Exhibit 99.1
Move, Inc. Announces Third Quarter 2006 Financial Results
Revenue up 14 Percent Year-Over-Year;
EBITDA of $7.4 Million and GAAP Net Income of $1.3 Million
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Nov. 2, 2006--Move,
Inc. (NASDAQ:MOVE) reported financial results for the third quarter
ended September 30, 2006. Total revenue for the third quarter was
$75.7 million, a 14 percent increase compared to $66.3 million in the
third quarter of 2005.
Net income applicable to common stockholders for the third quarter
of 2006 was $1.3 million, or $0.01 per share, compared to net income
of $1.9 million, or $0.01 per share, for the third quarter of 2005.
Excluding stock-based compensation expense, net income would have been
$5.4 million for the third quarter of 2006. There was no stock-based
compensation expense in the third quarter of 2005.
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 third
quarter of 2006 was $7.4 million, compared to $2.9 million for the
third quarter of 2005. EBITDA for the third quarter of 2005 included
$5.5 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.
"During the third quarter we grew both revenue and profitability,
while continuing to make important investments in our businesses and
infrastructure," said Mike Long, Move's CEO. "These investments are
allowing us to develop a consumer experience which addresses each
phase of the move cycle, along with a range of marketing solutions for
those advertisers interested in reaching consumers before, during and
after their move. We believe the breadth of this strategy, together
with the early adoption stage of online advertising in the move
category, will allow us to deliver even stronger financial performance
in the future."
CONFERENCE CALL
As previously announced, Move will host a conference call, which
will be broadcast live over the Internet today, Thursday, November 2,
2006, at 2:00 p.m. PT (5:00 p.m. ET). Chief Executive Officer, Mike
Long, and Chief Financial Officer, Lew Belote, will discuss the
Company's third 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 approximately one hour after the end of the call. A telephone
replay will be available from 4:00 p.m. PT (7:00 p.m. ET) until
midnight on November 9, 2006 at 888-286-8010, conference ID 67192365.
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 September 30, 2006
is expected to be filed with the Securities and Exchange Commission
on, or before, November 9, 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 nine months ended September 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, Inc. (NASDAQ:MOVE), the world's largest moving community,
provides homebuyers 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) (http://www.move.com),
the most comprehensive real estate search site for rentals and homes
to buy and REALTOR.com(R) (http://www.realtor.com), the official Web
site of the National Association of REALTORS(R). Move also operates
Welcome Wagon(R) (http://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
(http://www.moving.com), SeniorHousingNet(TM)
(http://www.seniorhousingnet.com), TOP PRODUCER(R) Systems
(http://www.topproducer.com), FactoryBuiltHousing.com
(http://www.factorybuilthousing.com) and Home Plans
(http://www.homeplans.com). On the Net: http://investor.move.com.
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2006 2005 2006 2005
------------ --------- ------------ ---------
(unaudited) (unaudited)
Revenue $ 75,672 $ 66,338 $ 218,542 $186,047
Cost of revenue (1) 16,967 13,901 49,820 40,341
----------- -------- ----------- --------
Gross profit 58,705 52,437 168,722 145,706
----------- -------- ----------- --------
Operating expenses: (1)
Sales and marketing 28,928 22,449 82,581 67,500
Product and web site
development 8,438 5,846 25,586 15,287
General and
administrative 20,950 22,155 61,304 58,224
Amortization of
intangible assets 497 734 1,833 2,889
Restructuring Charges (278) -- (278) (1,442)
----------- -------- ----------- --------
Total operating expenses 58,535 51,184 171,026 142,458
----------- -------- ----------- --------
Income (loss) from
operations 170 1,253 (2,304) 3,248
Interest income, net 1,900 521 5,309 1,370
Other income, net 99 171 602 252
----------- -------- ----------- --------
Net income 2,169 1,945 3,607 4,870
Convertible preferred
stock dividends (893) - (2,656) -
----------- -------- ----------- --------
Net income applicable to
common stockholders $ 1,276 $ 1,945 $ 951 $ 4,870
=========== ======== =========== ========
Net income per common
share:
Basic net income
applicable to common
stockholders $ 0.01 $ 0.01 $ 0.01 $ 0.03
=========== ======== =========== ========
Diluted net income
applicable to common
stockholders $ 0.01 $ 0.01 $ 0.00 $ 0.03
=========== ======== =========== ========
Shares used to calculate
basic and diluted per
share amounts
Basic 151,916 147,234 150,556 146,875
=========== ======== =========== ========
Diluted 164,394 161,120 165,145 156,264
=========== ======== =========== ========
(1) Includes stock-based compensation as follows:
Cost of revenue $ 18 $ -- $ 176 $ --
Sales and Marketing 286 -- 1,077 --
Product and web
site development 249 -- 1,088 --
General and
administrative 3,602 -- 7,733 --
----------- -------- ----------- --------
$ 4,155 $ -- $ 10,074 $ --
=========== ======== =========== ========
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 Nine Months Ended
September 30, September 30,
-------------------------------------------
2006 2005 2006 2005
------------ -------- ------------ --------
(unaudited) (unaudited)
Income (loss) from
operations $ 170 $ 1,253 $ (2,304) $ 3,248
Plus:
Stock-based charges 161 152 128 669
Amortization of intangible
assets 497 734 1,833 2,889
Depreciation 2,718 2,048 7,733 5,508
Stock-based compensation 4,155 -- 10,074 --
Restructuring charge
reversal (278) -- (278) (1,442)
Non-recurring refund of
insurance premium -- -- (1,184) --
Non-recurring revenue -- (1,332) -- (2,664)
----------- ------- ----------- -------
EBITDA $ 7,423 $ 2,855 $ 16,002 $ 8,208
=========== ======= =========== =======
MOVE, INC.
