2014

Move, Inc. announces fourth quarter 2012 financial results

SAN JOSE, Calif., Feb. 12, 2013 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the fourth quarter and fiscal year ended December 31, 2012.

Revenue for the quarter was $52.7 million, an increase of $5.5 million, or 12 percent, from $47.3 million in the fourth quarter of 2011. Net income applicable to common stockholders was $1.6 million, or $0.04 per diluted share, compared to $3.4 million, or $0.09 per diluted share, in the fourth quarter of 2011. Net income applicable to common stockholders was reduced by $.02 per diluted share as a result of incremental amortization related to two acquisitions the company made during the year. Non-GAAP Adjusted EBITDA was $7.8 million, a decrease of $0.8 million, or 10 percent, from $8.6 million in the fourth quarter of 2011. As a percentage of revenue, Adjusted EBITDA improved to 15 percent of revenue in the fourth quarter of 2012 compared to 14 percent in the third quarter of 2012. Move 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.

Steve Berkowitz, chief executive officer of Move said, "Move finished the year strongly, setting the stage for double-digit revenue growth in 2013. We executed very well across our core strategic initiatives in 2012 by improving the content and experience for consumers, enhancing our product offerings to customers, strengthening our role as a key partner to the real estate industry, and innovating to capitalize on the rapid consumer migration to mobile. Leveraging our expanding assets for consumers and customers, Move has laid the foundation to accelerate growth and expand profitably in 2013 and beyond. Through our consumer advertising and proprietary software and services products, we are uniquely poised to provide an end-to-end solution for the industry based on our ability to serve the entire supply chain."

2012 Highlights:

  • Consumer Engagement -- Web: Realtor.com continued to lead the industry in connecting real estate professionals with serious home buyers and sellers. Consumers viewed nearly 1.0 billion pages and spent nearly 1.0 billion minutes on the Realtor.com website in the fourth quarter, with approximately 95 percent of that usage occurring on properties for sale. Realtor.com continues to experience significant repeat usage with consumers visiting an average of approximately 4 times per month, nearly 50 percent more than the nearest competitor.
  • Consumer Engagement -- Mobile: Mobile usage continues to grow dramatically. Page views from mobile grew by 90 percent year-over-year, leads from mobile grew by more than 120 percent year-over-year, and nearly 50 percent of homes viewed across all platforms now occur on mobile devices in the fourth quarter. Additionally, mobile engagement as measured by pages viewed and leads delivered per user is 6-7x that of the website.
  • Consumer Facing Initiatives: In October 2012, Move completed the first phase of the Realtor.com site redesign, enhancing the user experience, making search more intuitive and increasing functionality. The Company continued to expand its content for adjacent consumer segments, adding new rental communities to its rental content and creating the largest lead generation moving site in the nation after combining its acquisition of Relocation.com with its Moving.com business.
  • Customer Facing Initiatives: Move continued to add capabilities to attribute leads to Realtor.com and to demonstrate the return on investment (ROI) of its products, including the launch of a toll-free tracking system. The Company made Co-Broke Connections available on all mobile platforms and based on traffic growth, continued to expand Co-Broke inventory by opening up more zip codes and the number of available slots within various zip codes. Move strategically expanded its software and service product offering through the acquisition of TigerLead Solutions in September 2012, which dramatically improves the conversion process for agents and agent teams.
  • ListHub / Syndication: During 2012, Move grew the number of unique MLS agreements for ListHub from 405 to 451 and added 40 new publishers continuing to expand its distribution network. In April 2012, ListHub launched the Preferred Publisher Program, providing greater transparency, control and protection to real estate brokers syndicating listings, by allowing them to quickly identify preferred publishers and publisher rules, rate publisher websites and access reports.
  • Mobile: Move is creating a seamless experience across all types of mobile devices and released several updated versions of its mobile apps in 2012, with new features and functionality. In October 2012, the Company released the mobile version of its website, and in September 2012, it launched a free co-branded mobile application and collaborative search product for real-estate professionals.

For the full year ended December 31, 2012, Move reported revenue of $199.2 million, an increase of $7.5 million, or 4 percent compared to $191.7 million in 2011. Net income applicable to common stockholders in 2012 was $4.7 million, or $0.12 per share, compared to $3.2 million, or $0.08 per share, in 2011. Net income applicable to common stockholders was reduced by $.02 per diluted share as a result of incremental amortization related to two acquisitions the Company made during the year. Non-GAAP Adjusted EBITDA for 2012 was $26.9 million, an increase of $1.2 million, or 5 percent, from $25.7 million for 2011. As a percentage of revenue, Adjusted EBITDA improved to 14 percent of revenue in 2012 compared to 13 percent in 2011.

Business Outlook
For the quarter ending March 31, 2013, Move expects revenue of approximately $53.5-54.0 million and expects to report Adjusted EBITDA margin of approximately 11-12 percent.

For the year ending December 31, 2013, Move expects revenue to range between $222 million and $226 million and expects to report Adjusted EBITDA margin of approximately 15 percent.

