Move, Inc. Announces Third Quarter 2012 Financial Results

05 Nov, 2012, 16:05 ET from Move, Inc.

CAMPBELL, Calif., Nov. 5, 2012 /PRNewswire/ -- Move, Inc. (NASDAQ: MOVE), the leader in online real estate, today reported financial results for the third quarter ended September 30, 2012.

Revenue for the quarter was $49.4 million, an increase of $3.0 million, or six percent, from $46.5 million in the third quarter of 2011. Net income applicable to common stockholders was $1.8 million, or $0.04 per diluted share, compared to $242,000, or $0.01 per diluted share, in the third quarter of 2011. Non-GAAP Adjusted EBITDA was $6.9 million, an increase of $1.3 million, or 24 percent, from $5.5 million in the third quarter of 2011.  As a percentage of revenue, Adjusted EBITDA improved to 14 percent of revenue in the third quarter of 2012 compared to 12 percent in the third quarter of 2011.  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.

Steve Berkowitz, chief executive officer of Move, Inc. said, "We continued to make solid progress across our key strategic initiatives, building strength in our core business while expanding our market opportunity through our recent acquisitions of TigerLead Solutions and Relocation.com. We are poised to exit the year in a stronger competitive position, with a broader and more stable product set that offers greater upside potential and with growing consumer engagement metrics that highlight our market leadership.  Combined with continued indicators of a slow but steady path to recovery in the housing market, we expect to end the year on a positive note and set the stage for revenue acceleration in 2013."

Recent 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 1.2 billion pages and spent more than 1.1 billion minutes on the Realtor.com website in the third quarter, with more than 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 Apps: Mobile usage continues to grow dramatically.  Page views and leads from mobile apps grew by more than 125 percent year-over-year, and nearly 45 percent of homes viewed across all platforms now occur on mobile apps.  Additionally, mobile engagement as measured by pages viewed and leads delivered per user is 6-7x that of the website. 
  • Realtor.com Site Relaunch: Move recently debuted a site relaunch of Realtor.com that enhances the user experience, makes search more intuitive and increases functionality. 
  • Collaborative Search:  Move's recent launch of a free co-branded mobile application and collaborative search product for real-estate professionals, has generated extremely positive feedback from the agent community, and usage is climbing steadily.
  • 800 Number Tracking System: Move has enhanced its lead tracking capabilities through the launch of a toll-free 800 Number, providing customers with an additional tool to assess the value they are generating from their marketing dollars.
  • TigerLead Solutions: In September 2012, Move acquired TigerLead Solutions, a premier lead generation and lead management system for real estate professionals. The newest piece of the Move suite enables real estate professionals to generate, cultivate, and manage "Smarter Leads" and gain deep insights into consumer "DNA" with industry-leading analytics.
  • Relocation.com: In October 2012, Move acquired Relocation.com, an online marketplace that connects home buyers and renters with moving and storage professionals. Combining the acquisition with Move's existing Moving.com business, Move significantly strengthens its offering and creates the clear #1 player in moving services.

Business Outlook For the quarter ending December 31, 2012, Move expects revenue to range between approximately $51.5 million and $52.0 million and expects to report Adjusted EBITDA margin of approximately 15 percent.

Conference Call As previously announced, Move, Inc. will host a conference call, which will be broadcast live over the Internet today, Monday, November 5, 2012. 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 November 5, 2012, and 8:59 p.m. Pacific Standard Time November 9, 2012, (855) 859-2056 or (404) 537-3406, with Conference ID 26453667. A replay of the call will also be available at http://investor.move.com.

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 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 nine-month periods ended September 30, 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.

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; ListHub™, the leading syndicator of real estate listings; Moving.com™; SeniorHousingNet; SocialBios; TigerLead®;; and TOP PRODUCER® Systems. Move, Inc. is based in Campbell, California. SOURCE Move, Inc.

