WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for
the quarter ended September 30, 2010.
Revenues for the third quarter of 2010 were $1.9 million
compared to revenues of $1.5 million for the same period in 2009,
an increase of 32%. Revenues from job board postings and online
advertising sales were up 83% and 25%, respectively, compared to
the same period last year. Operating expenses, excluding
impairment, for the third quarter of 2010 were $3.2 million
compared to $3.7 million for the same period last year. Loss from
continuing operations was $1.7 million during the third quarter of
2010 compared to $3.8 million during the same period in 2009. Loss
from continuing operations during the third quarter of 2010
included an impairment charge of $319,000 related to the write-down
of the Company’s building and land in Peoria, Illinois. In October
2010, WebMediaBrands entered into an agreement to sell the property
for $1.8 million and the Company expects the transaction to close
during the fourth quarter of 2010.
“Our third quarter demonstrated significant year-over-year
growth in revenues and reductions in operating expenses,” stated
Alan M. Meckler, Chairman and CEO of WebMediaBrands. “We are
excited by the growth of our business and our new product
offerings. We continue to develop and acquire blogs and other
properties dealing with social media, traditional media and other
related topics. We expect these investments to continue to show
positive results in future quarters,” added Meckler.
During the third quarter, WebMediaBrands announced the
acquisition of the Semantic Technology Conference (SemTech) and
related SemanticUniverse blog, the launch of its SportsNewser blog
and the launch of its SocialTimes Pro research service.
WebMediaBrands also recently announced the launch of CreativePro, a
new online training program for advertising and design
professionals.
In November 2009, WebMediaBrands completed the sale of the
assets related to its Internet.com business to QuinStreet, Inc.
Prior year financial results have been presented to include
WebMediaBrands’s Internet.com business as a discontinued operation
for the periods presented.
In February 2009, WebMediaBrands completed the sale of its
online images business to Getty Images, Inc. Prior year financial
results have been presented to reflect WebMediaBrands’s online
images segment as a discontinued operation for the periods
presented.
WebMediaBrands Inc. 3rd Quarter 2010 Financial Results
Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference
call reviewing 2010 third quarter results on Wednesday, November 3,
2010 at 5:00 pm EDT.
The conference call number is 877-675-4753 for domestic
participants and 719-325-4926 for international participants;
confirmation code “3856984.” Please call five minutes in advance to
ensure that you are connected prior to the presentation. The
conference call replay will be available until Monday,
November 8, 2010. Replay call numbers are 888-203-1112 for domestic
participants and 719-457-0820 for international participants;
confirmation code “3856984.”
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Operations
For the Three and Nine Months Ended
September 30, 2009 and 2010
(in thousands, except per share
amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2009 2010 2009 2010
Revenues $ 1,473 $ 1,943 $ 4,444 $ 6,300 Cost of revenues
941 1,307 3,101 4,005 Advertising, promotion and selling 369 399
1,350 1,423 General and administrative 2,178 1,277 9,582 4,290
Depreciation 173 104 515 350 Amortization 62 102 230 134 Impairment
— 319 662 319 Restructuring charge — — 875
— Total operating expenses 3,723 3,508
16,315 10,521 Operating loss from continuing
operations (2,250 ) (1,565 ) (11,871 ) (4,221 ) Other income, net
42 25 216 64 Interest income 3 14 161 227 Interest expense (182 )
(194 ) (1,674 ) (627 ) Loss on extinguishment of debt — — (2,119 )
— Loss on fair value of interest rate swap — —
(6,732 ) — Loss from continuing operations before income
taxes (2,387 ) (1,720 ) (22,019 ) (4,557 ) Provision (benefit) for
income taxes 1,367 — (1,484 ) 20 Loss
from continuing operations (3,754 ) (1,720 ) (20,535 ) (4,577 )
Loss from discontinued operations, net of tax (850 ) — (968 ) —
Gain (loss) on sale of discontinued operations (41 )
7 6,976 (22 ) Net loss $ (4,645 ) $ (1,713 ) $
(14,527 ) $ (4,599 ) Income (loss) per share: Basic Loss
from continuing operations $ (0.10 ) $ (0.05 ) $ (0.56 ) $ (0.12 )
Income (loss) from discontinued operations (0.03 ) —
0.16 — Net loss $ (0.13 ) $ (0.05 ) $ (0.40 ) $ (0.12
) Diluted Loss from continuing operations $ (0.10 ) $ (0.05
) $ (0.56 ) $ (0.12 ) Income (loss) from discontinued operations
(0.03 ) — 0.16 — Net loss $ (0.13 ) $
(0.05 ) $ (0.40 ) $ (0.12 ) Shares used in computing income
(loss) per share: Basic 36,813 37,650 36,377
37,444 Diluted 36,813 37,650 36,377
37,444
WebMediaBrands Inc.
