Exhibit 99.1
Move, Inc. Reports Second Quarter 2007 Results
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Aug. 2, 2007--Move,
Inc. (NASDAQ: MOVE) reported financial results for the second quarter
ended June 30, 2007. Total revenue for the second quarter was $73.6
million compared to $73.9 million in the second quarter of 2006.
"Clearly the residential real estate market is going through a
challenging period," said Mike Long, Move's chief executive officer.
"We are the market leader and have the financial strength to adapt and
expand our lead in the category. As the most visited and the most
comprehensive online real estate network, we are well positioned to
help both consumers and real estate professionals weather current
conditions and emerge stronger."
Net loss applicable to common stockholders for the second quarter
of 2007 was $3.5 million, or $0.02 per share, compared to net income
of $1.4 million, or $0.01 per share, 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 2007 was $6.9 million, compared to $4.7 million for the
second quarter of 2006. 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.
"Since joining Move 60 days ago, our agenda has been simplifying
and focusing the Company's strategy and prioritizing the order of
execution for our strategic imperatives," said Lorna Borenstein,
Move's president. "Our first priority is to improve and optimize the
real estate search experience for our over 9 million(1) monthly
consumers."
CONFERENCE CALL
As previously announced, Move will host a conference call, which
will be broadcast live over the Internet today, Thursday, August 2,
2007, at 2:00 p.m. PDT (5:00 p.m. EDT). Chief Executive Officer, Mike
Long, President, Lorna Borenstein and Chief Financial Officer, Lew
Belote, will discuss the Company's second quarter 2007 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 9, 2007 at 888-286-8010,
conference ID 64110879. 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, 2007 is expected to be filed with the
Securities and Exchange Commission on, or before, August 6, 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 six months ended June 30, 2007 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 leading online network of web sites
for real estate search, finance, moving and home enthusiasts, is the
essential resource for consumers seeking the information and
connections they need before, during and after a move. Move, Inc.
operates Move.com (http://www.move.com), a leading destination for
information on new homes and rental listings, moving, home and garden
and home finance; REALTOR.com(R) (http://www.realtor.com), the
official Web site of the National Association of REALTORS(R) offering
more than 3 million homes for sale; Welcome Wagon(R)
(http://www.welcomewagon.com), the expert in providing new neighbors
with comprehensive information about businesses and professionals in
their new communities; Moving.com; SeniorHousingNet(TM); TOP
PRODUCER(R) Systems; FactoryBuiltHousing.com; and Home Plans. Move,
Inc. is based in Westlake Village, California and employs more than
1600 people throughout North America. For more information:
http://www.move.com.
(1) comScore Media Metrix, monthly average April - June, 2007
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2007 2006 2007 2006
----------- --------- ----------- ---------
(unaudited) (unaudited)
Revenue $ 73,626 $ 73,891 $ 144,656 $142,870
Cost of revenue (1) 15,299 16,447 29,997 32,853
---------- -------- ---------- --------
Gross profit 58,327 57,444 114,659 110,017
---------- -------- ---------- --------
Operating expenses: (1)
Sales and marketing 27,626 28,312 55,520 53,653
Product and web site
development 9,324 8,793 18,146 17,148
General and
administrative 25,097 19,378 45,804 40,354
Amortization of
intangible assets 505 589 1,003 1,336
---------- -------- ---------- --------
Total operating expenses 62,552 57,072 120,473 112,491
---------- -------- ---------- --------
Income (loss) from
operations (4,225) 372 (5,814) (2,474)
Interest income, net 2,503 1,794 4,816 3,409
Other income (expense), net (371) 431 384 503
