CAMPBELL, Calif., May 5, 2011 /PRNewswire/ -- Move, Inc. (NASDAQ:
MOVE), the leader in online real estate, today reported financial
results for the first quarter ended March
31, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20080213/MOVEINCLOGO)
Revenue in the first quarter of 2011 was $49.1 million, compared to $48.6 million in the first quarter of 2010.
Net loss applicable to common stockholders, including
discontinued operations, was $1.6
million, or $0.01 per share,
compared to a net loss of $20.3
million, or a loss of $0.13
per share in the first quarter of 2010. Net loss in the
March 2010 quarter included an
impairment charge of approximately $19.6
million related to our sale of auction rate securities.
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
first quarter of 2011 was $5.4
million, or 11% of revenue, compared to $5.2 million, or 11% of revenue, for the first
quarter of 2010. 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.
“I am pleased that we continue to execute steadily through the
current market headwinds while laying the strategic foundation for
2012 and beyond,” said Steve
Berkowitz, chief executive officer at Move, Inc. “Our
primary focus in 2011 is to continue expanding our distribution
channels, developing and releasing more products to improve the
overall real estate experience, and delivering the best online
destination for real estate information to consumers. With
the growing use of mobile devices in the real estate search
process, we have the opportunity to lead the industry as it adapts
to new technologies that are fundamentally changing how consumers
and real estate professionals connect.”
Recent Highlights:
- Market leadership: Move continued its market leadership, with
consumers in the first quarter viewing more than 1 1/2 billion
pages and spending more than 800 million minutes on the Move
Network.
- Century21: Realtor.com and Century 21 Real Estate LLC
renewed their Gold Standard Partnership, designed to increase the
visibility of Century 21 listings on Realtor.com and driving
interested home shoppers directly to CENTURY 21 agents. In
addition, as part of the agreement, CENTURY 21 will also deploy a
national display advertising program that will run on
Realtor.com.
- BlockShopper: Move signed an agreement with BlockShopper to
extend advertisers’ reach into hyper local markets. As part
of the agreement, Move becomes the exclusive national sales force
for all real estate advertisers on BlockShopper and will syndicate
Move ad products on BlockShopper.com for agents interested in
reaching local buyers and sellers. Agents purchasing
community-based ad products on BlockShopper will soon be supported
by Move's rapid response Customer Care team.
- Mobile Highlights: Move mobile apps have been downloaded
more than 3.6 million times since their initial launch in 2010.
Today, on average, 10 properties are viewed every second on a
Move mobile app. Realtor.com mobile apps have contributed to
approximately a 240 percent increase in consumer outreach to local
agents, and open house views have increased by 459 percent in just
four months.
- iPad Launch: Move released the Realtor.com iPad app, the
only real estate search app delivering everything from listings
with maps and GPS directions to personalization tools that keep
users organized and connected when searching across country or
across town. Realtor.com mobile apps are also the only real estate
search apps with access to Realtor.com, the largest and most
accurate collection of online property listings, with more than 80
percent of all property listings updated every 15 minutes.
Business Outlook
Move today provided guidance for the quarter ending June 30, 2011. For the quarter ending
June 30, 2011, Move expects revenue
to range between approximately $48.5
million and $49.5 million and
expects to report Adjusted EBITDA margin of approximately 11%.
Move today provided guidance for the year ending December 31, 2011. For the year ending
December 31, 2011, Move expects
revenue to range between $200 million and
$205 million and expects to report Adjusted EBITDA margin of
approximately 13%-14% percent.
Conference Call
As previously announced, Move, Inc. will host a conference call,
which will be broadcast live over the Internet today, Thursday, May 5, 2011, 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, May 5,
2011, and 11:59 p.m. ET,
May 19, 2011, by calling (800)
642-1687, or (706) 645-9291, with passcode 55934851.
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 February 18, 2011 with the Securities and
Exchange Commission on Form 10-K for the year ended December 31, 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 net income (loss) excluding interest
income, net, income tax expense, impairment of auction rate
securities 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 month periods ended March 31,
2011 and 2010 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 14.5 million(1) 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 website of the
National Association of REALTORS®; MortgageMatch.com, Moving.com;
SeniorHousingNet; ListHub; and TOP PRODUCER Systems. Move, Inc. is
based in Campbell, California.
