Professional Diversity Network Reports Year End 2012 Financial Results

CHICAGO, April 1, 2013 /PRNewswire/ -- Professional Diversity Network Inc. (NASDAQ: IPDN), a developer and operator of online networks dedicated to providing access to employment for diverse professionals in the United States, today reported its financial results for the year ended December 31, 2012. The Company also filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2012. Shares of the Company's common stock began trading on the NASDAQ Capital Market on March 5, 2013 in an Initial Public Offering (IPO).

Total revenue for 2012 increased 11% to $6.2 million compared to $5.6 million in 2011. Net income for 2012 was $2.3 million compared to $2.8 million in 2011 reflecting PDN's investments in marketing, sales and technology as it builds its operations and infrastructure. Fully diluted earnings per share were $0.38 compared to $0.44 in 2011 based on 6,318,227 shares outstanding as of the IPO on March 5, 2013.

Through Professional Diversity Network, its 2,375,742 members can connect with employers who are seeking to hire diverse talent on the company's eight professional recruitment websites. Professional Diversity Network offers employers the nation's leading diversity recruitment products and services. The PDN team of Diversity Recruitment Consulting Specialists assist employers in more efficiently recruiting the diverse talent needed for an increasingly multicultural marketplace. On January 1, 2013, Professional Diversity Network entered into a diversity recruitment partnership agreement with LinkedIn Corporation wherein LinkedIn may sell PDN's diversity based recruitment services directly to employers.

Jim Kirsch, Chief Executive Officer, said, "As our nation recovers from the great recession, the competition for human capital is intensifying. Now and in the future, businesses must access diverse talent in order to keep pace with America's evolving multicultural majority. Our specialized networks are connecting talented candidates with employers whose core values, and future competitive advantage, depend on a diverse workforce. Our growth strategy is to expand opportunities for diverse talent and employers who seek to hire them via an effective online diversity employment marketplace. We are proud that our online professional networking and job-seeking environment directly contributes to the nation's economic recovery and the health of the diverse employment sector."

About Professional Diversity Network

Professional Diversity Network develops and operates online networks dedicated to providing access to employment for diverse professionals in the United States. Professional Diversity Network enables employers who value diversity to promote their career opportunities to diverse talent. Professional Diversity Network owns and operates professional networking communities including: www.iHispano.com for Hispanic Professionals, www.AMightyRiver.com for African American professionals, www.WomensCareerChannel.com for Female Professionals, www.Military2Career.com for Veterans, www.ProAble.com for Professionals with Disabilities, www.OutProNet.com for professionals in the Gay Community, and www.AsianCareerNetwork.com for Asian professionals.  

For more information, visit: www.professionaldiversitynetwork.com

Contact: 

Professional Diversity Network
Myrna Newman, CFO
312-614-0931
mnewman@prodivnet.com

Investor Relations
Aimee Gordon/Robert Jones
EVC Group
212-850-6020/646-201-5447
agordon@evcgroup.com / bjones@evcgroup.com

Media Relations
Janine McCargo
EVC Group
646-688-0425
jmccargo@evcgroup.com

Professional Diversity Network, Inc.

 

BALANCE SHEET





December 31,


2012

 

2011

 




Current Assets:



Cash and cash equivalents

$         868,294

$      2,254,431

Accounts receivable

1,923,048

1,604,470

Marketable securities, at fair value

251,349

375,156

Prepaid expense

63,982

-




Total Current Assets

3,106,673

4,234,057




Property and equipment, net

34,863

25,789

Security deposits

23,711

21,568

Deferred offering costs - initial public offering

832,240

26,900

Developed technology, net

402,890

146,146

Goodwill

635,671

635,671

Trade name

90,400

90,400




Total assets

$      5,126,448

$      5,180,531







Current Liabilities:



Accounts payable

$         265,013

$

Accrued expenses

85,327

254,674

Deferred revenue

500,000

150,000




Total current liabilities

805,340

404,674




Notes payable - net of original issue discount of $138,256 and  $211,225, as of December 31, 2012 and December 31, 2011, respectively

1,487,900

1,491,488




Total liabilities

2,338,240

1,896,162




Commitments and contingencies






Stockholders' Equity



Common stock $0.01 par value, 25,000,000 shares authorized, 3,487,847 shares issued and outstanding, as of December 31, 2012 and 2011

34,878

34,878

Additional paid-in capital

2,751,827

3,280,136

Accumulated other comprehensive income/(loss)

1,503

(30,645 )




Total stockholders' equity

2,788,208

3,284,369







Total liabilities and stockholders' equity

$      5,126,448

$      5,180,531




 

 

Professional Diversity Network, Inc.

STATEMENT OF COMPREHENSIVE INCOME





For the Years Ended
December 31,


2012

 

2011

 

Revenues



Recruitment services

$      4,000,000

$      4,000,000

Consumer advertising and marketing solutions revenue

2,154,111

1,569,342




Total revenues

6,154,111

5,569,342




Costs and expenses:



Cost of services

805,447

817,254

Sales and marketing

1,482,556

1,021,839

General and administrative

1,222,158

723,093

Depreciation and amortization

112,943

108,592




Total costs and expenses

3,623,104

2,670,778







Income from operations

2,531,007

2,898,564







Other income (expense)



Interest expense

(172,411 )

(170,452 )

Interest and other income

13,095

17,540




Other expense, net

(159,316 )

(152,912 )







Net Income

$      2,371,691

$      2,745,652




Other comprehensive income:



Net Income

$      2,371,691

$      2,745,652

Unrealized gains (losses) on marketable securities

29,699

(40,128 )

Reclassification adjustments for gains on marketable securities included in net income

2,449

10,987




Comprehensive income

$      2,403,839

$      2,716,511




Unaudited Pro Forma Income Tax Computation for Assumed Conversion to a Corporation:



Historical Net Income

$      2,371,691

$      2,745,652

Pro-forma Income Tax Provision

979,708

1,127,491




Pro forma Net Income

$    1,391,983

$      1,618,161




Unaudited Pro Forma Income Net Income per Common Share:

0.38

0.44

Basic and diluted



Shares used in computing pro forma net income per common share:



Basic and diluted

3,693,227

3,693,227




SOURCE Professional Diversity Network



RELATED LINKS
http://www.professionaldiversitynetwork.com

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