Exhibit 99.1
Move, Inc. Announces Fourth Quarter and Full Year 2008 Financial Results
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--March 3, 2009--Move, Inc. (NASDAQ:MOVE) reported financial results for the fourth quarter and full year ended December 31, 2008.
Revenue for the fourth quarter was $57.5 million, compared to $62.6 million in the fourth quarter of 2007. Income from continuing operations for the fourth quarter was $282,000, which includes a $398,000 restructuring charge related to cost reduction initiatives and a $1.7 million impairment on long-lived assets. Income from continuing operations in the fourth quarter of 2007 was $1.2 million, which included an impairment charge of $4.8 million.
Move's Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) on a non-GAAP basis for the fourth quarter of 2008 was $7.3 million, compared to $9.7 million for the fourth quarter of 2007. The Company has reported Adjusted EBITDA because management uses it to monitor and assess the Company's performance and believes it is helpful to investors in understanding the Company's business.
"2008 was an eventful year for Move and for our industry, and I believe we enter the new year positioned to continue our market leadership in online real estate," said Steve Berkowitz, Move's CEO. “As we reshaped our external profile, relaunching our websites to better serve consumers and real estate professionals, we also focused internally on our efficiency as an organization, reducing operating expenses by $20 million and divesting underperforming businesses to improve our bottom line performance. While we still face the challenges of a deteriorating housing market, continuing challenges in the mortgage and credit markets, and global economic uncertainty, I am excited to step into the CEO role and help take Move to the next level of financial and operational performance.”
For the fourth quarter of 2008, the Company reported a loss from discontinued operations of $2.2 million, which included a restructuring charge of $1.5 million related to the Welcome Wagon operations that are being marketed for sale, compared to a loss of $5.2 million for the fourth quarter of 2007, which included an impairment charge of $3.1 million.
Net loss applicable to common stockholders ("net loss") for the fourth quarter of 2008 was $3.2 million, or $0.02 per share, compared to a net loss of $5.3 million, or $0.03 per share, for the fourth quarter of 2007.
Revenue for the full year 2008 was $242.1 million compared to $248.9 million for the full year 2007. Loss from continuing operations for the year was $399,000, which includes a $4.4 million restructuring charge related to cost reduction initiatives and a $1.7 million impairment on long-lived assets. Income from continuing operations for 2007 was $11.3 million, which included an impairment charge of $4.8 million and a litigation settlement charge of $3.9 million.
Move's Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) on a non-GAAP basis for the full year 2008 was $22.2 million, compared to $33.6 million for the full year 2007.
In the full year 2008, the Company reported a loss from discontinued operations of $27.2 million, which includes a restructuring charge of $1.6 million and an impairment charge of $16.0 million, related to the Welcome Wagon operations. In the full year 2007, the loss from discontinued operations was $10.3 million which included an impairment charge of $3.1 million.
Net loss applicable to common stockholders ("net loss") for the full year 2008 was $32.7 million, or $0.22 per share, compared to a net loss of $4.0 million, or $0.03 per share, for the full year 2007.
Conference Call
As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Tuesday, March 3, 2009, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Chief Executive Officer, Steve Berkowitz, and Chief Financial Officer, Lew Belote, will discuss the Company's fourth quarter 2008 results. In order to participate in the call, please dial (866) 271-6130, or if outside the U.S., (617) 213-8894 with passcode 49585131, at least five minutes prior to the 2:00 p.m. PT start time. A live webcast and replay of the call will also be available at http://investor.move.com under the Event Calendar menu. An audio replay will be available between 8:00 p.m. ET, March 3, 2009, and 11:59 p.m. ET, March 10, 2009, by calling (888) 286-8010, or (617) 801-6888, with passcode 65671153.