SEGMENT OPERATING RESULTS
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2006 2005 2006 2005
------------ --------- ------------ ---------
(unaudited) (unaudited)
Revenue:
Real Estate Services $ 53,395 $ 47,161 $ 154,743 $132,594
Move-Related Services 22,277 19,177 63,799 53,453
----------- -------- ----------- --------
Total revenue $ 75,672 $ 66,338 $ 218,542 $186,047
=========== ======== =========== ========
Operating income (loss)
(1)
Real Estate Services $ 14,065 $ 15,971 $ 37,041 $ 39,442
Move-Related Services (909) 819 (2,163) 1,022
Unallocated (12,986) (15,537) (37,182) (37,216)
----------- -------- ----------- --------
Income (loss) from
operations $ 170 $ 1,253 $ (2,304) $ 3,248
=========== ======== =========== ========
(1) Includes stock-based compensation as follows:
Real Estate Services $ 1,330 $ -- $ 3,678 $ --
Move-Related Services 378 -- 1,323 --
Unallocated 2,447 -- 5,073 --
----------- -------- ----------- --------
$ 4,155 $ -- $ 10,074 $ --
=========== ======== =========== ========
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Three months ended
September 30, 2006
------------------------------------
(unaudited)
Real Move-
Estate Related
Services Services Unallocated
Revenue $ 53,395 $ 22,277 $ --
Cost of Revenue 8,344 7,624 981
--------- ---------- --------------
Gross Profit 45,051 14,653 (981)
Sales and marketing 17,279 9,723 1,640
Product and website development 6,103 1,143 943
General and administrative 6,274 4,318 6,756
Amortization of intangibles -- -- 497
Restructuring charge -- -- (278)
--------- --------- -------------
Total operating expenses 29,656 15,184 9,558
--------- --------- -------------
Income (loss) from operations $ 15,395 $ (531) $ (10,539)
========= ========= =============
Stock-based
Compensation Total
Revenue $ -- $75,672
Cost of Revenue 18 16,967
------------- -------
Gross Profit (18) 58,705
Sales and marketing 286 28,928
Product and website development 249 8,438
General and administrative 3,602 20,950
Amortization of intangibles -- 497
Restructuring charge -- (278)
------------- -------
Total operating expenses 4,137 58,535
------------- -------
Income (loss) from operations $ (4,155) $ 170
============= =======
Three months ended
September 30, 2005
----------------------------------
(unaudited)
Real Move-
Estate Related
Services Services Unallocated
Revenue $ 47,161 $ 19,177 $ --
Cost of Revenue 6,961 6,545 395
--------- ---------- -------------
Gross Profit 40,200 12,632 (395)
Sales and marketing 14,506 7,495 448
Product and website development 4,272 1,111 463
General and administrative 5,451 3,207 13,497
Amortization of intangibles -- -- 734
Restructuring charges -- -- --
--------- --------- ------------
Total operating expenses 24,229 11,813 15,142
--------- --------- ------------
Income (loss) from operations $ 15,971 $ 819 $ (15,537)
========= ========= ============
Stock-based
Compensation Total
Revenue $ -- $66,338
Cost of Revenue -- 13,901
------------- -------
Gross Profit -- 52,437
Sales and marketing -- 22,449
Product and website development -- 5,846
General and administrative -- 22,155
Amortization of intangibles -- 734
Restructuring charges -- --
------------- -------
Total operating expenses -- 51,184
------------- -------
Income (loss) from operations $ -- $ 1,253
============= =======
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Nine months ended
September 30, 2006
----------------------------------
(unaudited)
Real Move-
Estate Related
Services Services Unallocated
Revenue $ 154,743 $ 63,799 $ --
Cost of Revenue 24,387 22,383 2,874
--------- ---------- ------------
Gross Profit 130,356 41,416 (2,874)
Sales and marketing 51,193 27,314 2,997
Product and website development 18,008 3,275 3,215
General and administrative 20,436 11,667 21,468
Amortization of intangibles -- -- 1,833
Restructuring charge -- -- (278)
--------- --------- -----------
Total operating expenses 89,637 42,256 29,235
--------- --------- -----------
Income (loss) from operations $ 40,719 $ (840) $ (32,109)
========= ========= ===========
Stock-based
Compensation Total
Revenue $ -- $218,542
Cost of Revenue 176 49,820
------------- --------
Gross Profit (176) 168,722
Sales and marketing 1,077 82,581
Product and website development 1,088 25,586
General and administrative 7,733 61,304
Amortization of intangibles -- 1,833
Restructuring charge -- (278)
------------- --------
Total operating expenses 9,898 171,026
