WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 2012

  WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and
  Year Ended December 31, 2012

                         Annual Revenues Increase 12%

Business Wire

NEW YORK -- February 27, 2013

WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the fourth
quarter and full year ended December 31, 2012.

Highlights for the fourth quarter of 2012 include:

  *Revenues for the fourth quarter of 2012 were $3.3 million and revenues
    from trade shows and research increased 24% and 6%, respectively, compared
    to the same period in 2011.
  *Net loss for the fourth quarter of 2012 was $6.5 million and included a
    non-cash impairment charge of $5.5 million related to the write-down of
    goodwill, compared to a net loss of $9.1 million for the same period in
    2011.

Highlights for the year ended December 31, 2012 include:

  *Revenues for the year ended December 31, 2012 were $14.0 million compared
    to revenues of $12.4 million for the year ended December 31, 2011, an
    increase of 12%. Revenues from research, trade shows and advertising
    increased 80%, 35% and 18%, respectively, compared to 2011. Inside
    Network’s market research and data services business, which includes
    AppData, contributed $1.7 million in revenues during 2012. We acquired
    Inside Network in May 2011.
  *Net loss was $8.7 million for the year ended December 31, 2012, and
    included a non-cash impairment charge of $5.5 million related to the
    write-down of goodwill, compared to a net loss of $11.9 million for the
    year ended December 31, 2011. Non-GAAP loss, excluding interest, taxes,
    impairment, depreciation, amortization and stock-based compensation, or
    EBITDA, was $1.5 million for the year ended December 31, 2012 and included
    severance-related costs and a loss on the sale of certain assets totaling
    $402,000. EBITDA loss was $1.6 million for the same period in 2011.
    Stock-based compensation expense was $528,000 during the year ended
    December 31, 2012 compared to $991,000 during the same period in 2011.

“Our financial results for the year ended December 31, 2012, included revenue
growth of 12%, with our research and trade show businesses leading the way
with growth of 80% and 35%, respectively,” stated Alan M. Meckler, Chairman
and CEO of WebMediaBrands, Inc. “We have continued to invest in our product
offerings, specifically with our research and trade show businesses,” added
Meckler. “We remain optimistic and encouraged about the future success and
value of our business.”

WebMediaBrands Inc. Fourth Quarter 2012 Financial Results Conference Call
Alert

WebMediaBrands Inc. invites you to participate in its conference call
reviewing 2012 fourth quarter results on Wednesday, February 27, 2013 at 5:00
pm EST.

The conference call number is 888-437-9445 for domestic participants and
719-325-2329 for international participants; confirmation code “4162863.”
Please call five minutes in advance to ensure that you are connected prior to
the presentation. The conference call replay will be available untilTuesday,
March 5, 2013. Replay call numbers are 888-203-1112 for domestic participants
and 719-457-0820 for international participants; confirmation code “4162863.”


WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Year Ended December 31, 2012 and 2011

(in thousands, except per share amounts)

                           Three Months Ended       Year Ended
                            December 31,              December 31,
                            2012        2011         2012        2011
Revenues                    $ 3,320      $ 3,375      $ 13,962     $ 12,429
                                                                             
Cost of revenues              2,101        1,897        7,931        7,154
Advertising, promotion        772          551          2,692        2,088
and selling
General and                   1,142        1,395        5,080        5,475
administrative
Depreciation                  71           77           309          319
Amortization                  131          142          540          513
Impairment                    5,542        8,289        5,542        8,289
Contingent acquisition       —           —           —           329
consideration
Total operating expenses     9,759       12,351      22,094      24,167
                                                                             
Operating loss                (6,439 )     (8,976 )     (8,132 )     (11,738 )
Other loss, net               (24    )     (2     )     (240   )     (9      )
Interest income               1            45           4            86
Interest expense             (62    )    (122   )    (271   )    (657    )
Loss before income taxes      (6,524 )     (9,055 )     (8,639 )     (12,318 )
Provision (benefit) for      4           14          34          (403    )
income taxes
Net loss                    $ (6,528 )   $ (9,069 )   $ (8,673 )   $ (11,915 )
                                                                             
Loss per share:
Basic net loss              $ (1.09  )   $ (1.52  )   $ (1.45  )   $ (2.05   )
Diluted net loss            $ (1.09  )   $ (1.52  )   $ (1.45  )   $ (2.05   )
                                                                             
Weighted average shares
used in computing loss
per share:
Basic                        6,014       5,976       5,991       5,818
Diluted                      6,014       5,976       5,991       5,818
                                                                             
Shares outstanding and per share data have been adjusted to give effect to the
one-for-seven reverse stock
split implemented on August 16, 2012.



WebMediaBrands Inc.