For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com to view annual reports as filed with the Securities and Exchange Commission on Form 10-K. Move's Form 10-K for the year ended December 31, 2008 is expected to be filed with the Securities and Exchange Commission on, or before, March 11, 2009.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Move uses a non-GAAP measure of income (loss) from continuing operations excluding restructuring, impairment of long-lived assets, litigation settlement charges and certain other non-cash and non-recurring items, principally depreciation, amortization and stock based compensation and other charges, which is referred to as EBITDA. The Company has also presented a non-GAAP table of Segment Data for the three months and years ended December 31, 2008 and 2007 that extracts stock based compensation under SFAS 123R "Share Based Payment". A reconciliation of these non-GAAP measures to GAAP is provided in the attached tables. These non-GAAP adjustments are provided to enhance the user's overall understanding of Move's current financial performance and its prospects for the future and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP measures are the primary basis management uses for planning and forecasting its future operations. Move believes these non-GAAP results provide useful information to both management and investors by excluding certain expenses that it believes are not indicative of its core operating results and a more consistent basis for comparison between quarters and should be carefully evaluated.
This press release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move's future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.
ABOUT MOVE, INC.
Move, Inc. (NASDAQ: MOVE) is the leader in online real estate with 7.4 million [1] monthly visitors to its online network of websites. Move, Inc. operates: Move.com®, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; REALTOR.com®, the official Web site of the National Association of REALTORS®; Welcome Wagon®; Moving.com; SeniorHousingNet™; and TOP PRODUCER® Systems. Move, Inc. is based in Westlake Village, California. For more information: www.move.com.
[1] comScore Media Metrix, January 2009
MOVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(unaudited) | ||||||||||||||||
Revenue | $ | 57,450 | $ | 62,563 | $ | 242,069 | $ | 248,919 | ||||||||
Cost of revenue (1) | 11,588 | 11,266 | 46,041 | 42,908 | ||||||||||||
Gross profit | 45,862 | 51,297 | 196,028 | 206,011 | ||||||||||||
Operating expenses: (1) | ||||||||||||||||
Sales and marketing | 22,263 | 21,665 | 93,531 | 89,954 | ||||||||||||
Product and web site development | 5,832 | 8,043 | 26,342 | 34,656 | ||||||||||||
General and administrative | 15,807 | 18,205 | 75,945 | 71,434 | ||||||||||||
Amortization of intangible assets | 174 | 197 | 756 | 761 | ||||||||||||
Restructuring charge | 398 | — | 4,412 | — | ||||||||||||
Impairment of long-lived assets | 1,670 | 4,824 | 1,670 | 4,824 | ||||||||||||
Litigation settlement | — | — | — | 3,900 | ||||||||||||
Total operating expenses | 46,144 | 52,934 | 202,656 | 205,529 | ||||||||||||
Operating income (loss) from continuing operations | (282 | ) | (1,637 | ) | (6,628 | ) | 482 | |||||||||
Interest income, net | 848 | 2,469 | 5,687 | 9,852 | ||||||||||||
Other income, net | (48 | ) | 415 | 1,091 | 1,493 | |||||||||||
Income from continuing operations before income taxes | 518 | 1,247 | 150 | 11,827 | ||||||||||||
Provision for income taxes | (236 | ) | (79 | ) | (549 | ) | (501 | ) | ||||||||
