LAKE FOREST, Calif., April 8, 2013 /PRNewswire/ -- SearchCore, Inc.
(OTCQX: SRER), a technology-based Internet marketing services
company that connects consumers with brands, products and services,
today announced its consolidated financial results for the fiscal
year ended December 31, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20120106/LA31342LOGO)
Fiscal Year 2012 Highlights
- Total revenues were $16.4
million, an increase of 38% over fiscal year 2011.
- EBITDA was $4.5 million, an
increase of 150% over fiscal year 2011.
- Operating income was $4.2
million, an increase of 191% over the previous year.
- Net income of $15.4 million or
$0.18 per share included a
$7.8 million gain on the sale of
WeedMaps Media, Inc. during the fourth quarter and a non-cash gain
of $6.0 million on the change in fair
value of earn-out liabilities.
Management Commentary
"Fiscal year 2012 was a turning point for SearchCore as we
developed and embarked on a diversification strategy to expand into
a portfolio of Internet-supported niche verticals," said
Jim Pakulis, CEO of SearchCore, Inc.
"We monetized our first vertical with the sale of WeedMaps in the
fourth quarter of 2012, and as planned we retained key management,
sales personnel and the technology that forms the core of our
continued operating platform. Over the past couple of months
we have successfully executed on our strategy with our entry into
the recreational sports, tattoo, manufactured housing, modular
housing, and recreational vehicle industries, and our brands
include Sportify.com, Tattoo.com, ManufacturedHomes.com,
ModularHomes.com, www.TravelTrailer.com and www.ToyHaulers.com. To
date we've generated positive improving user metrics and expanding
user engagement across our live portals.
"We will report our first revenues based on these new operations
in the first quarter of 2013. We anticipate that our recurring,
subscription-based revenues will ramp up throughout the year and
expect to be on a quarterly break even revenue run rate by the end
of the year. Our new focus and path sets us up for exciting
developments in 2013 that we expect will create long-term value for
shareholders."
Fiscal Year 2012 Financial Results
SearchCore's revenues for the year ended December 31, 2012 totaled $16.4 million, a year-over-year increase of 38%
as compared with $11.9 million for
the year ended December 31, 2011.
Total operating expenses were $12.2
million, or 74% of revenue, as compared with $10.5 million, or 88% of revenue for the previous
year. The decrease in operating expenses as a percentage of revenue
was due to increased efficiencies in our operations and management
of our finder sites.
EBITDA for 2012 increased 150% to $4.5
million from $1.8 million for
2011. EBITDA as a percentage of total revenue was 27% for the year
ended December 31, 2012, as compared
to 15% for the previous year.
Operating income for the year ended December 31, 2012 increased to $4.2 million, as compared to $1.5 million for the year ended December 31, 2011.
Income from continuing operations increased to $17.9 million for the year ended December 31, 2012 compared to income from
continuing operations of $0.8 million
for the prior year. Income from continuing operations for fiscal
year 2012 included a one-time gain on the sale of WeedMaps Media,
Inc. of $7.8 million and a non-cash
gain of $6.0 million on the change in
fair value of earn-out liabilities.
Net income was $15.2 million, or
$0.18 per diluted share for the year
ended December 31, 2012. This
compares with a net loss of $3.2
million or $0.04 loss per
share for the previous year.
Balance Sheet Overview
At December 31, 2012, SearchCore
had cash and cash equivalents of $514,000 and had total debt of $615,000, as compared with cash and cash
equivalents of $1.5 million and total
debt of $7.1 million as of
December 31, 2011. As of December 31, 2012, the Company had 37.9 million
shares of common stock issued and outstanding which included 80.5
million of common stock less 42.6 million of treasury
stock.
About SearchCore, Inc.
