Marchex Reports Fourth Quarter and Full Year 2012 Financial Results
Mobile, Call-Driven Business Poised for Increased Growth in 2013
- Revenue was
$34.0 million for the fourth quarter of 2012, compared to$39.0 million for the same period of 2011. - GAAP net loss applicable to common stockholders was
$34.7 million for the fourth quarter of 2012 or$1.02 per diluted share, which includes the effect of an estimated pre-tax$16.7 million non-cash impairment charge based on the preliminary results of the company’s goodwill impairment tests and a non-cash charge to income tax expense of$16.4 million to establish a valuation allowance on certain deferred tax assets.Marchex began segmenting its Archeo financial results this quarter and the goodwill amounts allocated to Archeo initiated the non-cash goodwill charge. This compares to GAAP net income applicable to common stockholders of$920,000 or$0.03 per diluted share for the same period of 2011. The fourth quarter 2012 results included non-cash stock-based compensation expense of$3.3 million , compared to non-cash stock-based compensation expense of$3.7 million for the same period in 2011. - We provide a reconciliation of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for the fourth quarter 2012 was
$0.05 , compared to$0.08 for the same period in 2011. - Adjusted operating income before amortization was
$2.6 million for the fourth quarter of 2012, compared to$5.5 million for the same period of 2011. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income (loss) is included in the financial tables attached to this release. - Adjusted EBITDA was
$3.5 million in the fourth quarter of 2012, compared to$6.5 million for the same period of 2011. A reconciliation of adjusted EBITDA to GAAP net cash provided by operating activities is included in the financial tables attached to this release.
Full Year 2012 Consolidated Financial Results
- Revenue for the year ended
December 31, 2012 was$138.3 million , compared to$146.7 million in 2011. - GAAP net loss applicable to common stockholders was
$35.9 million or$1.05 per diluted share for 2012. As discussed in the summary of the fourth quarter 2012 consolidated financial results, this includes the effect of the$16.7 million non-cash pre-tax goodwill impairment and the$16.4 non-cash tax expense. This compares to GAAP net income applicable to common stockholders of$2.7 million or$0.08 per diluted share in 2011. - A reconciliation is provided of GAAP diluted EPS to Adjusted Non-GAAP EPS in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures. Adjusted non-GAAP EPS for 2012 was
$0.25 , compared to$0.30 in 2011. - Adjusted operating income before amortization was
$13.4 million for 2012, compared to$19.1 million in 2011. A reconciliation of non-GAAP adjusted operating income before amortization to GAAP operating income (loss) is included in the financial tables attached to this release. - Adjusted EBITDA was
$17.2 million for 2012, compared to$23.1 million in 2011. A reconciliation of adjusted EBITDA to GAAP net cash provided by operating activities is included in the financial tables attached to this release.
“We feel good about our progress in the fourth quarter, especially as it relates to building momentum for 2013 and beyond,” said Russell C. Horowitz,
General Highlights:
1. Call-Driven and other related Revenues: For the fourth quarter of 2012, revenue was
2. Archeo Non-Call-Driven Revenues: For the fourth quarter, revenue was
3. During the fourth quarter,
4. During the fourth quarter,
5. In
6.