Income (loss) from continuing operations | 282 | 1,168 | (399 | ) | 11,326 | |||||||||||
Loss from discontinued operations | (2,181 | ) | (5,203 | ) | (27,165 | ) | (10,345 | ) | ||||||||
Net income (loss) | (1,899 | ) | (4,035 | ) | (27,564 | ) | 981 | |||||||||
Convertible preferred stock dividends and related accretion | (1,289 | ) | (1,256 | ) | (5,108 | ) | (4,977 | ) | ||||||||
Net loss applicable to common stockholders | $ | (3,188 | ) | $ | (5,291 | ) | $ | (32,672 | ) | $ | (3,996 | ) | ||||
Basic net income (loss) per share applicable to common stockholders | ||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.04 | ) | $ | 0.04 | |||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.18 | ) | (0.07 | ) | ||||||||
Basic Net income (loss) per share applicable to common stockholders | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.03 | ) | ||||
Diluted net income (loss) per share applicable to common stockholders | ||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.04 | ) | $ | 0.04 | |||||
Discontinued operations | (0.01 | ) | (0.03 | ) | (0.18 | ) | (0.07 | ) | ||||||||
Diluted net income (loss) per share applicable to common stockholders | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.22 | ) | $ | (0.03 | ) | ||||
Shares used in calculation of net income (loss) per share applicable to common stockholders: | ||||||||||||||||
Basic | 152,844 | 153,857 | 151,952 | 154,524 | ||||||||||||
Diluted | 152,844 | 153,857 | 151,952 | 154,524 | ||||||||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||
Cost of revenue | $ | 34 | $ | 43 | $ | 144 | $ | 130 | ||||||||
Sales and marketing | 388 | 153 | 758 | 1,058 | ||||||||||||
Product and web site development | 147 | 336 | 566 | 1,181 | ||||||||||||
General and administrative | 1,812 | 2,979 | 8,905 | 10,742 | ||||||||||||
$ | 2,381 | $ | 3,511 | $ | 10,373 | $ | 13,111 | |||||||||
MOVE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||
Twelve Months Ended December 31, | ||||||||
2008 | 2007 | |||||||
Cash flows from continuing operating activities: | ||||||||
Income (loss) from continuing operations | $ | (399 | ) | $ | 11,326 | |||
Adjustments to reconcile income (loss) from continuing operations to net cash provided by continuing operating activities: | ||||||||
Depreciation | 11,246 | 9,978 | ||||||
Amortization of intangible assets | 756 | 761 | ||||||
Provision for doubtful accounts | 823 | 1,271 | ||||||
Stock-based compensation and charges | 10,699 | 13,703 | ||||||
Impairment of long-lived assets | 1,670 | 4,824 | ||||||
Gain on sales of property and equipment | (687 | ) | (337 | ) | ||||
Change in market value of embedded derivative liability | (411 | ) | (1,052 | ) | ||||
Other non-cash items | 651 | 128 | ||||||
Changes in operating assets and liabilities, net of acquisitions and discontinued operations: | ||||||||
Accounts receivable | 1,965 | (1,618 | ) | |||||
Other assets | (557 | ) | (3,574 | ) | ||||
Accounts payable and accrued expenses | (6,067 | ) | 2,986 | |||||
Deferred revenue | (10,834 | ) | (9,973 | ) | ||||
Net cash provided by continuing operating activities | 8,855 | 28,423 | ||||||
Net cash used in discontinued operating activities | (7,334 | ) | (4,660 | ) | ||||
Net cash provided by operating activities | 1,521 | 23,763 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (5,935 | ) | (18,509 | ) | ||||
Purchases of short-term investments | (96,418 | ) | (73,475 | ) | ||||
Loss from discontinued operations | 96,918 | 86,550 | ||||||
Purchases of intangible assets | — | (619 | ) | |||||
Proceeds from sale of marketable equity securities | 27 | 15,743 | ||||||
