Company Website:
http://www.infospaceinc.com
BELLEVUE, Wash. -- (Business Wire)
InfoSpace, Inc. (NASDAQ:INSP) today announced financial results for the
fourth quarter and full year ended December 31, 2011.
- Revenue for the fourth quarter and full year up 34% and 7% from 2010
- Distribution revenue for the fourth quarter and full year up 69%
and 24% from 2010
- Distribution revenue from new partners launched in 2011 of $11.8
million, up $8.6 million or 270% from comparable new partner revenue
in 2010
- Adjusted EBITDA for the fourth quarter and full year up 23% and 13%
from 2010
“InfoSpace delivered solid growth and profitability in 2011, including a
strong fourth quarter,” said Bill Ruckelshaus, President and Chief
Executive Officer of InfoSpace. “The period since January 2011 has been
an important time for our Company. In 2011, we solidified our position
as a leading provider of distributed search solutions, adding more than
40 new distribution partners, and renewed our supplier agreements with
Google and Yahoo!. Last month we announced our acquisition of TaxACT and
thus entered the growing market for online tax preparation solutions. We
approach the coming year with strong operating momentum in our search
business and we are excited about the significant opportunity for TaxACT
to expand their market presence and build upon their offerings.”
Fourth Quarter and Full Year 2011 Highlights
-
Revenues for the fourth quarter of 2011 were $66.6 million, compared
to revenues of $49.7 million for the fourth quarter of 2010. Revenues
for full year 2011 were $228.8 million, compared to revenues of $214.3
million in 2010.
-
Adjusted EBITDA (defined below) for the fourth quarter of 2011 was
$10.2 million, compared to $8.3 million for the fourth quarter of
2010. Adjusted EBITDA for full year 2011 was $36.6 million, compared
to $32.5 million for full year 2010.
-
Non-GAAP net income (defined below) for the fourth quarter of 2011 was
$5.3 million or $0.13 per diluted share, compared to $19.2 million, or
$0.52 per diluted share, for the fourth quarter of 2010. Non-GAAP net
income for full year 2011 was $18.5 million, or $0.48 per diluted
share, compared to $17.8 million, or $0.48 per diluted share, for full
year 2010. (Note, the fourth quarter and full year 2010 results
include a net gain of $19.0 million, or $0.51 per diluted share, from
a litigation settlement.)
-
Net income for the fourth quarter of 2011 was $23.6 million, or
$0.59 per diluted share, compared to net income of $9.1 million, or
$0.25 per diluted share, for the fourth quarter of 2010. Net income
for full year 2011 was $22.3 million, or $0.58 per diluted share,
compared to net income of $4.7 million or $0.13 per diluted share, for
full year 2010. (Note, 2011 figures include a tax benefit of $19.6
million, due to the release of the valuation allowance on deferred tax
assets. The 2010 figures, as noted above, include a net gain from a
litigation settlement of $19.0 million. Also, net income for the
fourth quarter 2010 and full years 2011 and 2010 includes losses on
discontinued operations.)
-
Cash, cash equivalents, and marketable securities as of December 31,
2011 totaled $293.6 million. As of the end of the quarter, the Company
had no debt obligations. On January 31, 2012 the Company completed the
acquisition of TaxACT. Upon completion of the transaction, the Company
had more than $100 million cash and short-term investments and $100
million of debt.
First Quarter Outlook
As previously announced, the Company completed its acquisition of TaxACT
on January 31, 2012. The Company’s first quarter guidance includes
anticipated results for TaxACT beginning on February 1, 2012 through
March 31, 2012.
For the first quarter of 2012, the Company expects revenues to be
between $109 million and $114 million, Adjusted EBITDA to be between $26
million and $29 million, and net income to be between $9.5 million and
$11.5 million, or $0.24 to $0.29 per diluted share.
Conference Call and Webcast
A conference call will be held today at 2 p.m. Pacific time / 5 p.m.
