Exhibit 99.1
Move, Inc. Reports Second Quarter 2006 Results; Revenue Up 17 Percent
Year-Over-Year, GAAP Net Income of $1.7 Million
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Aug. 3, 2006--Move,
Inc. (NASDAQ:MOVE) reported financial results for the second quarter
ended June 30, 2006. Total revenue for the second quarter was $73.9
million, a 17 percent increase compared to $63.3 million in the second
quarter of 2005.
Net income applicable to common stockholders for the second
quarter of 2006 was $1.7 million, or $0.01 per share, compared to net
income of $3.3 million, or $0.02 per share, for the second quarter of
2005. Excluding stock-based compensation expense, net income would
have been $4.3 million for the second quarter of 2006.
Move's EBITDA (earnings before interest, restructuring charges and
certain other non-cash and non-recurring items, principally
stock-based charges, depreciation, and amortization) for the second
quarter of 2006 was $4.7 million, compared to $2.9 million for the
second quarter of 2005. EBITDA for the second quarter of 2005 included
$4.2 million in expense related to the Company's obligation to advance
the defense costs of former officers. The Company has reported 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.
"We had a strong second quarter. We successfully implemented
essential components of our corporate strategy, including our new
corporate brand, the industry's most powerful real estate search
engine, Move.com, and a suite of new products and services," said Mike
Long, Move's chief executive officer. "We are pleased that even with
continued large investments in our business, we were able to achieve
improving financial performance."
CONFERENCE CALL
As previously announced, Move will host a conference call, which
will be broadcast live over the Internet today, Thursday, August 3,
2006, at 2:00 p.m. PDT (5:00 p.m. EDT). Chief Executive Officer, Mike
Long, and Chief Financial Officer, Lew Belote, will discuss the
Company's second quarter 2006 results. In order to participate in the
call, investors should log on to http://investor.move.com and click on
"Event Calendar." Please connect to the above Web site ten minutes
prior to the call to load any necessary audio software. A replay of
the call will be available in the same section of the Company's Web
site two hours after the end of the call. A telephone replay will be
available from 5:00 p.m. PDT (8:00 p.m. EDT) until midnight on August
10, 2006 at 888-286-8010, conference ID 31160907. 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-Q for the quarter ended June 30, 2006 is expected to be filed
with the Securities and Exchange Commission on, or before, August 7,
2006.
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
operations excluding restructuring, impairment 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. We have also presented a non-GAAP table of our
Segment Data for the three and six months ended June 30, 2006 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(TM) (NASDAQ:MOVE), the world's largest moving community,
provides home buyers and renters with the real estate and community
information, and professional connections they need before, during and
after a move. The Company operates Move.com(TM) (www.move.com), the
most comprehensive real estate search site for rentals and homes to
buy and REALTOR.com(R) (www.realtor.com), the official Web site of the
National Association of REALTORS(R). Move also operates Welcome
Wagon(R) (www.welcomewagon.com), a 78-year old neighborhood expert
that provides new movers with valuable and comprehensive information
about businesses and professionals in their new communities. Move.com
is the official new homes Web site of the National Association of Home
Builders. Move also operates Moving.com (www.moving.com),
SeniorHousingNet(TM) (www.seniorhousingnet.com), TOP PRODUCER(R)
Systems (www.homeinsight.com), FactoryBuiltHousing.com
(www.factorybuilthousing.com) and Homeplans (www.homeplans.com).
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------------
2006 2005 2006 2005
----------- --------- ----------- ---------
(unaudited) (unaudited)
Revenue $ 73,891 $ 63,253 $ 142,870 $119,709
Cost of revenue (1) 16,447 13,539 32,853 26,440
---------- -------- ---------- --------
Gross profit 57,444 49,714 110,017 93,269
---------- -------- ---------- --------
Operating expenses: (1)
Sales and marketing 28,312 22,689 53,653 45,051
Product and web site
development 8,793 5,062 17,148 9,441
General and administrative 19,378 19,692 40,354 36,069
Amortization of intangible
assets 589 958 1,336 2,155
Restructuring Charges -- (1,442) -- (1,442)
---------- -------- ---------- --------
Total operating expenses 57,072 46,959 112,491 91,274
---------- -------- ---------- --------
Income (loss) from
operations 372 2,755 (2,474) 1,995
Interest income, net 1,794 496 3,409 849
