Marchex Announces Second Quarter 2015 Results
"We are seeing greater demand for Marchex’s mobile advertising analytics
from enterprise marketers across the world. This is leading to increased
adoption of our products with the channels and clients we view as most
strategically important," said Pete Christothoulou, Chief Executive
Officer. “Advertising leaders want products that provide an unparalleled
level of visibility into the entire mobile consumer journey and
increasingly, these leaders are choosing
Q2 2015 Financial Highlights1
-
GAAP revenue was $35.3 million for the second quarter of 2015,
compared to
$47.0 million for the second quarter of 2014. In the second quarterMarchex sold the bulk of its domain portfolio, which included a sale toGoDaddy Inc. for proceeds of$28.1 million .
-
GAAP net income including discontinued operations was
$20.9 million for the second quarter of 2015 compared to a GAAP net income including discontinued operations of$980,000 in second quarter of 2014. GAAP net loss from continuing operations was$1.3 million for the second quarter of 2015, compared to GAAP net loss from continuing operations of$102,000 for the second quarter of 2014. -
GAAP net income including discontinued operations attributable to
common stockholders per diluted share for the second quarter of 2015
was
$0.50 , compared to$0.02 for the second quarter of 2014. GAAP net loss from continuing operations attributable to common stockholders per diluted share was$0.03 for the second quarter of 2015 compared to GAAP net loss from continuing operations of$0.00 for the second quarter of 2014.
Q2 2015 | Q2 2014 | |||
GAAP Revenue | $35.3 million | $47.0 million | ||
Call-Driven and related revenue | $34.5 million | $45.9 million | ||
Non-GAAP Results: | ||||
Call-Driven Adjusted OIBA2 | $1.4 million | $2.9 million | ||
Call-Driven Adjusted EBITDA2 | $2.4 million | $3.8 million | ||
Adjusted OIBA2 | $1.3 million | $3.1 million | ||
Adjusted EBITDA2 | $2.3 million | $4.0 million | ||
Archeo Revenue | $0.8 million | $1.1 million | ||
Domain transaction proceeds3 | $28.1 million | |||
Domain sales proceeds4 | $0.4 million | $2.2 million |
-
Adjusted non-GAAP EPS2 including discontinued operations1
for the second quarter of 2015 was
$0.37 , compared to$0.07 for the second quarter of 2014. Adjusted non-GAAP EPS2 from continuing operations for the second quarter of 2015 was$0.02 , compared to$0.05 for the second quarter of 2014.
1The Company sold certain Archeo domain name and
related assets in
2Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.
3Represents proceeds from the sale of certain Archeo domain name and related assets recognized in discontinued operations.
4Represents proceeds from domain sales recognized in discontinued operations.
-
Strategic integrations. In July,
Marchex announced a strategic, exclusive global partnership with Light Reaction, a mobile-first performance advertising business that is part of Xaxis, to launch M-Call, a new click-to-call mobile performance product that enables advertisers to generate high quality phone leads directly from mobile Web and in-app ads across hundreds of top publishers, social media sites and apps. Through the partnership, Light Reaction and Xaxis clients also gain access to Marchex Call Analytics, a real-time mobile advertising platform that measures sales, audiences and consumer intent from mobile, click-to-call campaigns. M-Call and Call Analytics are available to both Light Reaction and Xaxis clients, including GroupM agencies. -
Increased global scale. In June,
Marchex announced its expansion intoEurope ,Canada ,Australia and New Zealand to support enterprise marketers that need to tie mobile advertising spend to sales at scale - globally and seamlessly.Marchex now has clients utilizing its products within multiple geographies includingCDK Global , Hearst, Yell and Intuit. -
YP contributed
$10.4 million in call-driven revenues in the second quarter of 2015, compared to$10.2 million in the second quarter 2014.
Non-Operating Q2 2015 Highlights:
-
During the second quarter,
Marchex purchased 79,000 shares of its outstanding Class B common stock for a total price of$355,000 . This brings Marchex’s total shares repurchased under itsNovember 2014 share repurchase program to 973,000 shares or 3% of its outstanding Class B common stock.
