Exhibit 99.1
Move, Inc. Announces Second Quarter 2009 Financial Results
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--August 5, 2009--Move, Inc. (NASDAQ:MOVE) reported financial results for the second quarter ended June 30, 2009.
Revenue for the second quarter was $54.6 million, compared to $61.4 million in the second quarter of 2008. Income from continuing operations for the second quarter was $2.1 million, compared to $2.1 million in the second quarter of 2008. Net income applicable to common stockholders was $3.2 million, or $0.02 per share, compared to a net loss of $2.2 million, or a loss of $0.01 per share in the second quarter of 2008.
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 second quarter of 2009 was $7.1 million, compared to $5.7 million for the second quarter of 2008. 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.
"During the quarter, we continued to make solid progress toward both our short term business objectives and our long term growth strategy," said Steve Berkowitz, Move's CEO. “While we remain focused on improving the financial and operational performance across our product lines in the current economy, I'm pleased that we have begun the process of better integrating all our businesses, which we anticipate will have a positive impact on our future performance. Over the past few months, we began combining sales, product and administrative functions across the company, enabling us to better focus our efforts on leveraging our key assets, addressing areas of the business that need to be changed, and expanding our capabilities in other areas that will drive our future growth.”
Conference Call
As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Wednesday, August 5, 2009, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). In order to participate in the call, please dial (866) 362-4829, or if outside the U.S., (617) 597-5346 with passcode 99583429, 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, August 5, 2009, and 11:59 p.m. ET, August 19, 2009, by calling (888) 286-8010, or (617) 801-6888, with passcode 44964312.
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 for the year ended December 31, 2008 on March 9, 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 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 Adjusted EBITDA. The Company has also presented a non-GAAP table of Segment Data for the three and six month periods ended June 30, 2009 and 2008 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 8.3 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®; 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, June 2009
| ||||||||||||||||
MOVE, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue | $ | 54,637 | $ | 61,437 | $ | 109,505 | $ | 123,379 | ||||||||
Cost of revenue (1) | 12,804 | 11,214 | 25,451 | 22,649 | ||||||||||||
Gross profit | 41,833 | 50,223 | 84,054 | 100,730 | ||||||||||||
Operating expenses: (1) | ||||||||||||||||
Sales and marketing | 21,387 | 23,140 | 42,149 | 47,266 | ||||||||||||
Product and web site development | 6,425 | 6,802 | 12,808 | 13,689 | ||||||||||||
General and administrative | 11,465 | 19,433 | 35,487 | 41,604 | ||||||||||||
Amortization of intangible assets | 108 | 197 | 259 | 394 | ||||||||||||
Litigation settlement | 975 | — | 975 | — | ||||||||||||
Total operating expenses | 40,360 | 49,572 | 91,678 | 102,953 | ||||||||||||
Operating income (loss) from continuing operations | 1,473 | 651 | (7,624 | ) | (2,223 | ) | ||||||||||
Interest income, net | 314 | 1,521 | 449 | 3,578 | ||||||||||||
Other income, net | 386 | 109 | 491 | 180 | ||||||||||||
Income (loss) from continuing operations before income taxes | 2,173 | 2,281 | (6,684 | ) | 1,535 | |||||||||||
Provision for income taxes | (81 | ) | (162 | ) | (177 | ) | (203 | ) | ||||||||
Income (loss) from continuing operations | 2,092 | 2,119 | (6,861 | ) | 1,332 | |||||||||||
Income (loss) from discontinued operations | 107 | (3,076 | ) | (249 | ) | (5,650 | ) | |||||||||
Gain on disposition of discontinued operations | 2,303 | — | 2,303 | — | ||||||||||||
