-
Year over year revenue growth in Q1 of 10.7%
-
Largest increase in Premium Members since Q2 2007
-
Adjusted EBITDA margins in Q1 of 32.8%
-
Record profile views in Q1
SAN FRANCISCO -- (Business Wire)
LoopNet, Inc. (NASDAQ: LOOP), today announced financial results for the
first quarter ended March 31, 2012.
LoopNet’s revenue for the first quarter of 2012 was $22.9 million,
compared to $20.7 million in the first quarter of 2011. Net income
applicable to common stockholders for the first quarter of 2012 was $2.4
million or $0.05 per diluted share, compared to net income applicable to
common stockholders of $1.8 million or $0.04 per diluted share in the
first quarter of 2011. Non-GAAP net income, which excludes stock-based
compensation, merger related costs and amortization of acquired
intangible assets, for the first quarter of 2012 was $4.3 million or
$0.10 per diluted share, compared to $4.0 million or $0.10 per diluted
share in the first quarter of 2011.
LoopNet’s Adjusted EBITDA (earnings before net interest and other income
(expense), income taxes, depreciation, amortization, stock-based
compensation and merger related costs) for the first quarter of 2012 was
$7.5 million, compared to $7.0 million in the first quarter of 2011.
Key operating metrics and business highlights from the first quarter
of 2012 include:
-
Unique paying subscribers to one or more of LoopNet’s commercial real
estate related services was 97,944, as of the end of the quarter;
-
Average monthly price paid by LoopNet’s unique subscribers was $60.19
during the quarter;
-
LoopNet Premium Members were 75,829, as of the end of the quarter;
-
Average monthly price of LoopNet Premium Membership was $65.59 during
the quarter;
-
Total commercial real estate listings active on the LoopNet
marketplace were 826,765, as of the end of the quarter;
-
Total profile views of listings on the LoopNet marketplace were 112.8
million during the quarter;
-
LoopNet Registered Members, which includes Basic and Premium Members,
were 5,825,220, as of the end of the quarter; and,
-
Average monthly unique visitors to LoopNet owned websites during the
quarter was approximately 3.1 million per month, according to
comScore. LoopNet owned websites include LoopNet.com, CityFeet.com,
LandandFarm.com, LandsofAmerica.com, BizQuest.com and BizBuySell.com.
Balance Sheet and Liquidity
As of March 31, 2012, LoopNet had $118.5 million of cash, cash
equivalents and short-term investments and no debt.
Pending Merger Transaction
As disclosed on April 17, 2012, LoopNet and CoStar Group, Inc.
(“CoStar”) announced that they have reached agreement on a mutually
acceptable consent order with the staff of the Federal Trade Commission
(the “FTC”). The consent order is subject to review and approval by the
Commissioners of the FTC and if approved by the Commissioners, it would
clear the way for the merger (the “Merger”) of LoopNet and CoStar that
was previously announced on April 27, 2011. LoopNet and CoStar are not
providing details of the consent order pending this Commission review
and approval. Completion of the Merger remains subject to the expiration
or termination of the waiting period imposed by the Hart-Scott-Rodino
Act, which would occur upon the approval of the FTC Commissioners, and
other customary closing conditions.
As of the date hereof, LoopNet and CoStar have not received the approval
by the Commissioners of the FTC of the consent order. However, LoopNet
and CoStar remain hopeful that they will receive such approval and be in
a position to close the Merger by April 30, 2012. If that does not
occur, the Merger Agreement dated as of April 27, 2011, as amended, does
not terminate automatically after April 30, 2012 unless either LoopNet
or CoStar exercises an affirmative election to terminate it.
Use of Non-GAAP Financial Measures
This press release includes discussions of Adjusted EBITDA, non-GAAP net
income and non-GAAP net income per share, which are non-GAAP financial
measures provided as a complement to results provided in accordance with
accounting principles generally accepted in the United States of America
(“GAAP”). The term “Adjusted EBITDA” refers to a financial measure that
we define as earnings before income taxes, depreciation, amortization,
net interest and other income (expense), stock-based compensation and
merger related costs. The term “non-GAAP net income” refers to a
financial measure that we define as net income before stock-based
compensation, merger related costs and amortization of acquired
intangible assets. Non-GAAP net income is also provided on a per share
basis, using shares outstanding at the relevant period of measurement.
Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share
are not substitutes for measures determined in accordance with GAAP, and
may not be comparable to Adjusted EBITDA, non-GAAP net income and
non-GAAP net income per share as reported by other companies. We believe
Adjusted EBITDA to be relevant and useful information to our investors
as this measure is an integral part of our internal management reporting
and planning process and is the primary measure used by our management
to evaluate the operating performance of our business. The components of
Adjusted EBITDA include the key revenue and expense items for which our
operating managers are responsible and upon which we evaluate their
performance, and we also use Adjusted EBITDA for planning purposes and
in presentations to our board of directors. We believe non-GAAP net
income and non-GAAP net income per share to be relevant and useful
information to our investors as they provide meaningful insight into our
performance while excluding infrequent and non-recurring items that may
not be considered directly related to our on-going business operations.
