WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for
the quarter ended June 30, 2011.
Highlights for the second quarter of 2011 include:
- Revenues for the second quarter of 2011
were $3.8 million compared to revenues of $2.5 million for the same
period in 2010, an increase of 55%, and included $319,000 from
Inside Network, which we acquired in May 2011. Revenues from online
job board postings, education and advertising, excluding the impact
of the Inside Network acquisition, were up 21%, 19% and 16%,
respectively, compared to the same period last year. In addition,
trade show revenues increased by 142% compared to the second
quarter of 2010.
- Net loss for the second quarter of 2011
was $1.0 million and included one-time acquisition related charges
of $474,000 and stock-based compensation of $114,000, compared
to net loss of $968,000 for the same period last year. Net loss,
excluding interest, taxes, depreciation, amortization, stock-based
compensation and one-time acquisition related charges was $62,000,
compared to $769,000 for the same period last year. We track this
metric and present it here because we believe it helps in the
analysis of the performance of our core operations. One-time
charges of $474,000 consisted of professional fees paid in
connection with the acquisition of Inside Network and for
contingent acquisition consideration related to the final earn-out
payments made in connection with the December 2009 acquisitions of
Social Times Inc. and 3rd Power LLC. Stock-based compensation
expense was $114,000 during the second quarter of 2011 compared to
$36,000 during the second quarter of 2010.
“Our second quarter demonstrated continued progress toward
profitability with significant year-over-year and sequential
quarterly revenue growth,” stated Alan M. Meckler, Chairman and CEO
of WebMediaBrands, Inc. “All of our business units, including our
online job board, trade show, advertising sales and education
operations had positive results during the second quarter.
Integration of the recently acquired Inside Network was smooth and
revenues from Inside Network’s research business have continued to
grow. We anticipate continued growth this year and into 2012 led by
our strength in covering social media and the Semantic Web and this
growth should lead to a profitable 2012 on an EBITDA basis”, added
Meckler.
WebMediaBrands Inc. 2nd Quarter 2011 Financial Results
Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference
call reviewing 2011 second quarter results on Thursday, August 11,
2011 at 11:00 am EDT.
The conference call number is 888-211-4495 for domestic
participants and 913-981-5535 for international participants;
confirmation code “3455287”. Please call five minutes in advance to
ensure that you are connected prior to the presentation. The
conference call replay will be available until Tuesday, August
16, 2011. Replay call numbers are 888-203-1112 for domestic
participants and 719-457-0820 for international participants;
confirmation code “3455287”.
Acquisition
In May 2011, WebMediaBrands acquired Inside Network, Inc. for an
aggregate purchase price comprised of $7.5 million in cash plus an
aggregate of 4,183,130 newly issued shares of our common stock.
Inside Network is the industry’s leading research and media
organization dedicated to providing original market research,
critical analysis, data services and news on the Facebook platform,
social gaming, and mobile applications ecosystems.
Based in Palo Alto, California, Inside Network produces
expert-level information for analysts, investors, and
entrepreneurs.
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Operations
For the Three and Six Months Ended June
30, 2010 and 2011
(in thousands, except per share
amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2010 2011 2010 2011
Revenues $ 2,453 $ 3,800 $ 4,357 $ 6,046 Cost of revenues 1,400
2,123 2,698 3,571 Advertising, promotion and selling 495 633 1,024
1,065 General and administrative 1,371 1,366 3,013 2,721
Depreciation 118 81 246 165 Amortization 21 93 32 211 Contingent
acquisition consideration — 329 — 329
Total operating expenses 3,405 4,625 7,013
8,062 Operating loss from continuing operations (952 ) (825
) (2,656 ) (2,016 ) Other income (loss), net 31 1 39 (3 ) Interest
income 196 5 213 40 Interest expense (203 ) (178 )
(433 ) (357 ) Loss from continuing operations before
income taxes (928 ) (997 ) (2,837 ) (2,336 ) Provision for income
taxes 17 10 20 20 Loss from continuing
operations (945 ) (1,007 ) (2,857 ) (2,356 ) Loss on sale of
discontinued operations (23 ) — (29 )
— Net loss $ (968 ) $ (1,007 ) $ (2,886 ) $ (2,356 ) Loss
per share: Basic Loss from continuing operations $ (0.03 ) $ (0.02
) $ (0.08 ) $ (0.06 ) Loss from discontinued operations —
— — — Net loss $ (0.03 ) $ (0.02 ) $ (0.08 ) $
(0.06 ) Diluted Loss from continuing operations $ (0.03 ) $
(0.02 ) $ (0.08 ) $ (0.06 ) Loss from discontinued operations
— — — — Net loss $ (0.03 ) $ (0.02 ) $
(0.08 ) $ (0.06 ) Shares used in computing loss per share:
Basic 37,493 40,463 37,340 39,277
Diluted 37,493 40,463 37,340 39,277
WebMediaBrands Inc.