[1] comScore Media Metrics, March
2011
MOVE,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in
thousands, except per share amounts)
|
|
|
Three Months
Ended March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
49,075
|
|
$
|
48,643
|
|
Cost of revenue (1)
|
|
10,783
|
|
|
10,928
|
|
Gross profit
|
|
38,292
|
|
|
37,715
|
|
|
|
|
|
|
|
|
Operating expenses:
(1)
|
|
|
|
|
|
|
Sales and
marketing
|
|
18,316
|
|
|
18,332
|
|
Product and web site
development
|
|
9,463
|
|
|
8,526
|
|
General and
administrative
|
|
10,064
|
|
|
10,689
|
|
Amortization of intangible
assets
|
|
355
|
|
|
105
|
|
Total operating
expenses
|
|
38,198
|
|
|
37,652
|
|
Operating income
|
|
94
|
|
|
63
|
|
|
|
|
|
|
|
|
Interest income,
net
|
|
18
|
|
|
556
|
|
Earnings of unconsolidated
joint venture
|
|
211
|
|
|
106
|
|
Impairment of auction rate
securities
|
|
—
|
|
|
(19,559)
|
|
Other income (expense),
net
|
|
429
|
|
|
(33)
|
|
Income (loss) from operations
before income taxes
|
|
752
|
|
|
(18,867)
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
18
|
|
|
63
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
734
|
|
|
(18,930)
|
|
|
|
|
|
|
|
|
Convertible preferred
stock dividend and related accretion
|
|
(2,382)
|
|
|
(1,333)
|
|
Net loss applicable to common
stockholders
|
$
|
(1,648)
|
|
$
|
(20,263)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share applicable to common stockholders
|
$
|
(0.01)
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of
net loss per share applicable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic &
Diluted
|
|
157,880
|
|
|
154,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation as follows:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
53
|
|
$
|
47
|
|
Sales and
marketing
|
|
368
|
|
|
410
|
|
Product and web
site development
|
|
319
|
|
|
482
|
|
General and
administrative
|
|
905
|
|
|
953
|
|
|
$
|
1,645
|
|
$
|
1,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOVE,
INC.
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
|
|
|
March
31,
2011
|
|
|
December
31,
2010
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
85,094
|
|
$
|
158,517
|
|
Accounts receivable,
net
|
|
10,846
|
|
|
9,680
|
|
Other current
assets
|
|
8,732
|
|
|
7,621
|
|
Total current
assets
|
|
104,672
|
|
|
175,818
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
21,333
|
|
|
21,934
|
|
Investment in unconsolidated
joint venture
|
|
6,436
|
|
|
7,165
|
|
Goodwill, net
|
|
24,450
|
|
|
24,450
|
|
Intangible assets,
net
|
|
7,969
|
|
|
8,324
|
|
Other assets
|
|
1,206
|
|
|
1,327
|
|
Total assets
|
$
|
166,066
|
|
$
|
239,018
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
2,814
|
|
$
|
6,403
|
|
Accrued
expenses
|
|
15,313
|
|
|
16,281
|
|
Deferred
revenue
|
|
13,706
|
|
|
13,696
|
|
Total current
liabilities
|
|
31,833
|
|
|
36,380
|
|
|
|
|
|
|
|
|
Other non-current
liabilities
|
|
3,116
|
|
|
3,300
|
|
Total
liabilities
|
|
34,949
|
|
|
39,680
|
|
|
|
|
|
|
|
|
Series B convertible preferred
stock
|
|
48,156
|
|
|
116,564
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Series A convertible
preferred stock
|
|
—
|
|
|
—
|
|
Common stock
|
|
159
|
|
|
159
|
|
Additional paid-in
capital
|
|
2,126,406
|
|
|
2,124,554
|
|
Accumulated other
comprehensive income
|
|
355
|
|
|
372
|
|
Accumulated
deficit
|
|
(2,043,959)
|
|
|
(2,042,311)
|
|
Total stockholders’
equity
|
|
82,961
|
|
|
82,774
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$
|
166,066
|
|
$
|
239,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOVE,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
Three Months
Ended March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Cash flows from continuing
operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
$
|
734
|
|
$
|
(18,930)
|
|
Adjustments to reconcile net
income (loss) to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
2,393
|
|
|
2,601
|
|
Amortization of intangible
assets
|
|
355
|
|
|
105
|
|
Provision for doubtful
accounts
|
|
7
|
|
|
(198)
|
|
Stock-based compensation
and charges
|
|
1,737
|
|
|
2,068
|
|
Impairment of auction rate
securities
|
|
—
|
|
|
19,559
|
|
Earnings of unconsolidated
joint venture