We believe that non-GAAP net income and non-GAAP net income per share
are also used by companies and investors to evaluate comparable
performance in the online marketplace and platform industry. We also
believe that Adjusted EBITDA, non-GAAP net income and non-GAAP net
income per share allow for a more accurate comparison of our operating
results over historical periods. A limitation of Adjusted EBITDA,
non-GAAP net income and non-GAAP net income per share is that they do
not include all items that impact our net income for the period.
Management compensates for this limitation by also relying on the
comparable GAAP financial measure of net income, which includes the
items that are excluded from Adjusted EBITDA, non-GAAP net income and
non-GAAP net income per share. Management believes that these non-GAAP
measures should be considered as a complement to, and not as a
substitute for, or superior to, the corresponding measures calculated in
accordance with GAAP. A reconciliation of these non-GAAP measures to
GAAP is provided in the attached tables.
About LoopNet, Inc.
LoopNet operates the most heavily trafficked commercial real estate
marketplace online with more than 5 million registered members and 2.8
million unique monthly visitors, as reported by Google Analytics.
The LoopNet marketplace covers all commercial property categories,
including office, industrial, retail, multifamily (apartment properties
for sale), hotel, land, specialty properties, investment properties and
businesses for sale. LoopNet customers include virtually all of the top
commercial real estate firms in the U.S., including Apartment Realty
Advisors, Avison Young, Cassidy Turley, CB Richard Ellis, Coldwell
Banker Commercial, Colliers International, Cushman & Wakefield, Jones
Lang LaSalle, Lee & Associates, Lincoln Property Company, NAI Global,
Newmark Knight Frank, The Shopping Center Group and Sperry Van Ness.
Forward Looking Statements
This release contains forward-looking statements regarding our financial
results and the Merger. These statements are based on current
information and expectations that are inherently subject to change and
involve a number of risks and uncertainties. Actual events or results
might differ materially from those in any forward-looking statement due
to various factors. The following factors related to the Merger, among
others, could cause or contribute to such differences: the possibility
that the Commissioners of the FTC will not approve the consent order in
a timely manner or at all; the possibility that the FTC will request
additional extensions to the waiting period imposed by the HSR Act; the
possibility that conditions, divestitures or changes relating to the
operations or assets of LoopNet and CoStar will be required to obtain
required governmental clearances or approvals, including, but not
limited to, clearance or approval by the FTC; the possibility that the
Merger does not close, including, but not limited to, due to the failure
to obtain governmental clearances or approvals; the risk that expected
cost savings or other synergies from the Merger may not be fully
realized or may take longer to realize than expected; the risk that the
businesses of LoopNet and CoStar may not be combined successfully or in
a timely and cost-efficient manner; the risk that business disruption
relating to the Merger may be greater than expected; and the failure by
CoStar to obtain any required financing on favorable terms.
In addition, the following factors, among others, could also cause
results to differ materially from those anticipated in the
forward-looking statements: economic events or trends in the commercial
real estate market or in general; the effects of recent economic and
consumer confidence trends on global and domestic financial markets,
including credit available to real estate purchasers; our ability to
continue to attract and retain new registered members, convert
registered members into premium members and retain such premium members;
seasonality; our ability to manage our growth; our ability to
successfully integrate the technologies, operations and personnel of
acquired businesses in a timely manner; our ability to obtain the
expected strategic and financial benefits from acquisitions; our ability
to introduce new or upgraded products or services and customer
acceptance of such services; and our ability to obtain or retain
listings from commercial real estate brokers, agents and property owners.
Additional information concerning factors that could cause actual events
or results to differ materially from those in any forward looking
statement are contained in our Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q filed with the Securities and Exchange Commission
(“SEC”), and other SEC filings made by us. Copies of filings made by us
with the SEC are available on the SEC’s website or at http://investor.loopnet.com/sec.cfm.