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts) 

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

Revenue

$

49,446

$

46,466

$

146,496

$

144,456

Cost of revenue(1)

10,236

9,959

29,509

31,203

Gross profit 

39,210

36,507

116,987

113,253

Operating expenses:

Sales and marketing(1)

17,235

16,281

53,005

52,524

Product and web site development(1)

9,412

8,437

27,603

26,899

General and administrative(1)

10,464

10,823

31,514

30,352

Amortization of intangible assets 

500

397

1,294

1,108

Total operating expenses

37,611

35,938

113,416

110,883

Operating income

1,599

569

3,571

2,370

Interest (expense) income, net 

(1)

(2)

33

Earnings of unconsolidated joint venture

290

367

710

718

Other (expense) income, net

(99)

(69)

278

Income from operations before income taxes

1,888

835

4,212

3,399

Income tax expense

103

31

175

123

Net income

1,785

804

4,037

3,276

Convertible preferred stock dividend and related accretion

(562)

(942)

(3,506)

Net income (loss) applicable to common stockholders

$

1,785

$

242

$

3,095

$

(230)

Basic net income (loss) per share applicable to common stockholders

$

0.05

$

0.01

$

0.08

$

(0.01)

Diluted net income (loss) per share applicable to common stockholders

$

0.04

$

0.01

$

0.08

$

(0.01)

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

Basic

38,798

39,279

38,661

39,430

Diluted

39,895

39,977

39,660

39,430

Comprehensive income:

Net income

$

1,785

$

804

$

4,037

$

3,276

Foreign currency translation gain (loss)

11

(62)

(21)

(98)

Comprehensive income

$

1,796

$

742

$

4,016

$

3,178

(1) Includes stock-based compensation as follows:

     Cost of revenue

$

71

$

52

$

193

$

170

     Sales and marketing

361

307

1,554

1,066

     Product and web site development

527

238

1,412

915

     General and administrative

938

488

2,428

1,979

$

1,897

$

1,085

$

5,587

$

4,130

 

 

 

MOVE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)  

September 30, 2012

December 31, 2011

(unaudited)

ASSETS

Current assets:

Cash

$

30,876

$

87,579

Accounts receivable, net

12,382

11,719

Other current assets

6,950

7,086

Total current assets

50,208

106,384

Property and equipment, net

20,023

20,487

Investment in unconsolidated joint venture

5,442

5,711

Goodwill, net

33,551

24,450

Intangible assets, net

18,825

7,319

Other assets 

851

570

Total assets 

$

128,900

$

164,921

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities: 

Accounts payable 

$

4,748

$

5,851

Accrued expenses 

18,321

14,782

Deferred revenue 

8,672

9,809

Total current liabilities 

31,741

30,442

Other noncurrent liabilities

3,107

3,264

Total liabilities 

34,848

33,706

Series B convertible preferred stock

48,555

Stockholders' equity: 

Series A convertible preferred stock

Common stock 

39

39

Additional paid-in capital 

2,129,801

2,121,483

Accumulated other comprehensive income

237

258

Accumulated deficit

(2,036,025)

(2,039,120)

Total stockholders' equity

94,052

82,660

Total liabilities and stockholders' equity

$

128,900

$

164,921

 

 

 

MOVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended September 30,

2012

2011

(unaudited)

Cash flows from operating activities:

Net income

$

4,037

$

3,276

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

Depreciation

7,195

6,979

Amortization of intangible assets

1,294

1,108

Provision for doubtful accounts

486

99

Loss on sales and disposals of assets

38

126

Stock-based compensation and charges

5,856

4,441

Earnings of unconsolidated joint venture

(710)

(718)

Return on investment in unconsolidated joint venture

255

280

Other noncash items

(78)

(52)

Changes in operating assets and liabilities:

Accounts receivable

(1,100)

(1,649)

Other assets

(144)

88

Accounts payable and accrued expenses

2,816

(3,189)

Deferred revenue 

(1,163)

(2,649)

Net cash provided by operating activities

18,782

8,140

Cash flows from investing activities:

Purchases of property and equipment

(6,672)

(5,075)