Marchex Guidance:
The following forward-looking statements reflect
Financial guidance for the fiscal year ending December 31, 2013: | ||
Revenue: | $144 million to $148 million | |
Adjusted Operating Income Before Amortization: | more than $10 million | |
Adjusted EBITDA: | Estimated add-backs of approximately $4 million in additional depreciation and amortization to adjusted operating income before amortization, implying an adjusted EBITDA of more than $14 million |
For Call Driven Revenue, the company is forecasting a range of
2013 GAAP income (loss) from operations is expected to be
Financial guidance for the First Quarter ending March 31, 2013: | ||
Revenue: | More than $35 million | |
Adjusted Operating Income Before Amortization: | More than $1.1 million | |
Adjusted EBITDA: | Estimated add-backs of approximately $900,000 in additional depreciation and amortization to adjusted operating income before amortization, implying an adjusted EBITDA of $2.0 million |
For Call Driven Revenue, the company is forecasting more than
First quarter GAAP income (loss) from operations is expected to be
“In the fourth quarter, we saw modest impact from reduced call volume and telecommunication systems disruption from the damage caused by Hurricane Sandy,” said
Conference Call and Webcast Information
Management will hold a conference call, starting at
About
On
Forward-Looking Statements:
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, other financial guidance, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. In addition, there are certain risks and uncertainties relating to our announced spin-off transaction which contemplates a separation of our mobile and call advertising business and our domain and advertising marketplace business, including, but not limited to, the impact and possible disruption to our operations, the timing and certainty of completing the transaction, the high costs in connection with the spin-off which we would not be able to recoup if the spin-off is not consummated, the expectation that the spin-off will be tax-free, revenue and growth expectations for the two independent companies following the spin-off, unanticipated developments that may delay or negatively impact the spin-off, and the ability of each business to operate as an independent entity upon completion of the spin-off. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause
Non-GAAP Financial Information:
To supplement
OIBA represents income (loss) from operations plus (1) stock-based compensation expense and (2) amortization of intangible assets from acquisitions. This measure, among other things, is one of the primary metrics by which
Adjusted non-GAAP EPS represents Adjusted non-GAAP Net Income (loss) applicable to common stockholders divided by GAAP diluted shares outstanding. Adjusted non-GAAP Net Income (loss) applicable to common stockholders generally captures those items on the statement of operations that have been, or ultimately will be, settled in cash exclusive of certain items that are not indicative of Marchex’s recurring core operating results and represents net income (loss) applicable to common stockholders plus the net of tax effects of: (1) stock-based compensation expense, (2) amortization of intangible assets from acquisitions, (3) gain/loss on sales and disposals of intangible assets, (4) acquisition and separation related costs, (5) impairment of goodwill, (6) interest and other income (expense), (7) dividends paid to participating securities, and also excludes the effect of the tax valuation allowance. Financial analysts and investors may use Adjusted non-GAAP EPS to analyze
