Local Corporation (NASDAQ: LOCM), a leading local advertising
and technology company, today reported its financial results for
the fourth quarter and fiscal 2013.
“We are pleased with the significant progress we made across the
business in 2013. I would like to take this opportunity to thank
founder and former chairman and CEO, Heath Clarke, for his 15 years
of service and innovation. He built a great company and a talented
management team able to lead the company into the future,” said
Fred Thiel, Local Corporation, chairman of the board. “2014
represents a year that is focused on investing in initiatives that
will contribute to further growing and strengthening the business
and enhancing value, including the realization of products and
services based on our Krillion assets.”
Key Highlights
- Reached fourth quarter revenue of $26.8
million, a 30 percent increase from fourth quarter 2012
- Achieved positive cash flow for the
fourth quarter
- Reduced GAAP net loss year-over-year by
more than 50 percent
- Finished the fourth quarter with $1.4
million of Adjusted EBITDA*
- Four consecutive quarters of Adjusted
EBITDA growth
- Fourth quarter mobile traffic was up 24
percent from the prior year period
- Fourth quarter network revenue was up
112 percent from the prior year period
- Reached fiscal year 2013 revenue of
$94.4 million with Adjusted EBITDA of $4.5 million
* 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; cost related to a settlement accrual; LEC reserve; and
finance related charges.
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.
“2013 represented an important year for the company, and we made
meaningful progress in our shift to becoming a mobile-first,
data-focused company, including launching our powerful Krillion
shopping platform, as well our Havvit shopping app, which showcases
how this valuable local shopping data can be utilized,” added
Michael Sawtell, Local Corporation, president and COO. “We believe
this shift, combined with our efforts towards growing our core
business, positions the company well for 2014.”
“We finished the year with revenue of $94.4 million along with
Adjusted EBITDA of $4.5 million, making it one of the strongest
financial performances in company history,” said Sawtell. “Positive
fourth quarter trends include the return of O&O revenue, up 20
percent quarter-over-quarter, even though we experienced reduced
organic search traffic, due to algorithmic changes made by a large
search engine resulting in margin headwinds.”
Full Year 2013 Results
Highlights:
• Revenue – Revenue of $94.4 million for the year ended
Dec. 31, 2013, a 2 percent decrease from $96.0 million for the year
ended Dec. 31, 2012.
• GAAP net loss – GAAP net loss of $10.4 million, or
($0.45) per diluted share, for the year ended Dec. 31, 2013. This
compares to a GAAP net loss of $24.2 million, or ($1.10) per
diluted share, for the year ended Dec. 31, 2012.
• Adjusted EBITDA – The company reported positive
Adjusted EBITDA of $4.5 million, or $0.20 per diluted share, for
the year ended Dec. 31, 2013. This compares to positive Adjusted
EBITDA of $777,000, or $0.03 per diluted share, for the year ended
Dec. 31, 2012.
Fourth Quarter Results
Highlights:
“We were pleased to see another quarter of sequential revenue
growth in the fourth quarter 2013, coupled with improved
bottom-line results and positive cash flow,” said Ken Cragun, Local
Corporation, CFO. “In 2014, we expect to grow the core business
while we continue to invest in new initiatives, including mobile
and local shopping.”
SUMMARY RESULTS
(in thousands, except per share
amounts)
Q4 2013
Q3 2013 Q4 2012 Consumer Properties:
Owned & Operated $ 10,701 $ 8,932 $ 12,940 Network
16,104 14,540 7,636 Revenue $
26,805 $ 23,472 $ 20,576 Adjusted
EBITDA* $ 1,353 $ 1,320 $ (771 ) Plus interest and other income
(expense), net (522 ) (537 ) (100 ) Less (provision for) benefit
from income taxes (18 ) 109 9 Less non-cash depreciation,
amortization and
stock compensation
(1,552 ) (1,514 ) (2,132 ) Plus (less) revaluation of derivatives
871 (413 ) 30 Less net loss from discontinued operations (90 ) (154
) (3,469 ) Less LEC reserve (1,721 ) - (1,407 ) Less severance
charges - (5 ) (51 ) Less settlement accrual -
(550 ) - GAAP net income (loss) $ (1,679 ) $ (1,744 )
$ (7,891 ) Diluted Adjusted EBITDA per share * $ 0.06 $ 0.06
$ (0.03 ) Diluted GAAP net income (loss) per share $ (0.07 ) $
(0.08 ) $ (0.36 )
Diluted weighted average shares used for Adjusted EBITDA per share
23,231 23,191 22,131 Diluted weighted average shares used for GAAP
net income loss per share
23,037
22,962
22,131
Cash $ 5,069 $ 4,847 $ 3,696
* See detailed reconciliation of GAAP to
non-GAAP measures in the financial tables attached to this
release.