Business Outlook
The following forward-looking statements reflect
Call-Driven financial guidance for the Third Quarter ending September 30, 2015 |
||
Call-Driven Revenue | $34.5 million or more | |
Call-Driven Adjusted OIBA 5 | $1.0 million or more | |
Call-Driven Adjusted EBITDA 5 | $2.0 million or more |
5 These non-GAAP Call-Driven measures assign all
Conference Call and Webcast Information
Management will hold a conference call, starting at
About
Please visit www.marchex.com,
blog.marchex.com or @marchex
on Twitter (Twitter.com/
Forward-Looking Statements:
This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical facts, included in this press release regarding
our strategy, future operations, future financial position, future
revenues, other financial guidance, acquisitions, dispositions,
projected costs, prospects, plans and objectives of management are
forward-looking statements. We may not actually achieve the plans,
intentions, or expectations disclosed in our forward-looking statements
and you should not place undue reliance on our forward-looking
statements. Actual results or events could differ materially from the
plans, intentions and expectations disclosed in the forward-looking
statements we make. There are a number of important factors that could
cause
Non-GAAP Financial Information:
To supplement
OIBA represents income (loss) from
operations plus (1) stock-based compensation expense and (2)
amortization of intangible assets from acquisitions. This measure, among
other things, is one of the primary metrics by which
Call-Driven Adjusted OIBA and EBITDA
include the above descriptions of Adjusted OIBA and EBITDA for the
Call-Driven segment. The Call-Driven Adjusted OIBA and EBITDAassign
all
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three months ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Revenue | $ | 47,042 | $ | 35,346 | ||||
Expenses: | ||||||||
Service costs (1) | 31,455 | 19,797 | ||||||
Sales and marketing (1) | 2,711 | 4,245 | ||||||
Product development (1) | 7,458 | 8,147 | ||||||
General and administrative (1) | 5,386 | 4,505 | ||||||
Amortization of intangible assets from acquisitions | 31 | - | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Total operating expenses | 46,973 | 36,812 | ||||||
Income (loss) from operations | 69 | (1,466 | ) | |||||
Interest expense and other, net | (22 | ) | (16 | ) | ||||
Income (loss) from continuing operations before provision for income taxes | 47 | (1,482 | ) | |||||
Income tax expense (benefit) | 149 | (185 | ) | |||||
Net loss from continuing operations | (102 | ) | (1,297 | ) | ||||
Discontinued operations: | ||||||||
Income (loss) from discontinued operations, net of tax | 1,082 | (92 | ) | |||||
Gain on sale from discontinued operations, net of tax | - | 22,257 | ||||||
Discontinued operations, net of tax | 1,082 | 22,165 | ||||||
Net income | 980 | 20,868 | ||||||
Dividends paid to participating securities | (33 | ) | (19 | ) | ||||
Net income applicable to common stockholders | $ | 947 | $ | 20,849 | ||||
Basic and diluted net income (loss) per Class A and Class B share applicable to common stockholders: | ||||||||
Continuing operations | $ | 0.00 | $ | (0.03 | ) | |||
Discontinued operations, net of tax | $ | 0.02 | 0.53 | |||||
Basic and diluted net income per Class A and Class B share applicable to common stockholders | $ | 0.02 | $ | 0.50 | ||||
Dividends paid per share | $ | 0.02 | $ | 0.02 | ||||
Shares used to calculate basic net income (loss) per share applicable to common stockholders | ||||||||
Class A | 5,243 | 5,233 | ||||||
Class B | 35,441 | 36,072 | ||||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | ||||||||
Class A | 5,243 | 5,233 | ||||||
Class B | 40,684 | 41,305 | ||||||
(1) Includes stock-based compensation allocated as follows: |
||||||||
Service costs | $ | 360 | $ | 552 | ||||
Sales and marketing | 231 | 309 | ||||||
Product development | 691 | 644 | ||||||
General and administrative | 1,831 | 1,162 | ||||||
