Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - LOCAL Corp | d584603d8k.htm |
| EX-99.2 - EX-99.2 - LOCAL Corp | d584603dex992.htm |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
1
…………………………..…………………………………….
Local Corporation
We connect local businesses with online consumers
Q2 2013 Quarterly Earnings Summary
CONSUMERS
BUSINESSES
Exhibit 99.1 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
2
………………………………………………….
Forward Looking Statements
This
Q2
2013
Quarterly
Earnings
Summary
contains
forward
looking
statements
which
are
made
pursuant
to
the
Safe
Harbor provisions of section 21-E of the Securities Exchange Act of 1934. Investors are
cautioned that statements which are not strictly historical statements, including
statements concerning future expected financial performance. The forward looking
statements include, but are not limited to, any statements containing the words “expect”,
“anticipate”, “estimates”, “believes”, “should”,
“could”, “may”, “possibly”, and similar expressions and the negatives
thereof. These forward looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from the forward looking statements.
Those risks and uncertainties are detailed in the company’s filings from time to
time with the Securities and Exchange Commission. The information contained in the forward
looking statements is provided as of the date first set forth above and the company
disclaims any obligation to update such statements.
This
document
includes
the
non-GAAP
financial
measure
of
“Adjusted
EBITDA”
and
“Revenue
ex-TAC”.
See
page
10
for a note regarding the Company’s use of Non-GAAP financial measures and slide 7
for a reconciliation of GAAP to
non-GAAP. |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
3
…………………………………………………….
Key Takeaways from Q2’13
•
Increase 2013 guidance:
»
Revenue between $95 million and $97 million
»
Adjusted EBITDA of at least $5.4 million
•
Sequential revenue growth up 6% to $22.7 million in Q2 from $21.5 million in Q1
•
Adjusted EBITDA up 72% to $1.2M in Q2 from $685K in Q1
•
Record Mobile traffic was 34 million MUVS for Q2
•
Sold Spreebird daily deals business, expect $600K annualized improvement in earnings and
cash flow •
Continued
expansion
of
our
highest
gross
margin
business
–
Network
ex
TAC
up
118%
from
Q2
2012
•
Completed a $5 million convertible note financing in April 2013
Note: Since we cannot predict the valuation of the warrant liability and the
conversion option liability, we cannot reasonably project our GAAP net
income (loss). We, therefore, cannot provide GAAP guidance, but we do report GAAP results. An explanation of the
Company’s use of Non-GAAP measures is set forth on Slide 10
|
 QUARTERLY EARNINGS SUMMARY | 2Q2013
4
…………………………….….
Financials and Key Metrics at a Glance
$ in Millions
Q2-13
Q1-13
Q2-12
GAAP Consolidated Revenue
$ 22.7
$ 21.5
$ 26.7
Consolidated Revenue ex-Network TAC
$ 15.8
$ 17.3
$ 24.7
GAAP Net Loss
$ (3.6)
$ (3.4)
$ (9.3)
Adjusted EBITDA
$
1.2
$
0.7 $ 0.5
Diluted GAAP net loss per share
$ (0.16)
$ (0.15)
$ (0.42)
Diluted Adjusted EBITDA per share
$ 0.05
$ 0.03
$ 0.02
Diluted weighted avg shares used for GAAP net loss per share
22,877
22,564
22,086
Diluted weighted avg shares used for Adj EBITDA per share
23,051
22,687
22,219
Cash
$ 4.81
$ 3.07
$ 7.10
Employees
97
95
153
Note: An explanation of the Company’s use of Non-GAAP measures is set
forth on Slide 10 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
5
……….……………………………..
Consolidated Quarterly Revenues
% of Total Revenue Ex-Network TAC by Business Unit
16%
17%
67%
12%
15%
73%
10%
15%
75%
9%
12%
79%
8%
9%
83%
5%
13%
82%
3%
23%
71%
1%
24%
75%
Quarterly Revenues Ex-Network TAC by Business Unit
$2.3
$2.4
$9.5
$2.3
$2.8
$13.5
$2.2
$3.6
$17.5
$2.2
$2.7
$18.0
$2.1
$2.2
$20.5
$1.1
$2.9
$18.3
$0.5
$3.9
$12.5
$0.2
$4.1
$13.0
$14.1
$18.5
$23.3
$22.8
$24.7
$22.3
$16.8
$17.3
$ in millions
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
GAAP Revenue
$ 15.5
$ 20.1
$ 24.8
$ 24.3
$ 26.7
$ 24.4
$ 20.6
$ 21.5
$ 22.7
Network TAC
1.3
1.6
1.5
1.5
2.0
2.1
3.7
4.2
6.8
Revenue ex-Network TAC
$ 14.1
$ 18.5
$ 23.3
$ 22.8
$ 24.7
$ 22.3
$ 16.8
$ 17.3
$ 15.8
Note: An explanation of the Company’s use of Non-GAAP measures is set
forth on Slide 10 $0.1
$4.8
$10.9
$15.8
1%
30%
69%
$30.0
$25.0
$20.0
$15.0
$10.0
$5.0
$0
100%
80%
60%
40%
20%
0%
O&O
Network Ex-TAC
Business Solutions |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
6
……….……………………………………………………………………..
MUV -
RKV
82.9
91.9
93.7
93.6
100.8
101.0
100.0
106.2
$194
$254
$332
$285
$299
$276
$230
$215
93.4
$199.5 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
7
……….………………………………………………………….……..
Mobile Traffic
INCREASING MOBILE TRAFFIC (MUVs) |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
8
……………………………………….
