WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for
the fourth quarter and full year ended December 31, 2011.
Highlights for the fourth quarter of 2011 include:
- Revenues for the fourth quarter of 2011
were $3.4 million compared to revenues of $2.7 million for the same
period in 2010, an increase of 26%, and included $584,000 from
Inside Network, which we acquired in May 2011. Revenues from
education and advertising, excluding the impact of the Inside
Network acquisition, increased 43% and 17%, respectively, compared
to the same period last year. Inside Network’s market research and
data services business, which includes AppData, contributed
$397,000 in revenues during the fourth quarter of 2011.
- Loss from continuing operations for the
fourth quarter of 2011 was $9.1 million, and included a non-cash
impairment charge of $8.3 million related to the write-down of
goodwill, compared to a loss of $465,000 for the same period last
year. Non-GAAP income from continuing operations, excluding
interest, taxes, impairment, depreciation, amortization and
stock-based compensation, or EBITDA, was $149,000 during the fourth
quarter of 2011, compared to a loss of $832,000 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. Stock-based compensation expense was $619,000 during
the fourth quarter of 2011 compared to $93,000 during the fourth
quarter 2010.
Highlights for the year ended 2011 include:
- Revenues for the year ended 2011 were
$12.4 million compared to revenues of $9.0 million for the same
period in 2010, an increase of 38%, and included $1.5 million from
Inside Network. Revenues from online job board postings, education,
advertising and trade shows, excluding the impact of the Inside
Network acquisition, increased 18%, 18%, 32% and 33%, respectively,
compared to 2010.
- Loss from continuing operations was
$11.9 million for the year ended 2011, and included a non-cash
impairment charge of $8.3 million related to the write-down of
goodwill, compared to a loss of $5.0 million during 2010. Non-GAAP
loss from continuing operations, excluding interest, taxes,
impairment, depreciation, amortization and stock-based
compensation, or EBITDA, was $1.6 million for the year ended 2011,
compared to a loss of $4.1 million for the same period last year.
Stock-based compensation expense was $991,000 during the year ended
2011 compared to $211,000 during the same period in 2010.
“Our fourth quarter demonstrated continued progress towards
being cash flow positive with significant year-over-year and
sequential quarterly revenue growth and our first quarter, since
the acquisition of Mediabistro, with positive EBITDA on a
consolidated basis,” stated Alan M. Meckler, Chairman and CEO of
WebMediaBrands, Inc. “The acquisition of Inside Network has
expanded our product offerings, and revenues from Inside Network’s
research and advertising businesses have continued to grow. We
anticipate significant growth from all of our divisions in 2012 led
by our in-depth strength in covering Facebook, social media, apps
and the Semantic Web,” added Meckler.
WebMediaBrands Inc. Fourth Quarter 2011 Financial Results
Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference
call reviewing 2011 fourth quarter results on Tuesday, February 28,
2012 at 5:00 pm EST.
The conference call number is 888-450-5996 for domestic
participants and 719-955-1371 for international participants;
confirmation code “179040.” 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, March
5, 2012. Replay call numbers are 800-776-0700 for domestic
participants and 719-457-2924 for international participants;
confirmation code “179040.”
WebMediaBrands Inc. Unaudited
Consolidated Condensed Statements of Operations For the
Three Months and Year Ended December 31, 2011 and 2010 (in
thousands, except per share amounts) Three Months
Ended Year Ended December 31, December 31,
2011 2010 2011
2010 Revenues $ 3,375 $ 2,687 $ 12,429 $ 8,987
Cost of revenues 1,897 1,782 7,154 5,787 Advertising, promotion and
selling 551 405 2,088 1,828 General and administrative 1,395 1,288
5,475 5,578 Depreciation 77 88 319 438 Amortization 142 57 513 191
Impairment 8,289 — 8,289 319 Contingent acquisition consideration
— — 329 — Total operating expenses
12,351 3,620 24,167 14,141
Operating loss from continuing operations (8,976 ) (933 ) (11,738 )
(5,154 ) Other loss, net (2 ) (137 ) (9 ) (73 ) Interest income 45
17 86 244 Interest expense (122 ) (181 ) (657
) (808 ) Loss from continuing operations before income taxes
(9,055 ) (1,234 ) (12,318 ) (5,791 ) Provision (benefit) for income
taxes 14 (769 ) (403 ) (749 ) Loss from
continuing operations (9,069 ) (465 ) (11,915 ) (5,042 ) Income
from discontinued operations, net of tax — — — 6 Gain on sale of
discontinued operations — 2,044 — 2,016
Net income (loss) $ (9,069 ) $ 1,579 $ (11,915 ) $ (3,020 )
Income (loss) per share: Basic Loss from continuing operations $
(0.22 ) $ (0.01 ) $ (0.29 ) $ (0.13 ) Income from discontinued
operations — 0.05 — 0.05 Net income
(loss) $ (0.22 ) $ 0.04 $ (0.29 ) $ (0.08 ) Diluted Loss
