WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for
the fourth quarter and full year ended December 31, 2012.
Highlights for the fourth quarter of 2012 include:
- Revenues for the fourth quarter of 2012
were $3.3 million and revenues from trade shows and research
increased 24% and 6%, respectively, compared to the same period in
2011.
- Net loss for the fourth quarter of 2012
was $6.5 million and included a non-cash impairment charge of $5.5
million related to the write-down of goodwill, compared to a net
loss of $9.1 million for the same period in 2011.
Highlights for the year ended December 31, 2012
include:
- Revenues for the year ended December
31, 2012 were $14.0 million compared to revenues of $12.4 million
for the year ended December 31, 2011, an increase of 12%. Revenues
from research, trade shows and advertising increased 80%, 35% and
18%, respectively, compared to 2011. Inside Network’s market
research and data services business, which includes AppData,
contributed $1.7 million in revenues during 2012. We acquired
Inside Network in May 2011.
- Net loss was $8.7 million for the year
ended December 31, 2012, and included a non-cash impairment charge
of $5.5 million related to the write-down of goodwill, compared to
a net loss of $11.9 million for the year ended December 31, 2011.
Non-GAAP loss, excluding interest, taxes, impairment, depreciation,
amortization and stock-based compensation, or EBITDA, was $1.5
million for the year ended December 31, 2012 and included
severance-related costs and a loss on the sale of certain assets
totaling $402,000. EBITDA loss was $1.6 million for the same period
in 2011. Stock-based compensation expense was $528,000 during the
year ended December 31, 2012 compared to $991,000 during the same
period in 2011.
“Our financial results for the year ended December 31, 2012,
included revenue growth of 12%, with our research and trade show
businesses leading the way with growth of 80% and 35%,
respectively,” stated Alan M. Meckler, Chairman and CEO of
WebMediaBrands, Inc. “We have continued to invest in our product
offerings, specifically with our research and trade show
businesses,” added Meckler. “We remain optimistic and encouraged
about the future success and value of our business.”
WebMediaBrands Inc. Fourth Quarter 2012 Financial Results
Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference
call reviewing 2012 fourth quarter results on Wednesday, February
27, 2013 at 5:00 pm EST.
The conference call number is 888-437-9445 for domestic
participants and 719-325-2329 for international participants;
confirmation code “4162863.” 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, March
5, 2013. Replay call numbers are 888-203-1112 for domestic
participants and 719-457-0820 for international participants;
confirmation code “4162863.”
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Operations
For the Three Months and Year Ended
December 31, 2012 and 2011
(in thousands, except per share
amounts)
Three Months EndedDecember 31,
Year EndedDecember 31, 2012 2011
2012 2011 Revenues $ 3,320 $ 3,375 $ 13,962 $
12,429 Cost of revenues 2,101 1,897 7,931 7,154 Advertising,
promotion and selling 772 551 2,692 2,088 General and
administrative 1,142 1,395 5,080 5,475 Depreciation 71 77 309 319
Amortization 131 142 540 513 Impairment 5,542 8,289 5,542 8,289
Contingent acquisition consideration — — —
329 Total operating expenses 9,759 12,351
22,094 24,167 Operating loss (6,439 ) (8,976 )
(8,132 ) (11,738 ) Other loss, net (24 ) (2 ) (240 ) (9 ) Interest
income 1 45 4 86 Interest expense (62 ) (122 )
(271 ) (657 ) Loss before income taxes (6,524 ) (9,055 )
(8,639 ) (12,318 ) Provision (benefit) for income taxes 4
14 34 (403 ) Net loss $ (6,528 ) $ (9,069 ) $
(8,673 ) $ (11,915 ) Loss per share: Basic net loss $ (1.09
) $ (1.52 ) $ (1.45 ) $ (2.05 ) Diluted net loss $ (1.09 ) $ (1.52
) $ (1.45 ) $ (2.05 ) Weighted average shares used in
computing loss per share: Basic 6,014 5,976
5,991 5,818 Diluted 6,014 5,976 5,991
5,818
Shares outstanding and per share data have
been adjusted to give effect to the one-for-seven reverse
stocksplit implemented on August 16, 2012.