---------- -------- ---------- --------
Net income (loss) before
income taxes (2,093) 2,597 (614) 1,438
Provision for income
taxes 169 -- 253 --
---------- -------- ---------- --------
Net Income (loss) (2,262) 2,597 (867) 1,438
Convertible preferred
stock dividends and
related accretion (1,241) (1,181) (2,473) (2,355)
---------- -------- ---------- --------
Net income (loss)
applicable to common
stockholders $ (3,503) $ 1,416 $ (3,340) $ (917)
========== ======== ========== ========
Net income (loss) per
common share:
Basic net income (loss)
applicable to common
stockholders $ (0.02) $ 0.01 $ (0.02) $ (0.01)
========== ======== ========== ========
Diluted net income (loss)
applicable to common
stockholders $ (0.02) $ 0.01 $ (0.02) $ (0.01)
========== ======== ========== ========
Shares used to calculate
basic and diluted per
share amounts
Basic 154,885 150,769 154,614 149,865
========== ======== ========== ========
Diluted 154,885 165,127 154,614 149,865
========== ======== ========== ========
(1) Includes stock-based
compensation as follows:
Cost of revenue $ 33 $ 29 $ 77 $ 158
Sales and marketing 347 302 833 791
Product and web site
development 292 340 567 839
General and
administrative 7,148 1,878 11,762 4,131
---------- -------- ---------- --------
$ 7,820 $ 2,549 $ 13,239 $ 5,919
========== ======== ========== ========
MOVE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
INCOME (LOSS) FROM OPERATIONS EXCLUDING CERTAIN 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,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
(unaudited) (unaudited)
Income (loss) from operations $(4,225) $ 372 $(5,814) $(2,474)
Plus:
Stock-based charges 136 (174) 284 (33)
Amortization of intangible
assets 505 589 1,003 1,336
Depreciation 2,681 2,571 5,328 5,015
Stock-based compensation 7,820 2,549 13,239 5,919
Non-recurring refund of
insurance premium -- (1,184) -- (1,184)
------- ------- ------- -------
EBITDA $ 6,917 $ 4,723 $14,040 $ 8,579
======= ======= ======= =======
MOVE, INC.
SEGMENT OPERATING RESULTS
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue: (unaudited) (unaudited)
Real Estate Services $ 54,750 $ 52,099 $108,273 $101,348
Consumer Media 18,876 21,792 36,383 41,522
-------- -------- -------- --------
Total revenue $ 73,626 $ 73,891 $144,656 $142,870
======== ======== ======== ========
Operating income (loss) (1)
Real Estate Services $ 13,805 $ 11,379 $ 27,034 $ 22,976
Consumer Media (2,384) 323 (5,163) (1,254)
Unallocated (15,646) (11,330) (27,685) (24,196)
-------- -------- -------- --------
Income (loss) from
operations $ (4,225) $ 372 $ (5,814) $ (2,474)
======== ======== ======== ========
(1) Includes stock-based
compensation as follows:
Real Estate Services $ 2,030 $ 1,068 $ 4,108 $ 2,348
Consumer Media 707 321 1,383 945
Unallocated 5,083 1,160 7,748 2,626
-------- -------- -------- --------
$ 7,820 $ 2,549 $ 13,239 $ 5,919
======== ======== ======== ========
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Three months ended
June 30, 2007
------------------------------------------------------
(unaudited)
Real
Estate Consumer Stock-based
Services Media Unallocated Compensation Total
Revenue $ 54,750 $18,876 $ - $ - $73,626
Cost of Revenue 8,463 6,168 635 33 15,299
------------------------------- ------------ -------
Gross Profit 46,287 12,708 (635) (33) 58,327
Sales and
marketing 17,003 8,752 1,524 347 27,626
Product and web
site
development 6,931 1,831 270 292 9,324
General and
administrative 6,518 3,802 7,629 7,148 25,097
Amortization of
intangibles - - 505 - 505
-------- -------- ----------- ------------ -------
Total operating
expenses 30,452 14,385 9,928 7,787 62,552
-------- -------- ----------- ------------ -------
Income (loss)
from
operations $ 15,835 $(1,677) $(10,563) $(7,820) $(4,225)
======== ======== =========== ============ =======
Three months ended
June 30, 2006
------------------------------------------------------
(unaudited)
Real
Estate Consumer Stock-based
Services Media Unallocated Compensation Total
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
======== ======== =========== ============ =======
MOVE, INC.