MARCHEX, INC. AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | ||||||||||
Revenue | $ | 39,023 | $ | 33,989 | |||||||
Expenses: | |||||||||||
Service costs (1) | 21,614 | 20,388 | |||||||||
Sales and marketing (1) | 4,259 | 2,694 | |||||||||
Product development (1) | 5,836 | 6,009 | |||||||||
General and administrative (1) | 5,555 | 5,566 | |||||||||
Amortization of intangible assets from acquisitions | 1,699 | 1,054 | |||||||||
Acquisition and separation related costs | 377 | 589 | |||||||||
Total operating expenses | 39,340 | 36,300 | |||||||||
Impairment of goodwill | - | (16,739 | ) | ||||||||
Gain on sales and disposals of intangible assets, net | 2,309 | 862 | |||||||||
Income (loss) from operations | 1,992 | (18,188 | ) | ||||||||
Interest expense and other, net | (190 | ) | (20 | ) | |||||||
Income (loss) before provision for income taxes | 1,802 | (18,208 | ) | ||||||||
Income tax expense | 814 | 16,127 | |||||||||
Net income (loss) | 988 | (34,335 | ) | ||||||||
Dividends paid to participating securities | (68 | ) | (394 | ) | |||||||
Net income (loss) applicable to common stockholders | $ | 920 | $ | (34,729 | ) | ||||||
Basic net income (loss) per share applicable to Class A and Class B common stockholders | |||||||||||
Class A | $ | 0.03 | $ | (1.02 | ) | ||||||
Class B | $ | 0.03 | $ | (1.01 | ) | ||||||
Diluted net income (loss) per share applicable to Class A and Class B common stockholder | $ | 0.03 | $ | (1.02 | ) | ||||||
Dividends paid per share | $ | 0.02 | $ | 0.18 | |||||||
Shares used to calculate basic net income (loss) per share applicable to common stockholders | |||||||||||
Class A | 9,632 | 9,570 | |||||||||
Class B | 24,017 | 24,642 | |||||||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | |||||||||||
Class A | 9,632 | 9,570 | |||||||||
Class B | 35,743 | 34,212 | |||||||||
(1) | Includes stock-based compensation allocated as follows: | ||||||||||
Service costs | $ | 367 | $ | 334 | |||||||
Sales and marketing | 404 | 22 | |||||||||
Product development | 242 | 181 | |||||||||
General and administrative | 2,722 | 2,720 | |||||||||
Total | $ | 3,735 | $ | 3,257 | |||||||
MARCHEX, INC. AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(unaudited) | |||||||||||
Twelve Months Ended | |||||||||||
December 31, | |||||||||||
2011 | 2012 | ||||||||||
Revenue | $ | 146,726 | $ | 138,305 | |||||||
Expenses: | |||||||||||
Service costs (1),(2) | 81,835 | 80,594 | |||||||||
Sales and marketing (1),(2) | 15,434 | 13,671 | |||||||||
Product development (1),(2) | 22,794 | 23,395 | |||||||||
General and administrative (1),(2) | 22,709 | 22,911 | |||||||||
Amortization of intangible assets from acquisitions | 5,455 | 4,728 | |||||||||
Acquisition and separation related costs | 1,890 | 753 | |||||||||
Total operating expenses | 150,117 | 146,052 | |||||||||
Impairment of goodwill | - | (16,739 | ) | ||||||||
Gain on sales and disposals of intangible assets, net | 9,421 | 6,296 | |||||||||
Income (loss) from operations | 6,030 | (18,190 | ) | ||||||||
Interest expense and other, net | (458 | ) | (449 | ) | |||||||
Income (loss) before provision for income taxes | 5,572 | (18,639 | ) | ||||||||
Income tax expense | 2,613 | 16,557 | |||||||||
Net income (loss) | 2,959 | (35,196 | ) | ||||||||
Dividends paid to participating securities | (259 | ) | (657 | ) | |||||||
Net income (loss) applicable to common stockholders | $ | 2,700 | $ | (35,853 | ) | ||||||
Basic net income (loss) per share applicable to common stockholders | |||||||||||
Class A | $ | 0.08 | $ | (1.06 | ) | ||||||
Class B | $ | 0.08 | $ | (1.05 | ) | ||||||
Diluted net income (loss) per share applicable to common stockholders | |||||||||||
