Mecklermedia Corp - FORM 8-K - EX-99.1 - PRESS RELEASE - November 2, 2011

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

(New York, NY – November 2, 2011) -- WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the quarter ended September 30, 2011.

Highlights for the third quarter of 2011 include:
 
·  
Revenues for the third quarter of 2011 were $3.0 million compared to revenues of $1.9 million for the same period in 2010, an increase of 55%, and included $556,000 from Inside Network, which we acquired in May 2011.  Revenues from advertising and education, excluding the impact of the Inside Network acquisition, were up 115% and 16%, respectively, compared to the same period last year.  Inside Network’s market research and data services business, which includes AppData, contributed $371,000 in revenues during the third quarter of 2011.

·  
Net loss for the third quarter of 2011 was $490,000 compared to net loss of $1.7 million for the same period last year.  Net loss, excluding interest, taxes, depreciation, amortization and stock-based compensation was $339,000, compared to $1.3 million 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. Stock-based compensation expense was $174,000 during the third quarter of 2011 compared to $41,000 during the third quarter of 2010.
 
“Our third quarter demonstrated continued progress toward profitability with significant year-over-year revenue growth,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. “Integration of Inside Network has been 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 in-depth strength in covering social media and the Semantic Web,” added Meckler.
 
WebMediaBrands Inc. 3rd Quarter 2011 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2011 third quarter results on Wednesday, November 2, 2011 at 5:00 pm EDT.

The conference call number is 877-419-6600 for domestic participants and 719-325-4731 for international participants; confirmation code “4150778”.  Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Monday, November 7, 2011. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “4150778”.



 
1
 

WebMediaBrands Inc.
Unaudited Consolidated Condensed Statements of Operations
For the Three and Nine Months Ended September 30, 2011 and 2010
(in thousands, except per share amounts)

 
   
Three Months Ended
September 30,
    
Nine Months Ended
 September 30,
  
   
2011
    
2010
    
2011
    
2010
  
Revenues
  
$
3,008
    
$
1,943
    
$
9,054
    
$
6,300
  
Cost of revenues
    
1,686
      
1,307
      
5,257
      
4,005
  
Advertising, promotion and selling
    
472
      
399
      
1,537
      
1,423
  
General and administrative
    
1,359
      
1,277
      
4,080
      
4,290
  
Depreciation
    
77
      
104
      
242
      
350
  
Amortization
    
160
      
102
      
371
      
134
  
Impairment
    
—
      
319
      
—
      
319
  
Contingent acquisition consideration
    
—
      
—
      
329
      
—
  
Total operating expenses
    
3,754
      
3,508
      
11,816
      
10,521
  
Operating loss from continuing operations
    
(746
)
    
(1,565
)
    
(2,762
)
    
(4,221
)
Other income (loss), net
    
(4)
      
25
      
(7
)
    
64
  
Interest income
    
1
      
14
      
41
      
227
  
Interest expense
    
(178
)
    
(194
)
    
(535
)
    
(627
)
Loss from continuing operations before income taxes
    
(927
)
    
(1,720
)
    
(3,263
)
    
(4,557
)
Provision (benefit) for income taxes
    
(437
)
    
—
      
(417
)
    
20
  
Loss from continuing operations
    
(490
)
    
(1,720
)
    
(2,846
)
    
(4,577
)
Gain (loss) on sale of discontinued operations
    
—
      
7
      
—
      
(22
)
Net loss
  
$
(490
)
  
$
(1,713
)
  
$
(2,846
)
  
$
(4,599
)
Loss per share:
                                
Basic
                                
Loss from continuing operations
  
$
(0.01
)
  
$
(0.05
)
  
$
(0.07
)
  
$
(0.12
)
Loss from discontinued operations
    
—
      
—
      
—
      
—
  
Net loss
  
$
(0.01
)
  
$
(0.05
)
  
$
(0.07
)
  
$
(0.12
)
                                 
Diluted
                                
Loss from continuing operations
  
$
(0.01
)
  
$
(0.05
)
  
$
(0.07
)
  
$
(0.12
)
Loss from discontinued operations
    
—
      
—
      
—
      
—
  
Net loss
  
$
(0.01
)
  
$
(0.05
)
  
$
(0.07
)
  
$
(0.12
)
                                 
Shares used in computing loss per share:
                                
Basic
    
42,580
      
37,650
      
40,357
      
37,444
  
Diluted
    
42,580
      
37,650
      
40,357
      
37,444
  
 
 

