NEWPORT BEACH, Calif., March 22, 2012 /PRNewswire/ -- SearchCore, Inc. (OTCBB: SRER), (OTCQX: SRER),a technology-based Internet marketing services company that connects consumers with brands, products and services, today announced its consolidated financial results for the fiscal year ended December 31, 2011.
Total revenues were $11.9 million, an increase of 256% over fiscal year 2010.
EBITDA was $1.8 million, an increase of 216% over fiscal year 2010.
Operating income was $1.5 million, an increase of 218% over the prior year.
Income from continuing operations was $1.0 million, an increase of 172% over the prior year.
Fully diluted income per share from continuing operations was $0.01 for both fiscal years.
"We had an exceptionally strong year in 2011," said Jim Pakulis, CEO of SearchCore, Inc. "Revenues, EBITDA, and operating income all improved significantly. We generated strong cash flow from operations and we closed the year with a cash balance in excess of $1.5 million. We also made the decision to discontinue operating an unprofitable business segment. I believe SearchCore is on very solid ground for another strong year in 2012."
"I am proud to report that we exceeded both our revenue and profit expectation for 2011, which is a credit to the exceptional performance of our subsidiary, WeedMaps Media," said Doug Francis, President of SearchCore, Inc. "Throughout 2011, we carefully allocated our talent and capital resources to building out our technology base within WeedMaps. As a result, we have created a robust technology platform that enables us to continuously enhance our client service and capabilities offering. Equally important, our technology is designed to scale. Looking to the future, we anticipate leveraging our technology platform to create similarly successful finder sites in verticals beyond the cannabis industry."
Fiscal Year 2011 Financial Results
SearchCore's revenues for the year ended December 31, 2011 totaled $11.9 million, a year-over-year increase of 256% compared with $3.4 million for the year ended December 31, 2010. The increase in revenues was primarily due to an increase in the number of customers, the number of 'listing packages' offered to customers and the fees charged for the packages.
Total operating expenses were $10.5 million for 2011, or 88% of revenue, as compared with $2.9 million, or 86% of revenue for 2010. The increase in operating expenses was primarily due to higher investments in technology and expenses in support of business expansion efforts. In addition, non-cash amortization and depreciation expense increased by $0.4 million in 2011 due to recent acquisitions and expenses associated with moving into new corporate offices.
EBITDA for 2011 increased 216% to $1.8 million from $0.6 million for 2010. Operating income for 2011 increased 218% to $1.5 million, as compared with $0.5 million for 2010.
Income from continuing operations increased 172% to $1.0 million, or $0.01 per fully diluted share, for the year ending December 31, 2011, based on 83.1 million weighted average shares outstanding. This compares with income from continuing operations of $0.4 million, or $0.01 per fully diluted share, for the year ended December 31, 2010, based on 28.9 million weighted average shares outstanding.
Net loss was $3.0 million for the year ended December 31, 2011. This was primarily due to a $4.1 million loss related to the Company's decision to exit its medical clinic management business, General Health Solutions, Inc.
Balance Sheet Overview
At December 31, 2011, SearchCore had cash and equivalents of $1.5 million and total debt of $7.1 million as compared with $1.4 million in cash and equivalents and $3.6 million in total debt at December 31, 2010.
About SearchCore, Inc.
SearchCore, Inc., formerly General Cannabis, Inc., is a technology-based Internet marketing services company that offers customers an integrated suite of services including media, technology, marketing and information. Founded in 2010, SearchCore is headquartered in Newport Beach, California. The Company's common stock trades on the OTC market's highest tier, OTCQX, under the ticker symbol "SRER." www.SearchCore.com
Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). SearchCore, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. SearchCore, Inc. undertakes no obligation to revise these statements following the date of this news release.
- financial tables to follow -
Consolidated Statements of Operations (Audited)
Cost of sales
Selling, general and administrative expenses
Total operating expenses
Other Income (Expense)
Total other income (expense)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
Provision for Income Taxes
INCOME FROM CONTINUING OPERATIONS
Loss from discontinued operations, net of $133,500 and $18,100 tax
benefit for the years ended December 31, 2011 and 2010, respectively
NET (LOSS) INCOME
Income (loss) per share, Basic and Diluted
Income from continuing operations
Loss from discontinued operations
Total income (loss) per share
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Consolidated Balance Sheets (Audited)
Cash and cash equivalents
Other current assets
Current assets - discontinued operations
TOTAL CURRENT ASSETS
Property and equipment, net
Property and equipment - discontinued operations
Domain name - Marijuana.com
Intangible assets - discontinued operations
Other assets - discontinued operations
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Note payable - related party
Current liabilities - discontinued operations
TOTAL CURRENT LIABILITIES
LONG TERM LIABILITIES
Other accrued liabilities
Note payable - related party
Earn-out provisions, WeedMaps
TOTAL LONG TERM LIABILITIES
Preferred stock, $0.001 par value: 20,000,000 shares authorized;
zero shares issued and outstanding at December 31, 2011;
zero shares issued and outstanding at December 31, 2010;
Common stock, $0.001 par value: 200,000,000 shares authorized;
83,140,256 shares issued and outstanding at December 31, 2011;
82,640,256 shares issued and outstanding at December 31, 2010;
Retained earnings (accumulated deficit)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
Consolidated Statements of Cash Flows (Audited)
Cash flows from operating activities:
Net income from continuing operations
Adjustments to reconcile net income to net cash used in operating activities:
Loss on abandonment
Changes in operating assets and liabilities:
Prepaid expenses and deposits
Accounts payable and accrued liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Purchases of intangible assets
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from issuance of common stock
Payments from note payable
Payments from convertible notes
Convertible note related party
Payments on note payable - related party
Net cash used by financing activities
Net increase (decrease) in cash and cash equivalents