Class A | $ | 0.08 | $ | (1.06 | ) | ||||||
Class B | $ | 0.08 | $ | (1.05 | ) | ||||||
Dividends paid per share | $ | 0.08 | $ | 0.25 | |||||||
Shares used to calculate basic net income (loss) applicable to common stockholders | |||||||||||
Class A | 9,928 | 9,574 | |||||||||
Class B | 23,358 | 24,412 | |||||||||
Shares used to calculate diluted net income (loss) applicable to common stockholders | |||||||||||
Class A | 9,928 | 9,574 | |||||||||
Class B | 35,318 | 33,986 | |||||||||
(1) | Includes stock-based compensation allocated as follows: | ||||||||||
Service costs | $ | 1,291 | $ | 1,904 | |||||||
Sales and marketing | 1,505 | 2,039 | |||||||||
Product development | 1,416 | 1,051 | |||||||||
General and administrative | 10,931 | 10,702 | |||||||||
Total | $ | 15,143 | $ | 15,696 | |||||||
(2) | Certain reclassifications have been made to full year 2012 to conform to 4th quarter 2012 presentation. | ||||||||||
MARCHEX, INC. AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in thousands) | |||||||||||
(unaudited) | |||||||||||
December 31, | December 31, | ||||||||||
Assets | 2011 | 2012 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 37,443 | $ | 15,930 | |||||||
Accounts receivable, net | 30,635 | 25,988 | |||||||||
Prepaid expenses and other current assets | 3,614 | 2,667 | |||||||||
Refundable taxes | 193 | 264 | |||||||||
Deferred tax assets | 2,753 | 830 | |||||||||
Total current assets | 74,638 | 45,679 | |||||||||
Property and equipment, net | 6,187 | 6,005 | |||||||||
Deferred tax assets | 46,310 | 27,677 | |||||||||
Intangibles and other assets, net | 2,191 | 611 | |||||||||
Goodwill | 82,644 | 65,815 | |||||||||
Intangible assets from acquisitions, net | 8,088 | 3,360 | |||||||||
Total Assets | $ | 220,058 | $ | 149,147 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 12,896 | $ | 12,378 | |||||||
Accrued expenses and other current liabilities | 8,430 | 9,609 | |||||||||
Deferred acquisition payments | 35,214 | - | |||||||||
Deferred revenue | 1,930 | 2,009 | |||||||||
Total current liabilities | 58,470 | 23,996 | |||||||||
Other non-current liabilities | 2,580 | 2,216 | |||||||||
Total Liabilities | 61,050 | 26,212 | |||||||||
Stockholders' equity: | |||||||||||
Class A common stock | 99 | 98 | |||||||||
Class B common stock | 281 | 284 | |||||||||
Treasury stock | (1,067 | ) | (13 | ) | |||||||
Additional paid-in capital | 297,465 | 295,533 | |||||||||
Accumulated deficit | (137,770 | ) | (172,966 | ) | |||||||
Total Stockholders' Equity | 159,008 | 122,935 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 220,058 | $ | 149,147 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation of GAAP Income (loss) from Operations to Operating Income Before Amortization (OIBA) | ||||||||
and Adjusted Operating Income Before Amortization (Adjusted OIBA) | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Income (loss) from operations | $ | 1,992 | $ | (18,188 | ) | |||
Stock-based compensation | 3,735 | 3,257 | ||||||
Amortization of intangible assets from acquisitions | 1,699 | 1,054 | ||||||
Operating income before amortization (OIBA) | 7,426 | (13,877 | ) | |||||
Acquisition and separation related costs | 377 | 589 | ||||||
Impairment of goodwill | - | 16,739 | ||||||
Gain on sales and disposals of intangible assets, net |
(2,309 |
) |
(862 | ) | ||||
Adjusted operating income before amortization (Adjusted OIBA) | $ | 5,494 | $ | 2,589 | ||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Income (loss) from operations | $ | 6,030 | $ | (18,190 | ) | |||
Stock-based compensation | 15,143 | 15,696 | ||||||
Amortization of intangible assets from acquisitions | 5,455 | 4,728 | ||||||