Net income (loss) | 4,502 | (957 | ) | (4,807 | ) | (4,318 | ) | |||||||||
Convertible preferred stock dividends and related accretion | (1,307 | ) | (1,272 | ) | (2,605 | ) | (2,537 | ) | ||||||||
Net income (loss) applicable to common stockholders | $ | 3,195 | $ | (2,229 | ) | $ | (7,412 | ) | $ | (6,855 | ) | |||||
Basic net income (loss) per share applicable to common stockholders | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.01 | $ | (0.06 | ) | $ | (0.01 | ) | ||||||
Discontinued operations | 0.02 | (0.02 | ) | 0.01 | (0.04 | ) | ||||||||||
Basic net income (loss) per share applicable to common stockholders | $ | 0.02 | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.05 | ) | |||||
Diluted net income (loss) per share applicable to common stockholders | ||||||||||||||||
Continuing operations | $ | 0.01 | $ | 0.01 | $ | (0.06 | ) | $ | (0.01 | ) | ||||||
Discontinued operations | 0.02 | (0.02 | ) | 0.01 | (0.04 | ) | ||||||||||
Diluted net income (loss) per share applicable to common stockholders | $ | 0.02 | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.05 | ) | |||||
Shares used in calculation of net income (loss) per share applicable to common stockholders: | ||||||||||||||||
Basic | 152,920 | 151,551 | 153,019 | 151,383 | ||||||||||||
Diluted | 156,552 | 158,292 | 153,019 | 151,383 | ||||||||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||
Cost of revenue | $ | 46 | $ | 31 | $ | 83 | $ | 69 | ||||||||
Sales and marketing | 604 | 103 | 877 | 209 | ||||||||||||
Product and web site development | 187 | 84 | 327 | 269 | ||||||||||||
General and administrative | 435 | 1,777 | 10,858 | 4,847 | ||||||||||||
$ | 1,272 | $ | 1,995 | $ | 12,145 | $ | 5,394 |
MOVE, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Cash flows from continuing operating activities: | (unaudited) | |||||||
Income (loss) from continuing operations | $ | (6,861 | ) | $ | 1,332 | |||
Adjustments to reconcile income (loss) from continuing operations to net cash provided by continuing operating activities: | ||||||||
Depreciation | 5,287 | 5,512 | ||||||
Amortization of intangible assets | 259 | 394 | ||||||
Provision for doubtful accounts | 811 | 440 | ||||||
Loss (gain) on sale of property and equipment | — | 51 | ||||||
Stock-based compensation and charges | 12,411 | 5,503 | ||||||
Change in market value of embedded derivative liability | (536 | ) | (155 | ) | ||||
Other non-cash items | (56 | ) | 283 | |||||
Changes in operating assets and liabilities, net of acquisitions and discontinued operations: | ||||||||
Accounts receivable | (51 | ) | 2,116 | |||||
Other assets | 354 | (2,865 | ) | |||||
Accounts payable and accrued expenses | (1,774 | ) | (760 | ) | ||||
Deferred revenue | (4,701 | ) | (1,092 | ) | ||||
Net cash provided by continuing operating activities | 5,143 | 10,759 | ||||||
Net cash used in discontinued operating activities | (1,225 | ) | (4,366 | ) | ||||
Net cash provided by operating activities | 3,918 | 6,393 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (4,453 | ) | (5,130 | ) | ||||
Purchases of short-term investments | — | (21,552 | ) | |||||
Maturities of short-term investments | — | 1,800 | ||||||
Proceeds from sale of assets | — | 31 | ||||||
Net cash used in investing activities of continuing operations | (4,453 | ) | (24,851 | ) | ||||
Net cash provided by investing activities of discontinued operations | 1,739 | 799 | ||||||
Net cash used in investing activities | (2,714 | ) | (24,052 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 70 | 972 | ||||||
Tax withholdings related to net share settlements of restricted stock awards | (1,064 | ) | — | |||||
Payments on capital lease obligations | 81 | (1,002 | ) | |||||
Restricted cash | (339 | ) | 176 | |||||
Net cash provided by (used in) financing activities | (1,252 | ) | 146 | |||||
Change in cash and cash equivalents | (48 | ) | (17,513 | ) | ||||
Cash and cash equivalents, beginning of period | 108,935 | 45,713 | ||||||
Cash and cash equivalents, end of period | $ | 108,887 | $ | 28,200 |
