Move, Inc. (NASDAQ: MOVE) today reported financial results for the second quarter ended June 30, 2010.
Revenue in the second quarter of 2010 was $49.7 million, compared to $54.6 million in the second quarter of 2009. Net loss applicable to common stockholders, including discontinued operations, was $1.4 million, or a $0.01 loss per share, in the second quarter of 2010 compared to net income of $3.3 million, or $0.02 per share, in the second quarter of 2009. Non-GAAP Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) for the second quarter of 2010 was $5.6 million, or 11 percent of revenue, as compared to $7.5 million, or 14 percent of revenue, for the second quarter of 2009. Move, Inc. has reported adjusted 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.
"Move continues to execute as changes implemented over the past year have yielded positive early returns and our core business continues to stabilize," said Steve Berkowitz, chief executive officer at Move, Inc. "In the past few months, we made good progress against our core business strategies, releasing beta sites for both Realtor.com® and Move.com, several updates to our iPhone app and Top Producer® 8i®. These and other efforts leverage recent investments in technology, and will enable us to improve the online search experience for consumers while delivering more marketing tools to real estate professionals, empowering them to more effectively leverage data and grow their businesses."
Second Quarter 2010 Highlights:
-- Move maintained its dominant market leadership, leading the industry
in unique users and total engagement. In June, Move attracted 11.8
million unique users(1) who spent more than 240 million minutes on our
network(1). Visitors to the Move Network viewed more than 400 million
pages, more than the next five competitors combined.
-- The Company launched the beta site for Realtor.com. The new site
improvements leverage Move's eighteen-month technology investment to
completely rebuild the site's underlying platform, enabling more
innovation in real estate search and greater flexibility to deliver a
superior customer experience. The new site developments include
significant improvements in search, map display, and a host of other
capabilities slated for general availability in the coming months.
-- Move's Realtor.com Real Estate Search iPhone application has been
downloaded nearly 1.5 million times in the last 6 months. The
application was named one of four great iPhone apps by Money Magazine,
and the number one real estate application by Clareity Consulting with
best features, best ratings and ease of use.
-- Move also released the highly anticipated next generation of the Top
Producer® 8i® CRM solution. Key upgrades included a new social media
integration featuring the ability to capture updates, status changes
and postings from Facebook and Twitter directly into Top Producer 8i's
contact, calendar and outreach programs.
-- The Company integrated Lat49, the premier location-focused ad
platform, across the Move Network of websites. Advertisers on
Realtor.com can now better target their products, services and retail
locations throughout the United States based on a visitor's physical
location, as well as any expressed location of interest based on map
views or other search-based or home-search criteria.
Business Outlook
Move today provided guidance for the quarter ending September 30, 2010. For the quarter ending September 30, 2010, Move expects revenue to range between $48.5 - $49.5 million and expects to report Adjusted EBITDA margin of approximately 10 to 11 percent.
Move also provided updated guidance for the fiscal year ending December 31, 2010. The company currently expects revenue to range between $194 million and $197 million, with an Adjusted EBITDA target of approximately 11 percent.
Conference Call
As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Thursday, August 5, 2010, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). In order to participate in the call, please dial (877) 312-5848, or if outside the U.S., (253) 237-1155, at least five minutes prior to the 1:30 p.m. PT start time. A live webcast and replay of the call will also be available at http://investor.move.com/ under the Events & Presentations menu. An audio replay will be available between 7:30 p.m. ET, August 5, 2010, and 11:59 p.m. ET, August 19, 2010, by calling (800) 642-1687, or (706) 645-9291, with passcode 87787726.
For additional information regarding the Company's results, please go to the "SEC Filings" section at http://investor.move.com/ to view our annual report as filed on March 5, 2010 with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2009. Move's Form 10-Q for the quarter ended June 30, 2010 is expected to be filed with the Securities and Exchange Commission on, or before, August 9, 2010.
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 continuing operations excluding interest income, net, provision for income taxes, impairment of auction rate securities, litigation settlement charges and certain other non-cash and non-recurring items, principally depreciation, amortization and stock-based compensation and other charges, which is referred to as Adjusted EBITDA. The Company has also presented a non-GAAP table of Financial Data for the three and six month periods ended June 30, 2010 and 2009 that extracts stock-based compensation under ASC Topic 718 "Compensation - Stock Compensation." 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) is the leader in online real estate with 11.8(1) million monthly visitors to its online network of websites. Move, Inc. operates: Move.com, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; REALTOR.com®, the official Web site of the National Association of REALTORS®; Moving.com; SeniorHousingNet; and TOP PRODUCER Systems. Move, Inc. is based in Campbell, California.
