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

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 revenues

1,557

2,043

Advertising, promotion and selling

476

641

General and administrative

1,160

1,319

Depreciation

64

80

Amortization

109

136

Total operating expenses

3,366

4,219

Operating loss

(846

)

(534

)

Other loss, net

(4

)

Interest income

1

1

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,

2013

December 31,

(unaudited)

2012

ASSETS

Current assets:

Cash and cash equivalents

$

1,626

$

2,210

Accounts receivable, net of allowances of $8 and $16, respectively

451

524

Prepaid expenses and other current assets

764

503

Total current assets

2,841

3,237

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

229

268

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

2,245

2,305

Goodwill

9,574

9,574

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 expenses

311

493

Accrued expenses and other current liabilities

796

649

Deferred revenues

1,717

1,294

Total current liabilities

3,261

2,945

Loan from related party

7,647

7,647

Deferred revenues

18

17

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

61

61

Additional paid-in capital

289,799

289,711

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 amortization

173

216

Stock-based compensation

81

122

Provision for losses on accounts receivable

5

9

Other, net

3

8

Amortization of debt issuance costs

10

9

Deferred income taxes

10

9

Changes in current assets and liabilities (net of businesses acquired):

Accounts receivable, net

68

(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