Total | $ | 3,113 | $ | 2,667 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Revenue | $ | 95,137 | $ | 71,261 | ||||
Expenses: | ||||||||
Service costs (1) | 62,957 | 39,163 | ||||||
Sales and marketing (1) | 5,946 | 7,703 | ||||||
Product development (1) | 15,018 | 15,839 | ||||||
General and administrative (1) | 10,747 | 10,204 | ||||||
Amortization of intangible assets from acquisitions | 434 | - | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Total operating expenses | 95,034 | 73,027 | ||||||
Income (loss) from operations | 103 | (1,766 | ) | |||||
Interest expense and other, net | (24 | ) | (41 | ) | ||||
Income (loss) from continuing operations before provision for income taxes | 79 | (1,807 | ) | |||||
Income tax expense (benefit) | 260 | (180 | ) | |||||
Net loss from continuing operations | (181 | ) | (1,627 | ) | ||||
Discontinued operations: | ||||||||
Income from discontinued operations, net of tax | 2,016 | 5,047 | ||||||
Gain on sale from discontinued operations, net of tax | - | 22,032 | ||||||
Discontinued operations, net of tax | 2,016 | 27,079 | ||||||
Net income | 1,835 | 25,452 | ||||||
Dividends paid to participating securities | (69 | ) | (37 | ) | ||||
Net income applicable to common stockholders | $ | 1,766 | $ | 25,415 | ||||
Basic and diluted net income (loss) per Class A and Class B share applicable to common stockholders | ||||||||
Continuing operations | $ | 0.00 | $ | (0.04 | ) | |||
Discontinued operations, net of tax | $ | 0.05 | 0.66 | |||||
Basic and diluted net income per Class A and Class B share applicable to common stockholders: | $ | 0.05 | $ | 0.62 | ||||
Dividends paid per share | $ | 0.04 | $ | 0.04 | ||||
Shares used to calculate basic net income (loss) per share applicable to common stockholders | ||||||||
Class A | 6,483 | 5,233 | ||||||
Class B | 32,277 | 35,919 | ||||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | ||||||||
Class A | 6,483 | 5,233 | ||||||
Class B | 38,760 | 41,152 | ||||||
(1) Includes stock-based compensation allocated as follows: |
||||||||
Service costs | $ | 640 | $ | 772 | ||||
Sales and marketing | 434 | 554 | ||||||
Product development | 1,350 | 1,223 | ||||||
General and administrative | 3,569 | 2,909 | ||||||
Total | $ | 5,993 | $ | 5,458 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
December 31, | June 30, | |||||||
Assets | 2014 | 2015 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 80,032 | $ | 104,431 | ||||
Accounts receivable, net | 25,941 | 30,513 | ||||||
Prepaid expenses and other current assets | 3,143 | 2,615 | ||||||
Refundable taxes | 131 | 120 | ||||||
Total current assets | 109,247 | 137,679 | ||||||
Property and equipment, net | 5,430 | 6,471 | ||||||
Intangibles and other assets, net | 313 | 245 | ||||||
Goodwill | 65,679 | 63,305 | ||||||
Total Assets | $ | 180,669 | $ | 207,700 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 13,766 | $ | 13,369 | ||||
Accrued expenses and other current liabilities | 7,515 | 7,942 | ||||||
Deferred revenue | 2,117 | 1,305 | ||||||
Total current liabilities | 23,398 | 22,616 | ||||||
Other non-current liabilities | 1,118 | 898 | ||||||
Total Liabilities | 24,516 | 23,514 | ||||||
Class A common stock | 55 | 55 | ||||||
Class B common stock | 373 | 372 | ||||||
Treasury stock | (2,503 | ) | (144 | ) | ||||
Additional paid-in capital | 348,467 | 348,690 | ||||||
Accumulated deficit | (190,239 | ) | (164,787 | ) | ||||
Total Stockholders' Equity | 156,153 | 184,186 | ||||||
Total Liabilities and Stockholders' Equity | $ | 180,669 | $ | 207,700 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation of GAAP Income (Loss) from Operations to Operating Income Before Amortization (OIBA) | ||||||||
and Adjusted Operating Income Before Amortization (Adjusted OIBA) | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Income (loss) from operations | $ | 69 | $ | (1,466 | ) | |||
Stock-based compensation | 3,113 | 2,667 | ||||||
Amortization of intangible assets from acquisitions | 31 | - | ||||||