Eastern time. The live webcast can be accessed in the Investor Relations
section of the InfoSpace corporate website, at http://www.infospaceinc.com.
Non-GAAP Financial Measures
Adjusted EBITDA is calculated by adjusting net income determined in
accordance with generally accepted accounting principles ("GAAP")
to exclude the effects of discontinued operations (including loss from
discontinued operations, net of taxes, and loss on sale of discontinued
operations, net of taxes),of income taxes, depreciation, amortization of
intangible assets, stock-based compensation expense, and other loss
(income), net (which includes such items as litigation settlements,
adjustments to the fair values of contingent liabilities related to
business combinations, gains on resolutions of contingencies, interest
income, interest expense, foreign currency gains or losses, and gains or
losses from the disposal of assets), as detailed in the accompanying
table to the preliminary condensed consolidated financial statements
(unaudited).
InfoSpace management believes that Adjusted EBITDA provides meaningful
supplemental information regarding the Company’s performance by
excluding certain expenses and gains that management believes are not
indicative of its core business operating results. InfoSpace uses this
non-GAAP financial measure for internal management purposes, when
publicly providing guidance on possible future results, and as a means
to evaluate period-to-period comparisons. InfoSpace believes that
Adjusted EBITDA is a common measure used by investors and analysts to
evaluate its performance, that it provides a more complete understanding
of the results of operations and trends affecting the Company's business
when viewed together with GAAP results, and that management and
investors benefit from referring to this non-GAAP financial measure. A
table reconciling the Company's Adjusted EBITDA to net income, which the
Company's management believes to be the most comparable GAAP measure,
accompanies the preliminary condensed consolidated unaudited financial
statements in this release.
Non-GAAP net income is calculated by adjusting GAAP net income to
exclude the effects of discontinued operations (including loss from
discontinued operations, net of taxes, and loss on sale of discontinued
operations, net of taxes) and non-cash income taxes from continuing
operations, as detailed in the accompanying table to the preliminary
condensed consolidated financial statements (unaudited). Non-cash income
tax expense from continuing operations represents a reduction in cash
taxes from continuing operations primarily attributable to the
utilization of U.S. net operating losses. InfoSpace’s management
believes that this non-GAAP measure provides meaningful supplemental
information regarding the Company’s performance.
Adjusted EBITDA and non-GAAP net income should be evaluated in light of
the Company's financial results prepared in accordance with GAAP, and
should be considered as a supplement to, and not as a substitute for or
superior to, GAAP net income.
About InfoSpace, Inc.
InfoSpace operates two business units. Our search business delivers
online search solutions to a global network of distribution partners,
and directly to consumers through our portfolio of branded web
properties. Our tax software business operates under the name TaxACT and
is a leading provider of online tax solutions, reliably serving millions
of consumers and professionals for over a decade. Additional corporate
information may be found at www.infospaceinc.com
and iSpaceBlog.com. You may also follow and connect with InfoSpace on
LinkedIn, Google Plus, Facebook, Twitter, and YouTube.
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934.Actual results may differ
significantly from management’s expectations due to various risks and
uncertainties including, but not limited to: general economic, industry,
and market sector conditions; the timing and extent of market acceptance
of developed products and services and related costs; our dependence on
companies to distribute our products and services; future acquisitions;
the successful execution of the Company’s strategic initiatives,
operating plans, and marketing strategies; the condition of our cash
investments; and the completion of the audit of our financial statements
for 2011. A more detailed description of these and certain other factors
that could affect actual results is included in InfoSpace, Inc.’s most
recent Annual Report on Form 10-K and subsequent reports filed with or
furnished to the Securities and Exchange Commission.Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release.InfoSpace,
Inc. undertakes no obligation to update any forward-looking statements
to reflect new information, events, or circumstances after the date of
this release or to reflect the occurrence of unanticipated events.
