|By Business Wire||
|April 24, 2014 04:05 PM EDT||
Inuvo, Inc. (NYSE MKT:INUV), an Internet marketing and technology company that delivers targeted advertisements into websites and applications reaching desktop and mobile devices, today announced net income of $675,000 or $0.03 per basic and diluted share for the first quarter of 2014, a significant improvement over the net loss of $291,000, or $0.01 per share loss in the prior year. Revenue for the first quarter of 2014 was $10.1 million compared to $15.9 million for the first quarter of 2013. Adjusted EBITDA was $1.3 million compared to $1.4 million in the first quarter of 2013.
"The first quarter’s results and the second quarter’s upward revenue trajectory, give us confidence that the foundation we’ve built can deliver both growth and profit. While revenue was light in the first quarter, this was expected and directly related to the announced transition from toolbar to content rich websites / mobile applications and masks the 44% quarter over quarter underlying growth rate in the latter,” stated, Richard Howe, Chairman and Chief Executive Officer of Inuvo.
First Quarter 2014 Highlights
- Net income was $675,000, up $965,000 from a net loss of $291,000 in the first quarter of 2013.
- Shareholder equity increased to approximately $6.1 million at March 31, 2014, which we believe is compliant with the listing requirements of the NYSE.
- ALOT sites revenue was $3.7 million in the first quarter of 2014, a 162% improvement over the first quarter of 2013 and a 44% improvement over the immediate prior quarter.
- Earnings per diluted share were $0.03, up from loss of $0.01 per share in the first quarter of 2013.
- Operating profit was up over $1 million dollars as operating expenses improved 35% from $8.8 million in 2013 to $5.8 million in 2014.
- Adjusted EBITDA, a non-GAAP measure, was $1.3 million.
- The launch of new ALOT branded websites at www.travel.alot.com and www.finance.alot.com/legal.
Management believes it is now in a position to quickly apply capital towards growth and to this end the company expects to secure additional debt financing in 2014. There are no immediate plans to obtain capital through an equity offering.
The Inuvo business is managed along two segments, the Partner Network and the Owned and Operated Network. The Partner Network facilitates transactions between advertisers and our partners' websites and applications. The Owned and Operated Network designs, builds and markets mobile-ready consumer websites and applications under the ALOT brand. The segments share the utilization of the company’s core technology platform.
Three-month financial results for the period ended March 31, 2014
Net revenues for the three months ended March 31, 2014, were $10.1 million as compared to $15.9 million for the three months ended March 31, 2013. The lower year over year revenue comparison for the quarter was primarily due to a planned transition out of toolbar, which had revenue of $981 thousand in the first quarter of 2014 compared to $4.8 million in the same quarter last year. Improved margins in the quarter were the result of enforcing publisher contract terms and conditions and our Network operating policies, including validating traffic sources, improved technological detection, periodic publisher auditing, and where appropriate, modifying publisher payment terms. This resulted in lower revenues but higher margins in the first quarter that should return to normal operating levels in subsequent quarters. Revenue in our Owned and Operated Network was $4.7 million in the first quarter of 2014 compared to $7.0 million in the same quarter last year and reflects the transition from toolbar to content rich websites and applications within the segment. Gross profit decreased in the current quarter compared to the same quarter last year reflecting the lower revenues. Operating expenses also improved in the current quarter compared to the same quarter last year due to lower marketing costs and in large part to the move to Arkansas in 2013.
For the quarter ended March 31, 2014, Adjusted EBITDA, a non-GAAP measure was $1.3 million compared to $1.4 million in the first quarter of 2013. The Company reported net income of $675,000, or $0.03 per diluted share, for the three months ended March 31, 2014, compared to a net loss of $291,000, or $0.01 per share loss for the corresponding period last year.
Balance Sheet as of March 31, 2014
Cash and cash equivalents totaled $2.7 million at March 31, 2014. Current assets and total assets were $7.1 million and $24.4 million, respectively and current liabilities and total liabilities were $13.7 million and $18.4 million, respectively, as of March 31, 2014. Bank debt was reduced to $5.5 million from $6.1 million at December 31, 2013. Shareholders’ equity was approximately $6.1 million at March 31, 2014.
Conference Call Information
|Date: Wednesday, April 24, 2014|
|Time: 4:30 p.m. EDT|
|Domestic Dial-in number: 1-877-941-2069|
|International Dial-in number: 1-480-629-9713|
In addition, the call will be webcast on the Investor Relations section of the Company's website at http://investor.inuvo.com/events_and_presentations where it will also be archived for 45 days. A telephone replay will be available through Thursday, May 8, 2014. To access the replay, please dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international). At the system prompt, enter the code 4680722 followed by the # sign. You will then be prompted for your name, company and phone number. Playback will then automatically begin.