Operating income before amortization (OIBA) | 3,213 | 1,201 | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Adjusted operating income before amortization (Adjusted OIBA) | $ | 3,145 | $ | 1,319 | ||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Income (loss) from operations | $ | 103 | $ | (1,766 | ) | |||
Stock-based compensation | 5,993 | 5,458 | ||||||
Amortization of intangible assets from acquisitions | 434 | - | ||||||
Operating income before amortization (OIBA) | 6,530 | 3,692 | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Adjusted operating income before amortization (Adjusted OIBA) | $ | 6,462 | $ | 3,810 |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation from Net Cash provided by (used in) Operating Activities to Adjusted EBITDA | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Net cash provided by (used in) operating activities | $ | 3,289 | $ | (1,814 | ) | |||
Changes in assets and liabilities | 1,672 | 3,883 | ||||||
Income tax expense (benefit) | 149 | (185 | ) | |||||
Acquisition and disposition related costs | - | 118 | ||||||
Interest expense and other, net | 22 | 16 | ||||||
Loss (income) from discontinued operations, net of tax | (1,120 | ) | 91 | |||||
Tax effect on gain on sale of discontinued operations | - | 163 | ||||||
Adjusted EBITDA | $ | 4,012 | $ | 2,272 | ||||
Net cash provided by (used in) investing activities | $ | (545 | ) | $ | 23,767 | |||
Net cash provided by (used in) financing activities | $ | 33,680 | $ | (1,181 | ) | |||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Net cash provided by operating activities | $ | 11,367 | $ | 4,437 | ||||
Changes in asset and liabilities | (1,312 | ) | 6,111 | |||||
Income tax expense (benefit) | 260 | (180 | ) | |||||
Acquisition and disposition related costs | - | 118 | ||||||
Interest expense and other, net | 24 | 41 | ||||||
Income on discontinued operations, net of tax | (2,109 | ) | (5,065 | ) | ||||
Tax effect on gain on sale of discontinued operations | - | 163 | ||||||
Adjusted EBITDA | $ | 8,230 | $ | 5,625 | ||||
Net cash provided by (used in) investing activities | $ | (1,352 | ) | $ | 22,840 | |||
Net cash provided by (used in) financing activities | $ | 34,023 | $ | (2,878 | ) |
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Adjusted Non-GAAP EPS from continuing operations | $ | 0.05 | $ | 0.02 | ||||
Net income (loss) from continuing operations applicable to common stockholders - diluted (GAAP EPS) | $ | 0.00 | $ | (0.03 | ) | |||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | 40,684 | 41,305 | ||||||
Net income applicable to common stockholders | $ | 947 | $ | 20,849 | ||||
Stock-based compensation | 3,113 | 2,667 | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Amortization of intangible assets from acquisitions | 31 | - | ||||||
Interest expense and other, net | 22 | 16 | ||||||
Dividends paid to participating securities | 33 | 19 | ||||||
Discontinued operations, net of tax | (1,082 | ) | (22,165 | ) | ||||
Estimated impact of income taxes | (973 | ) | (646 | ) | ||||
Adjusted Non-GAAP net income from continuing operations | $ | 2,023 | $ | 858 | ||||
Discontinued operations, net of tax | 1,086 | 22,164 | ||||||
Estimated impact of income taxes | - | (7,706 | ) | |||||
Adjusted Non-GAAP net income including discontinued operations | $ | 3,109 | $ | 15,316 | ||||
Adjusted Non-GAAP EPS from continuing operations | $ | 0.05 | $ | 0.02 | ||||
Adjusted Non-GAAP EPS including discontinued operations | $ | 0.07 | $ | 0.37 | ||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders (GAAP) |
40,684 | 41,305 | ||||||
Weighted average stock options and common shares subject to purchase or cancellation (if applicable) | 2,769 | 415 | ||||||
Diluted shares used to calculate Adjusted Non-GAAP EPS (1) | 43,453 | 41,720 | ||||||
|
(1) For the purpose of computing the number of diluted shares for
Adjusted Non-GAAP EPS,
Certain reclassifications have been made to prior periods to conform to current presentation.