Operating income before amortization (OIBA) | 26,628 | 2,234 | ||||||
Acquisition and separation related costs | 1,890 | 753 | ||||||
Impairment of goodwill | - | 16,739 | ||||||
Gain on sales and disposals of intangible assets, net | (9,421 | ) | (6,296 | ) | ||||
Adjusted operating income before amortization (Adjusted OIBA) | $ | 19,097 | $ | 13,430 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation from Net Cash provided by Operating Activities to Adjusted EBITDA | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Net cash provided by operating activities | $ | 3,675 | $ | 4,311 | ||||
Changes in asset and liabilities, net of acquisitions | 1,727 | (17,696 | ) | |||||
Income tax expense | 814 | 16,127 | ||||||
Acquisition and separation related costs | 5 | 589 | ||||||
Interest expense and other, net | 14 | 20 | ||||||
Excess tax benefits related to stock compensation | 229 | 146 | ||||||
Adjusted EBITDA | $ | 6,464 | $ | 3,497 | ||||
Net cash provided by investing activities | $ | 938 | $ | 197 | ||||
Net cash used in financing activities | $ | (2,658 | ) | $ | (24,112 | ) | ||
Twelve Months Ended | ||||||||
December 31, | ||||||||
2011 | 2012 | |||||||
Net cash provided by operating activities | $ | 16,782 | $ | 19,901 | ||||
Changes in asset and liabilities, net of acquisitions | 1,220 | (20,580 | ) | |||||
Income tax expense | 2,613 | 16,557 | ||||||
Acquisition and separation related costs | 1,518 | 885 | ||||||
Interest (income) expense and other, net | (57 | ) | 88 | |||||
Excess tax benefits related to stock compensation | 1,032 | 308 | ||||||
Adjusted EBITDA | $ | 23,108 | $ | 17,159 | ||||
Net cash provided by (used in) investing activities | $ | (10,392 | ) | $ | 3,320 | |||
Net cash used in financing activities | $ | (6,275 | ) | $ | (44,734 | ) |
MARCHEX, INC. AND SUBSIDIARIES | |||||||||
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS | |||||||||
(in thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
2011 | 2012 | ||||||||
Adjusted Non-GAAP EPS | $ | 0.08 | $ | 0.05 | |||||
Net income (loss) per Class B share applicable to common stockholders - diluted (GAAP EPS) | $ | 0.03 | $ | (1.02 | ) | ||||
Shares used to calculate diluted net income (loss) per Class B share applicable to common stockholders |
35,743 | 34,212 | |||||||
Net income (loss) applicable to common stockholders | $ | 920 | $ | (34,729 | ) | ||||
Stock-based compensation | 3,735 | 3,257 | |||||||
Acquisition and separation related costs | 377 | 589 | |||||||
Impairment of goodwill | - | 16,739 | |||||||
Amortization of intangible assets from acquisitions | 1,699 | 1,054 | |||||||
Gain on sales and disposals of intangible assets, net | (2,309 | ) | (862 | ) | |||||
Interest expense and other, net | 190 | 20 | |||||||
Dividends paid to participating securities | 68 | 394 | |||||||
Tax valuation allowance | - | 16,400 | |||||||
Estimated impact of income taxes | (1,337 | ) | (1,184 | ) | |||||
Adjusted Non-GAAP net income applicable to common stockholders | $ | 3,343 | $ | 1,678 | |||||
Adjusted Non-GAAP EPS | $ | 0.08 | $ | 0.05 | |||||
|
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Shares used to calculate diluted net income (loss) per Class B share applicable to common stockholders |
35,743 | 34,212 | |||||||
Weighted average stock options and common shares subject to purchase or cancellation (if applicable) | - | 1,523 | |||||||
Weighted average common shares related to deferred acquisition payments | 5,988 | - | |||||||
Diluted shares used to calculate Adjusted Non-GAAP EPS (1) | 41,731 | 35,735 | |||||||
(1) |
