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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