SEGMENT OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Six months ended
June 30, 2007
------------------------------------------------------
(unaudited)
Real
Estate Consumer Stock-based
Services Media Unallocated Compensation Total
Revenue $ 108,273 $36,383 $ - $ - $144,656
Cost of Revenue 16,698 12,026 1,196 77 29,997
------------------------------- ------------ --------
Gross Profit 91,575 24,357 (1,196) (77) 114,659
Sales and
marketing 34,837 17,430 2,420 833 55,520
Product and web
site
development 13,458 3,348 773 567 18,146
General and
administrative 12,138 7,359 14,545 11,762 45,804
Amortization of
intangibles - - 1,003 - 1,003
-------- -------- ----------- ------------ --------
Total operating
expenses 60,433 28,137 18,741 13,162 120,473
-------- -------- ----------- ------------ --------
Income (loss)
from
operations $ 31,142 $(3,780) $(19,937) $(13,239) $ (5,814)
======== ======== =========== ============ ========
Six months ended
June 30, 2006
------------------------------------------------------
(unaudited)
Real
Estate Consumer Stock-based
Services Media Unallocated Compensation Total
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)
======== ======== =========== ============ ========
MOVE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
-------------------
2007 2006
--------- ---------
Cash flows from operating activities: (unaudited)
Net income (loss) $ (867) $ 1,438
Adjustments to reconcile net income (loss) to net
cash provided by (used in) continuing operating
activities:
Depreciation 5,328 5,015
Amortization of intangible assets 1,003 1,336
Gain on sales of property and equipment (336) --
Provision for doubtful accounts 556 540
Stock-based compensation and charges 13,523 5,886
Change in market value of embedded derivative
liability (98) --
Other non-cash items (14) (315)
Changes in operating assets and liabilities:
Accounts receivable 1,739 (1,842)
Other assets (3,002) (2,380)
Accounts payable and accrued expenses 2,096 (16,995)
Deferred revenue (1,457) 11,941
-------- --------
Net cash provided by operating activities 18,471 4,624
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (12,601) (6,854)
Proceeds from the surrender of life insurance
policy 5,200 --
Proceeds from sale of marketable equity securities 15,743 --
Proceeds from sale of property and equipment 336 --
Purchases of intangible assets (418) --
Maturities of short-term investments 36,350 16,950
Purchases of short-term investments (43,475) (10,050)
Acquisitions, net -- (9,572)
-------- --------
Net cash provided by (used in) investing
activities 1,135 (9,526)
-------- --------
Cash flows from financing activities:
Proceeds from exercise of stock options 2,708 4,816
Restricted cash 993 855
Payments on capital lease obligations (935) (1,374)
-------- --------
Net cash provided by financing activities 2,766 4,297
-------- --------
Change in cash and cash equivalents 22,372 (605)
Cash and cash equivalents, beginning of period 14,873 13,272
-------- --------
Cash and cash equivalents, end of period $ 37,245 $ 12,667
======== ========
MOVE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2007 2006
------------- -------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 37,245 $ 14,873
Short-term investments 150,100 142,975
Accounts receivable, net 15,984 18,279
Other current assets 16,214 34,468
----------- ------------
Total current assets 219,543 210,595
Property and equipment, net 36,739 29,245
Goodwill, net 23,877 23,877
Intangible assets, net 16,130 16,715
Restricted cash 3,286 4,279
Other assets 1,413 1,238
----------- ------------
Total assets $ 300,988 $ 285,949
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,963 $ 4,904
Accrued expenses 28,086 26,738
Obligation under capital leases 1,971 1,904
Deferred revenue 48,659 50,075
----------- ------------
Total current liabilities 84,679 83,621
Obligation under capital leases 1,165 2,167
Other liabilities 2,403 2,497
----------- ------------
Total liabilities 88,247 88,285
----------- ------------
Series B convertible preferred stock 98,685 96,212
Stockholders' equity:
Series A convertible preferred stock - -
Common stock 155 154
Additional paid-in capital 2,085,134 2,069,399
Accumulated other comprehensive income 533 326
Accumulated deficit (1,971,766) (1,968,427)
----------- ------------
Total stockholders' equity 114,056 101,452
----------- ------------
Total liabilities and stockholders'
equity $ 300,988 $ 285,949
=========== ============
CONTACT: Move, Inc.
Mollie O'Brien, Investor Relations
805-557-3846
investorrelations@move.com