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Webmedia Brands Inc. (1083712) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2009

Mecklermedia Corp

CIK: 1083712
 

Exhibit 99.1
 


WebMediaBrands Inc. Reports Results
For Its Fourth Quarter Ended December 31, 2009

(Norwalk, CT – March 30, 2010) -- WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the quarter ended December 31, 2009.

Revenues for the fourth quarter of 2009 were $1.7 million compared to revenues of $1.8 million for the same period in 2008.  Operating expenses, excluding impairment, for the fourth quarter of 2009 were $3.5 million compared to $7.6 million for the same period in 2008.  Loss from continuing operations was $13.2 million during the fourth quarter of 2009 compared to $13.5 million during the same period in 2008.  Loss from continuing operations during the fourth quarter of 2009 included a non-cash impairment charge of $12.6 million related to the write-down of goodwill, intangible assets and building and land.

“Revenues from our online advertising sales operations improved during the fourth quarter and were up 54% compared to the third quarter of 2009 and 148% for the same period in 2008.  In addition, revenues from our job board operations continued to show steady improvement and were up 7% compared to the fourth quarter of 2008.  Also, operating costs in this quarter reflect cost savings that we believe will continue into 2010,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands.

In November 2009, WebMediaBrands completed the sale of the assets related to its Internet.com business to QuinStreet, Inc. for an aggregate purchase price of $18.0 million in cash, subject to a working capital purchase price adjustment.  Prior year financial results have been presented to include WebMediaBrands’s Internet.com business as a discontinued operation for the periods presented.

In February 2009, WebMediaBrands completed the sale of its online images business to Getty Images, Inc.  Prior year financial results have been presented to reflect WebMediaBrands’s online images segment as a discontinued operation for the periods presented.

WebMediaBrands Inc. 4th Quarter 2009 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2009 fourth quarter results on Tuesday, March 30, 2010 at 5:00 pm EDT.

The conference call number is 877-795-3613 for domestic participants and 719-325-4802 for international participants; confirmation code “4239586.”   Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, April; 13, 2010. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “4239586.”


 
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WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Operations
For the Three and Twelve Months Ended December 31, 2008 and 2009
(in thousands, except per share amounts)

 
   
Three Months Ended
December 31,
   
Twelve Months Ended
December 31,
 
   
2008
   
2009
   
2008
   
2009
 
Revenues
  $ 1,824     $ 1,659     $ 8,858     $ 6,103  
                                 
Cost of revenues (exclusive of items shown separately below)
    1,753       1,116       5,279       4,217  
Advertising, promotion and selling
    848       409       2,179       1,759  
General and administrative
    3,704       1,690       19,113       11,272  
Depreciation
    195       183       588       698  
Amortization
    1,089       103       2,999       333  
Impairment
    4,617       12,634       4,617       13,296  
Restructuring charge
                      876  
Total operating expenses
    12,206       16,135       34,775       32,451  
                                 
Operating loss from continuing operations
    (10,382 )     (14,476 )     (25,917 )     (26,348 )
Other income (loss), net
    (71 )     (90 )     (59 )     126  
Interest income
    1       3       13       164  
Interest expense
    (1,954 )     (235 )     (7,152 )     (1,902 )
Loss on extinguishment of debt
                      (2,125 )
Loss on fair value of interest rate swap
                      (6,732 )
Loss from continuing operations before income taxes
    (12,406 )     (14,798 )     (33,115 )     (36,817 )
Provision (benefit) for income taxes
    1,112       (1,646 )     8,074       (3,248 )
Loss from continuing operations
    (13,518 )     (13,152 )     (41,189 )     (33,569 )
Income (loss) from discontinued operations, net of taxes
    (36,145 )     259       (75,492 )     (827 )
Gain on sale of discontinued operations, net of taxes
          1,219             8,195  
Net loss
  $ (49,663 )   $ (11,674 )   $ (116,681 )   $ (26,201 )
                                 
Income (loss) per share:
                               
Basic
                               
Loss from continuing operations
  $ (0.38 )   $ (0.36 )   $ (1.14 )   $ (0.92 )
Income (loss) from discontinued operations
    (1.00 )     0.04       (2.10 )     0.20  
Net loss
  $ (1.38 )   $ (0.32 )   $ (3.24 )   $ (0.72 )
                                 
Diluted
                               
Loss from continuing operations
  $ (0.38 )   $ (0.36 )   $ (1.14 )   $ (0.92 )
Income (loss) from discontinued operations
    (1.00 )     0.04       (2.10 )     0.20  
Net loss
  $ (1.38 )   $ (0.32 )   $ (3.24 )   $ (0.72 )
                                 
Shares used in computing income (loss) per share:
                               
Basic
    35,967       36,931       35,967       36,516  
Diluted
    35,967       36,931       35,967       36,516  
 
 
 
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WebMediaBrands Inc.
Unaudited Consolidated Condensed Balance Sheets
 
December 31, 2008 and 2009
 (in thousands, except share and per share amounts)
 
   
December 31,
2008
   
December 31,
2009
 
             
ASSETS            
Current assets:
           
Cash and cash equivalents
  $ 3,755     $ 15,012  
Accounts receivable, net of allowances of $168 and $90, respectively
    455       500  
Prepaid expenses and other current assets
    3,870       2,879  
Assets of discontinued operations
    20,578        
Total current assets
    28,658       18,391  
                 