Consolidated Condensed Balance
Sheets
December 31, 2009 and September
30, 2010
(in thousands, except share and
per share amounts)
December 31,
2009
September 30,
2010
(Unaudited) ASSETS Current assets: Cash and cash
equivalents $ 15,012 $ 11,310 Accounts receivable, net of
allowances of $90 and $71, respectively 500 465 Income taxes
receivable 2,379 443 Prepaid expenses and other current assets
500 462 Total current assets 18,391 12,680
Property and equipment, net of accumulated depreciation of $1,800
and $1,511, respectively 1,086 795 Intangible assets, net 990 1,485
Goodwill 9,495 10,389 Investments and other assets 1,051 1,033
Assets held for sale 2,000 1,681 Total assets $
33,013 $ 28,063
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 566 $ 345 Accrued payroll
and related expenses 811 546 Accrued expenses and other current
liabilities 2,516 1,944 Deferred revenues 955 1,364
Total current liabilities 4,848 4,199 Loan from related
party 6,197 5,997 Deferred revenues 92 19 Deferred income taxes
1,122 1,308 Other long-term liabilities 586 645 Total
liabilities 12,845 12,168 Commitments and
contingencies Stockholders’ equity: Preferred stock, $.01
par value, 4,000,000 shares authorized, no shares issued — — Common
stock, $.01 par value, 75,000,000 shares authorized, 37,060,723 and
37,718,201 shares issued at December 31, 2009 and September 30,
2010, respectively 371 377 Additional paid-in capital 280,556
280,890 Accumulated deficit (260,680 ) (265,279 ) Treasury stock,
65,000 shares, at cost (106 ) (106 ) Accumulated other
comprehensive income 27 13 Total stockholders’ equity
20,168 15,895 Total liabilities and stockholders’
equity $ 33,013 $ 28,063
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Cash Flows
For the Nine Months Ended September 30,
2009 and 2010 (in thousands)
Nine Months Ended September 30, 2009
2010 Cash flows from operating activities: Net loss $
(14,527 ) $ (4,599 ) Less: Loss from discontinued operations, net
of tax (968 ) — Less: Gain (loss) on sale of discontinued
operations 6,976 (22 ) Loss from continuing
operations (20,535 ) (4,577 ) Adjustments to reconcile loss from
continuing operations to net cash used by operating activities:
Loss on fair value of swap 6,732 — Impairment 662 319 Depreciation
and amortization 745 484 Stock-based compensation 1,906 118 Other
income, net (150 ) 10 Amortization of debt issue costs 11 53 Loss
on extinguishment of debt 2,119 — Deferred income taxes (2,561 ) 3
Excess tax benefit from stock-based compensation (3,226 ) — Changes
in assets and liabilities (net of businesses acquired): Accounts
receivable, net 34 34 Prepaid expenses and other assets 3,586 11
Income taxes receivable 960 1,936 Accounts payable, accrued
expenses and other liabilities (2,420 ) (1,130 ) Deferred revenues
(125 ) 336 Discontinued operations 1,547 (22 ) Net
cash used in operating activities (10,715 ) (2,425 )
Cash flows from investing activities: Purchases of property and
equipment (233 ) (66 ) Acquisitions of businesses, assets and other
(1,593 ) (1,200 ) Proceeds from sale of discontinued operations
91,205 — Discontinued operations (560 ) — Net cash
provided by (used in) investing activities 88,819
(1,266 ) Cash flows from financing activities: Borrowings from
related party 7,197 — Settlement of interest rate swap (6,732 ) —
Debt issuance costs (384 ) (9 ) Repayment of borrowings from
related party — (200 ) Repayment of borrowings under credit
facilities (81,213 ) — Excess tax benefit from stock-based
compensation 3,226 — Proceeds from exercise of stock options
246 213 Net cash provided by (used in) financing activities
(77,660 ) 4 Effect of exchange rates on cash
(65 ) (15 ) Net increase (decrease) in cash and cash
equivalents 379 (3,702 ) Cash and cash equivalents, beginning of
year 3,755 15,012 Cash and cash equivalents, end of
year $ 4,134 $ 11,310
About WebMediaBrands Inc.
WebMediaBrands Inc. is an Internet media company that provides
content, education, trade shows and online job board services to
media and business professionals. The Company’s online business
includes: (i) mediabistro.com, a leading blog network providing
content, career and educational resources about major media markets
and industry verticals including new media, social media, TV news,
advertising, public relations, publishing, design and mobile; (ii)
SemanticWeb.com, providing industry leading content on Semantic Web
technology; and (iii) e-commerce websites including
FreelanceConnect.com and StockLogos.com. The Company’s trade show
and educational offerings include conferences, online and
in-person courses and video subscription libraries on topics
covered by the Company’s online business.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press release
that are not historical facts are "forward-looking statements"
under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. The potential risks and uncertainties address a variety
of subjects including, for example: the risk of illiquidity if our
stock is delisted; general economic conditions; the competitive
environment in which WebMediaBrands competes; and the
unpredictability of WebMediaBrands’s future revenues, expenses,
cash flows and stock prices. For a more detailed discussion
of such risks and uncertainties, refer to WebMediaBrands’s reports
filed with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934. The forward-looking statements
included herein are made as of the date of this press release, and
WebMediaBrands assumes no obligation to update the forward-looking
statements after the date hereof, except as required by
law.
All current WebMediaBrands press releases can be found online
at www.webmediabrands.com/corporate/press.html
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