WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 201

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WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 2012

Annual Revenues Increase 12%

NEW YORK--(BUSINESS WIRE)-- WebMediaBrands Inc. (NAS: WEBM) today reported results for the fourth quarter and full year ended December 31, 2012.


Highlights for the fourth quarter of 2012 include:

  • Revenues for the fourth quarter of 2012 were $3.3 million and revenues from trade shows and research increased 24% and 6%, respectively, compared to the same period in 2011.
  • Net loss for the fourth quarter of 2012 was $6.5 million and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $9.1 million for the same period in 2011.

Highlights for the year ended December 31, 2012 include:

  • Revenues for the year ended December 31, 2012 were $14.0 million compared to revenues of $12.4 million for the year ended December 31, 2011, an increase of 12%. Revenues from research, trade shows and advertising increased 80%, 35% and 18%, respectively, compared to 2011. Inside Network's market research and data services business, which includes AppData, contributed $1.7 million in revenues during 2012. We acquired Inside Network in May 2011.
  • Net loss was $8.7 million for the year ended December 31, 2012, and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $11.9 million for the year ended December 31, 2011. Non-GAAP loss, excluding interest, taxes, impairment, depreciation, amortization and stock-based compensation, or EBITDA, was $1.5 million for the year ended December 31, 2012 and included severance-related costs and a loss on the sale of certain assets totaling $402,000. EBITDA loss was $1.6 million for the same period in 2011. Stock-based compensation expense was $528,000 during the year ended December 31, 2012 compared to $991,000 during the same period in 2011.

"Our financial results for the year ended December 31, 2012, included revenue growth of 12%, with our research and trade show businesses leading the way with growth of 80% and 35%, respectively," stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. "We have continued to invest in our product offerings, specifically with our research and trade show businesses," added Meckler. "We remain optimistic and encouraged about the future success and value of our business."

WebMediaBrands Inc. Fourth Quarter 2012 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2012 fourth quarter results on Wednesday, February 27, 2013 at 5:00 pm EST.

The conference call number is 888-437-9445 for domestic participants and 719-325-2329 for international participants; confirmation code "4162863." 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, March 5, 2013. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code "4162863."

 

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Year Ended December 31, 2012 and 2011


(in thousands, except per share amounts)

 
 Three Months Ended
December 31,
 Year Ended
December 31,
2012 20112012 2011
Revenues$3,320$3,375$13,962$12,429
 
Cost of revenues2,1011,8977,9317,154
Advertising, promotion and selling7725512,6922,088
General and administrative1,1421,3955,0805,475
Depreciation7177309319
Amortization131142540513
Impairment5,5428,2895,5428,289
Contingent acquisition consideration    329
Total operating expenses 9,759 12,351 22,094 24,167
 
Operating loss(6,439)(8,976)(8,132)(11,738)
Other loss, net(24)(2)(240)(9)
Interest income145486
Interest expense (62) (122) (271) (657)
Loss before income taxes(6,524)(9,055)(8,639)(12,318)
Provision (benefit) for income taxes 4 14 34 (403)
Net loss$(6,528)$(9,069)$(8,673)$(11,915)
 
Loss per share:
Basic net loss$(1.09)$(1.52)$(1.45)$(2.05)
Diluted net loss$(1.09)$(1.52)$(1.45)$(2.05)
 
Weighted average shares used in computing loss per share:
Basic 6,014 5,976 5,991 5,818
Diluted 6,014 5,976 5,991 5,818
 

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.

Unaudited Consolidated Condensed Balance Sheets

December 31, 2012 and 2011


(in thousands, except share and per share amounts)

  
December 31,
2012
December 31,
2011
ASSETS
Current assets:
Cash and cash equivalents$2,210$3,438
Accounts receivable, net of allowances of $16 and $11, respectively524489
Prepaid expenses and other current assets 503 575
Total current assets3,2374,502
 
Property and equipment, net of accumulated depreciation of $1,475 and $1,350, respectively268477
Intangible assets, net of accumulated amortization of $1,144 and $722, respectively2,3052,626
Goodwill9,57415,116
Investments and other assets 687 1,146
Total assets$16,071$23,867
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$509$367
Accrued payroll and related expenses493391
Accrued expenses and other current liabilities649662
Deferred revenues 1,294 1,288
Total current liabilities2,9452,708
 
Loan from related party7,6477,647
Deferred revenues1722
Deferred income taxes474444
Other long-term liabilities  60
Total liabilities 11,083 10,881
 
Commitments and contingencies:
 
Stockholders' equity:
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued
Common stock, $.01 par value, 75,000,000 shares authorized, 6,138,879 and 6,077,911 shares issued and 6,019,594 and 5,958,626 shares outstanding at December 31, 2012 and 2011, respectively6161
Additional paid-in capital289,711289,036
Accumulated deficit(284,288)(275,615)
Treasury stock, 119,285 shares, at cost (496) (496)
Total stockholders' equity 4,988 12,986
Total liabilities and stockholders' equity$16,071$23,867
 

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.

Unaudited Consolidated Condensed Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011 (in thousands)

 
 Year Ended December 31,
2012 2011
Cash flows from operating activities:
Net loss$(8,673)$(11,915)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment5,5428,289
Depreciation and amortization849832
Stock-based compensation528991
Provision for losses on accounts receivable2715
Other, net236(2)
Amortization of debt issuance costs3628
Deferred income taxes30 Read Full Story

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