WebMediaBrands Inc. Reports Financial Results For Its First Quarter Ended March 31, 2013

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WebMediaBrands Inc. Reports Financial Results For Its First Quarter Ended March 31, 2013

NEW YORK--(BUSINESS WIRE)-- WebMediaBrands Inc. (NAS: WEBM) today reported financial results for the quarter ended March 31, 2013.

Financial Results for the first quarter of 2013 include:

  • Revenues for the first quarter of 2013 were $2.5 million compared to revenues of $3.7 million for the same period in 2012.
  • Net loss for the first quarter of 2013 was $924,000 compared to a net loss of $617,000 for the same period in 2012.

"Our financial results for the first quarter were partially impacted by the fact that we did not run any trade shows during the quarter," stated Alan M. Meckler, Chairman and CEO of WebMediaBrands Inc. "By comparison, we ran three trade shows during the same period in 2012, including our Inside Social Apps trade show, which is not scheduled to run until June of this year. We are very excited about the recently concluded launch event of our newest trade show, Inside 3D Printing Conference and Expo, which took place on April 22nd and 23rd in New York City. This trade show was critically and financially successful and, as a result, we will be running this event in Chicago, San Jose, and Singapore later this year, and intend to expand to additional locations in 2014," added Meckler.

WebMediaBrands Inc. First Quarter 2013 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2013 first quarter results on Thursday, May 2, 2013 at 5:00 pm ET.

The conference call number is 888-438-5525 for domestic participants and 719-325-2464 for international participants; confirmation code 1025769. Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, May 7, 2013. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code 1025769.

 
WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Operations
For the Three Months Ended March 31, 2013 and 2012
(in thousands, except per share amounts)
 
Three Months Ended

March 31,

2013 2012
Revenues$2,520$3,685
 
Cost of revenues1,5572,043
Advertising, promotion and selling476641
General and administrative1,1601,319
Depreciation6480
Amortization 109 136
Total operating expenses 3,366 4,219
 
Operating loss(846)(534)
Other loss, net(4)
Interest income11
Interest expense (63) (73)
 
Loss before income taxes(912)(606)
Provision for income taxes 12 11
 
Net loss$(924)$(617)
 
Loss per share:
Basic net loss$(0.15)$(0.10)
Diluted net loss$(0.15)$(0.10)
Weighted average shares used in computing loss per share:
Basic 6,023 5,956
Diluted 6,023 5,956
 

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stock
split implemented on August 16, 2012.

 
 
WebMediaBrands Inc.
Consolidated Condensed Balance Sheets
March 31, 2013 and December 31, 2012
(in thousands, except share and per share amounts)
  
March 31,
2013December 31,
(unaudited)2012
ASSETS
Current assets:
Cash and cash equivalents$1,626$2,210
Accounts receivable, net of allowances of $8 and $16, respectively451524
Prepaid expenses and other current assets 764 503
Total current assets2,8413,237
 

Property and equipment, net of accumulated depreciation of $1,520 and
$1,475, respectively

229268

Intangible assets, net of accumulated amortization of $1,090 and $1,144,
respectively

2,2452,305
Goodwill9,5749,574
Investments and other assets 673 687
Total assets$15,562$16,071
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$437$509
Accrued payroll and related expenses311493
Accrued expenses and other current liabilities796649
Deferred revenues 1,717 1,294
Total current liabilities3,2612,945
 
Loan from related party7,6477,647
Deferred revenues1817
Deferred income taxes 484 474
Total liabilities 11,410 11,083
 
Commitments and contingencies
 
Stockholders' equity:

Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares
issued and outstanding

Common stock, $.01 par value, 18,750,000 shares authorized, 6,141,768 and
6,138,879 shares issued and 6,022,483 and 6,019,594 shares outstanding at
March 31, 2013 and December 31, 2012, respectively

6161
Additional paid-in capital289,799289,711
Accumulated deficit(285,212)(284,288)
Treasury stock, 119,285 shares, at cost (496) (496)
Total stockholders' equity 4,152 4,988
Total liabilities and stockholders' equity$15,562$16,071
 
 
WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Cash Flows
For the Three Months Ended March 31, 2013 and 2012 (in thousands)
 
Three Months Ended

March 31,

2013 2012
Cash flows from operating activities:
Net loss$(924)$(617)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization173216
Stock-based compensation81122
Provision for losses on accounts receivable59
Other, net38
Amortization of debt issuance costs109
Deferred income taxes109
Changes in current assets and liabilities (net of businesses acquired):
Accounts receivable, net68(139)
Prepaid expenses and other assets(257)7
Accounts payable, accrued expenses and other liabilities(123)(55)
Deferred revenues 423 307
Net cash used in operating activities (531) (124)
Cash flows from investing activities:
Purchases of property and equipment(12)(32)
Acquisitions of businesses, assets and other (48) (35)
Net cash used in investing activities (60) (67)
Cash flows from financing activities:
Proceeds from exercise of stock options 7 44
Net cash provided by financing activities 7 44
Net decrease in cash and cash equivalents(584)(147)
Cash and cash equivalents, beginning of period 2,210 3,438
Cash and cash equivalents, end of period$1,626$3,291
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