Unaudited Consolidated Condensed Balance Sheets

December 31, 2012 and 2011

(in thousands, except share and per share amounts)
                                                             
                                               December 31,     December 31,
                                               2012             2011
ASSETS
Current assets:
Cash and cash equivalents                      $  2,210         $  3,438
Accounts receivable, net of allowances of         524              489
$16 and $11, respectively
Prepaid expenses and other current assets        503             575
Total current assets                              3,237            4,502
                                                                             
Property and equipment, net of accumulated
depreciation of $1,475 and $1,350,                268              477
respectively
Intangible assets, net of accumulated
amortization of $1,144 and $722,                  2,305            2,626
respectively
Goodwill                                          9,574            15,116
Investments and other assets                     687             1,146
Total assets                                   $  16,071        $  23,867
                                                                             
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable                               $  509           $  367
Accrued payroll and related expenses              493              391
Accrued expenses and other current                649              662
liabilities
Deferred revenues                                1,294           1,288
Total current liabilities                         2,945            2,708
                                                                             
Loan from related party                           7,647            7,647
Deferred revenues                                 17               22
Deferred income taxes                             474              444
Other long-term liabilities                      —               60
Total liabilities                                11,083          10,881
                                                                             
Commitments and contingencies:
                                                                             
Stockholders’ equity:
Preferred stock, $.01 par value, 4,000,000        —                —
shares authorized, no shares issued
Common stock, $.01 par value, 75,000,000
shares authorized, 6,138,879 and 6,077,911
shares issued and 6,019,594 and 5,958,626         61               61
shares outstanding at December 31, 2012 and
2011, respectively
Additional paid-in capital                        289,711          289,036
Accumulated deficit                               (284,288  )      (275,615  )
Treasury stock, 119,285 shares, at cost          (496      )     (496      )
Total stockholders’ equity                       4,988           12,986
Total liabilities and stockholders’ equity     $  16,071        $  23,867

Shares outstanding and per share data have been adjusted to give effect to the
one-for-seven reverse stock
split implemented on August 16, 2012.



WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011 (in thousands)

                                                    Year Ended December 31,
                                                     2012         2011
Cash flows from operating activities:
Net loss                                             $  (8,673 )   $ (11,915 )
Adjustments to reconcile net loss to net cash used
in operating activities:
Impairment                                              5,542        8,289
Depreciation and amortization                           849          832
Stock-based compensation                                528          991
Provision for losses on accounts receivable             27           15
Other, net                                              236          (2      )
Amortization of debt issuance costs                     36           28
Deferred income taxes                                   30           (410    )
Changes in current assets and liabilities (net of
businesses acquired):
Accounts receivable, net                                (62    )     135
Prepaid expenses and other assets                       176          660
Accounts payable, accrued expenses and other            167          (702    )
liabilities
Deferred revenues                                      1           236
Net cash used in operating activities                  (1,143 )    (1,843  )
Cash flows from investing activities:
Purchases of property and equipment                     (117   )     (57     )
Acquisitions of businesses, assets and other            (220   )     (9,062  )
Proceeds from sale of assets                           132         —
Net cash used in investing activities                  (205   )    (9,119  )
Cash flows from financing activities:
Borrowings from related party                           —            1,750
Purchase of treasury stock                              —            (390    )
Debt issuance costs                                     (23    )     (26     )
Repayment of borrowings from related party              —            (50     )
Proceeds from exercise of stock options                143         146
Net cash provided by financing activities              120         1,430
Effect of exchange rates on cash                       —           —
Net decrease in cash and cash equivalents               (1,228 )     (9,532  )
Cash and cash equivalents, beginning of year           3,438       12,970
Cash and cash equivalents, end of year               $  2,210      $ 3,438
Supplemental disclosures of cash flow:
Cash refund of income taxes, net                     $  70         $ 393
Cash paid for interest                               $  235        $ 629
                                                                             

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com) is a
leading Internet media company that provides content, education, and career
services to social media, traditional media, and creative professionals
through a portfolio of vertical online properties, communities, and trade
shows. The Company's online business includes: (i)mediabistro.com, a leading
blog network providing content, education, community, and career resources
(including the industry's leading online job board) about major media industry
verticals including new media, social media, Facebook, TV news, advertising,
public relations, publishing, design, and mobile; (ii) InsideNetwork.com, a
leading network of online properties providing original market research, data
services, news, and job listings on the Facebook platform, on social gaming,
and on mobile applications ecosystems; and (iii) SemanticWeb.com, a leading
blog providing content, education, community resources and career resources on
the commercialization and application of Semantic Technologies, Linked Data,
and Big Data. The Company's online business also includes community,
membership and e-commerce offerings including a freelance listing service, a
marketplace for designing and purchasing logos (stocklogos.com) and premium
membership services. The Company's trade show and educational offerings
include conferences, online and in-person courses, and video subscription
libraries on topics covered by the Company's online business.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release that are not historical facts are
"forward-looking statements" under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. The
potential risks and uncertainties address a variety of subjects including, for
example: general economic conditions; the competitive environment in which
WebMediaBrands competes; and the unpredictability of WebMediaBrands’s future
revenues, expenses, cash flows and stock prices. For a more detailed
discussion of such risks and uncertainties, refer to WebMediaBrands’s reports
filed with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934. The forward-looking statements included herein are made
as of the date of this press release, and WebMediaBrands assumes no obligation
to update the forward-looking statements after the date hereof, except as
required by law.

All current WebMediaBrands press releases can be found online at
http://www.webmediabrands.com/corporate/press.html.

Contact:

WebMediaBrands
Ashley Taylor Anderson, 415-275-1531
press@webmediabrands.com
 
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