Other income, net 431 69 503 81
---------- -------- ---------- --------
Net income 2,597 3,320 1,438 2,925
Convertible preferred stock
dividends (885) - (1,763) -
---------- -------- ---------- --------
Net income (loss)
applicable to common
stockholders $ 1,712 $ 3,320 $ (325) $ 2,925
========== ======== ========== ========
Net income (loss) per
common share:
Basic net income (loss)
applicable to common
stockholders $ 0.01 $ 0.02 $ (0.00) $ 0.02
========== ======== ========== ========
Diluted net income (loss)
applicable to common
stockholders $ 0.01 $ 0.02 $ (0.00) $ 0.02
========== ======== ========== ========
Shares used to calculate basic and
diluted per share amounts
Basic 150,769 146,729 149,865 146,693
========== ======== ========== ========
Diluted 165,127 151,842 149,865 153,037
========== ======== ========== ========
(1) Includes stock-based compensation as follows:
Cost of revenue $ 29 $ - $ 158 $ -
Sales and Marketing 302 - 791 -
Product and web site
development 340 - 839 -
General and
administrative 1,878 - 4,131 -
---------- -------- ---------- --------
$ 2,549 $ - $ 5,919 $ -
========== ======== ========== ========
MOVE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
INCOME (LOSS) FROM OPERATIONS EXCLUDING RESTRUCTURING CHARGES
AND CERTAIN OTHER NON-CASH AND NON-RECURRING ITEMS,
PRINCIPALLY STOCK-BASED COMPENSATION AND CHARGES,
DEPRECIATION, AND AMORTIZATION (EBITDA)
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------------
2006 2005 2006 2005
----------- -------- ----------- --------
(unaudited) (unaudited)
Income (loss) from operations $ 372 $ 2,755 $ (2,474) $ 1,995
Plus:
Stock-based charges (174) 133 (33) 517
Amortization of intangible
assets 589 958 1,336 2,155
Depreciation 2,571 1,836 5,015 3,460
Stock-based compensation 2,549 -- 5,919 --
Restructuring charge reversal -- (1,442) -- (1,442)
Non-recurring refund of
insurance premium (1,184) -- (1,184) --
Non-recurring revenue -- (1,332) -- (1,332)
---------- ------- ---------- -------
EBITDA $ 4,723 $ 2,908 $ 8,579 $ 5,353
========== ======= ========== =======
MOVE, INC.
SEGMENT OPERATING RESULTS
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------------------------
2006 2005 2006 2005
------------ --------- ------------ ---------
(unaudited) (unaudited)
Revenue:
Real Estate Services $ 52,099 $ 45,705 $ 101,348 $ 85,433
Move-Related Services 21,792 17,548 41,522 34,276
----------- -------- ----------- --------
Total revenue $ 73,891 $ 63,253 $ 142,870 $119,709
=========== ======== =========== ========
Operating income (loss)(1)
Real Estate Services $ 11,379 $ 14,287 $ 22,976 $ 23,471
Move-Related Services 323 (234) (1,254) 203
Unallocated (11,330) (11,298) (24,196) (21,679)
----------- -------- ----------- --------
Income (loss) from
operations $ 372 $ 2,755 $ (2,474) $ 1,995
=========== ======== =========== ========
(1) Includes stock-based compensation as follows:
Real Estate Services $ 1,068 $ - $ 2,348 $ -
Move-Related Services 321 - 945 -
Unallocated 1,160 - 2,626 -
----------- -------- ----------- --------
$ 2,549 $ - $ 5,919 $ -
=========== ======== =========== ========
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Three months ended
June 30, 2006
---------------------------------------------------
(unaudited)
Real Estate Move- Stock-based
Services Related Compensation
Services Unallocated Total
revenue
Revenue $ 52,099 $ 21,792 $ - $ - $ 73,891
Cost of Revenue 8,449 7,063 906 29 16,447
------------------------------ ----------- --------
Gross Profit 43,650 14,729 (906) (29) 57,444
Sales and
marketing 17,875 9,272 863 302 28,312
Product and web site
development 6,283 1,173 997 340 8,793
General and
administrative 7,045 3,640 6,815 1,878 19,378
Amortization of
intangibles - - 589 - 589
---------- -------- ---------- ----------- --------
Total operating
expenses 31,203 14,085 9,264 2,520 57,072
---------- -------- ---------- ----------- --------
Income (loss) from
operations $ 12,447 $ 644 $ (10,170)$ (2,549)$ 372
========== ======== ========== =========== ========
Three months ended
June 30, 2005
---------------------------------------------------
(unaudited)
Real Estate Move- Stock-based
Services Related Compensation
Services Unallocated Total
revenue
Revenue $ 45,705 $ 17,548 $ - $ $ 63,253
Cost of Revenue 7,024 6,113 402 - 13,539
------------------------------ ----------- --------
Gross Profit 38,681 11,435 (402) - 49,714
Sales and
marketing 15,122 7,327 240 - 22,689
Product and web site
development 3,597 1,070 395 - 5,062
General and
administrative 5,675 3,272 10,745 - 19,692
Amortization of
intangibles - - 958 - 958
Restructuring
charges - - (1,442) - (1,442)
---------- -------- ---------- ----------- --------
Total operating
expenses 24,394 11,669 10,896 - 46,959
---------- -------- ---------- ----------- --------
Income (loss) from
operations $ 14,287 $ (234)$ (11,298)$ - $ 2,755
========== ======== ========== =========== ========
