TheStreet Reports First Quarter 2013 Results

                 TheStreet Reports First Quarter 2013 Results

PR Newswire

NEW YORK, May 9, 2013

NEW YORK, May 9, 2013 /PRNewswire/ --TheStreet, Inc.(NASDAQ: TST), a leading
digital financial media company, today reported financial results for the
first quarter of 2013. The Company reported revenue of $12.6 million, a net
loss of $1.7 million and negative Adjusted EBITDA^(1) of $0.03 million for the
quarter. Excluding payments related to restructuring and other charges, the
Company generated more than $0.8 million in operating cash flow for the first
quarter.

Revenue for the first quarter decreased 2% compared to the prior year period.
Subscription Services revenue was $10.4 million for the first quarter, an
increase of 13% compared to the prior year period which was due to revenue
from The Deal, acquired in September 2012. Media revenue was $2.2 million for
the first quarter, a decrease of 40% compared to the prior year period.

"We are seeing the benefits of right-sizing the cost structure initiated in
2012. In 2013, we continued to execute our turnaround strategy, positioning
the business for growth, optimizing the free site and modernizing our
technology infrastructure. By acquiring private placement content, we further
demonstrated our commitment to growing the institutional subscription
offerings," said Elisabeth DeMarse, Chairman, President and Chief Executive
Officer.

Selected Operating Results of First Quarter 2013

  oThe number of paid subscriptions at period end was 76,090. Sequentially,
    this represents an increase of 3.5% from the prior quarter ^ (2).
  oAverage revenue per user increased 3.0% as compared to the prior year
    period ^ (2).
  oAverage monthly churn decreased to 3.0% from 5.1% in the prior year period
    ^(2) (3).

Operating expenses in the first quarter of 2013 were $14.4 million, a decrease
of $3.0 million or 17%, as compared to the prior year period. The decrease
was primarily due to lower expenses attributable to the 2012 right-sizing,
partly offset by expenses of The Deal.

The Company's net loss was $1.7 million in the first quarter of 2013 compared
to a net loss of $4.4 million in the prior year period, an improvement of 61%.
The Company reported basic and diluted net loss per share attributable to
common stockholders of $0.05 in the first quarter of 2013, as compared to a
net loss per share of $0.14 in the prior year period. 

Adjusted EBITDA was negative $0.03 million in the first quarter of 2013
compared to negative $1.0 million in the prior year period.

The Company ended the first quarter of 2013 with cash and cash equivalents,
restricted cash and marketable securities of $60.3 million.

Conference Call Information

TheStreet will discuss its financial results for the first quarter today at
5:00 p.m. ET.

To participate in the call, please dial (800) 649-5127 (domestic) or (914)
495-8549 (international). The Conference ID number is 33192550. This call is
being webcast and can be accessed in the Investor Relations section of
TheStreet website at http://investor-relations.thestreet.com/events.cfm.

A replay of the webcast will be available approximately two hours after the
conclusion of the call and remain available for approximately ninety calendar
days.

About TheStreet

TheStreet, Inc. (www.t.st) is the leading independent digital financial media
company providing business and financial news, investing ideas and analysis to
personal and institutional investors worldwide. The Company's portfolio of
business and personal finance brands includes: TheStreet, RealMoney, RealMoney
Pro, Stockpickr, Action Alerts PLUS, Options Profits, MainStreet and
Rate-Watch. To learn more, visit www.thestreet.com. The Deal, the Company's
institutional business, provides intraday coverage of mergers and acquisitions
and all other changes in corporate control. To learn more, visit
www.thedeal.com.

The TheStreet, Inc. logo is available at:
http://photos.prnewswire.com/prnh/20130102/NY35868LOGO-b.

Non-GAAP Financial Information

^(1) To supplement the Company's financial statements presented in accordance
with generally accepted accounting principles ("GAAP"), the Company uses
non-GAAP measures of certain components of financial performance, including
"EBITDA," "Adjusted EBITDA" and "free cash flow." EBITDA is adjusted from
results based on GAAP to exclude interest, income taxes, depreciation and
amortization. This non-GAAP measure is provided to enhance investors' overall
understanding of the Company's current financial performance and its prospects
for the future. Specifically, the Company believes that the non-GAAP EBITDA
results are an important indicator of the operational strength of the
Company's business and provide an indication of the Company's ability to
service debt and fund acquisitions and capital expenditures. EBITDA
eliminates the uneven effect of considerable amounts of non-cash depreciation
of tangible assets and amortization of certain intangible assets that were
recognized in business combinations. Adjusted EBITDA further eliminates the
impact of non-cash stock compensation, restructuring, transaction related
costs and other charges affecting comparability. A limitation of these
measures, however, is that they do not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating revenues in the
Company's businesses. Management evaluates the investments in such tangible
and intangible assets through other financial measures, such as capital
expenditure budgets and investment spending levels. "Free cash flow" means
net loss plus non-cash expenses net of gains/losses on dispositions of assets,
less changes in operating assets and liabilities and capital expenditures.
The Company believes that this non-GAAP financial measure is an important
indicator of the Company's financial results because it gives investors a view
of the Company's ability to generate cash.

