Mecklermedia Corp - FORM 8-K - EX-99.1 - PRESS RELEASE - August 10, 2011

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Exhibit 99.1 
 
 
WebMediaBrands Inc. Reports Results
For Its Second Quarter Ended June 30, 2011;
Revenues Increase 55%

(New York, NY – August 10, 2011) -- WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the quarter ended June 30, 2011.

Highlights for the second quarter of 2011 include:
 
·  
Revenues for the second quarter of 2011 were $3.8 million compared to revenues of $2.5 million for the same period in 2010, an increase of 55%, and included $319,000 from Inside Network, which we acquired in May 2011.  Revenues from online job board postings, education and advertising, excluding the impact of the Inside Network acquisition, were up 21%, 19% and 16%, respectively, compared to the same period last year.  In addition, trade show revenues increased by 142% compared to the second quarter of 2010.

·  
Net loss for the second quarter of 2011 was $1.0 million and included one-time acquisition related charges of $474,000 and stock-based compensation of $114,000, compared to net loss of $968,000 for the same period last year.  Net loss, excluding interest, taxes, depreciation, amortization, stock-based compensation and one-time acquisition related charges was $62,000, compared to $769,000 for the same period last year.  We track this metric and present it here because we believe it helps in the analysis of the performance of our core operations.  One-time charges of $474,000 consisted of professional fees paid in connection with the acquisition of Inside Network and for contingent acquisition consideration related to the final earn-out payments made in connection with the December 2009 acquisitions of Social Times Inc. and 3rd Power LLC.  Stock-based compensation expense was $114,000 during the second quarter of 2011 compared to $36,000 during the second quarter of 2010.
 
“Our second quarter demonstrated continued progress toward profitability with significant year-over-year and sequential quarterly revenue growth,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. “All of our business units, including our online job board, trade show, advertising sales and education operations had positive results during the second quarter.  Integration of the recently acquired Inside Network was smooth and revenues from Inside Network’s research business have continued to grow.  We anticipate continued growth this year and into 2012 led by our strength in covering social media and the Semantic Web and this growth should lead to a profitable 2012 on an EBITDA basis”, added Meckler.
 
WebMediaBrands Inc. 2nd Quarter 2011 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2011 second quarter results on Thursday, August 11, 2011 at 11:00 am EDT.

The conference call number is 888-211-4495 for domestic participants and 913-981-5535 for international participants; confirmation code “3455287”.  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, August 16, 2011. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “3455287”.

Acquisition
 
In May 2011, WebMediaBrands acquired Inside Network, Inc. for an aggregate purchase price comprised of $7.5 million in cash plus an aggregate of 4,183,130 newly issued shares of our common stock.  Inside Network is the industry’s leading research and media organization dedicated to providing original market research, critical analysis, data services and news on the Facebook platform, social gaming, and mobile applications ecosystems.
 
Based in Palo Alto, California, Inside Network produces expert-level information for analysts, investors, and entrepreneurs.
 
 
 
 
WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Operations
For the Three and Six Months Ended June 30, 2010 and 2011
(in thousands, except per share amounts)

 
   
Three Months Ended
June 30,
    
Six Months Ended
 June 30,
  
   
2010
    
2011
    
2010
    
2011
  
Revenues
  
$
2,453
    
$
3,800
    
$
4,357
    
$
6,046
  
Cost of revenues
    
1,400
      
2,123
      
2,698
      
3,571
  
Advertising, promotion and selling
    
495
      
633
      
1,024
      
1,065
  
General and administrative
    
1,371
      
1,366
      
3,013
      
2,721
  
Depreciation
    
118
      
81
      
246
      
165
  
Amortization
    
21
      
93
      
32
      
211
  
Contingent acquisition consideration
    
—
      
329
      
—
      
329
  
Total operating expenses
    
3,405
      
4,625
      
7,013
      
8,062
  
Operating loss from continuing operations
    
(952
)
    
(825
)
    
(2,656
)
    
(2,016
)
Other income (loss), net
    
31
      
1
      
39
      
(3
)
Interest income
    
196
      
5
      
213
      
40
  
Interest expense
    
(203
)
    
(178
)
    
(433
)
    
(357
)
Loss from continuing operations before income taxes
    
(928
)
    
(997
)
    
(2,837
)
    
(2,336
)
Provision for income taxes
    
17
      
10
      
20
      
20
  
Loss from continuing operations
    
(945
)
    
(1,007
)
    
(2,857
)
    
(2,356
)
Loss on sale of discontinued operations
    
(23
)
    
—
      
(29
)
    
—
  
Net loss
  
$
(968
)
  
$
(1,007
)
  
$
(2,886
)
  
$
(2,356
)
Loss per share:
                                
Basic
                                
Loss from continuing operations
  
$
(0.03
)
  
$
(0.02
)
  
$
(0.08
)
  
$
(0.06
)
Loss from discontinued operations
    
—
      
—
      
—
      
—
  
Net loss
  
$
(0.03
)
  
$
(0.02
)
  
$
(0.08
)
  
$
(0.06
)
                                 
Diluted
                                
Loss from continuing operations
  
$
(0.03
)
  
$
(0.02
)
  
$
(0.08
)
  
$
(0.06
)
Loss from discontinued operations
    
—
      
—
      
—
      
—
  
Net loss
  
$
(0.03
)
  
$
(0.02
)
  
$
(0.08
)
  