MOVE, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands) | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 108,887 | $ | 108,935 | ||||
Accounts receivable, net | 12,022 | 12,833 | ||||||
Other current assets | 11,386 | 11,399 | ||||||
Restricted cash | 3,128 | — | ||||||
Total current assets | 135,423 | 133,167 | ||||||
Property and equipment, net | 21,178 | 21,934 | ||||||
Long-term investments | 111,800 | 111,800 | ||||||
Goodwill, net | 16,969 | 16,969 | ||||||
Intangible assets, net | 3,674 | 3,933 | ||||||
Restricted cash | — | 3,209 | ||||||
Other assets | 1,629 | 995 | ||||||
Total assets | $ | 290,673 | $ | 292,007 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,032 | $ | 4,051 | ||||
Accrued expenses | 21,666 | 22,747 | ||||||
Obligation under capital leases | — | 339 | ||||||
Deferred revenue | 19,298 | 23,991 | ||||||
Line of credit | 64,700 | 64,700 | ||||||
Total current liabilities | 108,696 | 115,828 | ||||||
Other non-current liabilities | 1,162 | 2,043 | ||||||
Total liabilities | 109,858 | 117,871 | ||||||
Series B convertible preferred stock | 108,902 | 106,297 | ||||||
Stockholders’ equity: | ||||||||
Series A convertible preferred stock | — | — | ||||||
Common stock | 155 | 153 | ||||||
Additional paid-in capital | 2,101,441 | 2,089,964 | ||||||
Accumulated other comprehensive income | (17,176 | ) | (17,183 | ) | ||||
Accumulated deficit | (2,012,507 | ) | (2,005,095 | ) | ||||
Total stockholders’ equity | 71,913 | 67,839 | ||||||
Total liabilities and stockholders’ equity | $ | 290,673 | $ | 292,007 |
MOVE, INC. | ||||||||||||||||
SEGMENT OPERATING RESULTS | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue: | (unaudited) | (unaudited) | ||||||||||||||
Real Estate Services | $ | 49,011 | $ | 54,214 | $ | 99,548 | $ | 110,008 | ||||||||
Consumer Media | 5,626 | 7,223 | 9,957 | 13,371 | ||||||||||||
Total revenue | $ | 54,637 | $ | 61,437 | $ | 109,505 | $ | 123,379 | ||||||||
Operating income (loss) from continuing operations (1) | ||||||||||||||||
Real Estate Services | $ | 10,194 | $ | 14,228 | $ | 22,664 | $ | 25,774 | ||||||||
Consumer Media | 910 | 623 | 532 | (30 | ) | |||||||||||
Unallocated | (9,631 | ) | (14,200 | ) | (30,820 | ) | (27,967 | ) | ||||||||
Operating loss from continuing operations | $ | 1,473 | $ | 651 | $ | (7,624 | ) | $ | (2,223 | ) | ||||||
(1) Includes stock-based compensation as follows: | ||||||||||||||||
Real Estate Services | $ | 1,066 | $ | 669 | $ | 1,629 | $ | 2,400 | ||||||||
Consumer Media | 135 | 95 | 205 | 179 | ||||||||||||
Unallocated | 71 | 1,231 | 10,311 | 2,815 | ||||||||||||
$ | 1,272 | $ | 1,995 | $ | 12,145 | $ | 5,394 |
MOVE, INC. | ||||||||||||||||||||
SEGMENT OPERATING RESULTS | ||||||||||||||||||||
NET OF STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
June 30, 2009 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Real Estate | Consumer | Stock-based | ||||||||||||||||||
Services | Media | Unallocated | Compensation | Total | ||||||||||||||||
Revenue | $ | 49,011 | $ | 5,626 | $ | — | $ | — | $ | 54,637 | ||||||||||
Cost of revenue | 10,314 | 1,974 | 470 | 46 | 12,804 | |||||||||||||||
Gross profit | 38,697 | 3,652 | (470 | ) | (46 | ) | 41,833 | |||||||||||||
Sales and marketing | 18,141 | 1,630 | 1,012 | 604 | 21,387 | |||||||||||||||
Product and web site development | 5,145 | 487 | 606 | 187 | 6,425 | |||||||||||||||
General and administrative | 4,151 | 490 | 6,389 | 435 | 11,465 | |||||||||||||||
Amortization of intangibles | 108 | 108 | ||||||||||||||||||
Litigation Settlement | — | — | 975 | — | 975 | |||||||||||||||
Total operating expenses | 27,437 | 2,607 | 9,090 | 1,226 | 40,360 | |||||||||||||||
Operating income (loss) from continuing operations | $ | 11,260 | $ | 1,045 | $ | (9,560 | ) | $ | (1,272 | ) | $ | 1,473 | ||||||||
Three months ended | ||||||||||||||||||||
June 30, 2008 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Real Estate | Consumer | Stock-based | ||||||||||||||||||
Services | Media | Unallocated | Compensation | Total | ||||||||||||||||