Proceeds from sale of assets

9

Acquisitions, net of cash acquired

(22,000)

(500)

Proceeds from dissolution of joint venture

499

Return of investment in unconsolidated joint venture

724

660

Net cash used in investing activities

(27,939)

(4,416)

Cash flows from financing activities:

Principal payments on loan payable

(82)

(77)

Redemption of convertible preferred stock

(49,044)

(70,000)

Payment of dividends on convertible preferred stock

(882)

(1,579)

Proceeds from exercise of stock options

3,060

608

Tax payment related to net share settlements of restricted stock awards

(529)

(312)

Repurchases of common stock

(69)

(9,617)

Net cash used in financing activities

(47,546)

(80,977)

Change in cash and cash equivalents

(56,703)

(77,253)

Cash and cash equivalents, beginning of period

87,579

158,517

Cash and cash equivalents, end of period

$

30,876

$

81,264

 

 

 

MOVE, INC.

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

Net income

$

1,785

$

804

$

4,037

$

3,276

Plus: 

Stock-based compensation

1,897

1,085

5,587

4,130

Stock-based charges 

99

72

269

311

Depreciation

2,282

2,340

7,195

6,979

Amortization of intangible assets, including unconsolidated joint venture

697

594

1,886

1,700

Interest expense (income), net

1

2

(33)

Income tax expense

103

31

175

123

Termination costs from dissolution of joint venture

619

619

Adjusted EBITDA

$

6,864

$

5,547

$

19,149

$

17,105

 

 

 

MOVE, INC. OPERATING RESULTS

NET OF STOCK-BASED COMPENSATION EXPENSE

(in thousands) 

Three Months Ended

September 30, 2012

(unaudited)

As Reported

Stock-based Compensation

Excluding Stock-based Compensation

Revenue

$

49,446

$

$

49,446

Cost of revenue

10,236

(71)

10,165

Gross profit

39,210

71

39,281

Sales and marketing

17,235

(361)

16,874

Product and web site development

9,412

(527)

8,885

General and administrative

10,464

(938)

9,526

Amortization of intangibles

500

500

Total operating expenses

37,611

(1,826)

35,785

Operating income

$

1,599

$

1,897

$

3,496

Three Months Ended

September 30, 2011

(unaudited)

As Reported

Stock-based Compensation

Excluding Stock-based Compensation

Revenue

$

46,466

$

$

46,466

Cost of revenue

9,959

(52)

9,907

Gross profit

36,507

52

36,559

Sales and marketing

16,281

(307)

15,974

Product and web site development

8,437

(238)

8,199

General and administrative

10,823

(488)

10,335

Amortization of intangibles

397

397

Total operating expenses

35,938

(1,033)

34,905

Operating income

$

569

$

1,085

$

1,654

Nine Months Ended

September 30, 2012

(unaudited)

As Reported

Stock-based Compensation

Excluding Stock-Based Compensation

Revenue

$

146,496

$

$

146,496

Cost of revenue

29,509

(193)

29,316

Gross profit

116,987

193

117,180

Sales and marketing

53,005

(1,554)

51,451

Product and web site development

27,603

(1,412)

26,191

General and administrative

31,514

(2,428)

29,086

Amortization of intangibles

1,294

1,294

Total operating expenses

113,416

(5,394)

108,022

Operating income

$

3,571

$

5,587

$

9,158

Nine Months Ended

September 30, 2011

(unaudited)

As Reported

Stock-based Compensation

Excluding Stock-Based Compensation

Revenue

$

144,456

$

$

144,456

Cost of revenue

31,203

(170)

31,033

Gross profit

113,253

170

113,423

Sales and marketing

52,524

(1,066)

51,458

Product and web site development

26,899

(915)

25,984

General and administrative

30,352

(1,979)

28,373

Amortization of intangibles

1,108

1,108

Total operating expenses

110,883

(3,960)

106,923

Operating income

$

2,370

$

4,130

$

6,500

 

SOURCE Move, Inc.



RELATED LINKS

http://www.move.com