| InfoSpace, Inc. |
| Preliminary Condensed Consolidated Statements of Operations (1) |
|
(Unaudited)
|
|
(Amounts in thousands, except per share data)
|
|
| |
| |
| |
| |
| |
Three months ended
| |
Year ended
|
| |
December 31
| |
December 31
| |
December 31
| |
December 31
|
| |
2011
| |
2010
|
| |
2011
| |
2010
|
|
Revenues:
| |
$
|
66,614
| |
$
|
49,683
| | |
$
|
228,813
| | |
$
|
214,343
| |
| | | | | | | |
|
|
Cost of sales:
| | |
46,954
| | |
30,154
| | | |
154,962
| | | |
138,995
| |
| |
| |
| |
| |
|
|
Gross profit
| | |
19,660
| | |
19,529
| | | |
73,851
| | | |
75,348
| |
| | | | | | | |
|
|
Expenses and other income:
| | | | | | | | |
|
Engineering and technology (2) | | |
1,904
| | |
1,828
| | | |
7,158
| | | |
8,471
| |
|
Sales and marketing (2) | | |
4,753
| | |
7,044
| | | |
21,510
| | | |
28,145
| |
|
General and administrative (2) (3) | | |
4,899
| | |
10,124
| | | |
21,542
| | | |
32,843
| |
|
Depreciation
| | |
473
| | |
700
| | | |
2,162
| | | |
3,138
| |
|
Other loss (income) net (4) | |
|
972
| |
|
(19,399
|
)
| |
|
1,246
|
| |
|
(15,247
|
)
|
| | | | | | | |
|
|
Total expenses and other loss (income)
| |
|
13,001
| |
|
297
|
| |
|
53,618
|
| |
|
57,350
|
|
| | | | | | | |
|
|
Income from continuing operations before income taxes
| | |
6,659
| | |
19,232
| | | |
20,233
| | | |
17,998
| |
| | | | | | | |
|
|
Income tax benefit (expense)
| |
|
16,951
| |
|
(8,530
|
)
| |
|
12,024
|
| |
|
(8,725
|
)
|
| | | | | | | |
|
|
Income from continuing operations
| |
|
23,610
| |
|
10,702
|
| |
|
32,257
|
| |
|
9,273
|
|
| | | | | | | |
|
|
Discontinued operations:(1) | | | | | | | | |
| | | | | | | |
|
|
Loss from discontinued operations, net of taxes (2) | | |
-
| | |
(1,652
|
)
| | |
(2,253
|
)
| | |
(4,593
|
)
|
|
Loss on sale of discontinued operations, net of taxes
| |
|
-
| |
|
-
|
| |
|
(7,674
|
)
| |
|
-
|
|
|
Net income
| |
$
|
23,610
| |
$
|
9,050
|
| |
$
|
22,330
|
| |
$
|
4,680
|
|
| | | | | | | |
|
|
Earnings per share - Basic
| | | | | | | | |
|
Income from continuing operations
| |
$
|
0.60
| |
$
|
0.30
| | |
$
|
0.85
| | |
$
|
0.26
| |
|
Loss from discontinued operations
| | |
-
| | |
(0.05
|
)
| | |
(0.06
|
)
| | |
(0.13
|
)
|
|
Loss on sale of discontinued operations
| |
|
-
| |
|
-
|
| |
|
(0.20
|
)
| |
|
-
|
|
|
Net income per share - Basic
| |
$
|
0.60
| |
$
|
0.25
|
| |
$
|
0.59
|
| |
$
|
0.13
|
|
| | | | | | | |
|
|
Earnings per share - Diluted
| | | | | | | | |
|
Income from continuing operations
| |
$
|
0.59
| |
$
|
0.29
| | |
$
|
0.84
| | |
$
|
0.25
| |
|
Loss from discontinued operations
| | |
-
| | |
(0.04
|
)
| | |
(0.06
|
)
| | |
(0.12
|
)
|
|
Loss on sale of discontinued operations
| |
|
-
| |
|
-
|
| |
|
(0.20
|
)
| |
|
-
|
|
|
Net income per share - Diluted
| |
$
|
0.59
| |
$
|
0.25
|
| |
$
|
0.58
|
| |
$
|
0.13
|
|
| | | | | | | |
|
Weighted average shares outstanding used in computing basic income
per share
