Local Corporation Reiterates Third Quarter 2012 Guidance
IRVINE, Calif. -- September 26, 2012
Local Corporation (NASDAQ: LOCM), a leading online local media company, today
reiterated its expectations for the third quarter 2012 ending Sept. 30, 2012.
In line with the company's previous guidance, Local Corporation expects third
quarter 2012 revenue to be approximately $24.5 million, an increase of over
18% compared to the year ago period. While GAAP net income (loss) cannot be
calculated at this time, Adjusted Net Income for the third quarter 2012 is
expected to be approximately breakeven, or $0.00 per diluted share, assuming
diluted weighted average shares of 22.5 million.
Adjusted Net Income (Loss) is defined as net income (loss) excluding:
provision for income taxes; interest and other income (expense), net;
depreciation; amortization; stock-based compensation charges; gain or loss on
warrant revaluation; net income (loss) from discontinued operations;
impairment charges and non-recurring items.
Projected third quarter 2012 Adjusted Net Income (Loss) Factors:
*Interest Expense of $100,000
*Tax Provision Expense of $50,000
*Depreciation Expense of $1.0 million
*Amortization Expense of $800,000
*Stock Compensation Expense of $1.0 million
*Net Loss from Rovion assets held for sale of $300,000
*Warrant Revaluation Expense and Other Non-Recurring items are
* The valuation of the warrant liability is based in large part on the
underlying price and volatility of our common stock during the quarter. Since
we cannot predict this, we cannot project the non-cash gain or loss in
connection with these warrants, and therefore cannot reasonably project our
GAAP net income (loss). We therefore cannot provide GAAP guidance, but do
report GAAP results.
The company has seen seasonal improvements to monetization post Labor Day as
Fourth quarter guidance will be discussed on the company’s third quarter
financial results call to be scheduled for early November.
About Local Corporation
Local Corporation (NASDAQ:LOCM) is a leading online local media company that
connects brick-and-mortar businesses with over a million online and mobile
consumers each day using a variety of innovative digital marketing products.
To advertise, or for more information, visit: http://www.localcorporation.com.
Forward Looking Statements
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. Key risks are
described in the filings we make with the U.S. Securities and Exchange
Commission. The forward-looking statements in this release speak only as of
the date they are made. We undertake no obligation to revise or update
publicly any forward-looking statement for any reason. Unless otherwise
stated, all site traffic and usage statistics are from third-party service
providers engaged by the company.
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