Consolidated Condensed Balance
Sheets
December 31, 2010 and June 30,
2011
(in thousands, except share and per
share amounts)
December 31,
2010
June 30,
2011
(Unaudited)
ASSETS Current assets: Cash and cash equivalents $ 12,970 $
2,535 Accounts receivable, net of allowances of $10 and $11,
respectively 581 716 Prepaid expenses and other current assets
912 401 Total current assets 14,463 3,652
Property and equipment, net of accumulated depreciation of $1,556
and $1,268, respectively 728 595 Intangible assets, net of
accumulated amortization of $209 and $420, respectively 1,535 1,732
Goodwill 10,261 24,365 Investments and other assets 1,005
1,333 Total assets $ 27,992 $ 31,677
LIABILITIES
AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable
$ 1,210 $ 632 Accrued payroll and related expenses 424 485 Accrued
expenses and other current liabilities 1,447 698 Deferred revenues
817 1,330 Total current liabilities 3,898 3,145
Loan from related party 5,947 5,897 Deferred revenues 19 23
Deferred income taxes 410 426 Other long-term liabilities 57
58 Total liabilities 10,331 9,549
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, 37,986,851 and 42,623,560 shares
issued at December 31, 2010 and June 30,
2011, respectively
380 426 Additional paid-in capital 281,087 287,864 Accumulated
deficit (263,700 ) (266,056 ) Treasury stock, 65,000 shares at cost
(106 ) (106 ) Total stockholders’ equity
17,661 22,128 Total liabilities and stockholders’ equity $
27,992 $ 31,677
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Cash Flows
For the Six Months Ended June 30, 2010
and 2011
(in thousands)
Six Months Ended
June 30,
2010 2011 Cash flows from operating
activities: Net loss $ (2,886 ) $ (2,356 ) Less: Loss on sale of
discontinued operations (29 ) — Loss from continuing operations
(2,857 ) (2,356 ) Adjustments to reconcile net loss to net cash
used in operating activities: Depreciation and amortization 278 376
Stock-based compensation 82 198 Provision for losses on accounts
receivable — 5 Amortization of debt issuance costs 45 15 Deferred
income taxes 4 16 Changes in assets and liabilities (net of
businesses acquired): Accounts receivable, net (159 ) (83 ) Prepaid
expenses and other assets 1,648 373 Accounts payable, accrued
expenses and other liabilities (608 ) (1,813 ) Deferred revenues
164 280 Discontinued operations (29 ) — Net
cash used in operating activities (1,432 ) (2,989 )
Cash flows from investing activities: Purchases of property and
equipment (27 ) (30 ) Acquisitions of assets and other (135
) (7,495 ) Net cash used in investing activities (162
) (7,525 ) Cash flows from financing activities: Repayment
of borrowings from related party (150 ) (50 ) Proceeds from
exercise of stock options 209 129 Net cash provided
by financing activities 59 79 Effects of exchange
rates on cash (1 ) — Net decrease in cash and cash
equivalents (1,536 ) (10,435 ) Cash and cash equivalents, beginning
of period 15,012 12,970 Cash and cash equivalents,
end of period $ 13,476 $ 2,535
About WebMediaBrands Inc.
WebMediaBrands Inc. (Nasdaq: WEBM)
(http://www.webmediabrands.com), headquartered in New York, NY, is
a leading Internet media company that provides content, education,
and career services to media and creative professionals through a
portfolio of vertical online properties, communities, and trade
shows. WebMediaBrand’s online business includes: (i)
mediabistro.com, a leading blog network providing content,
education, community, and career resources (including the
industry's leading online job board) about major media industry
verticals including new media, social media, Facebook, TV news,
sports media news, advertising, public relations, publishing,
design, mobile, and the Semantic Web; (ii) InsideNetwork.com, a
leading network of online properties dedicated to providing
original market research, data services, news, events, and job
listings on the Facebook platform, social gaming, and mobile
applications ecosystems; and (iii) AllCreativeWorld.com, a leading
network of online properties providing content, education,
community, career, and other resources for creative and design
professionals. WebMediaBrand’s online business also includes
community, membership and e-commerce offerings including a
freelance listing service, a marketplace for designing and
purchasing logos and premium membership services. WebMediaBrand’s
trade show and educational offerings include conferences, online
and in-person courses, and video subscription libraries on topics
covered by WebMediaBrand’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: risks associated with
acquisitions, including integration of operations; 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
Webmethods (NASDAQ:WEBM)
Historical Stock Chart
From May 2024 to Jun 2024
Webmethods (NASDAQ:WEBM)
Historical Stock Chart
From Jun 2023 to Jun 2024