$
(0.06
)
                                 
Shares used in computing loss per share:
                                
Basic
    
37,493
      
40,463
      
37,340
      
39,277
  
Diluted
    
37,493
      
40,463
      
37,340
      
39,277
  
                                 
 
 
 
 
 
WebMediaBrands Inc.
Consolidated Condensed Balance Sheets
December 31, 2010 and June 30, 2011
(in thousands, except share and per share amounts)

   
December 31,
2010
    
June 30,
2011
(Unaudited)
  
ASSETS
            
Current assets:
            
  Cash and cash equivalents
  
$
12,970
    
$
2,535
  
  Accounts receivable, net of allowances of $10 and $11, respectively
    
581
      
716
  
  Prepaid expenses and other current assets
    
912
      
401
  
       Total current assets
    
14,463
      
3,652
  
                 
Property and equipment, net of accumulated depreciation of $1,556 and $1,268, respectively
    
728
      
595
  
Intangible assets, net of accumulated amortization of $209 and $420, respectively
    
1,535
      
1,732
  
Goodwill
    
10,261
      
24,365
  
Investments and other assets
    
1,005
      
1,333
  
       Total assets
  
$
27,992
    
$
31,677
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
  Accounts payable
  
$
1,210
    
$
632
  
  Accrued payroll and related expenses
    
424
      
485
  
  Accrued expenses and other current liabilities
    
1,447
      
698
  
  Deferred revenues
    
817
      
1,330
  
       Total current liabilities
    
3,898
      
3,145
  
                 
Loan from related party
    
5,947
      
5,897
  
Deferred revenues
    
19
      
23
  
Deferred income taxes
    
410
      
426
  
Other long-term liabilities
    
57
      
58
  
       Total liabilities
    
10,331
      
9,549
  
                 
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, 37,986,851 and 42,623,560 shares
  issued at December 31, 2010 and June 30, 2011, respectively
    
380
      
426
  
  Additional paid-in capital
    
281,087
      
287,864
  
  Accumulated deficit
    
(263,700
)
    
(266,056
)
  Treasury stock, 65,000 shares at cost
    
(106
)
    
(106
)
       Total stockholders’ equity
    
17,661
      
22,128
  
       Total liabilities and stockholders’ equity
  
$
27,992
    
$
31,677
  

 
 
 
WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Cash Flows
For the Six Months Ended June 30, 2010 and 2011
(in thousands)

 
Six Months Ended
June 30,
  
 
2010
    
2011
  
Cash flows from operating activities:
          
    Net loss
$
(2,886
)
  
$
(2,356
)
    Less: Loss on sale of discontinued operations
  
(29
)
    
—
  
    Loss from continuing operations
  
(2,857
)
    
(2,356
)
Adjustments to reconcile net loss to net cash used in operating activities:
              
    Depreciation and amortization
  
278
      
376
  
    Stock-based compensation
  
82
      
198
  
    Provision for losses on accounts receivable
  
—
      
5
  
    Amortization of debt issuance costs
  
45
      
15
  
    Deferred income taxes
  
4
      
16
  
Changes in assets and liabilities (net of businesses acquired):
              
    Accounts receivable, net
  
(159
)
    
(83
)
    Prepaid expenses and other assets
  
1,648
      
373
  
    Accounts payable, accrued expenses and other liabilities
  
(608
)
    
(1,813
)
    Deferred revenues
  
164
      
280
  
    Discontinued operations
  
(29
)
    
—
  
        Net cash used in operating activities
  
(1,432
)
    
(2,989
)
Cash flows from investing activities:
              
    Purchases of property and equipment
  
(27
)
    
(30
)
    Acquisitions of assets and other
  
(135
)
    
(7,495
)
        Net cash used in investing activities
  
(162
)
    
(7,525
)
Cash flows from financing activities:
              
    Repayment of borrowings from related party
  
(150
)
    
(50
)
    Proceeds from exercise of stock options
  
209
      
129
  
        Net cash provided by financing activities
  
59
      
79
  
Effects of exchange rates on cash
  
(1
)
    
—
  
Net decrease in cash and cash equivalents
  
(1,536
)
    
(10,435
)
Cash and cash equivalents, beginning of period
  
15,012
      
12,970
  
Cash and cash equivalents, end of period
$
13,476
    
$
2,535
  

 
 
 
 
 
About WebMediaBrands Inc.
 
WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com), headquartered in New York, NY, is a leading Internet media company that provides content, education, and career services to media and creative professionals through a portfolio of vertical online properties, communities, and trade shows. WebMediaBrand’s online business includes: (i) mediabistro.com, a leading blog network providing content, education, community, and career resources (including the industry's leading online job board) about major media industry verticals including new media, social media, Facebook, TV news, sports media news, advertising, public relations, publishing, design, mobile, and the Semantic Web; (ii) InsideNetwork.com, a leading network of online properties dedicated to providing original market research, data services, news, events, and job listings on the Facebook platform, social gaming, and mobile applications ecosystems; and (iii) AllCreativeWorld.com, a leading network of online properties providing content, education, community, career, and other resources for creative and design professionals. WebMediaBrand’s online business also includes community, membership and e-commerce offerings including a freelance listing service, a marketplace for designing and purchasing logos and premium membership services. WebMediaBrand’s trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by WebMediaBrand’s online business.

"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: risks associated with acquisitions, including integration of operations; 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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