| |
|
39,448
| |
|
36,196
|
| |
|
37,954
|
| |
|
35,886
|
|
Weighted average shares outstanding used in computing diluted
income per share
| |
|
40,074
| |
|
36,851
|
| |
|
38,621
|
| |
|
36,829
|
|
| | | | | | | |
|
(1) In the year ended December 31, 2011, the Company
completed the sale of its Mercantila e-commerce business. The
operating results of that business have been presented as
discontinued operations for all periods presented. In the year
ended December 31, 2011, the Company recorded a $1.3 million
income tax benefit related to discontinued operations. In the
three months and year ended December 31, 2010 the Company recorded
income tax benefits related to discontinued operations of $1.1
million and $1.3 million, respectively. In the year ended
December 31, 2011, the Company recorded a loss, net of an income
tax benefit of $5.1 million, on the sale of the Mercantila
business. Revenue, operating expenses and income taxes, loss from
discontinued operations and the loss on sale of these discontinued
operations are presented below (in thousands):
|
| | | | | | | |
|
| |
Three months ended
| |
Year ended
|
| |
December 31
| |
December 31
| |
December 31
| |
December 31
|
|
E-Commerce
| |
2011
| |
2010
| |
2011
| |
2010
|
|
Revenue
| |
$
|
-
| |
$
|
14,260
| | |
$
|
16,894
| | |
$
|
32,492
| |
|
Operating expenses and income taxes
| |
|
-
| |
|
15,912
|
| |
|
19,147
|
| |
|
37,085
|
|
|
Loss from discontinued operations, net of taxes
| |
$
|
-
| |
$
|
(1,652
|
)
| |
$
|
(2,253
|
)
| |
$
|
(4,593
|
)
|
|
Loss on sale of discontinued operations, net of taxes
| |
$
|
-
| |
$
|
-
|
| |
$
|
(7,674
|
)
| |
$
|
-
|
|
| | | | | | | |
|
(2) In the three months and year ended December 31,
2010, stock-based compensation expense associated with the
acceleration of vesting of equity awards for a departed executive
amounted to $3.4 million, which was allocated to general and
administrative expense. Stock-based compensation expense for the
year ended December 31, 2011 and 2010 is allocated among the
following captions (in thousands):
|
| | | | | | | |
|
| |
Three months ended
| |
Year ended
|
| |
December 31
| |
December 31
| |
December 31
| |
December 31
|
| |
|
2011
| |
|
2010
|
| |
|
2011
|
| |
|
2010
|
|
|
Cost of sales
| |
$
|
52
| |
$
|
71
| | |
$
|
286
| | |
$
|
461
| |
|
Engineering and technology
| | |
137
| | |
261
| | | |
821
| | | |
1,298
| |
|
Sales and marketing
| | |
173
| | |
259
| | | |
1,002
| | | |
2,631
| |
|
General and administrative
| | |
906
| | |
4,549
| | | |
5,579
| | | |
9,528
| |
|
Discontinued operations
| |
|
-
| |
|
310
|
| |
|
(159
|
)
| |
|
833
|
|
|
Total stock-based compensation expense
| |
$
|
1,268
| |
$
|
5,450
|
| |
$
|
7,529
|
| |
$
|
14,751
|
|
|
|
(3) In the three months and year ended December 31,
2010, the Company recorded charges of $1.7 million and $4.1
million, respectively, relating to executive cash severance.