For the purpose of computing the number of diluted shares for non-GAAP EPS, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP EPS. | ||||||||
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MARCHEX, INC. AND SUBSIDIARIES | ||||||||||
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS | ||||||||||
(in thousands, except per share data) | ||||||||||
(unaudited) | ||||||||||
Twelve Months Ended | ||||||||||
December 31, | ||||||||||
2011 | 2012 | |||||||||
Adjusted Non-GAAP EPS | $ | 0.30 | $ | 0.25 | ||||||
Net income (loss) per Class B share applicable to common stockholders - diluted (GAAP EPS) | $ | 0.08 | $ | (1.05 | ) | |||||
Shares used to calculate diluted net income (loss) per Class B share applicable to common stockholders |
35,318 | 33,986 | ||||||||
Net income (loss) applicable to common stockholders | $ | 2,700 | $ | (35,853 | ) | |||||
Stock-based compensation | 15,143 | 15,696 | ||||||||
Acquisition and separation related costs | 1,890 | 753 | ||||||||
Impairment of goodwill | - | 16,739 | ||||||||
Amortization of intangible assets from acquisitions | 5,455 | 4,728 | ||||||||
Gain on sales and disposals of intangible assets, net | (9,421 | ) | (6,296 | ) | ||||||
Interest expense and other, net | 458 | 449 | ||||||||
Dividends paid to participating securities | 259 | 657 | ||||||||
Tax valuation allowance | - | 16,400 | ||||||||
Estimated impact of income taxes | (4,390 | ) | (4,558 | ) | ||||||
Adjusted Non-GAAP net income applicable to common stockholders | $ | 12,094 | $ | 8,715 | ||||||
Adjusted Non-GAAP EPS | $ | 0.30 | $ | 0.25 | ||||||
Shares used to calculate diluted net income (loss) per Class B share applicable to common stockholders |
35,318 | 33,986 | ||||||||
Weighted average stock options and common shares subject to purchase or cancellation (if applicable) | - | 1,377 | ||||||||
Weighted average common shares related to deferred acquisition payments | 4,396 | - | ||||||||
Diluted shares used to calculate Adjusted Non-GAAP EPS (1) | 39,714 | 35,363 | ||||||||
(1) |
For the purpose of computing the number of diluted shares for non-GAAP EPS, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP EPS. | |||||||||
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MARCHEX, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP Income (Loss) from Operations to Operating Income before Amortization (OIBA) and | ||||||||||||||||||||||||||||||||||||||||
and Adjusted Operating Income Before Amortization (Adjusted OIBA) | ||||||||||||||||||||||||||||||||||||||||
Quarter Ended | 12 months ended | |||||||||||||||||||||||||||||||||||||||
12/31/2011 | 3/31/2012 | 6/30/2012 | 9/30/2012 | 12/31/2012 | 12/31/2011 | 12/31/2012 | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | $ 1,992 | $ (598 | ) | $ 1,088 | $ (492 | ) | $ (18,188 | ) | $ 6,030 | $ (18,190 | ) | |||||||||||||||||||||||||||||
Stock-based compensation | 3,735 | 3,908 | 4,816 | 3,715 | 3,257 | 15,143 | 15,696 | |||||||||||||||||||||||||||||||||
Amortization of intangible assets from acquisitions | 1,699 | 1,537 | 1,082 | 1,055 | 1,054 | 5,455 | 4,728 | |||||||||||||||||||||||||||||||||
Operating income before amortization (OIBA) | 7,426 | 4,847 | 6,986 | 4,278 | (13,877 | ) | 26,628 | 2,234 | ||||||||||||||||||||||||||||||||
Acquisition and separation related costs | 377 | (132 | ) | - | 296 | 589 | 1,890 | 753 | ||||||||||||||||||||||||||||||||
Impairment of goodwill | - | - | - | - | 16,739 | - | 16,739 | |||||||||||||||||||||||||||||||||
Gain on sales and disposals of intangible assets, net | (2,309 | ) | (1,463 | ) | (3,258 | ) | (713 | ) | (862 | ) | (9,421 | ) | (6,296 | ) | ||||||||||||||||||||||||||
