Professional Diversity Network, Inc. Reports First Quarter 2019 Financial Results

Date : 05/20/2019 @ 10:18PM
Source : GlobeNewswire Inc.
Stock : Professional Diversity Network Inc (IPDN)
Quote : 1.43  -0.32 (-18.29%) @ 3:53PM

Professional Diversity Network, Inc. Reports First Quarter 2019 Financial Results

Professional Diversity N... (NASDAQ:IPDN)
Historical Stock Chart

3 Months : From May 2019 to Aug 2019

Click Here for more Professional Diversity N... Charts.

Professional Diversity Network, Inc. (NASDAQ:IPDN), (“IPDN” or the “Company”), a global developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse individuals, today announced its financial results for the quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights:

  • Net loss from continuing operations was $1.1 million for the quarter ended March 31, 2019, a decrease of 37.3% from $1.8 million for the quarter ended March 31, 2018. 
  • Total costs and expenses were $2.6 million for the quarter ended March 31, 2019, a 42.2% decrease compared to $4.4 million for the quarter ended March 31, 2018. 
  • From April 1, 2019 to April 2, 2019, the Company sold an aggregate of 28,552 shares of its common stock at a purchase price ranging from $3.70 to $3.85 per share, representing 120% of the closing price the trading day immediately prior to the date of subscription. As of the date of this quarterly report, the Company has received an aggregate gross proceeds of $107,036 under this private placement.

Michael Wang, Chairman and CEO of Professional Diversity Network, said, "While the Company continued to sustain losses, we see positive momentum on our efforts in reducing costs and overheads. The beginning of 2019 marks the fifth consecutive quarter that we successfully reduce losses.”

Mr. Wang continued, “This year we will continue enhancing our diversity recruitment and women's networking segments and expanding our China business to increase shareholder value and move toward sustainable profitability.”

First Quarter 2019 Financial Results

Revenue

For the quarter ended March 31, 2019, IPDN reported total revenue of $1.3 million, a 41.8% decrease from $2.3 million for the quarter ended March 31, 2018. The decrease is mainly the result of management’s focus on reduction in sales and operations workforce as a means to improved efficiencies and operational effectiveness while rebranding the business.

Costs and Expenses

Total costs and expenses were $2.6 million for the quarter ended March 31, 2019, a 42.2% decrease compared to $4.4 million for the quarter ended March 31, 2018. The decrease is primarily the result of $992,000 or 42.2% decrease in general and administrative expenses, a $459,000 or 67.5% decrease in depreciation and amortization expenses, and a $312,000, or 28.5% decrease in sales and marketing expenses.

Net Loss

Net loss for the quarter ended March 31, 2019 was $1.2 million or $0.23 per share - compared to a net loss of $2.0 million, or $0.48 per share, for the quarter ended March 31, 2018.

Net Loss from Continuing Operations

Net loss from continuing operations was $1.1 million for the quarter ended March 31, 2019, a decrease of 37.3% from $1.8 million for the quarter ended March 31, 2018. The $680,000 decrease in net loss was primarily driven by $992,000 decrease in general and administrative expenses, a $459,000 decrease in depreciation and amortization expenses, and a $312,000 decrease in sales and marketing expenses, partially offset by a $756,000 decrease in revenues from membership fees, related services at the NAPW segment.

Cash and Financial Position

As of March 31, 2019, the Company had cash and cash equivalents of $0.8 million, compared to $1.4 million as of December 31, 2018. The Company had a working capital deficiency of $4.3 million as of March 31, 2019, compared to a working capital deficiency of $3.4 million as of December 31, 2018.

Net cash used in operating activities in continuing operations was $1.0 million for the quarter ended March 31, 2019, and net cash used in operating activities in continuing operations was 1.6 million for the quarter ended March 31, 2018.

Professional Diversity Network, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS

  March 31,  December 31, 
  2019  2018 
  (Unaudited)    
Current Assets:        
Cash and cash equivalents (Amounts related to variable interestentity of $341,800 and $683,043 as of March 31, 2019 andDecember 31, 2018, respectively) $793,863  $1,441,607 
Accounts receivable, net  446,368   816,698 
Incremental direct costs  48,154   20,797 
Prepaid expenses and other current assets  482,879   350,906 
Current assets from discontinued operations  26,539   126,270 
Total current assets  1,797,803   2,756,278 
         
Property and equipment, net  67,273   83,608 
Capitalized technology, net  169,626   194,833 
Goodwill  339,451   339,451 
Intangible assets, net  837,774   1,020,942 
Right-of-use assets  353,486   - 
Merchant reserve  760,849   760,849 
Security deposits  90,574   82,139 
Total assets $4,416,836  $5,238,100 
         
Current Liabilities:        
Accounts payable $1,676,620  $1,843,688 
Accrued expenses  1,063,914   989,626 
Deferred revenue  2,254,170   2,460,436 
Note Payable – related party  207,118   500,000 
Line of Credit – related party  292,882   - 
Lease liability, current portion  300,456   - 
Current liabilities from discontinued operations  303,794   346,528 
Total current liabilities  6,098,954   6,140,278 
         