|
|
|
(4) In the three months and year ended December 31,
2011, the Company recorded charges of $1.0 million and $3.0
million, respectively, as a result of the increase in the
estimated fair value of a contingent liability related to
operation of the assets acquired on April 1, 2010 from Make The
Web Better. In the three months and year ended December 31, 2010
the Company recorded charges of $1.5 million and $5.0 million,
respectively, as a result of the increase in the estimated fair
value of a contingent liability related to operation of the assets
acquired on April 1, 2010 from Make The Web Better. In the year
ended December 31, 2011, the Company recorded a $1.5 million gain
on the resolution of a contingency. In the three months and year
ended December 31, 2010, the Company recorded a $19.0 million net
gain on a litigation settlement.
|
|
|
| InfoSpace, Inc. |
| Preliminary Condensed Consolidated Balance Sheets |
|
(Unaudited)
|
|
(Amounts in thousands)
|
|
| |
| |
| |
December 31,
| |
December 31,
|
| |
2011
| |
2010
|
|
ASSETS
| | | | |
| | | |
|
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
81,897
| | |
$
|
155,645
| |
|
Short-term investments, available-for-sale
| | |
211,654
| | | |
98,091
| |
|
Accounts receivable, net
| | |
25,019
| | | |
19,189
| |
|
Other receivables, net
| | |
542
| | | |
1,185
| |
|
Prepaid expenses and other current assets, net
| | |
1,962
| | | |
2,163
| |
|
Assets of discontinued operations
| |
|
-
|
| |
|
16,161
|
|
| | | |
|
|
Total current assets
| | |
321,074
| | | |
292,434
| |
| | | |
|
|
Property and equipment, net
| | |
5,277
| | | |
7,304
| |
|
Goodwill
| | |
44,815
| | | |
44,815
| |
|
Deferred tax asset, net
| | |
19,835
| | | |
306
| |
|
Other intangible assets, net
| | |
1,315
| | | |
3,910
| |
|
Other long-term assets, net
| |
|
3,560
|
| |
|
3,951
|
|
| | | |
|
|
Total assets
| |
$
|
395,876
|
| |
$
|
352,720
|
|
| | | |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
| | | | |
| | | |
|
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
28,947
| | |
$
|
2,699
| |
|
Accrued expenses and other current liabilities
| | |
10,250
| | | |
39,518
| |
|
Liabilities from discontinued operations
| |
|
-
|
| |
|
7,777
|
|
| | | |
|
|
Total current liabilities
| | |
39,197
| | | |
49,994
| |
| | | |
|
|
Other long-term liabilities
| |
|
838
|
| |
|
955
|
|
| | | |
|
|
Total liabilities
| | |
40,035
| | | |
50,949
| |
| | | |
|
|
Stockholders' equity:
| | | | |
|
Common stock
| | |
4
| | | |
4
| |
|
Additional paid-in capital
| | |
1,353,971
| | | |
1,322,265
| |
|
Accumulated deficit
| | |
(998,166
|
)
| | |
(1,020,496
|
)
|
|
Accumulated other comprehensive income (loss)
| |
|
32
|
| |
|
(2
|
)
|
| | | |
|
|
Total stockholders' equity
| |
|
355,841
|
| |
|
301,771
|
|
| | | |
|
Total liabilities and stockholders' equity
| |
$
|
395,876
|
| |
$
|
352,720
|
|
| | | |
|
|
Summary of cash, cash equivalents, and short-term investments:
| | | | |
|
Cash and cash equivalents
| |
$
|
81,897
| | |
$
|
155,645
| |
|
Short-term investments, available-for-sale
| |
|
211,654
|
| |
|
98,091
|
|
| | | |
|
|
Cash, cash equivalents, and short-term investments
| |
$
|
293,551
|
| |
$
|
253,736
|
|
|
|
| InfoSpace, Inc. |
| Preliminary Condensed Consolidated Statements of Cash Flows |
|
(Unaudited)
|
|
(Amounts in thousands)
|
|
|
Year ended
|
| |
December 31,
|
|
December 31,
|
| |
2011
| |
2010
|
| Operating activities: | | | | |