Proceeds from the surrender of life insurance policy | — | 5,200 | ||||||
Proceeds from sale of assets | 206 | 338 | ||||||
Net cash provided by (used in) investing activities of continuing operations | (5,202 | ) | 15,228 | |||||
Net cash provided by (used in) investing activities of discontinued operations | 813 | (221 | ) | |||||
Net cash provided by (used in) investing activities | (4,389 | ) | 15,007 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 3,058 | 3,064 | ||||||
Proceeds from line of credit | 64,700 | — | ||||||
Repurchase of company stock | — | (10,000 | ) | |||||
Payments on capital lease obligations | (1,828 | ) | (1,904 | ) | ||||
Restricted cash | 160 | 910 | ||||||
Net cash provided by (used in) financing activities | 66,090 | (7,930 | ) | |||||
Change in cash and cash equivalents | 63,222 | 30,840 | ||||||
Cash and cash equivalents, beginning of period | 45,713 | 14,873 | ||||||
Cash and cash equivalents, end of period | $ | 108,935 | $ | 45,713 | ||||
MOVE, INC. CONSOLIDATED BALANCE SHEETS (in thousands) | ||||||||
December 31, | December 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 108,935 | $ | 45,713 | ||||
Short-term investments | — | 129,900 | ||||||
Accounts receivable, net | 12,833 | 15,645 | ||||||
Assets of discontinued operations | — | 24,417 | ||||||
Other current assets | 11,399 | 10,111 | ||||||
Total current assets | 133,167 | 225,786 | ||||||
Property and equipment, net | 21,934 | 29,930 | ||||||
Long-term investments | 111,800 | — | ||||||
Goodwill, net | 16,969 | 17,181 | ||||||
Intangible assets, net | 3,933 | 5,011 | ||||||
Restricted cash | 3,209 | 3,369 | ||||||
Other assets | 995 | 1,251 | ||||||
Total assets | $ | 292,007 | $ | 282,528 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,051 | $ | 4,337 | ||||
Accrued expenses | 22,747 | 28,446 | ||||||
Obligation under capital leases | 339 | 1,894 | ||||||
Deferred revenue | 23,991 | 34,975 | ||||||
Line of credit | 64,700 | — | ||||||
Loss from discontinued operations | — | 5,429 | ||||||
Total current liabilities | 115,828 | 75,081 | ||||||
Obligation under capital leases | — | 273 | ||||||
Other non-current liabilities | 2,043 | 1,508 | ||||||
Total liabilities | 117,871 | 76,862 | ||||||
Series B convertible preferred stock | 106,297 | 101,189 | ||||||
Stockholders’ equity: | ||||||||
Series A convertible preferred stock | — | — | ||||||
Common stock | 153 | 151 | ||||||
Additional paid-in capital | 2,089,964 | 2,076,074 | ||||||
Accumulated other comprehensive income | (17,183 | ) | 675 | |||||
Accumulated deficit | (2,005,095 | ) | (1,972,423 | ) | ||||
Total stockholders’ equity | 67,839 | 104,477 | ||||||
Total liabilities and stockholders’ equity | $ | 292,007 | $ | 282,528 | ||||
MOVE, INC. SEGMENT OPERATING RESULTS (in thousands) | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||||
Revenue: | (unaudited) | (unaudited) | |||||||||||||
Real Estate Services | $ | 52,732 | $ | 56,337 | $ | 217,233 | $ | 220,546 | |||||||
Consumer Media | 4,718 | 6,226 | 24,836 | 28,373 | |||||||||||
Total revenue | $ | 57,450 | $ | 62,563 | $ | 242,069 | $ | 248,919 | |||||||
Operating income (loss) from continuing operations (1) | |||||||||||||||
Real Estate Services | $ | 13,804 | $ | 15,527 | $ | 52,968 | $ | 59,943 | |||||||
Consumer Media | (331 | ) | (608 | ) | 303 | (1,432 | ) | ||||||||
Unallocated | (13,755 | ) | (16,556 | ) | (59,899 | ) | (58,029 | ) | |||||||
Operating income (loss) from continuing operations | $ | (282 | ) | $ | (1,637 | ) | $ | (6,628 | ) | $ | 482 | ||||