• Revenue – Fourth quarter 2013 revenue of $26.8 million
represents an increase of 14 percent over third quarter 2013
revenue of $23.5 million and a 30 percent increase over fourth
quarter 2012 revenues of $20.6 million.
• GAAP net loss – Fourth quarter 2013 GAAP net loss was
$1.7 million, or ($0.07) per diluted share, compared to a third
quarter 2013 GAAP net loss of $1.7 million, or ($0.08) per diluted
share.
• Adjusted EBITDA – The company reported positive
Adjusted EBITDA for the fourth quarter of 2013 of $1.4 million, or
$0.06 per diluted share, a 3 percent increase over the third
quarter 2013 positive Adjusted EBITDA of $1.3 million, or $0.06 per
diluted share.
• Cash – The company’s cash balance was $5.1 million as
of Dec. 31, 2013, an increase of approximately $300,000 compared to
its Sept. 30, 2013 cash balance of $4.8 million.
• Debt – On Dec. 31, 2013, the company had borrowings of
$9.2 million outstanding under its Square 1 Bank credit facilities
with availability of $2.8 million. The company also had $5 million
outstanding related to its subordinated secured convertible
notes.
Fourth 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 fourth quarter 2013, on par with third quarter 2013
and down 20 percent from the year ago period. The decrease in
overall traffic from the prior year period is due to lower organic
traffic during the fourth quarter of 2013 from algorithmic changes
by a large search engine, affecting traffic to many of the
company’s network sites. Organic traffic on the site and network
was 26 million MUVs in the fourth quarter 2013, down 26 percent
from the third quarter 2013 and down 42 percent from the year ago
period. Organic traffic is defined as all non-SEM sourced traffic.
The company’s Network team is working on improving the content and
presentation of our Network sites, along with other efforts
intended to improve the relevance of these network sites and
therefore the level of organic traffic received by such sites.
Overall mobile traffic was 31 million MUVs in the fourth quarter
2013, down 3 percent from the third quarter 2013 and up 24 percent
from the year ago period.
• Long-term Receivable Reserve – During the fourth
quarter 2013, the company fully reserved its long-term receivable
resulting in an additional charge to the income statement of $1.7
million. The long-term receivable relates to legacy subscribers
that were billed via their phone bills from local exchange
carriers. The company recognized an excellent return on investment
on the legacy subscriber business, which it exited in 2012.
Consumer Properties:
Owned & Operated (O&O):
• Revenue – Fourth quarter 2013 total revenue related to
the O&O business unit was $10.7 million, up 20 percent from
third quarter 2013 O&O revenue of $8.9 million and down 17
percent from fourth quarter 2012 O&O revenue of $12.9 million.
The increase from the third quarter 2013 was mainly due to an
increase in traffic as a result of the seasonally strong fourth
quarter. The decline in O&O revenue from a year ago period was
primarily due to ad policy changes and reduced revenues per click
from a major partner. During 2013, the company expanded its
analytics and testing platforms to provide its O&O team with
the tools to adapt to the dynamic search advertising
environment.
• Monetization of Traffic – Revenue per thousand visitors
(RKV) for fourth quarter 2013 was $178, down 1 percent from third
quarter 2013 RKV of $180 and down 23 percent from fourth quarter
2012 RKV of $230. This decline was primarily due to ad policy
changes and declining revenue per click trends of a major ad
supplier. In response to recent ad policy changes, the company has
and will continue to focus on enhancing the user experience to
extract value, with the purpose of optimizing revenue and margins.