^(2) Calculation excludes the impact of the acquisition of The Deal.

^(3) Average monthly churn rate is defined as subscriber
terminations/expirations in the quarter divided by the sum of the beginning
subscribers and gross subscriber additions for the quarter, then divided by
three. Subscriptions that are on a free-trial basis are not regarded as added
or terminated unless the subscription is active at the end of the free-trial
period.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding the impact of the
Company's restructuring, growth initiatives and expectations for 2013. Such
forward-looking statements are subject to risks and uncertainties, including
those described in the Company's filings with the Securities and Exchange
Commission ("SEC") that could cause actual results to differ materially from
those reflected in the forward-looking statements. Factors that might
contribute to such differences include, among others, economic downturns and
the general state of the economy, including the financial markets and mergers
and acquisitions environment, our ability to drive revenue, and increase or
retain current subscription revenue, our ability to optimize our free site and
generate new subscription revenue; our ability to successfully integrate The
Deal and other acquisitions; our ability to develop new products; competition
and other factors set forth in our filings with the SEC, which are available
on the SEC's website at www.sec.gov. All forward-looking statements contained
herein are made as of the date of this press release. Although the Company
believes that the expectations reflected in the forward-looking statements are
reasonable, the Company cannot guarantee future results or occurrences. The
Company disclaims any obligation to update these forward-looking statements,
whether as a result of new information, future developments or otherwise.

Contacts:
John Ferrara
Chief Financial Officer
TheStreet, Inc.
212-321-5234
ir@thestreet.com

Erica Mannion
Investor Relations
Sapphire Investor Relations, LLC
415-471-2700
ir@thestreet.com



THESTREET, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS                              March 31, 2013     December 31, 2012
Current Assets:
Cash and cash equivalents           $   29,817,517   $      
                                                       23,845,360
Marketable securities               17,045,356         18,096,091
Accounts receivable, net of
allowance for doubtful
 accounts of $195,292 at March
31, 2013 and $165,291 at
 December 31, 2012                4,990,607          5,750,753
Other receivables                   886,538            1,134,142
Prepaid expenses and other current  1,270,987          1,450,742
assets
 Total current assets          54,011,005         50,277,088
Property and equipment, net of
accumulated depreciation
 and amortization of $14,798,360
at March 31, 2013
 and $14,633,037 at December 31,  5,306,110          5,672,000
2012
Marketable securities               12,149,600         17,298,227
Other assets                        27,006             69,957
Goodwill                            25,726,239         25,726,239
Other intangibles, net of
accumulated amortization of
$7,077,177
 at March 31, 2013 and            10,810,113         11,190,557
$6,699,283 at December 31, 2012
Restricted cash                     1,301,000          1,301,000
 Total assets                  $  109,331,073    $      111,535,068
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable                    $    2,440,528  $       
                                                       3,813,955
Accrued expenses                    4,812,138          5,921,152
Deferred revenue                   22,382,355         21,080,759
Other current liabilities           623,782            632,618
 Total current liabilities     30,258,803         31,448,484
Deferred tax liability              288,000            288,000
Other liabilities                   4,301,819          4,340,749
 Total liabilities             34,848,622         36,077,233
Stockholders' Equity:
Preferred stock; $0.01 par value;
10,000,000 shares
 authorized; 5,500 shares issued
and 5,500 shares
 outstanding at March 31, 2013
and December 31, 2012;
 the aggregate liquidation
preference totals $55,000,000 as
of
 March 31, 2013 and December 31,  55                 55
2012
Common stock; $0.01 par value;
100,000,000 shares
 authorized; 40,369,452 shares
issued and 33,474,123
 shares outstanding at March 31,
2013, and 39,855,468
 shares issued and 33,027,752
shares outstanding at
 December 31, 2012                403,695            398,555
Additional paid-in capital          271,751,728        270,943,151
Accumulated other comprehensive     (50,344)           (128,994)
income
Treasury stock at cost; 6,895,329
shares at March 31, 2013
 and 6,827,716 shares at          (12,099,328)       (11,974,261)
December 31, 2012
Accumulated deficit                 (185,523,355)      (183,780,671)
 Total stockholders' equity    74,482,451         75,457,835
 Total liabilities and         $  109,331,073    $      111,535,068
stockholders' equity