SearchCore, Inc. is a technology-based Internet marketing
services company that offers customers an integrated suite of
services including media, technology, marketing and
information. The Company's portfolio of industry verticals
includes Recreational Sports (Sportify.com), Tattoo (Tattoo.com),
Manufactured Housing (ManufacturedHomes.com), Modular Housing
(ModularHomes.com), and Recreational Vehicles
(www.TravelTrailer.com and www.ToyHaulers.com). Founded in 2010,
SearchCore is headquartered in Lake
Forest, California. The Company's common stock trades
on the OTC Market's highest tier, OTCQX, under the ticker symbol
"SRER." www.SearchCore.com
Safe Harbor Notice
Certain statements contained herein are "forward-looking
statements" (as defined in the Private Securities Litigation Reform
Act of 1995). SearchCore, Inc. cautions that statements made
in this news release constitute forward-looking statements and
makes no guarantee of future performance. Forward-looking
statements are based on estimates and opinions of management at the
time statements are made. These statements may address issues that
involve significant risks, uncertainties, estimates and assumptions
made by management. Actual results could differ materially
from current projections or implied results. SearchCore, Inc.
undertakes no obligation to revise these statements following the
date of this news release.
- financial
tables to follow –
SEARCHCORE,
INC.
Consolidated Balance Sheets
(Audited)
|
|
|
December
31,
|
|
December
31,
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
514,382
|
|
$
|
1,512,590
|
Accounts
receivable
|
|
—
|
|
|
206,091
|
Inventory
|
|
—
|
|
|
9,830
|
Other current
assets
|
|
1,542,800
|
|
|
379,860
|
Current assets - discontinued
operations
|
|
180,099
|
|
|
51,795
|
TOTAL CURRENT
ASSETS
|
$
|
2,237,281
|
|
$
|
2,160,166
|
|
|
|
|
|
|
Property and equipment,
net
|
|
5,118
|
|
|
430,041
|
Intangible
assets:
|
|
|
|
|
|
Domain
names
|
|
805,643
|
|
|
114,119
|
Domain name -
Marijuana.com, net
|
|
—
|
|
|
4,250,000
|
Trademarks
|
|
1,000
|
|
|
—
|
Web software,
net
|
|
429,503
|
|
|
501,343
|
Goodwill
|
|
59,060
|
|
|
486,403
|
Other assets
|
|
1,658,072
|
|
|
82,332
|
Other assets - discontinued
operations
|
|
—
|
|
|
51,976
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
5,195,677
|
|
$
|
8,076,380
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
120,852
|
|
$
|
50,632
|
Accrued
liabilities
|
|
2,218,746
|
|
|
759,312
|
Notes payable
|
|
453,750
|
|
|
708,901
|
Notes payable - related
party
|
|
161,250
|
|
|
1,130,000
|
Current liabilities -
discontinued operations
|
|
139,826
|
|
|
243,017
|
|
|
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
$
|
3,094,424
|
|
$
|
2,891,862
|
|
|
|
|
|
|
LONG TERM
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Other accrued
liabilities
|
|
682,857
|
|
|
155,025
|
Notes payable
|
|
—
|
|
|
3,416,099
|
Notes payable - related
party
|
|
—
|
|
|
1,800,000
|
Earn-out
provisions
|
|
—
|
|
|
18,567,223
|
|
|
|
|
|
|
TOTAL LONG TERM
LIABILITIES
|
|
682,857
|
|
|
23,938,347
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
$
|
3,777,281
|
|
$
|
26,830,209
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
(DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par
value: 20,000,000 shares authorized; zero
shares issued and outstanding at December 31, 2012;
zero shares issued and
outstanding at December 31, 2011;
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
Common stock, $0.001 par
value: 200,000,000 shares authorized; 80,549,563
shares issued and outstanding at December 31, 2012,
83,140,256 shares issued and
outstanding at December 31, 2011;
|
|
|
|
|
|
|
|
|
|
|
|
37,968
|
|
|
83,140
|
Treasury
stock; 42,581,596 shares issued
and outstanding at December 31, 2012, zero
shares issued and outstanding at December 31, 2011;
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
Paid-in capital
|
|
(11,011,418)
|
|
|
(15,965,044)
|
Retained earnings (accumulated
deficit)
|
|
12,391,846
|
|
|
(2,871,925)
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY
(DEFICIT)
|
|
1,418,396
|
|
|
(18,753,829)
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
$
|
5,195,677
|
|
$
|
8,076,380
|
SEARCHCORE,
INC.