About Inuvo, Inc.
Inuvo®, Inc. (NYSE MKT: INUV ) is an Internet marketing and technology company that delivers targeted advertisements into websites and applications reaching desktop and mobile devices. To learn more about Inuvo, please visit www.inuvo.com.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations with respect to our lack of profitable operating history, changes in our business, potential need for additional capital, fluctuations in demand; changes to economic growth in the U.S. economy; and government policies and regulations, including, but not limited to those affecting the Internet, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2013. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo and are difficult to predict. Inuvo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|March 31,||December 31,|
|Accounts receivable, net||3,928,792||3,609,825|
|Prepaid expenses and other current assets||474,504||510,968|
|Total current assets||7,142,572||7,282,418|
|Property and equipment, net||1,081,744||1,188,566|
|Intangible assets, net||10,125,825||10,324,326|
|Liabilities and Stockholders’ Equity|
|Accrued expenses and other current liabilities||2,461,105||2,386,226|
|Term and credit notes payable, current portion||5,548,830||2,548,333|
|Total current liabilities||13,734,354||11,170,092|
|Deferred tax liability||3,713,205||3,788,903|
|Term and credit notes payable, long term||-||3,595,300|
|Other long-term liabilities||925,476||1,039,470|
|Total stockholders' equity||6,050,784||5,341,866|
|Total liabilities and stockholders' equity||$24,423,819||$24,935,631|
|CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)|
Three Months Ended
|March 31,||March 31,|
|Cost of revenue||3,676,755||7,480,868|
|Selling, general and administrative||1,010,609||2,144,831|
|Total operating expenses||5,774,211||8,831,045|
|Other expense, net||(97,802)||(106,669)|
|Net income (loss) from continuing operations before taxes||572,949||(498,803)|
|Income tax benefit (expense)||75,699||83,000|
|Net income (loss) from continuing operations||648,648||(415,803)|
|Net income (loss) from discontinued operations||26,111||125,093|
|Net income (loss)||674,759||(290,710)|
|Foreign currency valuation||-||3|
|Total comprehensive income (loss)||$674,759||($290,713)|
|Earnings per share, basic and diluted|
|From continuing operations||$0.03||($0.02)|
|From discontinued operations||.-||0.01|
|Net income (loss)||$0.03||($0.01)|
|Weighted average shares outstanding|
|By Segment (Unaudited):|
|Owned and Operated Network||4,670,100||7,002,782|
|Owned and Operated Network||4,586,559||6,636,553|
RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED
|Three Months Ended|
|March 31,||March 31,|
|Net income (loss) from continuing operations before taxes||$572,949||($498,803)|
|Interest expense, net||97,802||106,669|
Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted EBITDA
In addition to disclosing financial results in accordance with United States generally accepted accounting principles (“GAAP”), our earnings release contains the non-GAAP financial measure “Adjusted EBITDA.”
Adjusted EBITDA is not a measure of performance defined in accordance with GAAP. However, management believes that Adjusted EBITDA is useful to investors in evaluating the Company’s performance because Adjusted EBITDA is a commonly used financial analysis tool for measuring and comparing companies in the Company’s industry in areas of operating performance.
Management believes that the disclosure of Adjusted EBITDA offers an additional view of the Company’s operations that, when coupled with the GAAP results and the reconciliation to GAAP net loss, provides a more complete understanding of the Company’s results of operations and the factors and trends affecting the Company’s business.
We present Adjusted EBITDA as a supplemental measure of our performance. We defined Adjusted EBITDA as net income (loss) from continuing operations before taxes plus (i) interest expense, net, (ii) depreciation, (iii) amortization, (iv) stock-based compensation, and (v) accrued severances. These further adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Dec. 8, 2016 07:15 PM EST Reads: 317
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 8, 2016 06:45 PM EST Reads: 924
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Dec. 8, 2016 05:45 PM EST Reads: 929
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 8, 2016 05:45 PM EST Reads: 1,714
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 8, 2016 05:00 PM EST Reads: 1,810
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 8, 2016 04:45 PM EST Reads: 1,839
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 8, 2016 04:45 PM EST Reads: 2,243
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 8, 2016 04:30 PM EST Reads: 356
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Dec. 8, 2016 04:30 PM EST Reads: 1,963
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Dec. 8, 2016 04:15 PM EST Reads: 279
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 8, 2016 04:15 PM EST Reads: 2,309
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 8, 2016 04:00 PM EST Reads: 1,074
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Dec. 8, 2016 03:45 PM EST Reads: 1,083
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 8, 2016 03:30 PM EST Reads: 1,226
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 8, 2016 03:15 PM EST Reads: 313