|
Net income
| |
$
|
22,330
| | |
$
|
4,680
| |
|
Adjustments to reconcile net income to net cash provided by
operating activities of continuing operations:
| | | | |
|
Loss on sale of discontinued operations
| | |
7,674
| | | |
-
| |
|
Loss from discontinued operations
| | |
2,253
| | | |
4,593
| |
|
Stock-based compensation
| | |
5,756
| | | |
13,918
| |
|
Warrant-related stock-based compensation
| | |
1,932
| | | |
-
| |
|
Depreciation and amortization of intangible assets
| | |
7,456
| | | |
15,793
| |
|
Earn-out contingent liability adjustments
| | |
3,000
| | | |
5,000
| |
|
Common stock retired relating to litigation settlement
| | |
-
| | | |
(2,099
|
)
|
|
Gain on resolution of contingent liability
| | |
(1,500
|
)
| | |
-
| |
|
Foreign currency translation gains, net
| | |
-
| | | |
(1,436
|
)
|
|
Deferred income taxes
| | |
(19,606
|
)
| | |
19
| |
|
Excess tax benefits from stock-based award activity
| | |
(1,260
|
)
| | |
(7,032
|
)
|
|
Unrealized amortization of premium or accretion of discount on
investments, net
| | |
(89
|
)
| | |
365
| |
|
Loss on disposal of assets
| | |
46
| | | |
1,262
| |
|
Other
| | |
(28
|
)
| | |
3
| |
|
Cash provided (used) by changes in operating assets and liabilities:
| | | | |
|
Accounts receivable
| | |
(5,734
|
)
| | |
9,274
| |
|
Other receivables
| | |
643
| | | |
1,852
| |
|
Prepaid expenses and other current assets
| | |
284
| | | |
636
| |
|
Other long-term assets
| | |
(258
|
)
| | |
(201
|
)
|
|
Accounts payable
| | |
26,253
| | | |
(3,506
|
)
|
|
Accrued expenses and other current and long-term liabilities
| |
|
(23,889
|
)
| |
|
6,785
|
|
|
Net cash provided by operating activities of continuing operations
| | |
25,263
| | | |
49,906
| |
| | | |
|
| Investing activities: | | | | |
|
Purchases of property and equipment
| | |
(2,679
|
)
| | |
(2,894
|
)
|
|
Other long-term assets
| | |
649
| | | |
230
| |
|
Business acquisition, net of cash acquired
| | |
-
| | | |
(8,000
|
)
|
|
Proceeds from the sale of assets
| | |
-
| | | |
307
| |
|
Proceeds from sales of investments
| | |
63,166
| | | |
52,801
| |
|
Proceeds from maturities of investments
| | |
160,161
| | | |
191,976
| |
|
Purchases of investments
| |
|
(336,770
|
)
| |
|
(200,493
|
)
|
|
Net cash provided (used) by investing activities of continuing
operations
| | |
(115,473
|
)
| | |
33,927
| |
| | | |
|
| Financing activities: | | | | |
|
Proceeds from stock option exercises and issuance of stock through
employee stock purchase plan
| | |
17,426
| | | |
2,541
| |
|
Proceeds from the sale of common stock
| | |
7,000
| | | |
-
| |
|
Tax payments from shares withheld upon vesting of restricted stock
units
| | |
(1,786
|
)
| | |
(4,201
|
)
|
|
Earn-out payments for business acquisition
| | |
(423
|
)
| | |
(4,577
|
)
|
|
Repayment of capital lease obligation
| | |
(221
|
)
| | |
(589
|
)
|
|
Excess tax benefits from stock-based award activity
| |
|
1,260
|
| |
|
7,032
|
|
|
Net cash provided by financing activities of continuing operations
| | |
23,256
| | | |
206
| |
| | | |
|
| Discontinued operations: | | | | |
|
Net cash used by operating activities attributable to discontinued
operations
| | |
(6,156
|
)
| | |
(4,034
|
)
|
|
Net cash used by investing activities attributable to discontinued
operations
| |
|
(638
|
)
| |
|
(8,110
|
)
|
|
Net cash used by discontinued operations
| | |
(6,794
|
)
| | |
(12,144
|
)
|
| | | |
|
| | | |
|