LoopNet does not intend to update the forward-looking statements
included in this press release which are based on information available
to us as of the date of this release.
|
|
| LOOPNET, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands, except share data) |
|
|
|
|
|
| December 31, |
| March 31, |
| | 2011 | | 2012 |
| | | | (unaudited) |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
107,573
| | |
$
|
114,962
| |
|
Short-term investments
| | |
3,529
| | | |
3,566
| |
|
Accounts receivable, net of allowance of $318 and $408,
respectively
| | |
1,899
| | | |
2,325
| |
|
Income tax receivable
| | |
11,045
| | | |
9,544
| |
|
Prepaid expenses and other current assets
| | |
1,445
| | | |
2,201
| |
|
Deferred income taxes
| |
|
696
|
| |
|
696
|
|
|
Total current assets
| | |
126,187
| | | |
133,294
| |
| | | |
|
|
Property and equipment, net
| | |
3,165
| | | |
2,877
| |
|
Goodwill
| | |
41,507
| | | |
41,507
| |
|
Intangibles, net
| | |
6,385
| | | |
5,846
| |
|
Deferred income taxes, net, non-current
| | |
16,758
| | | |
15,595
| |
|
Deposits and other noncurrent assets
| |
|
5,258
|
| |
|
4,681
|
|
|
Total assets
| |
$
|
199,260
|
| |
$
|
203,800
|
|
| | | |
|
| Liabilities and stockholders’ equity | | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
656
| | |
$
|
680
| |
|
Accrued liabilities and other current liabilities
| | |
5,765
| | | |
4,353
| |
|
Accrued compensation and benefits
| | |
4,049
| | | |
2,776
| |
|
Deferred revenue
| |
|
9,422
|
| |
|
10,063
|
|
|
Total current liabilities
| | |
19,892
| | | |
17,872
| |
| | | |
|
|
Other long-term liabilities
| | |
1,768
| | | |
1,937
| |
|
Commitments and contingencies
| | | | |
|
Series A convertible preferred stock
| | |
48,885
| | | |
48,970
| |
|
Stockholders’ equity:
| | | | |
Common stock, $.001 par value, 125,000,000 shares authorized;
35,053,190 and 35,472,661 shares outstanding, respectively
| | |
43
| | | |
43
| |
|
Additional paid in capital
| | |
154,289
| | | |
158,193
| |
|
Accumulated other comprehensive loss
| | |
(423
|
)
| | |
(398
|
)
|
|
Treasury stock, at cost, 7,682,962 shares
| | |
(86,227
|
)
| | |
(86,227
|
)
|
|
Retained earnings
| |
|
61,033
|
| |
|
63,410
|
|
|
Total stockholders’ equity
| |
|
128,715
|
| |
|
135,021
|
|
|
Total liabilities and stockholders’ equity
| |
$
|
199,260
|
| |
$
|
203,800
|
|
| | | | | | | |
|
| LOOPNET, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share data) |
| (unaudited) |
|
|
|
|
|
| Three months ended Mar 31, |
| | 2011 |
| 2012 |
| | | |
|
| | | |
|
| Revenues | | $ | 20,713 | | | $ | 22,927 | |
|
Cost of revenue (1)
| |
|
3,157
|
| |
|
3,368
|
|
| Gross margin | | | 17,556 | | | | 19,559 | |
| | | |
|
|
Operating expenses:
| | | | |
|
Sales and marketing (1)
| | |
5,134
| | | |
5,665
| |
|
Technology and product development (1)
| | |
3,659
| | | |
3,779
| |
|
General and administrative (1)
| | |
4,924
| | | |
5,232
| |
|
Amortization of acquired intangible assets
| |
|
641
|
| |
|
538
|
|
|
Total operating expenses
| |
|
14,358
|
| |
|
15,214
|
|
| Income from operations | | | 3,198 | | | | 4,345 | |
| | | |
|
|
Interest and other (expense) income, net
| |
|
(317
|
)
| |
|
(687
|
)
|
| Income before tax | | | 2,881 | | | | 3,658 | |
| | | |
|
|
Income tax expense
| |
|
1,038
|
| |
|
1,196
|
|
| Net income | | | 1,843 | | | | 2,462 | |
|
Convertible preferred stock accretion of discount
| |
|
(85
|
)
| |
|
(85
|
)
|
| Net income applicable to common stockholders | | $ | 1,758 |
| | $ | 2,377 |
|
| | | |
|
|
Net income per share applicable to common stockholders:
| | | | |
|
Basic
| |
$
|
0.04
|
| |
$
|
0.06
|
|
|
Diluted
| |
$
|
0.04
|
| |
$
|
0.05
|
|
| | | |
|
|
Shares used in per share calculation:
| | | | |
|
Basic
| |
|
39,791
|
| |
|
42,677
|
|
|
Diluted
| |
|
41,881
|
| |
|
44,502
|
|
| | | |
|
|
(1) Stock-based compensation is allocated as follows:
| | | | |
| | | |
|
|
Cost of revenue
| |
$
|
130
| | |
$
|
128
| |
|