------------- --------
Income (loss) from operations $ (10,074) $ (2,304)
============= ========
Nine months ended
September 30, 2005
------------------------------------
(unaudited)
Real Move-
Estate Related
Services Services Unallocated
Revenue $ 132,594 $ 53,453 $ --
Cost of Revenue 20,718 18,506 1,117
--------- ---------- -------------
Gross Profit 111,876 34,947 (1,117)
Sales and marketing 44,968 21,576 956
Product and website development 11,244 2,772 1,271
General and administrative 16,222 9,577 32,425
Amortization of intangibles -- -- 2,889
Restructuring charges -- -- (1,442)
--------- --------- ------------
Total operating expenses 72,434 33,925 36,099
--------- --------- ------------
Income (loss) from operations $ 39,442 $ 1,022 $ (37,216)
========= ========= ============
Stock-based
Compensation Total
Revenue $ -- $186,047
Cost of Revenue -- 40,341
------------- --------
Gross Profit -- 145,706
Sales and marketing -- 67,500
Product and website development -- 15,287
General and administrative -- 58,224
Amortization of intangibles -- 2,889
Restructuring charges -- (1,442)
------------- --------
Total operating expenses -- 142,458
------------- --------
Income (loss) from operations $ -- $ 3,248
============= ========
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
---------------------
2006 2005
------------ --------
(unaudited)
Cash flows from continuing operating activities:
Net income $ 3,607 $ 4,870
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 7,733 5,508
Amortization of intangible assets 1,833 2,889
Gain on sale of property and equipment -- (132)
Provision for doubtful accounts 1,742 554
Stock-based compensation and charges 10,202 669
Other non-cash items (313) (72)
Changes in operating assets and liabilities:
Accounts receivable (3,035) (1,831)
Other assets (514) (1,561)
Accounts payable and accrued expenses (17,815) (7,237)
Deferred revenue 9,695 2,444
----------- -------
Net cash provided by operating activities 13,135 6,101
----------- -------
Cash flows from investing activities:
Purchases of property and equipment (8,653) (7,740)
Maturities of short-term investments 26,325 17,475
Purchases of short-term investments (25,175) (9,785)
Proceeds from sale of assets -- 164
Acquisitions, net (9,572) --
----------- -------
Net cash provided by (used in) investing
activities (17,075) 114
----------- -------
Cash flows from financing activities:
Proceeds from exercise of stock options 5,215 1,593
Restricted cash 804 848
Payments on capital lease obligations (2,112) (1,378)
----------- -------
Net cash provided by financing activities 3,907 1,063
----------- -------
Change in cash and cash equivalents (33) 7,278
Cash and cash equivalents, beginning of period 13,272 14,819
----------- -------
Cash and cash equivalents, end of period $ 13,239 $22,097
=========== =======
MOVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2006 2005
-------------- ------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 13,239 $ 13,272
Short-term investments 137,900 139,050
Marketable securities 13,488 --
Accounts receivable, net 18,756 15,966
Other current assets 20,301 19,485
------------- ------------
Total current assets 203,684 187,773
Property and equipment, net 27,840 20,717
Goodwill, net 23,877 19,502
Intangible assets, net 16,911 14,264
Restricted cash 4,222 5,026
Other assets 1,282 1,744
------------- ------------
Total assets $ 277,816 $ 249,026
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,247 $ 6,427
Accrued expenses 24,765 40,879
Obligation under capital leases 2,002 1,005
Deferred revenue 54,218 43,652
------------- ------------
Total current liabilities 86,232 91,963
Obligation under capital leases 2,692 --
Other liabilities 3,236 3,790
------------- ------------
Total liabilities 92,160 95,753
------------- ------------
Series B convertible preferred stock 94,896 91,349
Stockholders' equity:
Series A convertible preferred stock -- --
Common stock 152 149
Additional paid-in capital 2,062,322 2,047,456
Deferred stock-based charges -- (351)
Accumulated other comprehensive income 13,896 343
Accumulated deficit (1,985,610) (1,985,673)
------------- ------------
Total stockholders' equity 90,760 61,924
------------- ------------
Total liabilities and stockholders'
equity $ 277,816 $ 249,026
============= ============
CONTACT: Move, Inc.
Mollie O'Brien, Investor Relations, 805-557-2303
investorrelations@move.com