Conference Call
As previously announced, Move will host a conference call, which will be broadcast live over the Internet today, Tuesday, February 12, 2013. To access the call, please dial (877) 312-5848, or outside the U.S. (253) 237-1155, five minutes prior to 1:30 p.m. Pacific Standard Time. A live webcast of the call will also be available at http://investor.move.com under the Events & Presentations menu.

An audio replay will be available between 4:30 p.m. Pacific Standard Time February 12, 2013, and 8:59 p.m. Pacific Standard Time February 16, 2013, (855) 859-2056 or (404) 537-3406, with Conference ID 89689878. A replay of the call will also be available at http://investor.move.com.

Analyst & Investor Day Information
Move will host an Analyst and Investor Day on March 12, 2013 at the Eventi Hotel in New York City. Key members of the senior management team will host a series of presentations beginning at 1:30 p.m. Eastern Daylight Time, providing insight into the business and strategic initiatives for 2013 and beyond. Financial analysts and investors may register to attend by contacting Marta Nichols by email at Marta.Nichols@move.com. Space is limited and pre-registration is required for admittance to the event.

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 excluding net interest income, income tax expense and certain other noncash and nonrecurring 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 twelve-month periods ended December 31, 2012 and 2011 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 provide a more consistent basis for comparison between quarters and should be carefully evaluated. 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.

Forward-Looking Statements
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 and operator of REALTOR.com®, the official website of the National Association of REALTORS®; Move.com, a leading destination for new homes and rental listings, moving, home and garden, and home finance; ListHubTM, the leading syndicator of real estate listings; Moving.comTM; SeniorHousingNet; SocialBios; TigerLead®;; and TOP PRODUCER® Systems. Move, Inc. is based in San Jose, California. SOURCE Move, Inc.

 

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)


























Three Months Ended

December 31,


Twelve Months Ended

December 31,



2012



2011



2012



2011



(unaudited)
















Revenue

$

52,737


$

47,268


$

199,233


$

191,724

Cost of revenue(1)


11,904



9,166



41,413



40,369

Gross profit 


40,833



38,102



157,820



151,355













Operating expenses:












Sales and marketing(1)


18,092



16,090



71,097



68,614

Product and web site development(1)


9,738



7,833



37,341



34,732

General and administrative(1)


10,846



10,115



42,360



40,467

Amortization of intangible assets 


981



397



2,275



1,505

Total operating expenses


39,657



34,435



153,073



145,318

Operating income


1,176



3,667



4,747



6,037













Interest (expense) income, net 


(6)



18



(6)



51

Earnings of unconsolidated joint venture


482



267



1,192



985

Other income, net


158



182



89



460

Income before income taxes


1,810



4,134



6,022



7,533













Income tax expense


222



150



397



273













Net income


1,588



3,984



5,625



7,260













Convertible preferred stock dividend and related accretion




(563)



(942)



(4,069)

Net income applicable to common stockholders

$

1,588


$

3,421


$

4,683


$

3,191

























Basic net income per share applicable to common stockholders

$

0.04


$

0.09


$

0.12


$

0.08













Diluted net income per share applicable to common stockholders

$

0.04


$

0.09


$

0.12


$

0.08













Shares used to calculate net income per share applicable to common stockholders:












Basic


38,834



38,175



38,705



39,114













Diluted


39,800



38,922



39,721



39,928

























(1) Includes stock-based compensation as follows:



















     Cost of revenue

$

75


$

51


$

268


$

221

     Sales and marketing


408



285



1,962



1,351

     Product and web site development


526



261



1,938



1,176

     General and administrative


1,297



788



3,725



2,768


$

2,306


$

1,385


$

7,893


$

5,516













 

 

 

MOVE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)















December 31,
2012



December 31,
2011







ASSETS






Current assets:






Cash

$

27,122


$

87,579

Accounts receivable, net


11,759



11,719

Other current assets


7,215



7,086

Total current assets


46,096



106,384







Property and equipment, net


21,975



20,487

Investment in unconsolidated joint venture


4,924



5,711

Goodwill, net


38,560



24,450

Intangible assets, net


24,444



7,319

Other assets 


870



570

Total assets 

$

136,869


$

164,921







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities: 






Accounts payable 

$

4,741


$

5,851

Accrued expenses 


20,512



14,782

Deferred revenue 


8,520



9,809

Total current liabilities 


33,773



30,442







Other noncurrent liabilities


5,086



3,264

Total liabilities 


38,859



33,706







Series B convertible preferred stock




48,555







Stockholders' equity: 






Series A convertible preferred stock




Common stock 


39



39

Additional paid-in capital 


2,132,189



2,121,483

Accumulated other comprehensive income


219



258

Accumulated deficit


(2,034,437)



(2,039,120)

Total stockholders' equity


98,010



82,660

Total liabilities and stockholders' equity

$

136,869


$

164,921







 

 

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)














Twelve Months Ended December 31,


2012


2011



Cash flows from operating activities:






Net income

$

5,625


$

7,260

Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation


9,551



9,393

Amortization of intangible assets


2,275



1,505

Provision for doubtful accounts


528



190

Stock-based compensation and charges


8,272



5,907

Loss on sales and disposals of assets


61



126

Earnings of unconsolidated joint venture


(1,192)



(985)

Return on investment in unconsolidated joint venture


1,192



1,152

Other noncash items


(74)



(88)

Changes in operating assets and liabilities:






Accounts receivable


(422)



(2,229)

Other assets


(328)



1,292

Accounts payable and accrued expenses


5,047



(2,060)

Deferred revenue 


(1,435)



(3,880)

Net cash provided by operating activities


29,100



17,583







Cash flows from investing activities:






Purchases of property and equipment


(11,025)



(8,099)

Proceeds from sale of assets


9



Acquisitions, net of cash acquired


(31,725)



(500)

Proceeds from dissolution of joint venture




499

Return of investment in unconsolidated joint venture


787



788

Net cash used in investing activities


(41,954)



(7,312)







Cash flows from financing activities:






Principal payments on loan payable


(111)



(103)

Redemption of convertible preferred stock


(49,044)



(70,000)

Payment of dividends on convertible preferred stock


(882)



(2,008)

Proceeds from exercise of stock options


3,108



834

Tax payment related to net share settlements of restricted stock awards


(605)



(312)

Repurchases of common stock


(69)



(9,620)

Net cash used in financing activities


(47,603)



(81,209)







Change in cash and cash equivalents


(60,457)



(70,938)







Cash and cash equivalents, beginning of period


87,579



158,517







Cash and cash equivalents, end of period

$

27,122


$

87,579







 

 

 

MOVE, INC.

REVENUE BY TYPE

(in thousands)














Three Months Ended December 31,


Twelve Months Ended December 31,



2012



2011



2012



2011



(unaudited)



(unaudited)













Revenue












  Consumer advertising

$

41,155


$

38,792


$

161,817


$

155,559

  Software and services


11,582



8,476



37,416



36,165

    Total revenue

$

52,737


$

47,268


$

199,233


$

191,724













Percentage of revenue












  Consumer advertising


78%



82%



81%



81%

  Software and services


22%



18%



19%



19%

    Total


100%



100%



100%



100%













 

 

 

MOVE, INC.

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)


























Three Months Ended

December 31,


Twelve Months Ended

December 31,



2012



2011



2012



2011



(unaudited)



(unaudited)













Net income

$

1,588


$

3,984


$

5,625


$

7,260













Plus: 












Stock-based compensation


2,306



1,385



7,893



5,516

Stock-based charges 


110



81



379



391

Depreciation


2,356



2,414



9,551



9,393

Amortization of intangible assets, including unconsolidated joint venture


1,178



594



3,064



2,294

Interest expense (income), net


6



(18)



6



(51)

Income tax expense


222



150



397



273

Termination costs from dissolution of joint venture








619

Adjusted EBITDA

$

7,766


$

8,590


$

26,915


$

25,695













 

 

 

MOVE, INC.

OPERATING RESULTS NET OF STOCK-BASED COMPENSATION EXPENSE

(in thousands)































Three Months Ended



Three Months Ended



December 31, 2012



December 31, 2011



(unaudited)



(unaudited)



As Reported


Stock-based Compensation


Excluding Stock-based Compensation



As Reported


Stock-based Compensation


Excluding Stock-based Compensation

Revenue

$

52,737

$

$

52,737


$

47,268

$

$

47,268

Cost of revenue


11,904


(75)


11,829



9,166


(51)


9,115

Gross profit


40,833


75


40,908



38,102


51


38,153















Sales and marketing


18,092


(408)


17,684



16,090


(285)


15,805

Product and web site development


9,738


(526)


9,212



7,833


(261)


7,572

General and administrative


10,846


(1,297)


9,549



10,115


(788)


9,327

Amortization of intangibles


981



981



397



397

Total operating expenses


39,657


(2,231)


37,426



34,435


(1,334)


33,101















Operating income

$

1,176

$

2,306

$

3,482


$

3,667

$

1,385

$

5,052































Twelve Months Ended



Twelve Months Ended



December 31, 2012



December 31, 2011



(unaudited)



(unaudited)



As Reported


Stock-based Compensation


Excluding Stock-Based Compensation



As Reported


Stock-based Compensation


Excluding Stock-Based Compensation

Revenue

$

199,233

$

$

199,233


$

191,724

$

$

191,724

Cost of revenue


41,413


(268)


41,145



40,369


(221)


40,148

Gross profit


157,820


268


158,088



151,355


221


151,576















Sales and marketing


71,097


(1,962)


69,135



68,614


(1,351)


67,263

Product and web site development


37,341


(1,938)


35,403



34,732


(1,176)


33,556

General and administrative


42,360


(3,725)


38,635



40,467


(2,768)


37,699

Amortization of intangibles


2,275



2,275



1,505



1,505

Total operating expenses


153,073


(7,625)


145,448



145,318


(5,295)


140,023















Operating income

$

4,747

$

7,893

$

12,640


$

6,037

$

5,516

$

11,553





























SOURCE Move, Inc.



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