| Net increase (decrease) in cash and cash equivalents | | |
(73,748
|
)
| | |
71,895
| |
| | | |
|
| Cash and cash equivalents: | | | | |
|
Beginning of period
| |
|
155,645
|
| |
|
83,750
|
|
|
End of period
| |
$
|
81,897
|
| |
$
|
155,645
|
|
|
|
| InfoSpace, Inc. |
| Reconciliations of Non-GAAP Financial Measures to the Nearest
Comparable GAAP Measure |
| Preliminary Adjusted EBITDA Reconciliation (1) |
|
(Unaudited)
|
|
(Amounts in thousands)
|
|
| |
| |
| |
| |
| |
Three months ended
| |
Year ended
|
| |
December 31,
| |
December 31,
| |
December 31,
| |
December 31,
|
| |
2011
| |
2010
| |
2011
| |
2010
|
|
Net income (2) | |
$
|
23,610
| | |
$
|
9,050
| | |
$
|
22,330
| | |
$
|
4,680
| |
|
Discontinued operations
| | |
-
| | | |
1,652
| | | |
9,927
| | | |
4,593
| |
|
Depreciation and amortization of intangible assets
| | |
1,266
| | | |
3,290
| | | |
7,456
| | | |
15,793
| |
|
Stock-based compensation
| | |
1,268
| | | |
5,140
| | | |
7,688
| | | |
13,918
| |
|
Other loss (income), net (3) | | |
972
| | | |
(19,399
|
)
| | |
1,246
| | | |
(15,247
|
)
|
|
Income tax expense (benefit)
| |
|
(16,951
|
)
| |
|
8,530
|
| |
|
(12,024
|
)
| |
|
8,725
|
|
|
Adjusted EBITDA (4) | |
$
|
10,165
|
| |
$
|
8,263
|
| |
$
|
36,623
|
| |
$
|
32,462
|
|
| | | | | | | |
|
| | | | | | | |
|
| InfoSpace, Inc. |
| Reconciliations of Non-GAAP Financial Measures to the Nearest
Comparable GAAP Measure |
| Preliminary Non-GAAP Reconciliation (1) |
|
(Unaudited)
|
|
(Amounts in thousands)
|
| |
Three months ended
| |
Year ended
|
| |
December 31,
| |
December 31,
| |
December 31,
| |
December 31,
|
| |
2011
| |
2010
| |
2011
| |
2010
|
|
Net income (2) | |
$
|
23,610
| | |
$
|
9,050
| | |
$
|
22,330
| | |
$
|
4,680
| |
|
Discontinued operations
| |
|
-
|
| |
|
1,652
|
| |
|
9,927
|
| |
|
4,593
|
|
|
Income from continuing operations (2) | | |
23,610
| | | |
10,702
| | | |
32,257
| | | |
9,273
| |
|
Non-cash income tax expense (benefit) from continuing operations(1) | |
|
(18,349
|
)
| |
|
8,530
|
| |
|
(13,736
|
)
| |
|
8,530
|
|
|
Non-GAAP net income (4) | |
$
|
5,261
|
| |
$
|
19,232
|
| |
$
|
18,521
|
| |
$
|
17,803
|
|
| | | | | | | |
|
|
Income from continuing operations- diluted
| |
$
|
0.59
| | |
$
|
0.29
| | |
$
|
0.84
| | |
$
|
0.25
| |
|
Non-cash income taxes per share - diluted (4) | |
$
|
(0.46
|
)
| |
$
|
0.23
|
|
|
$
|
(0.36
|
)
| |
$
|
0.23
|
|
|
Non-GAAP net income per share - diluted (4) | |
$
|
0.13
|
| |
$
|
0.52
|
|
|
$
|
0.48
|
| |
$
|
0.48
|
|
| | | | | | | |
|
| | | | | | | |
|
| Preliminary Adjusted EBITDA Reconciliation for Forward-Looking
Guidance |
|
(Amounts in thousands)
|
| |
Ranges for the three months ending
| | | | |
| |
March 31, 2012
| | | | |
|
Net income
| |
$
|
9,500
| | |
$
|
11,500
| | | | | |
|
Depreciation and amortization of intangible assets
| | |
4,500
| | | |
4,500
| | | | | |
|
Stock-based compensation
| | |
5,000
| | | |
5,000
| | | | | |
Other loss, net (5) | | |
800
| | | |
800
| | | | | |
Income tax expense
| |
|
6,200
|
| |
|
7,200
|
| | | | |
|
Adjusted EBITDA
| |
$
|
26,000
|
| |
$
|
29,000
|
| | | | |
|
|
(1) InfoSpace’s Adjusted EBITDA is calculated by
adjusting net income determined in accordance with generally
accepted accounting principles ("GAAP") to exclude the effects of
discontinued operations (including loss from discontinued
operations, net of taxes, and loss on sale of discontinued
operations, net of taxes), income taxes, depreciation,
