Professional Diversity Network Reports Year End 2012 Financial Results

Apr 01, 2013, 18:42 ET from Professional Diversity Network

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