(1) comScore Media Metrics, June 2010
MOVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
June 30,
------------------
2010 2009
---- ----
(unaudited)
Revenue $49,691 $54,637
Cost of revenue (1) 11,088 12,804
Gross profit 38,603 41,833
------ ------
Operating expenses: (1)
Sales and marketing 18,872 21,387
Product and web site development 8,136 6,425
General and administrative 10,800 11,364
Amortization of intangible assets 104 108
Litigation settlement - 975
Total operating expenses 37,912 40,259
------ ------
Operating income (loss) from
continuing operations 691 1,574
Interest income, net 178 314
Earnings of unconsolidated joint
venture 193 -
Impairment of auction rate
securities - -
Other income (expense), net (1,069) 386
------ ---
Income (loss) from continuing
operations before income taxes (7) 2,274
Provision for income taxes 28 81
--- ---
Income (loss) from continuing
operations (35) 2,193
Income (loss) from discontinued
operations - 107
Gain on disposition of discontinued
operations - 2,303
--- -----
Net income (loss) (35) 4,603
Convertible preferred stock dividend
and related accretion (1,341) (1,307)
Net income (loss) applicable to
common stockholders $(1,376) $3,296
======= ======
Basic net income (loss) per share
applicable to common stockholders:
Continuing operations $(0.01) $0.01
Discontinued operations - 0.02
--- ----
Basic net income (loss) per share
applicable to common stockholders: $(0.01) $0.02
====== =====
Diluted net income (loss) per share
applicable to common stockholders
Continuing operations $(0.01) $0.01
Discontinued operations - 0.02
--- ----
Diluted net income (loss) per share
applicable to common stockholders $(0.01) $0.02
====== =====
Shares used in calculation of net
income (loss) per share
applicable to common stockholders:
Basic 154,641 152,920
======= =======
Diluted 154,641 156,552
======= =======
(1) Includes stock-based
compensation as follows:
Cost of revenue $45 $46
Sales and marketing 430 604
Product and web site development 308 187
General and administrative 964 334
--- ---
$1,747 $1,171
====== ======
Six Months Ended June
30,
----------------------
2010 2009
---- ----
(unaudited)
Revenue $98,334 $109,505
Cost of revenue (1) 22,016 25,451
Gross profit 76,318 84,054
------ ------
Operating expenses: (1)
Sales and marketing 37,204 42,149
Product and web site development 16,662 12,808
General and administrative 21,489 35,001
Amortization of intangible assets 209 259
Litigation settlement - 975
Total operating expenses 75,564 91,192
------ ------
Operating income (loss) from
continuing operations 754 (7,138)
Interest income, net 734 449
Earnings of unconsolidated joint
venture 299 -
Impairment of auction rate
securities (19,559) -
Other income (expense), net (1,102) 491
------ ---
Income (loss) from continuing
operations before income taxes (18,874) (6,198)
Provision for income taxes 91 177
--- ---
Income (loss) from continuing
operations (18,965) (6,375)
Income (loss) from discontinued
operations - (249)
Gain on disposition of discontinued
operations - 2,303
--- -----
Net income (loss) (18,965) (4,321)
Convertible preferred stock dividend
and related accretion (2,674) (2,605)
Net income (loss) applicable to
common stockholders $(21,639) $(6,926)
======== =======
Basic net income (loss) per share
applicable to common stockholders:
Continuing operations $(0.14) $(0.06)
Discontinued operations - 0.01
--- ----
Basic net income (loss) per share
applicable to common stockholders: $(0.14) $(0.05)
====== ======
Diluted net income (loss) per share
applicable to common stockholders
Continuing operations $(0.14) $(0.06)
Discontinued operations - 0.01
--- ----
Diluted net income (loss) per share
applicable to common stockholders $(0.14) $(0.05)
====== ======
Shares used in calculation of net
income (loss) per share
applicable to common stockholders:
Basic 154,574 153,019
======= =======
Diluted 154,574 153,019
======= =======
(1) Includes stock-based
compensation as follows:
Cost of revenue $92 $83
Sales and marketing 840 877
Product and web site development 790 327
General and administrative 1,917 10,372
----- ------
$3,639 $11,659
====== =======
MOVE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December
June 30, 31,
2010 2009
---- ----
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $156,527 $106,847
Accounts receivable, net 10,400 10,782
Other current assets 11,717 12,101
Total current assets 178,644 129,730
Property and equipment, net 22,066 21,139
Long-term investments - 111,800
Investment in unconsolidated joint
venture 6,948 6,649
Goodwill, net 16,969 16,969