MARCHEX, INC. AND SUBSIDIARIES | ||||||||
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS | ||||||||
(in thousands, except per share data) | ||||||||
(unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2015 | |||||||
Adjusted Non-GAAP EPS from continuing operations | $ | 0.10 | $ | 0.06 | ||||
|
||||||||
Net income (loss) from continuing operations applicable to common stockholders - diluted (GAAP EPS) | $ | 0.00 | $ | (0.04 | ) | |||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders | 38,760 | 41,152 | ||||||
Net income (loss) applicable to common stockholders | $ | 1,766 | $ | 25,415 | ||||
Stock-based compensation | 5,993 | 5,458 | ||||||
Acquisition and disposition related costs | (68 | ) | 118 | |||||
Amortization of intangible assets from acquisitions | 434 | - | ||||||
Interest expense and other, net | 24 | 41 | ||||||
Dividends paid to participating securities | 69 | 37 | ||||||
Discontinued operations, net of tax | (2,016 | ) | (27,079 | ) | ||||
Estimated impact of income taxes | (2,041 | ) | (1,516 | ) | ||||
Adjusted Non-GAAP net income from continuing operations | $ | 4,161 | $ | 2,474 | ||||
Discontinued operations, net of tax | 2,023 | 27,081 | ||||||
Estimated impact of income taxes | - | (9,521 | ) | |||||
Adjusted Non-GAAP net income including discontinued operations | $ | 6,184 | $ | 20,034 | ||||
Adjusted Non-GAAP EPS from continuing operations | $ | 0.10 | $ | 0.06 | ||||
Adjusted Non-GAAP EPS including discontinued operations | $ | 0.15 | $ | 0.48 | ||||
Shares used to calculate diluted net income (loss) per share applicable to common stockholders (GAAP) |
38,760 | 41,152 | ||||||
Weighted average stock options and common shares subject to purchase or cancellation (if applicable) | 2,898 | 366 | ||||||
Diluted shares used to calculate Adjusted Non-GAAP EPS (1) | 41,658 | 41,518 | ||||||
|
(1) For the purpose of computing the number of diluted shares for
Adjusted Non-GAAP EPS,
Certain reclassifications have been made to prior periods to conform to current presentation.
MARCHEX, INC. AND SUBSIDIARIES | |||||||||||||||||||
Quarterly Financial Summary Information | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
NON-GAAP MEASURES | |||||||||||||||||||
CONSOLIDATED1 | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
GAAP Revenue | $ | 47,042 | $ | 47,238 | $ | 31,226 | $ | 35,915 | $ | 35,346 | |||||||||
Adjusted OIBA | $ | 3,145 | $ | 3,214 | $ | 2,355 | $ | 2,491 | $ | 1,319 | |||||||||
Adjusted EBITDA | $ | 4,012 | $ | 4,105 | $ | 3,253 | $ | 3,353 | $ | 2,272 | |||||||||
CALL-DRIVEN AND RELATED | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
GAAP Revenue | $ | 45,856 | $ | 46,379 | $ | 30,324 | $ | 35,028 | $ | 34,458 | |||||||||
Adjusted OIBA | $ | 2,896 | $ | 3,280 | $ | 2,511 | $ | 2,632 | $ | 1,400 | |||||||||
Adjusted EBITDA | $ | 3,763 | $ | 4,171 | $ | 3,409 | $ | 3,494 | $ | 2,353 | |||||||||
ARCHEO EXCLUDING DISCONTINUED OPERATIONS1 | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
GAAP Revenue | $ | 1,186 | $ | 859 | $ | 902 | $ | 887 | $ | 888 | |||||||||
Adjusted OIBA | $ | 249 | $ | (66 | ) | $ | (156 | ) | $ | (141 | ) | $ | (81 | ) | |||||
Adjusted EBITDA | $ | 249 | $ | (66 | ) | $ | (156 | ) | $ | (141 | ) | $ | (81 | ) | |||||
CALL-DRIVEN REVENUE EXCLUDING YP | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
GAAP Revenue | $ | 45,856 | $ | 46,379 | $ | 30,324 | $ | 35,028 | $ | 34,458 | |||||||||
Revenue excluding YP | $ | 35,634 | $ | 35,162 | $ | 19,261 | $ | 24,271 | $ | 24,096 | |||||||||
YP Revenue | $ | 10,222 | $ | 11,217 | $ | 11,063 | $ | 10,757 | $ | 10,362 | |||||||||
ARCHEO REVENUE EXCLUDING YP AND DISCONTINUED OPERATIONS1 | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
GAAP Revenue | $ | 1,186 | $ | 859 | $ | 902 | $ | 887 | $ | 888 | |||||||||
Revenue excluding YP | $ | 716 | $ | 608 | $ | 524 | $ | 525 | $ | 515 | |||||||||
YP Revenue | $ | 470 | $ | 251 | $ | 378 | $ | 362 | $ | 373 | |||||||||
DISCONTINUED OPERATIONS1 | Q214 | Q314 | Q414 | Q115 | Q215 | ||||||||||||||
Revenue from Discontinued Operations | $ | 2,634 | $ | 1,943 | $ | 2,065 | $ | 6,659 | $ | 422 | |||||||||
Adjusted OIBA from Discontinued Operations | $ | 1,646 | $ | 1,035 | $ | 1,113 | $ | 5,142 | $ | (56 | ) | ||||||||
Adjusted EBITDA from Discontinued Operations | $ | 1,680 | $ | 1,050 | $ | 1,127 | $ | 5,156 | $ | (53 | ) | ||||||||
|
1 In
Due to rounding, the sum of quarterly amounts may not equal amounts reported for year-to-date periods.