THESTREET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
                                          For the Three Months Ended March 31,
                                          2013                2012
Net revenue:
Subscription services                     $10,396,464         $ 9,189,981
Media                                     2,183,737           3,625,846
 Total net revenue                      12,580,201          12,815,827
Operating expense:
Cost of services                          6,242,746           6,435,162
Sales and marketing                       3,416,147           4,090,249
General and administrative                3,463,775           3,822,521
Depreciation and amortization             943,056             1,287,262
Restructuring and other charges           385,610             1,713,498
Gain on disposition of assets             (56,586)            -
 Total operating expense              14,394,748          17,348,692
 Operating loss                       (1,814,547)         (4,532,865)
Net interest income                       71,863              96,087
 Loss before income taxes                (1,742,684)         (4,436,778)
Provision for income taxes                -                   -
Net loss                                  (1,742,684)         (4,436,778)
Preferred stock cash dividends            -                   96,424
Net loss attributable to common           $ (1,742,684)       $(4,533,202)
stockholders
Basic and diluted net loss per share:
 Net loss                                $     (0.05)    $    (0.14)
 Preferred stock dividends               -                   (0.00)
 Net loss attributable to common      $     (0.05)    $    (0.14)
stockholders
Weighted average basic and diluted        33,278,477          32,342,541
shares outstanding
Net loss                                  $ (1,742,684)       $(4,436,778)
Net interest income                       (71,863)            (96,087)
Depreciation and amortization             943,056             1,287,262
EBITDA                                    (871,491)           (3,245,603)
Restructuring and other charges           385,610             1,713,498
Stock based compensation                  420,522             532,908
Gain on disposition of assets             (56,586)            -
Transaction related costs                 87,930              1,469
Adjusted EBITDA                           $   (34,015)      $  (997,728)



THESTREET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        For the Three Months Ended March 31,
                                        2013                2012
Cash Flows from Operating Activities:
Net loss                                $ (1,742,684)       $ (4,436,778)
Adjustments to reconcile loss from
continuing operations
 to net cash (used in) provided by
operating activities:
Stock-based compensation expense        420,522             532,908
Provision for doubtful accounts         (25,761)            65,769
Depreciation and amortization           943,056             1,287,262
Restructuring and other charges         393,195             847,980
Deferred rent                           (80,633)            (79,989)
Noncash barter activity                 -                   48,183
Gain on disposition of assets           (56,586)            -
Changes in operating assets and
liabilities:
 Accounts receivable                720,575             521,152
 Other receivables                   367,768             84,845
 Prepaid expenses and other current  179,754             (544,764)
assets
 Other assets                        (11,881)            28,186
 Accounts payable                    (1,373,427)         39,265
 Accrued expenses                    (1,169,674)         (1,386,689)
 Deferred revenue                    1,419,780           507,501
 Other current liabilities          (24,657)            75,207
 Net cash used in operating    (40,653)            (2,409,962)
activities
Cash Flows from Investing Activities:
Purchase of marketable securities       -                   (35,700,010)
Sale and maturity of marketable         6,278,012           14,485,094
securities
Capital expenditures                    (196,721)           (486,657)
Proceeds from the disposition of        56,586              -
assets
 Net cash provided by (used    6,137,877           (21,701,573)
in) investing activities
Cash Flows from Financing Activities:
Cash dividends paid on common stock     -                   (802,601)
Cash dividends paid on preferred stock  -                   (96,424)
Proceeds from the sale of common stock  -                   135,000
Purchase of treasury stock              (125,067)           (733,501)
 Net cash used in financing    (125,067)           (1,497,526)
activities
Net (decrease) increase in cash and     5,972,157           (25,609,061)
cash equivalents
Cash and cash equivalents, beginning    23,845,360          44,865,191
of period
Cash and cash equivalents, end of       $ 29,817,517        $ 19,256,130
period
Supplemental disclosures of cash flow
information:
Cash payments made for interest         $        -  $        -
Cash payments made for income taxes     $        -  $        -
Net loss                                $ (1,742,684)       $ (4,436,778)
Noncash expenditures                    1,593,793           2,702,113
Changes in operating assets and         108,238             (675,297)
liabilities
Capital expenditures                    (196,721)           (486,657)
Free cash flow                          $  (237,374)      $ (2,896,619)



SOURCE TheStreet, Inc.

Website: http://www.t.st
 
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