UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 29, 2002
--------------------
LookSmart, Ltd.
(Exact name of registrant as specified in its charter)
Delaware 000-26357 13-3904355
--------------------- ---------------- -------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
625 Second Street, San Francisco, California 94107
---------------------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
(415) 348-7000
----------------------------------------------
Registrant's telephone number, including area code
Item 5 - Other Events.
On April 29, 2002, the Company announced financial results for the first
quarter of 2002, including the following key operating metrics and financial
statements.
- --------------------------------------------------------------------------------
Key Operating Metrics: Q1 2001 Q4 2001 Q1 2002
- --------------------------------------------------------------------------------
Total Paid Clicks (millions) 45 63 70
- --------------------------------------------------------------------------------
Average Revenue-per-Click $0.26 $0.18 $0.18
- --------------------------------------------------------------------------------
Average Distribution Costs 70% 33% 34%
- --------------------------------------------------------------------------------
Small Business Revenue (millions) $2.83 $2.62 $3.07
- --------------------------------------------------------------------------------
LOOKSMART, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP BASIS
(In thousands, except per share amounts)
Three Months Ended
31-Mar
------------- ------------
2001 2002
------------- ------------
Revenues:
Listings $6,422 $13,426
Advertising 8,515 2,573
Licensing 5,125 3,709
Ecommerce 7,971 342
------------- ------------
Total revenues 28,033 20,050
Cost of revenues:
Listings 1,246 3,682
Advertising 1,343 1,374
Ecommerce 5,009 63
------------- ------------
Total cost of revenues 7,598 5,119
------------- ------------
Gross profit 20,435 14,931
------------- ------------
Operating expenses:
Sales and marketing 17,268 7,182
Product development 8,827 7,017
General and administrative 3,157 2,696
Amortization of goodwill and intangibles 2,121 -
Asset impairment and restructuring charges 9,434 -
------------- ------------
Total operating expenses 40,807 16,895
------------- ------------
Loss from operations (20,372) (1,964)
Non-operating income (expenses) (3,891) (2,414)
------------- ------------
Loss from continuing operations before income taxes (24,263) (4,378)
Income taxes & minority interest (32) (14)
------------- ------------
Loss from continuing operations (24,295) (4,392)
------------- ------------
Loss on discontinued operations (262) (972)
------------- ------------
Net loss (24,557) (5,364)
Add back to calculate EBITDA:
Depreciation 1,639 1,645
Amortization of goodwill and intangibles 2,121 175
Amortization of deferred compensation 1,115 2,900
Non-operating (income)expenses 3,891 2,414
Asset impairment and restructuring charges 9,434 -
Income taxes & minority interest 32 14
Loss on discontinued operations 262 972
------------- ------------
18,494 8,120
------------- ------------
EBITDA ($6,063) $2,756
============= ============
Net income/ (loss) per common share:
EBITDA income /(loss) per share ($0.07) $0.03
Basic and diluted net (loss) per share
Loss from continuing operations ($0.27) ($0.05)
Loss from discontinued operations $0.00 ($0.01)
Net loss ($0.27) ($0.06)
Weighted average shares outstanding 91,213 93,408
Depreciation detail
Cost of revenues $503 $483
Sales and marketing 153 145
Product development 892 942
General and administrative 91 75
-------------- ------------
Total depreciation $1,639 $1,645
============== ============
Amortization of deferred compensation detail
Cost of revenues $0 $43
Sales and marketing 580 1,042
Product development 304 1,212
General and administrative 231 603
-------------- ------------
Total amortization of deferred compensation $1,115 $2,900
============== ============
Note: In accordance with generally accepted accounting principles, the three
months ended March 31, 2001 have been reclassified to reflect the results of the
Futurecorp subsidiary, which was disposed of on March 13, 2002, as discontinued
operations.
LOOKSMART, LTD
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
31-Dec-01 31-Mar-02
ASSETS
Cash $29,766 $42,513
Short-Term Investments 14,346 3,672
--------------------------
Total Unrestricted Cash and Short-Term Investments 44,112 46,185
Restricted Cash 3,728 3,418
Accounts Receivable, net 9,820 8,201
Other Current Assets 3,141 3,360
--------------------------
Total Current Assets 60,801 61,164
Property, Plant and Equipment, net 10,272 8,936
Goodwill and Intangibles, net 9,969 9,793
Other Assets 5,060 4,067
--------------------------
Total Assets $86,102 $83,960
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $- $36,657
Accounts Payable 2,323 1,145
Deferred Revenue - current portion 9,152 7,696
Other Current Liabilities 14,647 13,744
--------------------------
Total Current Liabilities 26,122 59,242
Long Term Liabilities 36,336 862
--------------------------
Total Liabilities 62,458 60,104
Total Equity 23,644 23,856
--------------------------
Total Liabilities and Stockholders' Equity $86,102 $83,960
==========================
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
LookSmart, Ltd.
(Registrant)
April 30, 2002 /s/ Dianne Dubois
- --------------- ---------------------------------------
Date Dianne Dubois, Chief Financial Officer