Sales and marketing
| | |
585
| | | |
385
| |
|
Technology and product development
| | |
801
| | | |
392
| |
|
General and administrative
| |
|
994
|
| |
|
780
|
|
|
Total
| |
$
|
2,510
|
| |
$
|
1,685
|
|
| | | | | | | |
|
| LOOPNET, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In thousands) |
| (unaudited) |
|
|
|
|
|
| Three months ended March 31, |
| | 2011 |
| 2012 |
| | | |
|
| Cash flows from operating activities: | | | | |
|
Net income
| |
$
|
1,843
| | |
$
|
2,462
| |
|
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | |
|
Depreciation and amortization expense
| | |
995
| | | |
973
| |
|
Stock-based compensation
| | |
2,510
| | | |
1,685
| |
|
Tax benefits from exercise of stock options
| | |
(165
|
)
| | |
(11
|
)
|
|
Deferred income taxes
| | |
704
| | | |
1,375
| |
|
Changes in operating assets and liabilities, net of effects of
acquisitions:
| | | | |
|
Accounts receivable
| | |
(250
|
)
| | |
(426
|
)
|
|
Prepaid expenses and other assets
| | |
320
| | | |
1,974
| |
|
Accounts payable
| | |
348
| | | |
24
| |
|
Accrued expenses and other liabilities
| | |
(73
|
)
| | |
(1,241
|
)
|
|
Accrued compensation and benefits
| | |
(991
|
)
| | |
(1,274
|
)
|
|
Deferred revenue
| |
|
555
|
| |
|
641
|
|
|
Net cash provided by operating activities
| | |
5,796
| | | |
6,182
| |
| | | |
|
| Cash flows from investing activities: | | | | |
|
Purchase of property and equipment
| | |
(900
|
)
| | |
(147
|
)
|
|
Purchase of investments
| |
|
(500
|
)
| |
|
(865
|
)
|
|
Net cash used in investing activities
| | |
(1,400
|
)
| | |
(1,012
|
)
|
| | | |
|
| Cash flows from financing activities: | | | | |
|
Net proceeds from exercise of stock options
| | |
960
| | | |
2,984
| |
|
Tax withholdings related to net share settlements of restricted
stock units
| | |
(482
|
)
| | |
(776
|
)
|
|
Repurchase of common stock
| | |
(7
|
)
| | |
-
| |
|
Tax benefits from exercise of stock options
| |
|
165
|
| |
|
11
|
|
|
Net cash provided by financing activities
| | |
636
| | | |
2,219
| |
| |
| |
|
|
Net increase in cash and cash equivalents
| | |
5,032
| | | |
7,389
| |
| | | |
|
|
Cash and cash equivalents at beginning of the year
| | |
88,773
| | | |
107,573
| |
| |
| |
|
| Cash and cash equivalents at end of the year | |
$
|
93,805
|
| |
$
|
114,962
|
|
| | | | | | | |
|
| LOOPNET, INC. |
| Reconciliation of GAAP Net Income to Adjusted EBITDA |
|
(In thousands, except per share data)
|
|
|
|
| Three months ended Mar 31, |
| | 2011 |
| 2012 |
| | | |
|
|
GAAP net income
| |
$
|
1,843
| | |
$
|
2,462
| |
| | | |
|
|
Add back (deduct):
| | | | |
|
Income tax expense
| | |
1,038
| | | |
1,196
| |
|
Depreciation and amortization
| | |
995
| | | |
973
| |
|
Interest and other expense (income), net
| | |
317
| | | |
687
| |
|
Stock-based compensation
| | |
2,510
| | | |
1,685
| |
|
Merger related costs
| |
|
248
|
| |
|
507
|
|
|
Adjusted EBITDA
| |
$
|
6,951
|
| |
$
|
7,510
|
|
|
|
|
|
| Reconciliation of GAAP Net Income to Non-GAAP Net Income |
|
(In thousands, except per share data)
|
|
|
| | Three months ended Mar 31, |
| | 2011 | | 2012 |
| | | |
|
|
GAAP net income
| |
$
|
1,843
| | |
$
|
2,462
| |
| | | |
|
|
Add back (deduct):
| | | | |
|
Stock-based compensation
| | |
2,510
| | | |
1,685
| |
|
Merger related costs
| | |
248
| | | |
507
| |
|
Amortization of acquired intangible assets
| | |
641
| | | |
538
| |
|
Income taxes associated with non-GAAP adjustments
| |
|
(1,224
|
)
| |
|
(893
|
)
|
|
Non-GAAP net income
| |
$
|
4,018
|
| |
$
|
4,299
|
|
| | | |
|
|
Diluted non-GAAP net income per share
| |
$
|
0.10
|
| |
$
|
0.10
|
|
| | | |
|
|
Shares used in non-GAAP diluted net income per share calculation
| |
|
41,881
|
| |
|
44,502
|
|
| | | | | | | |
|
Contacts:
LoopNet, Inc.
Brent Stumme, 415-284-4310
Chief Financial
Officer
Derek Brown, 415-284-4310
VP, Investor Relations &
Corporate Planning
Source: LoopNet, Inc.
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