Consolidated Statements of
Operations (Audited)
|
|
|
|
|
|
|
|
|
|
Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
Sales
|
|
$
|
16,421,688
|
|
$
|
11,928,932
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
16,421,688
|
|
|
11,928,932
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Cost of
sales
|
|
|
1,007,116
|
|
|
793,789
|
Selling, general and
administrative expenses
|
|
|
11,188,799
|
|
|
9,684,963
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
12,195,915
|
|
|
10,478,752
|
|
|
|
|
|
|
|
Operating Income
(loss)
|
|
|
4,225,773
|
|
|
1,450,180
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
Gain on sale of
WeedMaps Media, Inc.
|
|
|
7,795,627
|
|
|
—
|
Gain on change in fair
value of earn-out liabilities
|
|
|
5,954,030
|
|
|
(204,954)
|
Interest
income
|
|
|
1,313
|
|
|
213
|
Interest
expense
|
|
|
(44,947)
|
|
|
(13,241)
|
Total other
income
|
|
|
13,706,023
|
|
|
(217,982)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING
OPERATIONS BEFORE INCOME TAXES
|
|
|
17,931,796
|
|
|
1,232,198
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
2,556,590
|
|
|
416,130
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS
|
|
|
15,375,206
|
|
|
816,068
|
|
|
|
|
|
|
|
Loss from discontinued
operations, net of $74,300 and $133,500 tax benefit for the years
ended December 31, 2012 and 2011, respectively.
|
|
|
(111,435)
|
|
|
(4,060,367)
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
|
15,263,771
|
|
$
|
(3,244,299)
|
|
|
|
|
|
|
|
Income (loss) per share, Basic
and Diluted
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
$
|
0.18
|
|
$
|
0.01
|
Income (loss) from
discontinued operations
|
|
|
(0.00)
|
|
|
(0.05)
|
Total income (loss) per
share
|
|
$
|
0.18
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
|
|
|
84,395,845
|
|
|
83,140,256
|
SEARCHCORE,
INC.
Consolidated Statements of
Cash Flows (Audited)
|
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2012
|
|
2011
|
Cash flows from operating
activities:
|
|
|
|
|
|
Net income
(loss)
|
$
|
15,263,771
|
|
$
|
(3,244,299)
|
Adjustments to reconcile
net income (loss) to net cash used in operating
activities:
|
|
|
|
Depreciation
|
|
121,175
|
|
|
71,295
|
Amortization
|
|
184,409
|
|
|
284,856
|
Stock-based
compensation
|
|
210,000
|
|
|
—
|
Gain on sale of
WeedMaps
|
|
(7,795,627)
|
|
|
—
|
Gain on change in fair value
of earn-out liabilities
|
|
(5,954,030)
|
|
|
204,954
|
Loss on
abandonment
|
|
—
|
|
|
4,142,835
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
148,591
|
|
|
(206,091)
|
Inventories
|
|
9,830
|
|
|
(9,830)
|
Prepaid expenses and
deposits
|
|
(326,425)
|
|
|
672,682
|
Other assets
|
|
126,236
|
|
|
54,589
|
Accounts payable and accrued
liabilities
|
|
1,316,474
|
|
|
(234,061)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
3,304,404
|
|
|
1,736,930
|
|
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(159,737)
|
|
|
(454,168)
|
Purchases of intangible
assets
|
|
(1,038,632)
|
|
|
(488,746)
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(1,198,369)
|
|
|
(942,914)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
Payments on note
payable
|
|
(758,982)
|
|
|
—
|
Payments on note
payable - related party
|
|
(2,345,261)
|
|
|
(670,000)
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(3,104,243)
|
|
|
(670,000)
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
(998,208)
|
|
|
124,016
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
|
1,512,590
|
|
|
1,388,574
|
|
|
|
|
|
|
Cash and cash equivalents at
end of period
|
$
|
514,382
|
|
$
|
1,512,590
|
|
|
|
|
|
|
Non-cash investing and
financing activity:
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued pursuant to
Revyv acquisition
|
$
|
—
|
|
$
|
1,000,000
|
Shares issued pursuant to
MMJMenu acquisition
|
$
|
262,000
|
|
$
|
—
|
Shares issued pursuant to
WeedMaps Earn-outs
|
$
|
9,120,000
|
|
$
|
—
|
SOURCE SearchCore, Inc.