MARCHEX, INC. AND SUBSIDIARIES | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Reconciliation of GAAP Income (Loss) from Operations to Operating Income before Amortization (OIBA) | ||||||||||||||||||||
and Adjusted Operating Income Before Amortization (Adjusted OIBA) | ||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
6/30/2014 | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | ||||||||||||||||
Income (loss) from operations | $ | 69 | $ | 193 | $ | (521 | ) | $ | (300 | ) | $ | (1,466 | ) | |||||||
Stock-based compensation | 3,113 | 3,021 | 2,876 | 2,791 | 2,667 | |||||||||||||||
Amortization of intangible assets from acquisitions | 31 | - | - | - | - | |||||||||||||||
Operating income before amortization (OIBA) | 3,213 | 3,214 | 2,355 | 2,491 | 1,201 | |||||||||||||||
Acquisition and disposition related costs | (68 | ) | - | - | - | 118 | ||||||||||||||
Adjusted OIBA - Consolidated | $ | 3,145 | $ | 3,214 | $ | 2,355 | $ | 2,491 | $ | 1,319 | ||||||||||
Less: Archeo Adjusted OIBA1 | 249 | (66 | ) | (156 | ) | (141 | ) | (81 | ) | |||||||||||
Call-Driven1 and related Adjusted OIBA | $ | 2,896 | $ | 3,280 | $ | 2,511 | $ | 2,632 | $ | 1,400 | ||||||||||
Reconciliation from Net Cash provided by Operating Activities to Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
6/30/2014 | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 3,289 | $ | 6,750 | $ | 4,302 | $ | 6,251 | $ | (1,814 | ) | |||||||||
Changes in assets and liabilities | 1,672 | (24,736 | ) | 58 | 2,228 | 3,883 | ||||||||||||||
Income tax expense (benefit) | 149 | 22,980 | - | 5 | (185 | ) | ||||||||||||||
Disposition related costs | - | - | - | - | 118 | |||||||||||||||
Discontinued operations | (1,120 | ) | (1,050 | ) | (1,127 | ) | (5,156 | ) | 91 | |||||||||||
Tax effect of gain on sale of discontinued operations | - | 143 | - | - | 163 | |||||||||||||||
Interest expense and other, net | 22 | 18 | 20 | 25 | 16 | |||||||||||||||
Adjusted EBITDA - Consolidated | $ | 4,012 | $ | 4,105 | $ | 3,253 | $ | 3,353 | $ | 2,272 | ||||||||||
Less: Archeo Adjusted EBITDA1 | 249 | (66 | ) | (156 | ) | (141 | ) | (81 | ) | |||||||||||
Call-Driven1 and related Adjusted EBITDA | $ | 3,763 | $ | 4,171 | $ | 3,409 | $ | 3,494 | $ | 2,353 | ||||||||||
Summary of Revenue by Segment | ||||||||||||||||||||
Three Months Ended |
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6/30/2014 | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | ||||||||||||||||
Call-Driven1 and related Revenue | $ | 45,856 | $ | 46,379 | $ | 30,324 | $ | 35,028 | $ | 34,458 | ||||||||||
Archeo Revenue1 | 1,186 | 859 | 902 | 887 | 888 | |||||||||||||||
Revenue - Consolidated | $ | 47,042 | $ | 47,238 | $ | 31,226 | $ | 35,915 | $ | 35,346 | ||||||||||
|
1 The financial results for Call-Driven and Archeo have been derived from the unaudited condensed consolidated financial statements. The Call-Driven financial results include certain direct operating expenses and general corporate overhead expenses. The Archeo financial results include direct operating expenses.
Due to rounding, the sum of quarterly amounts may not equal amounts reported for year-to-date periods.