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Six months ended
June 30, 2006
---------------------------------------------------
(unaudited)
Real Estate Move- Stock-based
Services Related Compensation
Services Unallocated Total
revenue
Revenue $ 101,348 $ 41,522 $ - $ - $142,870
Cost of Revenue 16,043 14,759 1,893 158 32,853
------------------------------ ----------- --------
Gross Profit 85,305 26,763 (1,893) (158) 110,017
Sales and
marketing 33,914 17,591 1,357 791 53,653
Product and web site
development 11,905 2,132 2,272 839 17,148
General and
administrative 14,162 7,349 14,712 4,131 40,354
Amortization of
intangibles - - 1,336 - 1,336
---------- -------- ---------- ----------- --------
Total operating
expenses 59,981 27,072 19,677 5,761 112,491
---------- -------- ---------- ----------- --------
Income (loss) from
operations $ 25,324 $ (309)$ (21,570)$ (5,919)$ (2,474)
========== ======== ========== =========== ========
Six months ended
June 30, 2005
---------------------------------------------------
(unaudited)
Real Estate Move- Stock-based
Services Related Compensation
Services Unallocated Total
revenue
Revenue $ 85,433 $ 34,276 $ - $ $119,709
Cost of Revenue 13,757 11,961 722 - 26,440
------------------------------ ----------- --------
Gross Profit 71,676 22,315 (722) - 93,269
Sales and
marketing 30,462 14,081 508 - 45,051
Product and web site
development 6,972 1,661 808 - 9,441
General and
administrative 10,771 6,370 18,928 - 36,069
Amortization of
intangibles - - 2,155 - 2,155
Restructuring
charges - - (1,442) - (1,442)
---------- -------- ---------- ----------- --------
Total operating
expenses 48,205 22,112 20,957 - 91,274
---------- -------- ---------- ----------- --------
Income (loss) from
operations $ 23,471 $ 203 $ (21,679)$ - $ 1,995
========== ======== ========== =========== ========
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
---------------------
2006 2005
------------ --------
(unaudited)
Cash flows from continuing operating activities:
Net income $ 1,438 $ 2,925
Adjustments to reconcile net income to net cash
provided by continuing operating activities:
Depreciation 5,015 3,460
Amortization of intangible assets 1,336 2,155
Provision for doubtful accounts 540 565
Stock-based compensation and charges 5,886 517
Other non-cash items (315) 2
Changes in operating assets and liabilities:
Accounts receivable (1,842) (716)
Other assets (2,380) (1,650)
Accounts payable and accrued expenses (16,995) (5,409)
Deferred revenue 11,941 4,854
----------- -------
Net cash provided by operating activities 4,624 6,703
----------- -------
Cash flows from investing activities:
Purchases of property and equipment (6,854) (4,204)
Maturities of short-term investments 16,950 4,000
Purchases of short-term investments (10,050) (8,710)
Acquisitions, net (9,572) -
----------- -------
Net cash used in investing activities (9,526) (8,914)
----------- -------
Cash flows from financing activities:
Proceeds from exercise of stock options 4,816 535
Restricted cash 855 (77)
Payments on capital lease obligations (1,374) (927)
----------- -------
Net cash provided by (used in) financing
activities 4,297 (469)
----------- -------
Change in cash and cash equivalents (605) (2,680)
Cash and cash equivalents, beginning of period 13,272 14,819
----------- -------
Cash and cash equivalents, end of period $ 12,667 $12,139
=========== =======
MOVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2006 2005
-------------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 12,667 $ 13,272
Short-term investments 132,150 139,050
Accounts receivable, net 18,764 15,966
Other current assets 22,093 19,485
----------- -----------
Total current assets 185,674 187,773
Property and equipment, net 28,263 20,717
Goodwill, net 23,877 19,502
Intangible assets, net 17,408 14,264
Restricted cash 4,171 5,026
Other assets 1,423 1,744
----------- -----------
Total assets $ 260,816 $ 249,026
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,070 $ 6,427
Accrued expenses 28,429 40,879
Obligation under capital leases 1,919 1,005
Deferred revenue 56,456 43,652
----------- -----------
Total current liabilities 88,874 91,963
Obligation under capital leases 3,065 --
Other liabilities 3,542 3,790
----------- -----------
Total liabilities 95,481 95,753
----------- -----------
Series B convertible preferred stock 93,705 91,349
Stockholders' equity:
Series A convertible preferred stock - -
Common stock 152 149
Additional paid-in capital 2,057,675 2,047,456
Deferred stock-based charges - (351)
Accumulated other comprehensive income 394 343
Accumulated deficit (1,986,591) (1,985,673)
----------- -----------
Total stockholders' equity 71,630 61,924
----------- -----------
Total liabilities and
stockholders' equity $ 260,816 $ 249,026
=========== ===========
CONTACT: Move, Inc.
Mollie O'Brien, (805) 557-2303 (Investor Relations)
investorrelations@move.com