|
|
(211)
|
|
|
(106)
|
|
Other non-cash
items
|
|
(69)
|
|
|
(76)
|
|
Changes in
operating assets and liabilities, net of acquisitions and
discontinued operations:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(1,173)
|
|
|
740
|
|
Other assets
|
|
(989)
|
|
|
523
|
|
Accounts payable and
accrued expenses
|
|
(4,777)
|
|
|
(1,628)
|
|
Deferred
revenue
|
|
2
|
|
|
37
|
|
Net cash (used in)
provided by operating activities
|
|
(1,991)
|
|
|
4,695
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Purchases of property and
equipment
|
|
(1,741)
|
|
|
(3,509)
|
|
Proceeds from the sale of
marketable equity securities
|
|
—
|
|
|
14
|
|
Distribution of earnings from
unconsolidated joint venture
|
|
940
|
|
|
—
|
|
Net cash used in
continuing investing activities
|
|
(801)
|
|
|
(3,495)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Proceeds from exercise of stock
options
|
|
314
|
|
|
303
|
|
Restricted cash
|
|
—
|
|
|
162
|
|
Redemption of convertible
preferred stock
|
|
(70,000)
|
|
|
—
|
|
Proceeds from line of
credit
|
|
—
|
|
|
64,700
|
|
Principal payments on line of
credit
|
|
—
|
|
|
(65,157)
|
|
Payment of dividend on
convertible preferred stock
|
|
(721)
|
|
|
—
|
|
Tax payment related to net share
settlements of restricted stock awards
|
|
(199)
|
|
|
—
|
|
Principal payments on loan
payable
|
|
(25)
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
(70,631)
|
|
|
8
|
|
|
|
|
|
|
|
|
Change in cash and cash
equivalents
|
|
(73,423)
|
|
|
1,208
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
|
158,517
|
|
|
106,847
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
|
85,094
|
|
$
|
108,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOVE,
INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE
NET INCOME
(LOSS) EXCLUDING INTEREST INCOME, INCOME TAX EXPENSE, STOCK-BASED
COMPENSATION
AND CHARGES,
DEPRECIATION, AMORTIZATION AND IMPAIRMENT OF AUCTION RATE
SECURITIES
(ADJUSTED
EBITDA)
(in
thousands)
|
|
|
Three Months
Ended March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net Income (loss)
|
$
|
734
|
|
$
|
(18,930)
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
Interest income,
net
|
|
(18)
|
|
|
(556)
|
|
Income tax
expense
|
|
18
|
|
|
63
|
|
Stock-based
compensation
|
|
1,645
|
|
|
1,892
|
|
Stock-based
charges
|
|
92
|
|
|
176
|
|
Depreciation
|
|
2,393
|
|
|
2,601
|
|
Impairment of auction rate
securities
|
|
—
|
|
|
19,559
|
|
Amortization of intangible
assets, including unconsolidated joint venture
|
|
552
|
|
|
387
|
|
Adjusted EBITDA
|
$
|
5,416
|
|
$
|
5,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOVE,
INC.
OPERATING RESULTS
NET OF
STOCK-BASED COMPENSATION EXPENSE
(in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2011
|
|
|
|
(unaudited)
|
|
|
|
As
Reported
|
|
Stock-based
Compensation
|
|
Excluding
Stock-Based
Compensation
|
|
Revenue
|
$
|
49,075
|
$
|
—
|
$
|
49,075
|
|
Cost of revenue
|
|
10,783
|
|
(53)
|
|
10,730
|
|
Gross profit
|
|
38,292
|
|
53
|
|
38,345
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
18,316
|
|
(368)
|
|
17,948
|
|
Product and web site
development
|
|
9,463
|
|
(319)
|
|
9,144
|
|
General and
administrative
|
|
10,064
|
|
(905)
|
|
9,159
|
|
Amortization of
intangibles
|
|
355
|
|
—
|
|
355
|
|
Total operating
expenses
|
|
38,198
|
|
(1,592)
|
|
36,606
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
94
|
$
|
1,645
|
$
|
1,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2010
|
|
|
|
(unaudited)
|
|
|
|
As
Reported
|
|
Stock-based
Compensation
|
|
Excluding
Stock-Based
Compensation
|
|
Revenue
|
$
|
48,643
|
$
|
—
|
$
|
48,643
|
|
Cost of revenue
|
|
10,928
|
|
(47)
|
|
10,881
|
|
Gross profit
|
|
37,715
|
|
47
|
|
37,762
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
18,332
|
|
(410)
|
|
17,922
|
|
Product and web site
development
|
|
8,526
|
|
(482)
|
|
8,044
|
|
General and
administrative
|
|
10,689
|
|
(953)
|
|
9,736
|
|
Amortization of
intangibles
|
|
105
|
|
—
|
|
105
|
|
Total operating
expenses
|
|
37,652
|
|
(1,845)
|
|
35,807
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
63
|
$
|
1,892
|
$
|
1,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Move, Inc.