
Derivative liabilities recorded in
connection with the issuance of senior secured convertible
notes
$
2,182
$
-
LOCAL CORPORATION
RECONCILIATION OF NET LOSS TO ADJUSTED
EBITDA
(in thousands, except per share
amounts)
(Unaudited)
Three Months Three Months Ended September
30, Ended June 30, 2013 2012
2013 Net loss $ (1,744 ) $ (3,802 ) $ (3,586 ) Plus
interest and other income (expense), net 537 131 420 Plus provision
for (benefit from) income taxes (109 ) 22 159 Plus amortization of
intangibles 225 1,754 231 Plus depreciation 937 908 934 Plus
stock-based compensation 352 612 526 Plus revaluation of
derivatives 413 (65 ) (638 ) Plus net loss from discontinued
operations 154 507 3,264 Plus accrual for lease liability/(asset) -
- (155 ) Plus severance charges 5 144 20 Plus settlement accrual
550 - - Adjusted
EBITDA $ 1,320 $ 211 $ 1,175 Diluted
Adjusted EBITDA per share $ 0.06 $ 0.01 $ 0.05
Diluted weighted average shares outstanding 23,191 22,245
23,051
RECONCILIATION OF NETWORK GAAP REVENUE
TO NETWORK REVENUE EX-TAC
(in thousands)
(Unaudited)
Three Months
Three Months Ended September 30, Ended June 30,
2013 2012 2013 Network GAAP Revenue $
14,540 $ 4,961 $ 11,590 Less Traffic Acquisition Cost 7,788
2,048 6,811 Network Revenue ex-TAC $ 6,752 $
2,913 $ 4,779
Investor Relations and Media Relations Contact:Local
CorporationCameron
Triebwasser949-789-5223ctriebwasser@local.com
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