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

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

2011

2012

2011

Revenues

$

3,320

$

3,375

$

13,962

$

12,429

Cost of revenues

2,101

1,897

7,931

7,154

Advertising, promotion and selling

772

551

2,692

2,088

General and administrative

1,142

1,395

5,080

5,475

Depreciation

71

77

309

319

Amortization

131

142

540

513

Impairment

5,542

8,289

5,542

8,289

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 income

1

45

4

86

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, respectively

524

489

Prepaid expenses and other current assets

503

575

Total current assets

3,237

4,502

Property and equipment, net of accumulated depreciation of $1,475 and $1,350, respectively

268

477

Intangible assets, net of accumulated amortization of $1,144 and $722, respectively

2,305

2,626

Goodwill

9,574

15,116

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 expenses

493

391

Accrued expenses and other current liabilities

649

662

Deferred revenues

1,294

1,288

Total current liabilities

2,945

2,708

Loan from related party

7,647

7,647

Deferred revenues

17

22

Deferred income taxes

474

444

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, respectively

61

61

Additional paid-in capital

289,711

289,036

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:

Impairment

5,542

8,289

Depreciation and amortization

849

832

Stock-based compensation

528

991

Provision for losses on accounts receivable

27

15

Other, net

236

(2

)

Amortization of debt issuance costs

36

28

Deferred income taxes

30