(1) Includes stock-based compensation as follows: | |||||||||||||||
Real Estate Services | $ | 861 | $ | 1,550 | $ | 4,188 | $ | 4,631 | |||||||
Consumer Media | 121 | 253 | 413 | 1,048 | |||||||||||
Unallocated | 1,399 | 1,708 | 5,772 | 7,432 | |||||||||||
$ | 2,381 | $ | 3,511 | $ | 10,373 | $ | 13,111 | ||||||||
MOVE, INC. SEGMENT OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands) | |||||||||||||||||||
Three months ended December 31, 2008 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Real Estate Services | Consumer Media | Unallocated | Stock-based Compensation | Total | |||||||||||||||
Revenue | $ | 52,732 | $ | 4,718 | $ | — | $ | — | $ | 57,450 | |||||||||
Cost of revenue | 9,701 | 1,593 | 260 | 34 | 11,588 | ||||||||||||||
Gross profit | 43,031 | 3,125 | (260 | ) | (34 | ) | 45,862 | ||||||||||||
Sales and marketing | 18,661 | 2,139 | 1,075 | 388 | 22,263 | ||||||||||||||
Product and web site development | 4,564 | 510 | 611 | 147 | 5,832 | ||||||||||||||
General and administrative | 5,091 | 576 | 8,328 | 1,812 | 15,807 | ||||||||||||||
Amortization of intangibles | — | — | 174 | — | 174 | ||||||||||||||
Restructuring charges | 50 | 110 | 238 | — | 398 | ||||||||||||||
Impairment of long-lived assets | — | — | 1,670 | — | 1,670 | ||||||||||||||
Total operating expenses | 28,366 | 3,335 | 12,096 | 2,347 | 46,144 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 14,665 | $ | (210 | ) | $ | (12,356 | ) | $ | (2,381 | ) | $ | (282 | ) | |||||
Three months ended December 31, 2007 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Real Estate Services | Consumer Media | Unallocated | Stock-based Compensation | Total | |||||||||||||||
Loss from discontinued operations | $ | 56,337 | $ | 6,226 | $ | — | $ | — | $ | 62,563 | |||||||||
Cost of revenue | 9,002 | 1,653 | 568 | 43 | 11,266 | ||||||||||||||
Gross profit | 47,335 | 4,573 | (568 | ) | (43 | ) | 51,297 | ||||||||||||
Sales and marketing | 17,664 | 2,939 | 909 | 153 | 21,665 | ||||||||||||||
Product and web site development | 6,035 | 1,172 | 500 | 336 | 8,043 | ||||||||||||||
General and administrative | 6,559 | 817 | 7,850 | 2,979 | 18,205 | ||||||||||||||
Amortization of intangibles | — | — | 197 | — | 197 | ||||||||||||||
Restructuring charges | — | — | — | — | — | ||||||||||||||
Impairment charge | — | — | 4,824 | — | 4,824 | ||||||||||||||
Total operating expenses | 30,258 | 4,928 | 14,280 | 3,468 | 52,934 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 17,077 | $ | (355 | ) | $ | (14,848 | ) | $ | (3,511 | ) | $ | (1,637 | ) | |||||
MOVE, INC. SEGMENT OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE (in thousands) | |||||||||||||||||||
Twelve months ended December 31, 2008 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Real Estate Services | Consumer Media | Unallocated | Stock-based Compensation | Total | |||||||||||||||
Revenue | $ | 217,233 | $ | 24,836 | $ | — | $ | — | $ | 242,069 | |||||||||
Cost of revenue | 38,263 | 6,546 | 1,088 | 144 | 46,041 | ||||||||||||||
Gross profit | 178,970 | 18,290 | (1,088 | ) | (144 | ) | 196,028 | ||||||||||||
Sales and marketing | 75,420 | 11,911 | 5,442 | 758 | 93,531 | ||||||||||||||
Product and web site development | 21,326 | 1,719 | 2,731 | 566 | 26,342 | ||||||||||||||
General and administrative | 24,767 | 3,756 | 38,517 | 8,905 | 75,945 | ||||||||||||||
Amortization of intangibles | — | — | 756 | — | 756 | ||||||||||||||
Restructuring charges | 301 | 188 | 3,923 | — | 4,412 | ||||||||||||||
Impairment of long-lived assets | — | — | 1,670 | — | 1,670 | ||||||||||||||