Network Revenue ex-TAC Trends
NETWORK REVENUE EX-TAC
$ in millions
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Network Rev -
GAAP
$3.7
$4.4
$5.1
$4.2
$4.1
$5.0
$7.6
$8.3
$11.6
TAC
1.3
1.6
1.5
1.5
2.0
2.1
3.7
4.2
6.8
Network Rev-
Ex TAC
$2.4
$2.8
$3.6
$2.7
$2.2
$2.9
$3.9
$4.1
$4.8
Note: An explanation of the Company’s use of Non-GAAP measures is set
forth on Slide 10 $5.0
$4.5
$4.0
$3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
9
…………………………………………………….
Reconciliation of Adjusted EBITDA
to GAAP Net Income (Loss)
Note: Since we cannot predict the valuation of the warrant liability and the
conversion option liability, we cannot reasonably project our GAAP net
income (loss). We, therefore, cannot provide GAAP guidance, but we do report GAAP results. An explanation of the
Company’s use of Non-GAAP measures is set forth on Slide 10
|
 QUARTERLY EARNINGS SUMMARY | 2Q2013
10
…………………………………………………….
Key Balance Sheet Metrics
$ in Millions
Q2-12
Q3-12
Q4-12
Q1-13
Q2-13
Assets
Cash & marketable debt securities
$ 7.1
$ 3.7
$ 3.7
$ 3.1
$ 4.8
Accounts receivable, net
12.9
11.4
10.6
10.7
13.4
Total Assets
65.6
58.8
49.9
49.1
50.4
Liabilities and Equity
Total Debt
8.0
7.6
10.0
9.0
11.7
Total Liabilities
26.9
23.2
21.5
22.8
27.1
Total Liabilities & Equity
$ 65.6
$ 58.8
$ 49.9
$ 49.1
$ 50.4 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
11
…………………………………………………………..……….
Business Outlook
Note: An explanation of the Company’s use of Non-GAAP measures is set
forth on Slide 10 Projected as of August 9, 2013
$ in Millions
FY-2013
Total Revenue
$95-97
Adjusted EBITDA
$5.4 |
 QUARTERLY EARNINGS SUMMARY | 2Q2013
12
………………………………………………….
Use of Non-GAAP Measures
This document includes the non-GAAP financial measure of “Adjusted EBITDA” which we
define as net income (loss) excluding: provision for income taxes; interest and other income
(expense), net; depreciation; amortization; stock based compensation charges; gain or loss on derivatives’ revaluation, net income (loss) from discontinued operations; gain
on sale of Rovion; impairment charges; LEC receivables reserve; finance related charges; accrued lease
liability/asset; and severance charges. Adjusted EBITDA, as defined above, is not a measurement
under GAAP. Adjusted EBITDA is reconciled to net income (loss) which we believe is the most comparable GAAP measure. A reconciliation of net income
(loss) to Adjusted EBITDA is set forth within this presentation.
Management believes that Adjusted EBITDA provides useful information to investors about the
company’s performance because it eliminates the effects of period-to-period changes
in income from interest on the company’s cash and marketable securities, expense from the
company’s financing transactions and the costs associated with income tax expense, capital
investments, stock-based compensation expense, LEC receivables reserve, warrant revaluation charges; finance related charges; accrued lease liability; and severance
charges which are not directly attributable to the underlying performance of the company’s
business operations. Management uses Adjusted EBITDA in evaluating the overall performance of
the company’s business operations.
A limitation of non-GAAP Adjusted EBITDA is that it excludes items that often have a material
effect on the company’s net income and earnings per common share calculated in accordance
with GAAP. Therefore, management compensates for this limitation by using Adjusted EBITDA in conjunction with net income (loss) and net income (loss) per share
measures. The company believes that Adjusted EBITDA provides investors with an additional tool for
evaluating the company’s core performance, which management uses in its own evaluation of
overall performance, and as a base-line for assessing the future earnings potential of the company. While the GAAP results are more complete, the company
prefers to allow investors to have this supplemental metric since, with reconciliation to GAAP; it may
provide greater insight into the company’s financial results. The non-GAAP measures
should be viewed as a supplement to, and not as a substitute for, or superior to, GAAP net income (loss) or earnings (loss) per share.
This document also includes the non-GAAP measure of “Revenue ex-Network TAC” which
we define as GAAP revenue less Network traffic acquisition cost. Revenue ex-Network TAC, as
defined above, is not a measurement under GAAP. Revenue ex-Network TAC is reconciled to GAAP revenue which we believe is the most comparable GAAP measure. A
reconciliation of GAAP revenue to Revenue ex-Network TAC is set forth within this presentation.
Management believes that Revenue ex-Network TAC provides useful information to investors
about the company’s performance because it eliminates the costs associated with acquiring
traffic to our Network websites, which we pay to our Network publisher partners and which can vary, as new partners are added or as we experience attrition in our
partners. Management uses Revenue ex-Network TAC as a means of evaluating the overall performance
of the company’s Network business.
A limitation of non-GAAP Revenue ex-Network TAC is that it excludes a portion of our Revenue
that is material to the calculation of the Company’s overall Revenue. Therefore,
management compensates for this limitation by using Revenue ex-Network TAC in conjunction with
GAAP network revenue. The company believes that Revenue ex-Network TAC provides investors
with an additional tool for evaluating core performance of the company’s Network business, which management uses in its own evaluation of Network’s
performance. While the GAAP results are more complete, the company prefers to allow investors to have
this supplemental metric since, with reconciliation to GAAP; it may provide greater insight
into the company’s financial results. The non-GAAP measures should be viewed as a supplement to, and not as a substitute for, or superior to GAAP network
revenue. |