Property and equipment, net
    1,649       1,086  
Intangible assets, net
    2,002       990  
Goodwill
    16,314       9,495  
Investments and other assets
    2,549       1,051  
Assets held for sale and of discontinued operations
    112,921       2,000  
Total assets
  $ 164,093     $ 33,013  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 701     $ 566  
Accrued payroll and related expenses
    1,109       811  
Accrued expenses and other current liabilities
    4,971       2,516  
Current portion of long-term debt
    81,213        
Deferred revenues
    1,204       955  
Liabilities of discontinued operations
    28,153        
Total current liabilities
    117,351       4,848  
                 
Loan from related party
          6,197  
Deferred revenues
    108       92  
Deferred income taxes
    2,190       1,122  
Other long-term liabilities
    7,764       586  
Liabilities of discontinued operations
    1,804        
Total liabilities
    129,217       12,845  
                 
Commitments and contingencies
               
                 
Stockholders’ equity:
               
Preferred stock, $.01 par value, 4,000,000 shares authorized, no shares issued
           
Common stock, $.01 par value, 75,000,000 shares authorized, 36,032,152 and 37,060,723 shares issued at December 31, 2008 and 2009, respectively
    360       371  
Additional paid-in capital
    273,324       280,556  
Accumulated deficit
    (234,479 )     (260,680 )
Treasury stock, 65,000 shares, at cost
    (106 )     (106 )
Accumulated other comprehensive income (loss)
    (4,223 )     27  
Total stockholders’ equity
    34,876       20,168  
Total liabilities and stockholders’ equity
  $ 164,093     $ 33,013  
 
 
 
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WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Cash Flows
For the Years Ended December 31, 2008 and 2009 (in thousands)

   
Year Ended December 31,
 
   
2008
   
2009
 
Cash flows from operating activities:
           
Net loss
  $ (116,681 )   $ (26,201 )
Less: Loss from discontinued operations, net of tax
    (75,492 )     (827 )
Less: Gain on sale of discontinued operations, net of tax
    —        8,195  
Loss from continuing operations
    (41,189 )     (33,569 )
Adjustments to reconcile net loss to net cash provided by operating activities:
               
Loss on fair value of swap
          6,732  
Impairment
    4,617       13,296  
Depreciation and amortization
    3,587       1,031  
Stock-based compensation
    3,592       2,090  
Provision for losses on accounts receivable
    76       9  
Other income, net
    18       210  
Amortization of debt issue costs
    208       19  
Loss on extinguishment of debt
          2,125  
Deferred income taxes
    5,460       (2,367 )
Excess tax benefit from stock-based compensation
    (1,813 )     (3,969 )
Changes in current assets and liabilities (net of businesses acquired):
               
Accounts receivable, net
    647       (58 )
Prepaid expenses and other assets
    1,173       4,648  
Accounts payable and accrued expenses
    (131 )     (3,133 )
Deferred revenues
    (178 )     (265 )
Discontinued operations
    36,097       (1,009 )
Net cash provided by (used in) operating activities
    12,164       (14,210 )
Cash flows from investing activities:
               
Purchases of property and equipment
    (1,323 )     (570 )
Acquisitions of businesses and other
    (1,369 )     (2,678 )
Proceeds from sale of discontinued operations
          106,806  
Discontinued operations
    (9,855 )     (217 )
Net cash provided by (used in) investing activities
    (12,547 )     103,341  
Cash flows from financing activities:
               
Borrowings from related party
          7,197  
Borrowings under credit facilities
    3,900        
Settlement of interest rate swap
          (6,732 )
Debt issuance costs
    (483 )     (364 )
Repayment of borrowings from related party
          (1,000 )
Repayment of borrowings under credit facilities
    (6,813 )     (81,213 )
Proceeds from exercise of stock options
    7       275  
Excess tax benefit from stock-based compensation
    1,813       3,969  
Net cash used in financing activities
    (1,576 )     (77,868 )
Effect of exchange rates on cash
    (1,587 )     (6 )
Net increase (decrease) in cash and cash equivalents
    (3,546 )     11,257  
Cash and cash equivalents, beginning of year
    7,301       3,755  
Cash and cash equivalents, end of year
  $ 3,755     $ 15,012  
Supplemental disclosures of cash flow:
               
Cash refund of income taxes, net
  $ 1,026     $ 1,320  
Cash paid for interest
  $ 7,008     $ 1,855  
                 
Non-cash investing activities:
               
Acquisitions of long-lived assets
  $ 372     $ 28  
Accrued acquisition contingency
  $ 61     $ 1,556  


 
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About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM, www.webmediabrands.com) is an Internet media company that provides content, education, trade shows and online job board services to media and business professionals.

 
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example: general economic conditions; the competitive environment in which WebMediaBrands competes; and the unpredictability of WebMediaBrands’s future revenues, expenses, cash flows and stock prices.  For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands’s reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.
 
All current WebMediaBrands press releases can be found online at www.webmediabrands.com/corporate/press.html
 
 
For information on WebMediaBrands contact:
 
 
Amanda Barrett
Director of Marketing
212-547-7879
press@webmediabrands.com
 
 
 
 
 
 
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The following information was filed by Mecklermedia Corp on Tuesday, March 30, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Mecklermedia Corp provided additional information to their SEC Filing as exhibits

CIK: 1083712
Form Type: 10-K Annual Report
Accession Number: 0001019687-10-001225
Submitted to the SEC: Wed Mar 31 2010 4:40:00 PM EST
Accepted by the SEC: Wed Mar 31 2010
Period: Thursday, December 31, 2009
Industry: Business Services

External Resources:
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