amortization of intangible assets, stock-based compensation
expense, and other loss,(income) ,net (which includes such items
as litigation settlements, adjustments to the fair values of
contingent liabilities related to business combinations, gains on
resolutions of contingencies, interest income, foreign currency
gains or losses, and gains or losses from the disposal of assets),
as detailed above. InfoSpace’s management believes that Adjusted
EBITDA provides meaningful supplemental information regarding the
Company’s performance by excluding certain expenses and gains that
management believes are not indicative of its core business
operating results. InfoSpace uses this non-GAAP financial measure
for internal management purposes, when publicly providing guidance
on possible future results, and as a means to evaluate
period-to-period comparisons. InfoSpace believes that Adjusted
EBITDA is a common measure used by investors and analysts to
evaluate its performance, that it provides a more complete
understanding of the results of operations and trends affecting
the Company's business when viewed together with GAAP results, and
that management and investors benefit from referring to this
non-GAAP financial measure.
|
|
|
InfoSpace's Non-GAAP net income is calculated by adjusting GAAP
net income to exclude the effects of discontinued operations
(including loss from discontinued operations, net of taxes, and
loss on sale of discontinued operations, net of taxes) and the
non-cash portion of income tax expense from continuing
operations. The non-cash portion of income tax expense from
continuing operations represents a reduction to cash taxes payable
associated with the utilization of deferred tax assets, which are
primarily comprised of U.S. federal net operating losses. Due to
the Company’s continued ability to offset a substantial portion of
its cash tax liabilities through 2020 provided by these deferred
tax assets, management believes that excluding the non-cash
portion of income tax expense from continuing operations and the
effects of discontinued operations from its GAAP net income
provides meaningful supplemental information to investors and
analysts regarding the Company’s performance and the valuation of
its business.
|
|
|
Adjusted EBITDA and non-GAAP net income should be evaluated in
light of the Company's financial results prepared in accordance
with GAAP, and should be considered as a supplement to, and not as
a substitute for or superior to, GAAP net income.
|
|
|
(2) As presented in the Preliminary Condensed
Consolidated Statements of Operations (unaudited).
|
|
|
(3) Other loss (income), net, primarily consists of a
litigation settlement, adjustments to the fair values of
contingent liabilities related to business combinations, gains on
resolutions of contingencies, interest income, interest expense,
foreign currency gains or losses, and gains or losses from the
disposal of assets.
|
|
|
(4) Amounts previously disclosed have been revised to
reflect the effect of classifying the Company's Mercantila
e-commerce business as discontinued operations.
|
|
|
(5) Other loss, net, primarily consists of interest
expense, interest income, foreign currency gains or losses, and
gains or losses from the disposal of assets.
|
Contacts:
InfoSpace
Stacy Ybarra, 425-709-8127
stacy.ybarra@infospace.com
Source: InfoSpace, Inc.
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