The company is already seeing positive monetization trends in the
first quarter of 2014, based on these efforts.
Network:
• Revenue – Fourth quarter 2013 total revenue related to
the Network business unit was $16.1 million, up 11 percent from the
$14.5 million Network revenue recorded in the third quarter 2013
and up 112 percent from fourth quarter 2012 Network revenue of $7.6
million. The increase in Network revenue is mainly due to the
increase in revenue from the company’s feed partner sites (sites
that receive its organic and third-party ad feeds) partially offset
by a decrease in organic traffic to certain regional media partner
sites.
• Network Sites – The Network business unit ended the
fourth quarter 2013 with over 1,600 network partner sites, down
from over 2,100 network partner sites at the end of the third
quarter 2013. As a result of the company’s screening and detection
efforts in the fourth quarter of 2013, it discontinued
relationships with a number of network partners, while increasing
the volume of business with its remaining network partners.
Krillion Highlights:
The company recently announced that it expanded its patented
Krillion local shopping platform and reached key data milestones,
including approximately 120,000 store locations, over 4,300
categories and nearly 3 million localized products, representing 90
percent coverage of the top 100 national retailers.
The enterprise-ready, flexible platform, seamlessly integrates
local shopping data across multiple distribution channels, which
allows the company to generate revenue from data licensing and
performance ad units.
The industry has experienced a steady shift from consumers not
only searching for local businesses, but now they seek robust local
product information with comparative pricing, inventory visibility
and location-based store details.
By connecting consumers with brands and retailers with critical
data that shoppers rely on, over time, the company expects to amass
a vast repository of data related to consumer behavior and retail
trends, such as pricing and inventory availability that is highly
valuable to key industry stakeholders, including brands and
retailers.
• Launched Havvit™ Local Shopping App – The company
launched version 1.0 of its Havvit local shopping app for iOS®
7-enabled devices, powered by the company’s Krillion local shopping
platform.
• Powered Krillion Shopping Channel for NH.com – The
company announced that its Krillion platform is powering a new
local shopping channel for the popular New Hampshire site,
NH.com.
Other Highlights:
• Launched Mobile Pay-Per-Call Lead Generation Network –
The company launched a mobile pay-per-call lead generation network
that connects online and on-the-go consumers searching for local
businesses and services in specific categories with relevant
advertisers who provide those services via pay-per-call ads.
• Ranked on Deloitte’s Technology Fast 500™ for Fourth
Consecutive Year - The company was ranked as a Deloitte
Technology Fast 500™ company for the fourth consecutive year in the
technology, media, telecommunications, life sciences and clean
technology companies category in North America.
Fiscal 2014 Financial
Guidance:
Revenue - The company expects 2014
revenue of between $103 million and $107 million, which at the
mid-point, is an increase of 11 percent, over 2013 revenue.
Adjusted EBITDA** – Adjusted EBITDA
for 2014 is expected to be between $3 million and $4 million or
between $0.13 and $0.17 per diluted share, assuming diluted
weighted average shares of 23.5 million, taking into account the
dilutive effect of stock options and warrants. The decrease from
2013 Adjusted EBITDA is a result of the company’s continued
investments in expanding new initiatives in shopping and mobile and
due to lower than expected gross margins from lower organic
traffic.
Projected 2014 Adjusted EBITDA Factors:
- Interest Expense of $1.7 million
- Income Tax Provision of $200,000
- Depreciation Expense of $4.0
million
- Amortization Expense of $900,000
- Stock Compensation Expense of
$800,000
- Severance Charges of $1.2 million
- 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 of the board, Fred Thiel, president and COO, Michael
Sawtell, 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 1-877-883-4693 or
1-315-625-6982, passcode # 35571891. 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 # 35571891. 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 local advertising
and technology company that connects businesses with approximately
a million online and mobile consumers each day using a variety of
innovative digital advertising products. For more information,
visit: http://www.localcorporation.com.
IOS is a trademark or registered trademark of Cisco in the U.S.
and other countries and is used under license.
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 and
technological 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, our Quarterly
Reports on Form 10-Q, 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; an expense related to a settlement accrual; LEC reserve;
and finance related charges. 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; an expense related to a settlement accrual; LEC reserve;
and finance related charges 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.
LOCAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(Unaudited)
December 31,
December 31, 2013 2012 ASSETS Current
assets: Cash $ 5,069 $ 3,696 Restricted cash - 42 Accounts
receivable, net of allowances of $533 and $250, respectively 17,298
10,618 Note receivable - 319 Prepaid expenses and other current
assets 957 648 Assets held for sale - 3,452
Total current assets 23,324 18,775 Property and
equipment, net 6,073 6,467 Goodwill 19,281 19,281 Intangible
assets, net 2,439 3,351 Long-term receivable, net of allowances of
$3,431 and $1,710, respectively - 1,585 Escrow receivable 390 390
Deposits 72 58 Total assets $ 51,579
$ 49,907
LIABILITIES AND
STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $
12,786 $ 8,367 Accrued compensation 1,462 829 Deferred rent 323 452
Warrant liability 537 5 Conversion option liability 550 - Other
accrued liabilities 2,403 1,315 Revolving line of credit 7,342
10,000 Current portion of term loan 1,500 - Deferred revenue
202 203 Total current liabilities 27,105
21,171 Long-term portion of term loan 375 - Senior secure
convertible notes, net of discount of $1,533 3,467 - Deferred
income taxes 347 302 Total liabilities
31,294 21,473 Commitments and
contingencies 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; 23,038 and 22,172
issued and outstanding, respectively - - Additional paid-in capital
124,249 122,036 Accumulated deficit (103,964 )
(93,602 ) Stockholders’ equity 20,285 28,434
Total liabilities and stockholders’ equity $ 51,579 $
49,907
LOCAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended December
31, Year Ended
December 31,
2013 2012 2013 2012
Revenue $ 26,805 $ 20,576 $ 94,396 $ 95,975
Costs and expenses: Cost of revenues 20,288 15,802 68,541
71,434 Sales and marketing 2,610 3,249 10,029 15,189 General and
administrative 3,948 4,059 13,633 11,765 Research and development
1,654 1,427 6,554 5,092 Amortization of intangibles 225
400 912 3,611
Total operating expenses 28,725 24,937
99,669 107,091 Operating
loss (1,920 ) (4,361 ) (5,273 ) (11,116 ) Interest and other
income (expense), net (522 ) (100 ) (2,321 ) (425 ) Change in fair
value of conversion option and warrant liability 871
30 1,100 202 Loss
from continuing operations before income taxes (1,571 ) (4,431 )
(6,494 ) (11,339 ) Provision for (benefit from) income taxes
18 (9 ) 139 111
Net loss from continuing operations (1,589 ) (4,422 ) (6,633
) (11,450 ) Loss from discontinued operations (net of taxes)
(90 ) (3,469 ) (3,729 ) (12,792 ) Net loss $
(1,679 ) $ (7,891 ) $ (10,362 ) $ (24,242 ) Per share data:
Basic and diluted net loss per share from continuing operations $
(0.07 ) $ (0.20 ) $ (0.29 ) $ (0.52 ) Basic and diluted net loss
per share from discontinued operations $ (0.00 ) $ (0.16 ) $ (0.16
) $ (0.58 ) Basic and diluted net loss per share $ (0.07 ) $ (0.36
) $ (0.45 ) $ (1.10 ) Basic weighted average shares
outstanding 23,037 22,131 22,862 22,098 Diluted weighted average
shares outstanding 23,037 22,131 22,862 22,098
LOCAL
CORPORATION SUPPLEMENTAL CONSOLIDATED STATEMENTS OF
OPERATIONS INFORMATION STOCK-BASED COMPENSATION EXPENSE*
(in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Year Ended
December 31,
2013 2012 2013 2012 Cost
of revenues $ 18 $ 22 $ 104 $ 83 Sales and marketing 60 189 392 846
General and administrative 105 389 892 1,377 Research and
development 23 64 231 227 Total
stock-based compensation expense $ 206 $ 664 $ 1,619 $ 2,533 Net
stock compensation expense per share Basic $ 0.01 $ 0.03 $ 0.07 $
0.11 Diluted $ 0.01 $ 0.03 $ 0.07 $ 0.11
*- Excludes impact of discontinued
operations.