Adjusted operating income before amortization (Adjusted OIBA) | $ 5,494 | $ 3,252 | $ 3,728 | $ 3,861 | $ 2,589 | $ 19,097 | $ 13,430 | |||||||||||||||||||||||||||||||||
Reconciliation from Net Cash provided by Operating Activities to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||
Quarter Ended | 12 months ended | |||||||||||||||||||||||||||||||||||||||
12/31/2011 | 3/31/2012 | 6/30/2012 | 9/30/2012 | 12/31/2012 | 12/31/2011 | 12/31/2012 | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ 3,675 | $ 3,954 | $ 7,980 | $ 3,656 | $ 4,311 | $ 16,782 | $ 19,901 | |||||||||||||||||||||||||||||||||
Changes in asset and liabilities, net of acquisitions | 1,727 | 302 | (3,997 | ) | 811 | (17,696 | ) | 1,220 | (20,580 | ) | ||||||||||||||||||||||||||||||
Income tax expense (benefit) | 814 | (80 | ) | 577 | (67 | ) | 16,127 | 2,613 | 16,557 | |||||||||||||||||||||||||||||||
Acquisition and separation related costs | 5 | - | - | 296 | 589 | 1,518 | 885 | |||||||||||||||||||||||||||||||||
Interest expense and other, net | 14 | 19 | 21 | 28 | 20 | (57 | ) | 88 | ||||||||||||||||||||||||||||||||
Excess tax benefits related to stock compensation | 229 | 97 | 23 | 42 | 146 | 1,032 | 308 | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ 6,464 | $ 4,292 | $ 4,604 | $ 4,766 | $ 3,497 | $ 23,108 | $ 17,159 | |||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | $ 938 | $ 1,194 | $ 2,032 | $ (103 | ) | $ 197 | $ (10,392 | ) | $ 3,320 | |||||||||||||||||||||||||||||||
Net cash used in financing activities | $ (2,658 | ) | $ (1,296 | ) | $ (17,734 | ) | $ (1,592 | ) | $ (24,112 | ) | $ (6,275 | ) | $ (44,734 | ) |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
Financial Summary | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Quarter ended | Year ended | |||||||||||||||||||||
12/31/2011 | 3/31/2012 | 6/30/2012 | 9/30/2012 | 12/31/2012 | 12/31/2011 | 12/31/2012 | ||||||||||||||||
Marchex - consolidated | ||||||||||||||||||||||
Revenue | $ | 39,023 | $ | 35,481 | $ | 34,013 | $ | 34,822 | $ | 33,989 | $ | 146,726 | $ | 138,305 | ||||||||
Revenue with Domain Sales | $ | 41,344 | $ | 36,955 | $ | 37,283 | $ | 35,535 | $ | 34,851 | $ | 156,200 | $ | 144,624 | ||||||||
Adjusted OIBA | $ | 5,494 | $ | 3,252 | $ | 3,728 | $ | 3,861 | $ | 2,589 | $ | 19,097 | $ | 13,430 | ||||||||
Adjusted EBITDA | $ | 6,464 | $ | 4,292 | $ | 4,604 | $ | 4,766 | $ | 3,497 | $ | 23,108 | $ | 17,159 | ||||||||
Adjusted OIBA with Domain Sales | $ | 7,803 | $ | 4,715 | $ | 6,986 | $ | 4,574 | $ | 3,451 | $ | 28,518 | $ | 19,726 | ||||||||
Adjusted EBITDA with Domain Sales | $ | 8,773 | $ | 5,755 | $ | 7,862 | $ | 5,479 | $ | 4,359 | $ | 32,529 | $ | 23,455 | ||||||||
Call-Driven and Other (1) | ||||||||||||||||||||||
Revenue | $ | 28,313 | $ | 26,651 | $ | 27,497 | $ | 29,270 | $ | 28,468 | $ | 101,830 | $ | 111,886 | ||||||||
Adjusted OIBA | $ | 2,379 | $ | 845 | $ | 2,214 | $ | 2,773 | $ | 1,760 | $ |
7,835 |
$ | 7,592 | ||||||||
Adjusted EBITDA | $ | 2,998 | $ | 1,546 | $ | 2,917 | $ | 3,538 | $ | 2,530 | $ |
10,308 |
$ | 10,531 | ||||||||
Archeo (1) | ||||||||||||||||||||||
Revenue | $ | 10,710 | $ | 8,830 | $ | 6,516 | $ | 5,552 | $ | 5,521 | $ | 44,896 | $ | 26,419 | ||||||||
Revenue with Domain Sales | $ | 13,031 | $ | 10,304 | $ | 9,786 | $ | 6,265 | $ | 6,383 | $ | 54,370 | $ | 32,738 | ||||||||
Adjusted OIBA | $ | 3,115 | $ | 2,407 | $ | 1,514 | $ | 1,088 | $ | 829 | $ | 11,262 | $ | 5,838 | ||||||||
Adjusted EBITDA | $ | 3,466 | $ | 2,746 | $ | 1,687 | $ | 1,228 | $ | 967 | $ | 12,800 | $ | 6,628 | ||||||||
Adjusted OIBA with Domain Sales | $ | 5,424 | $ | 3,870 | $ | 4,772 | $ | 1,801 | $ | 1,691 | $ | 20,683 | $ | 12,134 | ||||||||