Deferred tax liability  122,824   194,786 
Deferred rent  -   13,742 
Other liabilities  84   82 
Lease liability, non-current portion  60,910   - 
Long-term liabilities from discontinued operations  -   - 
Total liabilities  6,282,772   6,348,888 
         
Commitments and contingencies        
         
Stockholders’ Equity        
Common stock, $0.01 par value; 45,000,000 shares authorized;5,060,176 shares and 4,856,213 shares issued as of March 31,2019 and December 31, 2018, respectively; and 5,059,128shares and 4,855,165 shares outstanding as of March 31, 2019and December 31, 2018, respectively  50,602   48,562 
Additional paid in capital  84,108,048   83,728,903 
Accumulated other comprehensive loss  (1,305)  (24,340)
Accumulated deficit  (85,986,164)  (84,826,796)
Treasury stock, at cost; 1,048 shares at March 31, 2019 andDecember 31, 2018  (37,117)  (37,117)
Total stockholders’ equity  (1,865,936)  (1,110,788)
         
Total liabilities and stockholders’ equity $4,416,836  $5,238,100 

Professional Diversity Network, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)

  Three Months EndedMarch 31, 
  2019  2018 
       
Revenues:        
Membership fees and related services $829,420  $1,612,221 
Recruitment services  474,260   621,415 
Product sales and other  2,812   3,657 
Education and training  4,069   6,471 
Consumer advertising and marketing solutions  35,716   69,734 
Total revenues  1,346,277   2,313,498 
         
Costs and expenses:        
Cost of revenues  187,581   285,833 
Sales and marketing  780,747   1,093,124 
General and administrative  1,358,556   2,351,931 
Depreciation and amortization  221,422   679,761 
Total costs and expenses  2,548,306   4,410,649 
         
Loss from operations  (1,202,029)  (2,097,151)
         
Other (expense) income        
Interest expense  (8,133)  - 
Interest and other income  -   890 
Other income (expense)  -   22,558 
Other income, net  (8,133)  23,448 
         
Loss before income tax expense (benefit)  (1,210,162)  (2,073,703)
Income tax expense (benefit)  (65,633)  (249,050)
Loss from continuing operations  (1,144,529)  (1,824,653)
Loss from discontinued operations (net of tax benefit of $1,211,and $35,036, in the three months ended March 31, 2019 and2018, respectively)  (14,840)  (209,760)
Net loss  (1,159,369)  (2,034,413)
         
Other comprehensive loss:  (1,159,369)  (2,034,413)
Foreign currency translation adjustment  23,035   76,708 
Comprehensive loss $(1,136,334) $(1,957,705)
         
Basic and diluted loss per share:        
Continuing operations  (0.23)  (0.43)
Discontinued operations  (0.00)  (0.05)
Net loss $(0.23) $(0.48)
         
Weighted average outstanding shares used in computing net lossper common share:        
Basic and diluted  4,969,230   4,221,620 

We believe Adjusted EBITDA provides a meaningful representation of our operating performance that provides useful information to investors regarding our financial condition and results of operations. Adjusted EBITDA is commonly used by financial analysts and others to measure operating performance. Furthermore, management believes that this non-GAAP financial measure may provide investors with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. However, while we consider Adjusted EBITDA to be an important measure of operating performance, Adjusted EBITDA and other non-GAAP financial measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Further, Adjusted EBITDA, as we define it, may not be comparable to EBITDA, or similarly titled measures, as defined by other companies.

The following table provides a reconciliation of Net Loss from continuing operations to Adjusted EBITDA, the most directly comparable GAAP measure reported in our consolidated financial statements:

  Three Months Ended 
  March 31, 
  2019  2018 
       
  (in thousands) 
Loss from Continuing Operations $(1,145) $(1,825)
Stock-based compensation expense  8   118 
Depreciation and amortization  221   680 
Interest Expense  8   - 
Interest and other income  -   (1)
Income tax expense (benefit)  (66)  (249)
Adjusted EBITDA $(974) $(1,277)

About Professional Diversity Network Professional Diversity Network, Inc. (NASDAQ: IPDN) is a global developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse professionals. We operate subsidiaries in the United States and China including International Association of Women (IAW), which is one of the largest, most recognized networking organizations of professional women in the country, spanning more than 200 industries and professions. Through an online platform and our relationship recruitment affinity groups, we provide our employer clients a means to identify and acquire diverse talent and assist them with their efforts to comply with the Equal Employment Opportunity Office of Federal Contract Compliance Program. Our mission is to utilize the collective strength of our affiliate companies, members, partners and unique proprietary platform to be the standard in business diversity recruiting, networking and professional development for women, minorities, veterans, LGBT and disabled persons globally.

Forward-Looking StatementsThis press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our most recently filed Annual Report on Form 10-K and in our subsequent filings with the Securities and Exchange Commission. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "should," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. Our most recently filed Annual Report on Form 10-K, together with this press release and the financial information contained herein, are available on our website, www.prodivnet.com. Please click on "Investor Relations."

Contact:Dragon Gate Investment Partners LLC

Tel: +1(646)-801-2803Email: ipdn@dgipl.com

Latest IPDN Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.