LOCAL CORPORATION CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(Unaudited)
Year Ended December 31,
2013 2012 Cash flows from
operating activities: Net loss $ (10,362 ) $ (24,242 ) Adjustments
to reconcile net loss to cash used in operating activities:
Depreciation and amortization 5,077 8,173 Provision for doubtful
accounts 2,330 1,507 Stock-based compensation expense 1,638 2,895
Non-cash interest expense 649 - Loss on exchange of warrants 723 -
Change in fair value of conversion option and warrant liability
(1,100 ) (202 ) Deferred income taxes 46 114 Impairment of goodwill
and intangible assets 3,051 10,551 Gain on sale of assets - (1,458
) Changes in operating assets and liabilities: Accounts receivable
(7,078 ) (447 ) Note receivable 319 423 Long-term receivable (137 )
193 Prepaid expenses and other (309 ) 86 Other non-current assets
(14 ) 9 Accounts payable and accrued liabilities 6,011 (6,392 )
Deferred revenue (1 ) (101 ) Net cash provided by
(used in) operating activities 843 (8,891 )
Cash flows from investing activities: Capital expenditures
(3,580 ) (3,358 ) Increase (decrease) in restricted cash 42 (32 )
Proceeds from the sale of assets - 3,510
Net cash provided by (used in) investing activities
(3,538 ) 120 Cash flows from financing
activities: Proceeds from exercise of options 5 80 Proceeds from
issuance of senior secured convertible notes and warrants 5,000 -
Proceeds from issuance of common stock 20 - Proceeds from revolving
credit facility, net 342 2,000 Payment of term loan (1,125 ) -
Payment of financing related costs (174 ) (7 ) Net
cash provided by financing activities 4,068
2,073 Net increase (decrease) in cash 1,373 (6,698 ) Cash,
beginning of period 3,696 10,394 Cash,
end of period $ 5,069 $ 3,696 Supplemental
Cash Flow Information: Interest paid $ 626 $ 425
Income taxes paid $ 7 $ 12
LOCAL
CORPORATION RECONCILIATION OF NET LOSS TO ADJUSTED
EBITDA
(in thousands, except per share
amounts)
(Unaudited)
Three Months Ended December 31,
Three Months Ended
September 30,
2013 2012 2013 GAAP net loss $ (1,679 )
$ (7,891 ) $ (1,744 ) Plus interest and other income (expense), net
522 100 537 Plus provision for (benefit from) income taxes 18 (9 )
(109 ) Plus amortization of intangibles 225 400 225 Plus
depreciation 1,120 1,068 937 Plus stock-based compensation 207 664
352 Less revaluation of derivatives (871 ) (30 ) 413 Plus net loss
from discontinued operations 90 3,469 154 Plus LEC reserve 1,721
1,407 - Plus severance charges - 51 5 Plus settlement accrual
- - 550 Adjusted
EBITDA $ 1,353 $ (771 ) $ 1,320 Diluted
Adjusted EBITDA per share $ 0.06 $ (0.03 ) $ 0.06
Diluted weighted average shares outstanding 23,231 22,131
23,191
Prior period balances have been reclassified to
conform to current period reporting
Year ended December 31, 2013 Year ended
December 31, 2012 Net loss $ (10,362 ) $ (24,242 ) Plus
interest and other income (expense), net 2,321 425 Plus provision
for income taxes 139 111 Plus amortization of intangibles 912 3,611
Plus depreciation 3,896 3,658 Plus stock-based compensation 1,619
2,533 Less revaluation of derivatives (1,100 ) (202 ) Plus net loss
from discontinued operations 3,729 12,792 Plus Settlement accrual
550 - Plus accrual for lease liability/(asset) 101 - Plus finance
related charges 236 - Plus LEC reserve 1,721 1,407 Plus severance
charges 771 684 Adjusted EBITDA
$ 4,533 $ 777 Diluted Adjusted EBITDA per
share $ 0.20 $ 0.03 Diluted weighted average
shares 22,967 22,227
Investor Relations and Media Relations Contact:Local
CorporationCameron Triebwasser,
949-789-5223ctriebwasser@local.com
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