Adjusted EBITDA with Domain Sales | $ | 5,775 | $ | 4,209 | $ | 4,945 | $ | 1,941 | $ | 1,829 | $ | 22,221 | $ | 12,924 | ||||||||
(1) |
The financial results for Call-Driven and Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Call-Driven and Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented. Certain reclassifications have been made to prior quarters to conform to current period presentation. |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
Reconciliation to Reported Financial and Non-GAAP Information | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Quarter ended | Year ended | |||||||||||||||||||||
12/31/2011 | 3/31/2012 | 6/30/2012 | 9/30/2012 | 12/31/2012 | 12/31/2011 | 12/31/2012 | ||||||||||||||||
Revenue | ||||||||||||||||||||||
Consolidated - as reported | $ | 39,023 | $ | 35,481 | $ | 34,013 | $ | 34,822 | $ | 33,989 | $ | 146,726 | $ | 138,305 | ||||||||
Add: Domain Sales | 2,321 | 1,474 | 3,270 | 713 | 862 | 9,474 | 6,319 | |||||||||||||||
Consolidated with Domain Sales (1) | 41,344 | 36,955 | 37,283 | 35,535 | 34,851 | 156,200 | 144,624 | |||||||||||||||
Less: Archeo with Domain Sales (3) | 13,031 | 10,304 | 9,786 | 6,265 | 6,383 | 54,370 | 32,738 | |||||||||||||||
Other | - | 181 | 175 | 174 | 181 | - | 711 | |||||||||||||||
Call-Driven (3) | $ | 28,313 | $ | 26,470 | $ | 27,322 | $ | 29,096 | $ | 28,287 | $ | 101,830 | $ | 111,175 | ||||||||
Adjusted operating income (loss) | ||||||||||||||||||||||
Consolidated - as reported | $ | 5,494 | $ | 3,252 | $ | 3,728 | $ | 3,861 | $ | 2,589 | $ | 19,097 | $ | 13,430 | ||||||||
Add: Gain on Domain Sales | 2,309 | 1,463 | 3,258 | 713 | 862 | 9,421 | 6,296 | |||||||||||||||
Consolidated with Domain Sales (2) | 7,803 | 4,715 | 6,986 | 4,574 | 3,451 | 28,518 | 19,726 | |||||||||||||||
Less: Archeo with Domain Sales (2) | 5,424 | 3,870 | 4,772 | 1,801 | 1,691 | 20,683 | 12,134 | |||||||||||||||
Other | - | 71 | 116 | 105 | 105 | - | 397 | |||||||||||||||
Call-Driven (3) | $ | 2,379 | $ | 774 | $ | 2,098 | $ | 2,668 | $ | 1,655 | $ | 7,835 | $ | 7,195 | ||||||||
Adjusted EBITDA | ||||||||||||||||||||||
Consolidated - as reported | $ | 6,464 | $ | 4,292 | $ | 4,604 | $ | 4,766 | $ | 3,497 | $ | 23,108 | $ | 17,159 | ||||||||
Add: Gain on Domain Sales | 2,309 | 1,463 | 3,258 | 713 | 862 | 9,421 | 6,296 | |||||||||||||||
Consolidated with Domain Sales (2) | 8,773 | 5,755 | 7,862 | 5,479 | 4,359 | 32,529 | 23,455 | |||||||||||||||
Less: Archeo with Domain Sales (2) | 5,775 | 4,209 | 4,945 | 1,941 | 1,829 | 22,221 | 12,924 | |||||||||||||||
Other | - | 71 | 116 | 105 | 105 | - | 397 | |||||||||||||||
Call-Driven (3) | $ | 2,998 | $ | 1,475 | $ | 2,801 | $ | 3,433 | $ | 2,425 | $ | 10,308 | $ | 10,134 | ||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
(1) |
Consolidated revenue with Domain Sales is a non-GAAP measure of financial results and includes sales proceeds from sales of intangible domain assets. | |||||||||||||||||||||
(2) |
Adjusted operating income (loss), adjusted EBITDA and each with Domain Sales, are non-GAAP measures of operating results and liquidity. | |||||||||||||||||||||
Adjusted OIBA and EBITDA with Domain Sales include net gains from the sales of intangible assets. | ||||||||||||||||||||||
(3) |
The financial results for Call-Driven and Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Call-Driven and Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented. Certain reclassifications have been made to prior quarters to conform to current period presentation. |
Source:
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
ir(at)marchex.com
or
MEDIA INQUIRIES
Marchex Public Relations
Sonia Krishnan, 206-331-3434
skrishnan(at)marchex.com