Total operating expenses | 121,814 | 17,574 | 53,039 | 10,229 | 202,656 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 57,156 | $ | 716 | $ | (54,127 | ) | $ | (10,373 | ) | $ | (6,628 | ) | ||||||
Twelve months ended December 31, 2007 | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Real Estate Services | Consumer Media | Unallocated | Stock-based Compensation | Total | |||||||||||||||
Loss from discontinued operations | $ | 220,546 | $ | 28,373 | $ | — | $ | — | $ | 248,919 | |||||||||
Cost of revenue | 34,564 | 5,865 | 2,349 | 130 | 42,908 | ||||||||||||||
Gross profit | 185,982 | 22,508 | (2,349 | ) | (130 | ) | 206,011 | ||||||||||||
Sales and marketing | 70,519 | 13,343 | 5,034 | 1,058 | 89,954 | ||||||||||||||
Product and web site development | 26,174 | 5,768 | 1,533 | 1,181 | 34,656 | ||||||||||||||
General and administrative | 24,715 | 3,781 | 32,196 | 10,742 | 71,434 | ||||||||||||||
Amortization of intangibles | — | — | 761 | — | 761 | ||||||||||||||
Litigation settlement | — | — | 3,900 | — | 3,900 | ||||||||||||||
Impairment charge | — | — | 4,824 | — | 4,824 | ||||||||||||||
Total operating expenses | 121,408 | 22,892 | 48,248 | 12,981 | 205,529 | ||||||||||||||
Operating income (loss) from continuing operations | $ | 64,574 | $ | (384 | ) | $ | (50,597 | ) | $ | (13,111 | ) | $ | 482 | ||||||
MOVE, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURE OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS EXCLUDING STOCK-BASED COMPENSATION AND CHARGES, DEPRECIATION, AMORTIZATION, RESTRUCTURING, LITIGATION SETTLEMENT AND IMPAIRMENT OF LONG-LIVED ASSETS (EBITDA) (in thousands) | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Operating income (loss) from continuing operations | $ | (282) | $ | (1,637) | $ | (6,628) | $ | 482 | ||||
Plus: | ||||||||||||
Stock-based charges | 109 | 143 | 326 | 592 | ||||||||
Amortization of intangible assets | 174 | 197 | 756 | 761 | ||||||||
Depreciation | 2,811 | 2,656 | 11,246 | 9,978 | ||||||||
Stock-based compensation | 2,381 | 3,511 | 10,373 | 13,111 | ||||||||
Restructuring charge | 398 | — | 4,412 | — | ||||||||
Litigation settlement | — | — | — | 3,900 | ||||||||
Impairment of long-lived assets | 1,670 | 4,824 | 1,670 | 4,824 | ||||||||
Adjusted EBITDA | $ | 7,261 | $ | 9,694 | $ | 22,155 | $ | 33,648 | ||||
MOVE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (quarterly results revised for discontinued operations) (in thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Revenues | $ | 61,942 | $ | 61,437 | $ | 61,240 | $ | 57,450 | $ | 242,069 | ||||||||||
Cost of revenues | 11,435 | 11,214 | 11,804 | 11,588 | 46,041 | |||||||||||||||
Gross profit | 50,507 | 50,223 | 49,436 | 45,862 | 196,028 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | 24,126 | 23,140 | 24,002 | 22,263 | 93,531 | |||||||||||||||
Product and web site development | 6,887 | 6,802 | 6,821 | 5,832 | 26,342 | |||||||||||||||
General and administrative | 22,171 | 19,433 | 18,534 | 15,807 | 75,945 | |||||||||||||||
Amortization of intangible assets | 197 | 197 | 188 | 174 | 756 | |||||||||||||||
Litigation Settlement | - | - | - | - | - | |||||||||||||||
Restructuring charges | - | - | 4,014 | 398 | 4,412 | |||||||||||||||
Impairment charges | - | - | - | 1,670 | 1,670 | |||||||||||||||
Total operating expenses | 53,381 | 49,572 | 53,559 | 46,144 | 202,656 | |||||||||||||||
Operating income (loss) from continuing operations | (2,874 | ) | 651 | (4,123 | ) | (282 | ) | (6,628 | ) | |||||||||||
Interest income, net | 2,057 | 1,521 | 1,261 | 848 | 5,687 | |||||||||||||||