Intangible assets, net 3,251 3,460
Other assets 1,351 1,548
----- -----
Total assets $229,229 $291,295
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,915 $5,545
Accrued expenses 17,966 18,335
Deferred revenue 16,011 15,951
Line of credit - 64,630
Total current liabilities 37,892 104,461
Other non-current liabilities 2,652 1,096
Total liabilities 40,544 105,557
Series B convertible preferred stock 114,215 111,541
Stockholders' equity:
Series A convertible preferred stock - -
Common stock 156 156
Additional paid-in capital 2,117,038 2,112,613
Accumulated other comprehensive income 371 (17,116)
Accumulated deficit (2,043,095) (2,021,456)
---------- ----------
Total stockholders' equity 74,470 74,197
------ ------
Total liabilities and stockholders'
equity $229,229 $291,295
======== ========
MOVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June
30,
----------------------
2010 2009
---- ----
(unaudited)
Cash flows from continuing operating
activities:
Loss from continuing operations $(18,965) $(6,375)
Adjustments to reconcile loss from
continuing operations to net cash
provided by continuing operating
activities:
Depreciation 5,155 5,287
Amortization of intangible assets 209 259
Provision for doubtful accounts (120) 811
Impairment of auction rate
securities 19,559 -
Stock-based compensation and
charges 3,906 11,925
Earnings of unconsolidated joint
venture (299) -
Change in market value of embedded
derivative liability - (536)
Other non-cash items (115) (56)
Changes in operating assets and
liabilities, net of discontinued
operations:
Accounts receivable 502 (51)
Other assets 104 354
Accounts payable and accrued
expenses (724) (1,774)
Deferred revenue 58 (4,701)
--- ------
Net cash provided by continuing
operating activities 9,270 5,143
Net cash used in discontinued
operating activities - (1,225)
Net cash provided by operating
activities 9,270 3,918
----- -----
Cash flows from investing
activities:
Purchases of property and equipment (6,078) (4,453)
Proceeds from the sale of auction
rate securities 109,841 -
Proceeds from the sale of marketable
equity securities 14 -
Net cash provided by (used in)
continuing investing activities 103,777 (4,453)
Net cash provided by discontinued
operations - 1,739
Net cash provided by (used in)
investing activities 103,777 (2,714)
------- ------
Cash flows from financing
activities:
Proceeds from exercise of stock
options and share issuances under 519 70
employee stock purchase plans
Restricted cash 462 81
Gross proceeds from line of credit 64,700 -
Proceeds from loan payable 316 -
Gross principal payments on line of
credit (129,330) -
Principal payments on loan payable (34) -
Tax payment related to net share
settlements of restricted stock
awards - (1,064)
Payments on capital lease
obligations - (339)
Net cash used in financing
activities (63,367) (1,252)
------- ------
Change in cash and cash equivalents 49,680 (48)
Cash and cash equivalents, beginning
of period 106,847 108,935
------- -------
Cash and cash equivalents, end of
period $156,527 $108,887
======== ========
MOVE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
INCOME (LOSS) FROM CONTINUING OPERATIONS EXCLUDING INTEREST INCOME,
PROVISION FOR INCOME
TAXES, STOCK-BASED COMPENSATION AND CHARGES, DEPRECIATION,
IMPAIRMENT OF AUCTION RATE
SECURITIES, AMORTIZATION, LITIGATION SETTLEMENT AND NON-RECURRING
SEVERANCE COSTS (EBITDA)
(in thousands)
Three Months Ended
June 30,
------------------
2010 2009
---- ----
(unaudited)
Income (loss) from continuing
operations $(35) $2,193
Plus:
Interest income, net (178) (314)
Provision for income taxes 28 81
Stock-based compensation 1,747 1,171
Stock-based charges 91 117
Depreciation 2,554 2,668
Impairment of auction rate
securities - -
Loss on sale of auction rate
securities 1,098 -
Amortization of intangible
assets, including 301 108
unconsolidated joint venture
Litigation settlement - 975
Non-recurring severance costs - 497
Adjusted EBITDA $5,606 $7,496
====== ======
Six Months Ended June
30,
----------------------
2010 2009
---- ----
(unaudited)
Income (loss) from continuing
operations $(18,965) $(6,375)
Plus:
Interest income, net (734) (449)
Provision for income taxes 91 177
Stock-based compensation 3,639 11,659
Stock-based charges 267 266
Depreciation 5,155 5,287
Impairment of auction rate
securities 19,559 -
Loss on sale of auction rate
securities 1,098 -
Amortization of intangible
assets, including 688 259
unconsolidated joint venture
Litigation settlement - 975
Non-recurring severance costs - 2,397
Adjusted EBITDA $10,798 $14,196
======= =======
MOVE, INC.
OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Three Months Ended
June 30, 2010
-------------
(unaudited)
As Stock-
Reported based Excluding
Stock-
--------- Compensation Based
------------ Compensation
------------
Revenue $49,691 $ - $49,691
Cost of revenue 11,088 (45) 11,043
------ --- ------
Gross profit 38,603 45 38,648
Sales and marketing 18,872 (430) 18,442
Product and web site development 8,136 (308) 7,828
General and administrative 10,800 (964) 9,836
Amortization of intangibles 104 - 104
Total operating expenses 37,912 (1,702) 36,210
------ ------ ------
Operating income from continuing
operations $691 $1,747 $2,438
==== ====== ======
Three Months Ended
June 30, 2009
-------------
(unaudited)
As Stock-
Reported based Excluding
Stock-
--------- Compensation Based
------------ Compensation
------------
Revenue $54,637 $ - $54,637
Cost of revenue 12,804 (46) 12,758
------ --- ------
Gross profit 41,833 46 41,879
Sales and marketing 21,387 (604) 20,783
Product and web site development 6,425 (187) 6,238
General and administrative 11,364 (334) 11,030
Amortization of intangibles 108 - 108
Litigation settlement 975 - 975
Total operating expenses 40,259 (1,125) 39,134
------ ------ ------
Operating income from continuing
operations $1,574 $1,171 $2,745
====== ====== ======
MOVE, INC.
OPERATING RESULTS
NET OF STOCK-BASED COMPENSATION EXPENSE
(in thousands)
Six Months Ended
June 30, 2010
-------------
(unaudited)
As Stock-
Reported based Excluding
Stock-
--------- Compensation Based
------------ Compensation
------------
Revenue $98,334 $ - $98,334
Cost of revenue 22,016 (92) 21,924
------ --- ------
Gross profit 76,318 92 76,410
Sales and marketing 37,204 (840) 36,364
Product and web site development 16,662 (790) 15,872
General and administrative 21,489 (1,917) 19,572
Amortization of intangibles 209 - 209
Total operating expenses 75,564 (3,547) 72,017
------ ------ ------
Operating income from continuing
operations $754 $3,639 $4,393
==== ====== ======
Six Months Ended
June 30, 2009
-------------
(unaudited)
As Stock-
Reported based Excluding
Stock-
--------- Compensation Based
------------ Compensation
------------
Revenue $109,505 $ - $109,505
Cost of revenue 25,451 (83) 25,368
------ --- ------
Gross profit 84,054 83 84,137
Sales and marketing 42,149 (877) 41,272
Product and web site development 12,808 (327) 12,481
General and administrative 35,001 (10,372) 24,629
Amortization of intangibles 259 - 259
Litigation settlement 975 - 975
Total operating expenses 91,192 (11,576) 79,616
------ ------- ------
Operating income (loss) from
continuing operations $(7,138) $11,659 $4,521
======= ======= ======
(Logo: http://photos.prnewswire.com/prnh/20080213/MOVEINCLOGO)
(Logo: http://www.newscom.com/cgi-bin/prnh/20080213/MOVEINCLOGO)
First Call Analyst:
FCMN Contact: stacie@blueshirtgroup.com
Photo: http://www.newscom.com/cgi-bin/prnh/20080213/MOVEINCLOGO
AP Archive: http://photoarchive.ap.org/
http://photos.prnewswire.com/prnh/20080213/MOVEINCLOGO
PRN Photo Desk, photodesk@prnewswire.com
SOURCE: Move, Inc.
CONTACT: Todd Friedman, todd@blueshirtgroup.com, or Stacie Bosinoff,
Stacie@blueshirtgroup.com, both of The Blueshirt Group, +1-415-217-7722, for
Move, Inc.
Web Site: http://www.move.com/
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