Revenue | $ | 54,214 | $ | 7,223 | $ | — | $ | — | $ | 61,437 | ||||||||||
Cost of revenue | 9,424 | 1,531 | 228 | 31 | 11,214 | |||||||||||||||
Gross profit | 44,790 | 5,692 | (228 | ) | (31 | ) | 50,223 | |||||||||||||
Sales and marketing | 17,998 | 3,402 | 1,637 | 103 | 23,140 | |||||||||||||||
Product and web site development | 5,787 | 331 | 600 | 84 | 6,802 | |||||||||||||||
General and administrative | 6,108 | 1,241 | 10,307 | 1,777 | 19,433 | |||||||||||||||
Amortization of intangibles | — | — | 197 | — | 197 | |||||||||||||||
Total operating expenses | 29,893 | 4,974 | 12,741 | 1,964 | 49,572 | |||||||||||||||
Operating income (loss) from continuing operations | $ | 14,897 | $ | 718 | $ | (12,969 | ) | $ | (1,995 | ) | $ | 651 |
MOVE, INC. | ||||||||||||||||||||
SEGMENT OPERATING RESULTS | ||||||||||||||||||||
NET OF STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Six months ended | ||||||||||||||||||||
June 30, 2009 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Real Estate | Consumer | Stock-based | ||||||||||||||||||
Services | Media | Unallocated | Compensation | Total | ||||||||||||||||
Revenue | $ | 99,548 | $ | 9,957 | $ | — | $ | — | $ | 109,505 | ||||||||||
Cost of revenue | 20,609 | 3,860 | 899 | 83 | 25,451 | |||||||||||||||
Gross profit | 78,939 | 6,097 | (899 | ) | (83 | ) | 84,054 | |||||||||||||
Sales and marketing | 35,829 | 3,431 | 2,012 | 877 | 42,149 | |||||||||||||||
Product and web site development | 10,378 | 1,015 | 1,088 | 327 | 12,808 | |||||||||||||||
General and administrative | 8,439 | 914 | 15,276 | 10,858 | 35,487 | |||||||||||||||
Amortization of intangibles | 259 | 259 | ||||||||||||||||||
Litigation settlement | — | — | 975 | — | 975 | |||||||||||||||
Total operating expenses | 54,646 | 5,360 | 19,610 | 12,062 | 91,678 | |||||||||||||||
Operating income (loss) from continuing operations | $ | 24,293 | $ | 737 | $ | (20,509 | ) | $ | (12,145 | ) | $ | (7,624 | ) | |||||||
Six months ended | ||||||||||||||||||||
June 30, 2008 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Real Estate | Consumer | Stock-based | ||||||||||||||||||
Services | Media | Unallocated | Compensation | Total | ||||||||||||||||
Revenue | $ | 110,008 | $ | 13,371 | $ | — | $ | — | $ | 123,379 | ||||||||||
Cost of revenue | 18,902 | 3,098 | 580 | 69 | 22,649 | |||||||||||||||
Gross profit | 91,106 | 10,273 | (580 | ) | (69 | ) | 100,730 | |||||||||||||
Sales and marketing | 37,264 | 6,776 | 3,017 | 209 | 47,266 | |||||||||||||||
Product and web site development | 11,403 | 776 | 1,241 | 269 | 13,689 | |||||||||||||||
General and administrative | 14,265 | 2,572 | 19,920 | 4,847 | 41,604 | |||||||||||||||
Amortization of intangibles | — | — | 394 | — | 394 | |||||||||||||||
Total operating expenses | 62,932 | 10,124 | 24,572 | 5,325 | 102,953 | |||||||||||||||
Operating income (loss) from continuing operations | $ | 28,174 | $ | 149 | $ | (25,152 | ) | $ | (5,394 | ) | $ | (2,223 | ) |
MOVE, INC. | ||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE | ||||||||||||||||
OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS EXCLUDING STOCK-BASED | ||||||||||||||||
COMPENSATION AND CHARGES, DEPRECIATION, AMORTIZATION, LITIGATION SETTLEMENT AND | ||||||||||||||||
NON-RECURRING SEVERANCE COSTS (EBITDA) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Operating income (loss) from continuing operations | $ | 1,473 | $ | 651 | (7,624 | ) | (2,223 | ) | ||||||||
Plus: | ||||||||||||||||
Stock-based charges | 117 | 13 | 266 | 109 | ||||||||||||
Amortization of intangible assets | 108 | 197 | 259 | 394 | ||||||||||||
Depreciation | 2,668 | 2,883 | 5,287 | 5,512 | ||||||||||||
Stock-based compensation | 1,272 | 1,995 | 12,145 | 5,394 | ||||||||||||
Litigation settlement | 975 | — | 975 | — | ||||||||||||
Non-recurring severance costs | 497 | — | 2,397 | — | ||||||||||||
Adjusted EBITDA | $ | 7,110 | $ | 5,739 | 13,705 | 9,186 |
CONTACT:
The Blueshirt Group
Todd Friedman, 415-217-7722
todd@blueshirtgroup.com
Stacie Bosinoff, 415-217-7722
Stacie@blueshirtgroup.com