Other income (expense), net | 71 | 109 | 959 | (48 | ) | 1,091 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (746 | ) | 2,281 | (1,903 | ) | 518 | 150 | |||||||||||||
Provision for income taxes | (41 | ) | (162 | ) | (110 | ) | (236 | ) | (549 | ) | ||||||||||
Income (loss) from continuing operations | (787 | ) | 2,119 | (2,013 | ) | 282 | (399 | ) | ||||||||||||
Loss from discontinued operations | (2,574 | ) | (3,076 | ) | (19,334 | ) | (2,181 | ) | (27,165 | ) | ||||||||||
Net loss | (3,361 | ) | (957 | ) | (21,347 | ) | (1,899 | ) | (27,564 | ) | ||||||||||
Convertible preferred stock dividends and related accretion | (1,265 | ) | (1,272 | ) | (1,282 | ) | (1,289 | ) | (5,108 | ) | ||||||||||
Net loss applicable to common stockholders | $ | (4,626 | ) | $ | (2,229 | ) | $ | (22,629 | ) | $ | (3,188 | ) | $ | (32,672 | ) | |||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Revenues | $ | 60,443 | $ | 62,533 | $ | 63,380 | $ | 62,563 | $ | 248,919 | ||||||||||
Cost of revenues | 9,991 | 10,598 | 11,053 | 11,266 | 42,908 | |||||||||||||||
Gross profit | 50,452 | 51,935 | 52,327 | 51,297 | 206,011 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | 22,802 | 22,275 | 23,212 | 21,665 | 89,954 | |||||||||||||||
Product and web site development | 8,775 | 9,223 | 8,615 | 8,043 | 34,656 | |||||||||||||||
General and administrative | 18,222 | 14,528 | 20,479 | 18,205 | 71,434 | |||||||||||||||
Amortization of intangible assets | 181 | 189 | 194 | 197 | 761 | |||||||||||||||
Litigation settlement | - | - | 3,900 | - | 3,900 | |||||||||||||||
Impairment of long-lived assets | - | - | - | 4,824 | 4,824 | |||||||||||||||
Total operating expenses | 49,980 | 46,215 | 56,400 | 52,934 | 205,529 | |||||||||||||||
Operating income (loss) from continuing operations | 472 | 5,720 | (4,073 | ) | (1,637 | ) | 482 | |||||||||||||
Interest income, net | 2,313 | 2,503 | 2,567 | 2,469 | 9,852 | |||||||||||||||
Other income, net | 774 | (372 | ) | 676 | 415 | 1,493 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 3,559 | 7,851 | (830 | ) | 1,247 | 11,827 | ||||||||||||||
Provision for income taxes | (84 | ) | (169 | ) | (169 | ) | (79 | ) | (501 | ) | ||||||||||
Income (loss) from continuing operations | 3,475 | 7,682 | (999 | ) | 1,168 | 11,326 | ||||||||||||||
Loss from discontinued operations | (2,080 | ) | (2,018 | ) | (1,044 | ) | (5,203 | ) | (10,345 | ) | ||||||||||
Net income (loss) | 1,395 | 5,664 | (2,043 | ) | (4,035 | ) | 981 | |||||||||||||
Convertible preferred stock dividends and related accretion | (1,232 | ) | (1,241 | ) | (1,248 | ) | (1,256 | ) | (4,977 | ) | ||||||||||
Net income (loss) applicable to common stockholders | $ | 163 | $ | 4,423 | $ | (3,291 | ) | $ | (5,291 | ) | $ | (3,996 | ) | |||||||
MOVE, INC. SEGMENT OPERATING RESULTS (quarterly results revised for discontinued operations) (in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Real Estate Services | $ | 55,794 | $ | 54,214 | $ | 54,493 | $ | 52,732 | $ | 217,233 | ||||||||||
Consumer Media | 6,148 | 7,223 | 6,747 | 4,718 | 24,836 | |||||||||||||||
Total revenue | $ | 61,942 | $ | 61,437 | $ | 61,240 | $ | 57,450 | $ | 242,069 | ||||||||||
Operating income (loss) from continuing operations (1) | ||||||||||||||||||||
Real Estate Services | $ | 11,546 | $ | 14,228 | $ | 13,390 | $ | 13,804 | $ | 52,968 | ||||||||||
Consumer Media | (653 | ) | 623 | 664 | (331 | ) | 303 | |||||||||||||
Unallocated | (13,767 | ) | (14,200 | ) | (18,177 | ) | (13,755 | ) | (59,899 | ) | ||||||||||