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Balance Sheets
December 31, 2012 and 2011
(in thousands, except share and per
share amounts)
December 31,2012 December
31,2011 ASSETS Current assets: Cash and cash
equivalents $ 2,210 $ 3,438 Accounts receivable, net of allowances
of $16 and $11, respectively 524 489 Prepaid expenses and other
current assets 503 575 Total current assets 3,237
4,502 Property and equipment, net of accumulated
depreciation of $1,475 and $1,350, respectively 268 477 Intangible
assets, net of accumulated amortization of $1,144 and $722,
respectively 2,305 2,626 Goodwill 9,574 15,116 Investments and
other assets 687 1,146 Total assets $ 16,071 $ 23,867
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 509 $ 367 Accrued payroll and
related expenses 493 391 Accrued expenses and other current
liabilities 649 662 Deferred revenues 1,294 1,288
Total current liabilities 2,945 2,708 Loan from related
party 7,647 7,647 Deferred revenues 17 22 Deferred income taxes 474
444 Other long-term liabilities — 60 Total
liabilities 11,083 10,881 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, 6,138,879 and
6,077,911 shares issued and 6,019,594 and 5,958,626 shares
outstanding at December 31, 2012 and 2011, respectively 61 61
Additional paid-in capital 289,711 289,036 Accumulated deficit
(284,288 ) (275,615 ) Treasury stock, 119,285 shares, at cost
(496 ) (496 ) Total stockholders’ equity 4,988
12,986 Total liabilities and stockholders’ equity $ 16,071 $
23,867
Shares outstanding and per share data have
been adjusted to give effect to the one-for-seven reverse
stocksplit implemented on August 16, 2012.
WebMediaBrands Inc.
Unaudited Consolidated Condensed
Statements of Cash Flows
For the Years Ended December 31, 2012
and 2011 (in thousands)
Year Ended December 31, 2012
2011 Cash flows from operating activities: Net loss $ (8,673
) $ (11,915 ) Adjustments to reconcile net loss to net cash used in
operating activities: Impairment 5,542 8,289 Depreciation and
amortization 849 832 Stock-based compensation 528 991 Provision for
losses on accounts receivable 27 15 Other, net 236 (2 )
Amortization of debt issuance costs 36 28 Deferred income taxes 30
(410 ) Changes in current assets and liabilities (net of businesses
acquired): Accounts receivable, net (62 ) 135 Prepaid expenses and
other assets 176 660 Accounts payable, accrued expenses and other
liabilities 167 (702 ) Deferred revenues 1 236 Net
cash used in operating activities (1,143 ) (1,843 )
Cash flows from investing activities: Purchases of property and
equipment (117 ) (57 ) Acquisitions of businesses, assets and other
(220 ) (9,062 ) Proceeds from sale of assets 132 —
Net cash used in investing activities (205 ) (9,119 )
Cash flows from financing activities: Borrowings from related party
— 1,750 Purchase of treasury stock — (390 ) Debt issuance costs (23
) (26 ) Repayment of borrowings from related party — (50 ) Proceeds
from exercise of stock options 143 146 Net cash
provided by financing activities 120 1,430 Effect of
exchange rates on cash — — Net decrease in cash and
cash equivalents (1,228 ) (9,532 ) Cash and cash equivalents,
beginning of year 3,438 12,970 Cash and cash
equivalents, end of year $ 2,210 $ 3,438 Supplemental disclosures
of cash flow: Cash refund of income taxes, net $ 70 $ 393 Cash paid
for interest $ 235 $ 629
About WebMediaBrands Inc.
WebMediaBrands Inc. (Nasdaq: WEBM)
(http://www.webmediabrands.com) is a leading 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
http://www.webmediabrands.com/corporate/press.html.
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