EXHIBIT 99.1
Move, Inc. Announces Fourth Quarter and
Full Year 2006 Financial Results
Full Year Revenue Increased 15 Percent; Record 12% EBITDA Margin in Q4
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Feb. 22, 2007--Move,
Inc. (NASDAQ:MOVE) reported financial results for the fourth quarter
and full year ended December 31, 2006. Total revenue for the fourth
quarter was $71.8 million, an eight percent increase compared to $66.6
million in the fourth quarter of 2005. Revenue for the full year 2006
was $290.4 million, a 15 percent increase compared to $252.6 million
for the full year 2005.
Net income applicable to common stockholders ("net income") for
the fourth quarter of 2006 was $17.6 million, or $0.09 per diluted
share, compared to a net loss of $4.6 million, or $0.03 per diluted
share, for the fourth quarter of 2005. Net income in the fourth
quarter of 2006 includes $15.7 million in "Other Income" from the sale
of investments and expense of $5.3 million for stock-based
compensation. Net income for the full year 2006 was $18.6 million, or
$0.10 per diluted share, compared to $234,000, or $0.00 per diluted
share, for the full year 2005. Net income for the full year 2006
includes $15.7 million in "Other Income" from the sale of investments
and expense of $15.4 million in stock-based compensation.
Move's EBITDA (earnings before interest, restructuring charges and
certain other non-cash and non-recurring items, principally
stock-based compensation charges, depreciation, and amortization) on a
non-GAAP basis for the fourth quarter of 2006 was $8.6 million,
compared to a loss of $2.8 million for the fourth quarter of 2005.
EBITDA for the fourth quarter of 2005 included $5.9 million in expense
related to the Company's obligation to advance the defense costs of
former officers. EBITDA for the full year 2006 was $24.6 million,
compared to $5.4 million for the full year 2005. EBITDA for the full
year 2005 included $15.6 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.
"2006 was our strongest year ever for concurrent financial
improvements in revenue, profitability and liquidity," said Mike Long,
Move's CEO. "Entering 2007, we are well positioned to enhance our
value proposition for both consumers and customers while improving
results for shareholders."
At December 31, 2006, Move had $157.8 million in cash and
short-term investments available to fund operations.
The Company's fourth quarter and full year 2006 results also
included income tax expense of $134,000. As a result of the Company's
profitability, it expects to have income tax expense in future
periods, but its effective rate will be substantially lower than
statutory tax rates due to the utilization of historical net operating
losses against future income.
CONFERENCE CALL
As previously announced, Move, Inc. will host a conference call,
which will be broadcast live over the Internet today, Thursday,
February 22, 2007, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
Chief Executive Officer, Mike Long, and Chief Financial Officer, Lew
Belote, will discuss the Company's fourth quarter and full year 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. Pacific Time (7:00 p.m. Eastern Time) until midnight on
March 1, 2007 at 888-286-8010, conference ID 72240063. 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, 2006 is expected to be filed
with the Securities and Exchange Commission on, or before, March 2,
2007.
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 twelve months ended December 31, 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) 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), a 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 listing 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
HomePlans (http://www.homeplans.com). On the Net:
http://investor.move.com.
MOVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- -------------------
2006 2005 2006 2005
------------ --------- --------- ---------
(unaudited)
Revenue $ 71,842 $ 66,575 $290,384 $252,622
Cost of revenue (1) 15,499 15,847 65,319 56,188
----------- -------- -------- --------
Gross profit 56,343 50,728 225,065 196,434
----------- -------- -------- --------
Operating expenses: (1)
Sales and marketing 27,682 23,571 110,263 91,071
Product and web site
development 8,321 6,772 33,907 22,059
General and administrative 19,964 24,321 81,268 82,545
Amortization of intangible
assets 498 735 2,331 3,624
Restructuring charges -- 111 (278) (1,331)
Litigation settlement -- 1,750 -- 1,750
----------- -------- -------- --------
Total operating expenses 56,465 57,260 227,491 199,718
----------- -------- -------- --------
Loss from operations (122) (6,532) (2,426) (3,284)
Interest income, net 1,946 981 7,255 2,351
Other income, net 16,808 371 17,410 623
----------- -------- -------- --------
Income (loss) from
continuing operations
before income taxes 18,632 (5,180) 22,239 (310)
Provision for income
taxes (134) -- (134) --
----------- -------- -------- --------
Income (loss) from
continuing operations 18,498 (5,180) 22,105 (310)
Gain on disposition of
discontinued operations -- 855 -- 855
----------- -------- -------- --------
Net income (loss) 18,498 (4,325) 22,105 545
Convertible preferred stock
dividends (901) (311) (3,557) (311)
----------- -------- -------- --------
Net income (loss)
applicable to common
stockholders $ 17,597 $ (4,636) $ 18,548 $ 234
=========== ======== ======== ========
Basic net income (loss) per
share attributable to
common stockholders
Continuing operations $ 0.10 $ (0.04) $ 0.11 $ (0.01)
Discontinued operations -- 0.01 -- 0.01
----------- -------- -------- --------
Net income (loss)
attributable to common
stockholders $ 0.10 $ (0.03) $ 0.11 $ 0.00
=========== ======== ======== ========
Diluted net income (loss)
per share attributable to
common stockholders
Continuing operations $ 0.09 $ (0.04) $ 0.10 $ (0.00)
Discontinued operations -- 0.01 -- 0.00
----------- -------- -------- --------
Net income (loss)
attributable to common
stockholders $ 0.09 $ (0.03) $ 0.10 $ (0.00)
=========== ======== ======== ========
Shares used in calculation
of net income (loss) per
share attributable to
common stockholders
Basic 152,992 148,065 151,170 147,175
=========== ======== ======== ========
Diluted 165,721 148,065 163,394 182,548
=========== ======== ======== ========
(1) Includes stock-based compensation as follows:
Cost of revenue $ 45 $ -- $ 221 $ --
Sales and marketing 626 -- 1,703 --
Product and web site
development 383 -- 1,471 --
General and
administrative 4,258 -- 11,991 --
----------- -------- -------- --------
$ 5,312 $ -- $ 15,386 $ --
=========== ======== ======== ========
MOVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
--------------------
2006 2005
--------- ----------
Cash flows from continuing operating activities:
Income (loss) from continuing operations $ 22,105 $ (310)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 10,497 7,500
Amortization of intangible assets 2,331 3,624
Gain on sales of property and equipment -- (156)
Provision for doubtful accounts 2,200 731
Stock-based compensation and charges 15,675 1,115
Other non-cash items (305) (109)
Changes in operating assets and liabilities:
Accounts receivable (3,017) (4,165)
Other assets (14,695) (1,882)
Accounts payable and accrued expenses (17,128) (680)
Deferred revenue 5,756 141
-------- ---------
Net cash provided by continuing operating
activities 23,419 5,809
Net cash provided by discontinued operating
activities -- 855
-------- ---------
Net cash provided by operating activities 23,419 6,664
-------- ---------
Cash flows from investing activities:
Purchases of property and equipment (12,923) (11,154)
Maturities of short-term investments 26,325 22,275
Purchases of short-term investments (30,250) (116,285)