Operating income (loss) from continuing operations | $ | (2,874 | ) | $ | 651 | $ | (4,123 | ) | $ | (282 | ) | $ | (6,628 | ) | ||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||||||
Real Estate Services | $ | 1,731 | $ | 669 | $ | 927 | $ | 861 | $ | 4,188 | ||||||||||
Consumer Media | 84 | 95 | 113 | 121 | 413 | |||||||||||||||
Unallocated | 1,584 | 1,231 | 1,558 | 1,399 | 5,772 | |||||||||||||||
$ | 3,399 | $ | 1,995 | $ | 2,598 | $ | 2,381 | $ | 10,373 | |||||||||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Real Estate Services | $ | 53,523 | $ | 54,750 | $ | 55,936 | $ | 56,337 | $ | 220,546 | ||||||||||
Consumer Media | 6,920 | 7,783 | 7,444 | 6,226 | 28,373 | |||||||||||||||
Total revenue | $ | 60,443 | $ | 62,533 | $ | 63,380 | $ | 62,563 | $ | 248,919 | ||||||||||
Operating income (loss) from continuing operations (1) | ||||||||||||||||||||
Real Estate Services | $ | 13,229 | $ | 16,277 | $ | 14,910 | $ | 15,527 | $ | 59,943 | ||||||||||
Consumer Media | (1,035 | ) | 36 | 175 | (608 | ) | (1,432 | ) | ||||||||||||
Unallocated | (11,722 | ) | (10,593 | ) | (19,158 | ) | (16,556 | ) | (58,029 | ) | ||||||||||
Operating income (loss) from continuing operations | $ | 472 | $ | 5,720 | $ | (4,073 | ) | $ | (1,637 | ) | $ | 482 | ||||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||||||
Real Estate Services | $ | 2,078 | $ | (442 | ) | $ | 1,445 | $ | 1,550 | $ | 4,631 | |||||||||
Consumer Media | 601 | (112 | ) | 306 | 253 | 1,048 | ||||||||||||||
Unallocated | 2,665 | 346 | 2,713 | 1,708 | 7,432 | |||||||||||||||
$ | 5,344 | $ | (208 | ) | $ | 4,464 | $ | 3,511 | $ | 13,111 | ||||||||||
MOVE, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURE INCOME (LOSS) FROM CONTINUING OPERATIONS EXCLUDING STOCK-BASED COMPENSATION AND CHARGES, DEPRECIATION, AMORTIZATION, RESTRUCTURING, LITIGATION SETTLEMENT AND IMPAIRMENT OF LONG-LIVED ASSETS (EBITDA) (quarterly results revised for discontinued operations) (in thousands) | ||||||||||||||||||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Operating income (loss) from continuing operations | $ | (2,874 | ) | $ | 651 | $ | (4,123 | ) | $ | (282 | ) | $ | (6,628 | ) | ||||||
Add Back: | ||||||||||||||||||||
Stock-based charges | 96 | 13 | 108 | 109 | 326 | |||||||||||||||
Depreciation expense | 2,629 | 2,883 | 2,923 | 2,811 | 11,246 | |||||||||||||||
Amortization of intangible assets | 197 | 197 | 188 | 174 | 756 | |||||||||||||||
Stock based compensation | 3,399 | 1,995 | 2,598 | 2,381 | 10,373 | |||||||||||||||
Impairment charges | - | - | - | 1,670 | 1,670 | |||||||||||||||
Restructuring charges | - | - | 4,014 | 398 | 4,412 | |||||||||||||||
EBITDA | $ | 3,447 | $ | 5,739 | $ | 5,708 | $ | 7,261 | $ | 22,155 | ||||||||||
Three Months Ended | Twelve Months | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | ||||||||||||||||
Operating income (loss) from continuing operations | $ | 472 | $ | 5,720 | $ | (4,073 | ) | $ | (1,637 | ) | $ | 482 | ||||||||
Add Back: | ||||||||||||||||||||
Stock-based charges | 148 | 136 | 165 | 143 | 592 | |||||||||||||||
Depreciation expense | 2,334 | 2,388 | 2,600 | 2,656 | 9,978 | |||||||||||||||
Amortization of intangible assets | 181 | 189 | 194 | 197 | 761 | |||||||||||||||
Stock based compensation | 5,344 | (208 | ) | 4,464 | 3,511 | 13,111 | ||||||||||||||
Impairment of long-lived assets | - | - | - | 4,824 | 4,824 | |||||||||||||||
Litigation settlement | - | - | 3,900 | - | 3,900 | |||||||||||||||
EBITDA | $ | 8,479 | $ | 8,225 | $ | 7,250 | $ | 9,694 | $ | 33,648 |
CONTACT:
The Blueshirt Group
Todd Friedman, 415-217-7722
todd@blueshirtgroup.com
Stacie Bosinoff, 415-217-7722
Stacie@blueshirtgroup.com