 
2
 

 
WebMediaBrands Inc.
Consolidated Condensed Balance Sheets
September 30, 2011 and December 31, 2010
(in thousands, except share and per share amounts)

   
September 30,
2011
(Unaudited)
    
December, 31 2010
  
ASSETS
            
Current assets:
            
  Cash and cash equivalents
  
$
1,880
    
$
12,970
  
  Accounts receivable, net of allowances of $11 and $10, respectively
    
677
      
581
  
  Prepaid expenses and other current assets
    
543
      
912
  
       Total current assets
    
3,100
      
14,463
  
                 
Property and equipment, net of accumulated depreciation of $1,332 and $1,556, respectively
    
536
      
728
  
Intangible assets, net of accumulated amortization of $579 and $209, respectively
    
2,728
      
1,535
  
Goodwill
    
23,670
      
10,261
  
Investments and other assets
    
1,126
      
1,005
  
       Total assets
  
$
31,160
    
$
27,992
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
  Accounts payable
  
$
570
    
$
1,210
  
  Accrued payroll and related expenses
    
337
      
424
  
  Accrued expenses and other current liabilities
    
658
      
1,447
  
  Deferred revenues
    
1,359
      
817
  
       Total current liabilities
    
2,924
      
3,898
  
                 
Loan from related party
    
5,897
      
5,947
  
Deferred revenues
    
24
      
19
  
Deferred income taxes
    
432
      
410
  
Other long-term liabilities
    
59
      
57
  
       Total liabilities
    
9,336
      
10,331
  
                 
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, 42,652,560 and 37,986,851 shares issued and 42,587,560 and 37,921,851 shares outstanding at September 30, 2011 and December 31, 2010, respectively
    
427
      
380
  
  Additional paid-in capital
    
288,049
      
281,087
  
  Accumulated deficit
    
(266,546
)
    
(263,700
)
  Treasury stock, 65,000 shares at cost
    
(106
)
    
(106
)
       Total stockholders’ equity
    
21,824
      
17,661
  
       Total liabilities and stockholders’ equity
  
$
31,160
    
$
27,992
  

 
 
3
 
 

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

   
Nine Months Ended
September 30,
  
   
2011
    
2010
  
Cash flows from operating activities:
            
    Net loss
  
$
(2,846
)
  
$
(4,599
)
    Less: Loss on sale of discontinued operations
    
—
      
22
  
    Loss from continuing operations
    
(2,846
)
    
(4,577
)
Adjustments to reconcile net loss to net cash used in operating activities:
                
    Impairment
    
—
      
319
  
    Depreciation and amortization
    
613
      
484
  
    Stock-based compensation
    
372
      
118
  
    Other, net
    
(3
)
    
10
  
    Amortization of debt issuance costs
    
22
      
53
  
    Deferred income taxes
    
(422
)
    
3
  
    Provision for losses on accounts receivable
    
15
      
—
  
Changes in assets and liabilities (net of businesses acquired):
                
    Accounts receivable, net
    
(53
)
    
34
  
    Prepaid expenses and other assets
    
434
      
11
  
    Income taxes receivable
    
—
      
1,936
  
    Accounts payable, accrued expenses and other liabilities
    
(566
)
    
(1,130
)
    Deferred revenues
    
309
      
336
  
    Discontinued operations
    
—
      
(22
)
        Net cash used in operating activities
    
(2,125
)
    
(2,425
)
Cash flows from investing activities:
                
    Purchases of property and equipment
    
(39
)
    
(66
)
    Acquisitions of assets and other
    
(9,020
)
    
(1,200
)
        Net cash used in investing activities
    
(9,059
)
    
(1,266
)
Cash flows from financing activities:
                
    Debt issuance costs
    
—
      
(9
)
    Repayment of borrowings from related party
    
(50
)
    
(200
)
    Proceeds from exercise of stock options
    
144
      
213
  
        Net cash provided by financing activities
    
94
      
4
  
Effects of exchange rates on cash
    
—
      
(15
)
Net decrease in cash and cash equivalents
    
(11,090
)
    
(3,702
)
Cash and cash equivalents, beginning of period
    
12,970
      
15,012
  
Cash and cash equivalents, end of period
  
$
1,880
    
$
11,310
  

 

 
 
4
 

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. The Company’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. The Company’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. The Company’s trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by the Company’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 profitability, revenues, expenses, cash flows and stock price.  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:
 
Don O’Neill
Vice President and Chief Financial Officer
203-662-2980
press@webmediabrands.com
 
 
 
 
 
 
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