MARCHEX, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
Consolidated Continuing and Discontinued Operations | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Three months ended |
Six months ended | |||||||||||||||||||||||||
6/30/2014 | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | 6/30/2014 | 6/30/2015 | ||||||||||||||||||||
Consolidated Continuing Operations | ||||||||||||||||||||||||||
Revenue | $ | 47,042 | $ | 47,238 | $ | 31,226 | $ | 35,915 | $ | 35,346 | $ | 95,137 | $ | 71,261 | ||||||||||||
Adjusted OIBA | $ | 3,145 | $ | 3,214 | $ | 2,355 | $ | 2,491 | $ | 1,319 | $ | 6,462 | $ | 3,810 | ||||||||||||
Adjusted EBITDA | $ | 4,012 | $ | 4,105 | $ | 3,253 | $ | 3,353 | $ | 2,272 | $ | 8,230 | $ | 5,625 | ||||||||||||
Archeo Continuing Operations1 | ||||||||||||||||||||||||||
Revenue | $ | 1,186 | $ | 859 | $ | 902 | $ | 887 | $ | 888 | $ | 3,788 | $ | 1,775 | ||||||||||||
Adjusted OIBA | $ | 249 | $ | (66 | ) | $ | (156 | ) | $ | (141 | ) | $ | (81 | ) | $ | 1,155 | $ | (222 | ) | |||||||
Adjusted EBITDA | $ | 249 | $ | (66 | ) | $ | (156 | ) | $ | (141 | ) | $ | (81 | ) | $ | 1,206 | $ | (222 | ) | |||||||
Discontinued Operations2 | ||||||||||||||||||||||||||
Revenue | $ | 2,634 | $ | 1,943 | $ | 2,065 | $ | 6,659 | $ | 422 | $ | 5,035 | $ | 7,081 | ||||||||||||
Adjusted OIBA | $ | 1,646 | $ | 1,035 | $ | 1,113 | $ | 5,142 | $ | (56 | ) | $ | 3,038 | $ | 5,086 | |||||||||||
Adjusted EBITDA | $ | 1,680 | $ | 1,050 | $ | 1,127 | $ | 5,156 | $ | (53 | ) | $ | 3,124 | $ | 5,103 | |||||||||||
Reconciliation of GAAP Income (Loss) from Discontinued Operations, Net of Tax to | ||||||||||||||||||||||||||
Adjusted Operating Income Before Amortization (Adjusted OIBA) and Adjusted EBITDA | ||||||||||||||||||||||||||
Three months ended |
Six months ended |
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6/30/2014 | 9/30/2014 | 12/31/2014 | 3/31/2015 | 6/30/2015 | 6/30/2014 | 6/30/2015 | ||||||||||||||||||||
Discontinued Operations2 | ||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | 1,082 | $ | 1,031 | $ | 1,109 | $ | 5,139 | $ | (92 | ) | $ | 2,016 | $ | 5,047 | |||||||||||
Income tax expense | 560 | - | - | - | 37 | 1,014 | 37 | |||||||||||||||||||
Income (loss) from discontinued operations before provision for income taxes | 1,642 | 1,031 | 1,109 | 5,139 | (55 | ) | 3,030 | 5,084 | ||||||||||||||||||
Stock-based compensation | 4 | 4 | 4 | 3 | (1 | ) | 8 | 2 | ||||||||||||||||||
Adjusted Operating income before amortization (OIBA) | 1,646 | 1,035 | 1,113 | 5,142 | (56 | ) | 3,038 | 5,086 | ||||||||||||||||||
Domain Amortization | 34 | 15 | 14 | 14 | 3 | 86 | 17 | |||||||||||||||||||
Adjusted EBITDA | 1,680 | 1,050 | 1,127 | 5,156 | (53 | ) | 3,124 | 5,103 | ||||||||||||||||||
|
1 The financial results of Archeo are preliminary and have been derived
from the unaudited consolidated financial statements of
2 Operating results of discontinued operations relate to certain
pay-per-click assets sold in
Due to rounding, the sum of quarterly amounts may not equal amounts reported for year-to-date periods.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150805006547/en/
Source:
Marchex Investor Relations
Trevor Caldwell, 206-331-3600
ir(at)marchex.com
Or
MEDIA
INQUIRIES
Marchex Corporate Communications
206-331-3434
pr(at)marchex.com