Proceeds from sale of assets -- 203
Purchases of intangible assets (300) --
Acquisitions, net (9,572) --
-------- ---------
Net cash used in investing activities (26,720) (104,961)
-------- ---------
Cash flows from financing activities:
Proceeds from exercise of stock options 6,890 3,619
Restricted cash 747 814
Payments on capital lease obligations (2,735) (1,760)
Proceeds from sale of convertible preferred stock -- 94,077
-------- ---------
Net cash provided by financing activities 4,902 96,750
-------- ---------
Change in cash and cash equivalents 1,601 (1,547)
Cash and cash equivalents, beginning of period 13,272 14,819
-------- ---------
Cash and cash equivalents, end of period $ 14,873 $ 13,272
======== =========
MOVE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2006 2005
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 14,873 $ 13,272
Short-term investments 142,975 139,050
Accounts receivable, net 18,279 15,966
Other current assets 34,468 19,485
------------- -------------
Total current assets 210,595 187,773
Property and equipment, net 29,245 20,717
Goodwill, net 23,877 19,502
Intangible assets, net 16,715 14,264
Restricted cash 4,279 5,026
Other assets 1,238 1,744
------------- -------------
Total assets $ 285,949 $ 249,026
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,904 $ 6,427
Accrued expenses 26,738 40,879
Obligation under capital leases 1,904 1,005
Deferred revenue 50,075 43,652
------------- -------------
Total current liabilities 83,621 91,963
Obligation under capital leases 2,167 --
Other liabilities 2,497 3,790
------------- -------------
Total liabilities 88,285 95,753
------------- -------------
Series B convertible preferred stock 96,212 91,349
Stockholders' equity:
Series A convertible preferred stock -- --
Common stock 154 149
Additional paid-in capital 2,069,399 2,047,456
Deferred stock-based charges -- (351)
Accumulated other comprehensive income 326 343
Accumulated deficit (1,968,427) (1,985,673)
------------- -------------
Total stockholders' equity 101,452 61,924
------------- -------------
Total liabilities and stockholders'
equity $ 285,949 $ 249,026
============= =============
MOVE, INC.
SEGMENT OPERATING RESULTS
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ----------------------
2006 2005 2006 2005
------------ --------- ------------ ---------
Revenue: (unaudited) (unaudited)
Real Estate Services $ 53,596 $ 48,730 $ 208,339 $181,324
Move-Related Services 18,246 17,845 82,045 71,298
----------- -------- ----------- --------
Total revenue $ 71,842 $ 66,575 $ 290,384 $252,622
=========== ======== =========== ========
Operating income (loss)
(1)
Real Estate Services $ 12,864 $ 15,183 $ 49,905 $ 54,625
Move-Related Services (1,569) (2,300) (3,732) (1,279)
Unallocated (11,417) (19,415) (48,599) (56,630)
----------- -------- ----------- --------
Loss from operations $ (122) $ (6,532) $ (2,426) $ (3,284)
=========== ======== =========== ========
(1) Includes stock-based compensation as follows:
Real Estate Services $ 1,917 $ -- $ 5,595 $ --
Move-Related Services 512 -- 1,835 --
Unallocated 2,883 -- 7,956 --
----------- -------- ----------- --------
$ 5,312 $ -- $ 15,386 $ --
=========== ======== =========== ========
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Three months ended
December 31, 2006
---------------------------------------------------
(unaudited)
Stock-
Real Move- based
Estate Related Un- Compen-
Services Services allocated sation Total
Revenue $ 53,596 $ 18,246 $ -- $ -- $71,842
Cost of revenue 8,817 6,370 267 45 15,499
--------- ---------- ----------- -------- -------
Gross profit 44,779 11,876 (267) (45) 56,343
Sales and
marketing 17,635 8,636 785 626 27,682
Product and web
site development 6,097 987 854 383 8,321
General and
administrative 6,266 3,310 6,130 4,258 19,964
Amortization of
intangibles -- -- 498 -- 498
Restructuring
charge -- -- -- -- --
--------- --------- ---------- -------- -------
Total operating
expenses 29,998 12,933 8,267 5,267 56,465