from continuing operations $ (0.22 ) $ (0.01 ) $ (0.29 ) $ (0.13 )
Income from discontinued operations — 0.05 —
0.05 Net income (loss) $ (0.22 ) $ 0.04 $ (0.29 ) $ (0.08 )
Weighted average shares used in computing income (loss) per
share: Basic 41,835 37,735 40,730
37,518 Diluted 41,835 39,787 40,730
37,518
WebMediaBrands
Inc. Unaudited Consolidated Condensed Balance Sheets
December 31, 2011 and 2010 (in thousands, except share
and per share amounts) December 31, December
31, 2011 2010 ASSETS Current assets: Cash
and cash equivalents $ 3,438 $ 12,970 Accounts receivable, net of
allowances of $11 and $10, respectively 489 581 Prepaid expenses
and other current assets 575 912 Total current assets
4,502 14,463 Property and equipment, net of accumulated
depreciation of $1,350 and $1,556, respectively 477 728 Intangible
assets, net of accumulated amortization of $722 and $209,
respectively 2,626 1,535 Goodwill 15,116 10,261 Investments and
other assets 1,146 1,005 Total assets $ 23,867 $
27,992
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 367 $ 1,210 Accrued payroll and
related expenses 391 424 Accrued expenses and other current
liabilities 662 1,447 Deferred revenues 1,288 817
Total current liabilities 2,708 3,898 Loan from related
party 7,647 5,947 Deferred revenues 22 19 Deferred income taxes 444
410 Other long-term liabilities 60 57 Total
liabilities 10,881 10,331 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, 42,545,702 and
37,986,851 shares issued and 41,710,702 and 37,921,851 shares
outstanding at December 31, 2011 and 2010, respectively 425 380
Additional paid-in capital 288,672 281,087 Accumulated deficit
(275,615 ) (263,700 ) Treasury stock, 835,000 shares and 65,000
shares, at cost at December 31, 2011 and 2010, respectively
(496 ) (106 ) Total stockholders’ equity 12,986
17,661 Total liabilities and stockholders’ equity $ 23,867 $
27,992
WebMediaBrands Inc. Unaudited
Consolidated Condensed Statements of Cash Flows For the
Years Ended December 31, 2011 and 2010 (in thousands)
Year Ended December 31, 2011
2010 Cash flows from operating activities: Net loss $
(11,915 ) $ (3,020 ) Less: Income from discontinued operations, net
of tax —
6
Less: Gain on sale of discontinued operations —
2,016
Loss from continuing operations
(11,915
)
(5,042
) Adjustments to reconcile net loss to net cash used in operating
activities: Impairment 8,289 319 Depreciation and amortization 832
629 Stock-based compensation 991 211 Provision for losses on
accounts receivable 15 — Other, net (2 ) 154 Amortization of debt
issuance costs 28 61 Deferred income taxes (410 ) (769) Changes in
current assets and liabilities (net of businesses acquired):
Accounts receivable, net 135 (80 ) Prepaid expenses and other
assets 660 1,961 Accounts payable, accrued expenses and other
liabilities (701 ) (1,079 ) Deferred revenues 236 (211 )
Discontinued operations — 21 Net cash used in
operating activities (1,842 ) (3,825 ) Cash flows
from investing activities: Purchases of property and equipment (57
) (78 ) Acquisitions of businesses, assets and other (9,062 )
(1,437 ) Proceeds from sale of discontinued operations, net — 1,700
Proceeds from sale of assets — 1,546 Net cash
provided by (used in) investing activities (9,119 )
1,731 Cash flows from financing activities: Borrowings from related
party 1,750 — Purchase of treasury stock (391 ) — Debt issuance
costs (26 ) (9 ) Repayment of borrowings from related party (50 )
(250 ) Proceeds from exercise of stock options 146
306 Net cash provided by financing activities 1,429
47 Effect of exchange rates on cash — 5 Net decrease
in cash and cash equivalents (9,532 ) (2,042 ) Cash and cash
equivalents, beginning of year 12,970 15,012 Cash and
cash equivalents, end of year $ 3,438 $ 12,970 Supplemental
disclosures of cash flow: Cash refund of income taxes, net $ 393 $
2,080 Cash paid for interest $ 629 $ 785
About WebMediaBrands Inc.
WebMediaBrands Inc. is an Internet media company that provides
content, education and career services to social media, traditional
media and creative professionals through a portfolio of vertical
online properties, communities and trade shows. The Company’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, advertising, public relations, publishing,
design and mobile; (ii) InsideNetwork.com, a leading network of
online properties providing original market research, data
services, news, and job listings on the Facebook platform, on
social gaming, and on mobile applications ecosystems; and (iii)
SemanticWeb.com, a leading blog providing content, education,
community resources and career resources on the commercialization
and application of Semantic Technologies, Linked Data and Big Data.
The Company’s online business also includes community, membership
and e-commerce offerings including a freelance listing service, a
marketplace for designing and purchasing logos (stocklogos.com) and
premium membership services. 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: 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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