--------- --------- ---------- -------- -------
Income (loss) from
operations $ 14,781 $ (1,057) $ (8,534) $ (5,312) $ (122)
========= ========= ========== ======== =======
Three months ended
December 31, 2005
---------------------------------------------------
(unaudited)
Stock-
Real Move- based
Estate Related Un- Compen-
Services Services allocated sation Total
Revenue $ 48,730 $ 17,845 $ -- $ -- $66,575
Cost of revenue 7,184 7,840 823 -- 15,847
--------- ---------- ----------- -------- -------
Gross profit 41,546 10,005 (823) -- 50,728
Sales and
marketing 15,157 8,068 346 -- 23,571
Product and web
site development 4,678 983 1,111 -- 6,772
General and
administrative 6,528 3,254 14,539 -- 24,321
Amortization of
intangibles -- -- 735 -- 735
Litigation
settlement -- -- 1,750 -- 1,750
Restructuring
charges -- -- 111 -- 111
--------- --------- ---------- -------- -------
Total operating
expenses 26,363 12,305 18,592 -- 57,260
--------- --------- ---------- -------- -------
Income (loss) from
operations $ 15,183 $ (2,300) $ (19,415) $ -- $(6,532)
========= ========= ========== ======== =======
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Twelve months ended
December 31, 2006
---------------------------------------------------
(unaudited)
Stock-
Real Move- based
Estate Related Un- Compen-
Services Services allocated sation Total
Revenue $ 208,339 $ 82,045 $ -- $ -- $290,384
Cost of revenue 33,204 28,753 3,141 221 65,319
--------- ---------- ---------- -------- --------
Gross profit 175,135 53,292 (3,141) (221) 225,065
Sales and
marketing 68,828 35,950 3,782 1,703 110,263
Product and web
site development 24,105 4,262 4,069 1,471 33,907
General and
administrative 26,702 14,977 27,598 11,991 81,268
Amortization of
intangibles -- -- 2,331 -- 2,331
Restructuring
charge -- -- (278) -- (278)
--------- --------- --------- -------- --------
Total operating
expenses 119,635 55,189 37,502 15,165 227,491
--------- --------- --------- -------- --------
Income (loss) from
operations $ 55,500 $ (1,897) $ (40,643) $(15,386) $ (2,426)
========= ========= ========= ======== ========
Twelve months ended
December 31, 2005
---------------------------------------------------
(unaudited)
Stock-
Real Move- based
Estate Related Un- Compen-
Services Services allocated sation Total
Revenue $ 181,324 $ 71,298 $ -- $ -- $252,622
Cost of revenue 27,902 26,346 1,940 -- 56,188
--------- ---------- ---------- -------- --------
Gross profit 153,422 44,952 (1,940) -- 196,434
Sales and
marketing 60,125 29,644 1,302 -- 91,071
Product and web
site development 15,922 3,755 2,382 -- 22,059
General and
administrative 22,750 12,832 46,963 -- 82,545
Amortization of
intangibles -- -- 3,624 -- 3,624
Litigation
settlement -- -- 1,750 -- 1,750
Restructuring
charges -- -- (1,331) -- (1,331)
--------- --------- --------- -------- --------
Total operating
expenses 98,797 46,231 54,690 -- 199,718
--------- --------- --------- -------- --------
Income (loss) from
operations $ 54,625 $ (1,279) $ (56,630) $ -- $ (3,284)
========= ========= ========= ======== ========
MOVE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
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 Twelve Months
Ended December Ended December
31, 31,
----------------- -----------------
2006 2005 2006 2005
------- -------- -------- --------
(unaudited) (unaudited)
Loss from operations $ (122) $(6,532) $(2,426) $(3,284)
Plus:
Stock-based charges 161 446 289 1,115
Amortization of intangible assets 498 735 2,331 3,624
Depreciation 2,764 1,992 10,497 7,500
Stock-based compensation 5,312 -- 15,386 --
Restructuring charge (reversal) -- 111 (278) (1,331)
Litigation settlement -- 1,750 -- 1,750
Non-recurring refund of insurance
premium -- -- (1,184) --
Non-recurring revenue -- (1,333) -- (3,997)
------ ------- ------- -------
EBITDA $8,613 $(2,831) $24,615 $ 5,377
====== ======= ======= =======
CONTACT: Move, Inc.
Mollie O'Brien, Investor Relations, 805-557-3846
investorrelations@move.com