Trulia Reveals Trend Towards Homeownership Where Affordability To Buy Versus Rent Extends to Almost Four in Five Major US Cities
TRULIA REVEALS TREND TOWARDS HOMEOWNERSHIP WHERE AFFORDABILITY TO BUY VERSUS RENT EXTENDS TO ALMOST FOUR IN FIVE MAJOR U.S. CITIES Rent vs. Buy Decision in Coastal Cities – Los Angeles, Seattle, Boston, San Francisco, Portland and Oakland – Depends Less on Home Affordability, More on Personal Finances
SAN FRANCISCO, April 28, 2011 – Trulia http://www.trulia.com/ today released its Q2 2011 Rent vs. Buy Index, which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in the 50 largest[1] U.S. cities. Since last quarter, buying a home has become more affordable than renting in nearly four out of five (80 percent) major cities; only in New York, Fort Worth and Kansas City was renting a less costly option than buying.
Scripps Networks Interactive Enters Into Agreement to Sell Shopzilla Inc.
April 28, 2011 10:22 PM Eastern Daylight Time *Scripps Networks Interactive Enters Into Agreement to Sell Shopzilla Inc.*
KNOXVILLE, Tenn.–(BUSINESS WIRE http://www.businesswire.com/)–Scripps Networks Interactive Inc. (NYSE:SNI) today announced that it has entered into a definitive agreement to sell Shopzilla Inc. to Symphony Technology Group (STG), a strategic private equity firm with the mission of investing in and building great software and service companies.
“While we believe that Shopzilla has strong growth potential in the online retail space, its mission and future trajectory diverge from SNI’s focus on lifestyle media brands”
STG will acquire all of the outstanding shares of Shopzilla for $165 million, comprised of $150 million in cash paid immediately upon closing of the transaction and $15 million in deferred payments. Symphony Technology Group intends to continue and accelerate the growth of Shopzilla through innovation and operational expertise.
Shopzilla Inc., a consumer lead generation platform focused in online retail, owns and operates a portfolio of leading online consumer shopping properties in comparison shopping, product discovery and social shopping/group sales. With the highly targeted and desirable audiences that Shopzilla aggregates and delivers via these properties, Shopzilla is a leading source of sales for online retailers and advertisers. Shopzilla reaches more than 40 million shoppers across the United States, United Kingdom, France and Germany through its destination websites, publisher syndication network, and point of sale survey platform.
“While we believe that Shopzilla has strong growth potential in the online retail space, its mission and future trajectory diverge from SNI’s focus on lifestyle media brands,” said Joseph G. NeCastro, chief financial and administrative officer for Scripps Network Interactive. “The best way to create the most value for both parties was for Shopzilla to find a new partner and for SNI to continue to focus on its core. We believe STG will be a strong partner and will enable Shopzilla to accelerate its growth.”
“We are very excited to be partnering with the team at Shopzilla,” said J.T. Treadwell, managing director with STG. “We believe the platform is a tremendous leverage point to create value for consumers, to generate sales for merchant partners, and to drive innovation in new models of consumer e-commerce. In addition, Shopzilla’s management team is innovative and driven. They have created one of the most important players in online retail. We believe that through this partnership, and by leveraging the experience STG has had with consumer insight investments, such as SymphonyIRI Group, we will work together to build upon and expand the value of the platform to consumers and customers at the leading edge of a very dynamic e-commerce industry. SNI has been a strong owner of the business and we appreciate the opportunity to build upon what they and the team at Shopzilla have created.”
“In partnership with SNI, we have not only fortified our position as a leader in comparison shopping and retail consumer insights, but also expanded and diversified our portfolio to include new value propositions for the consumer and our merchant partners in product discovery and group/flash sales,” said Bill Glass, president of Shopzilla Inc. “We have been extremely fortunate to have had such a strong partnership with SNI over the past six years that has enabled us to continue to pioneer new models for delivering value in online retail. We are very excited to partner with STG, which has a proven track record of consumer insight innovation and successful partnerships with technology-driven companies like ours. With this new partnership, Shopzilla is poised to enter its next chapter of innovation and growth.”
Tennenbaum Capital Partners is providing the debt financing in support of the transaction. “We are pleased to continue our relationship with STG and to provide financing for Shopzilla to continue its growth plans,” said Philip Tseng, partner with Tennenbaum Capital Partners.
SNI expects the transaction to close on or around May 31, 2011 upon satisfaction of normal and customary closing conditions. Sagent Advisors acted as exclusive financial advisor to Scripps Networks Interactive and Shopzilla on the transaction.
*About Shopzilla Inc.*
Shopzilla Inc
*About Symphony Technology Group*
Symphony Technology Group (STG)
*About Scripps Networks Interactive*
Scripps Networks Interactive
*About Tennenbaum Capital Partners, LLC*
Tennenbaum Capital Partners™ (“TCP”)
MediaBank Acquires AdBuyer.com, Platform Enabling Unified Media Management Across Search and Display
MediaBank Acquires AdBuyer.com, Platform Enabling Unified Media Management Across Search and Display
*Will become core technology powering media management across digital and traditional channels, strongly enhances MediaBank Marketplaces division*
*Chicago, April 28, 2011*- MediaBank has acquired AdBuyer.com, a media buying and optimization platform that runs across both the major search engine networks and the display ad exchanges. MediaBank will make the AdBuyer platform available to MediaBank partners via the MediaBank O|X and A|V media management systems, and will expand AdBuyer’s cross-channel capabilities across all major media—creating a single, unified command center spanning digital and traditional advertising.
Through AdBuyer, MediaBank partners will now have the ability to plan, optimize, and behaviorally target media as a single, coordinated campaign running across both search and display exchanges—including Google/DoubleClick, Yahoo! Search, Bing, Right Media, and OpenX—and to bid within those exchanges in real time. MediaBank users will also have access to sophisticated targeting information from BlueKai, eXelate, TargusInfo, Rapleaf, and AlmondNet, via AdBuyer’s data partnerships.
In the second phase of integration, AdBuyer will become the core system powering M|Buy Marketplace, MediaBank’s own cross-channel planning and buying platform which currently enables targeted buying across roughly 80% of all US print inventory. The enhanced, AdBuyer-powered M|Buy will provide cross-channel management across the digital and print channels, with more media types to come.
“Today’s media campaigns are interwoven across limitless channels and touchpoints, increasingly across exchanges and other automated marketplaces” explained Bill Wise, CEO, MediaBank. “This creates serious challenges of reconciling data and strategies across each medium’s own pricing models, targeting systems, and even conversion goals. AdBuyer has solved the difficult ‘apples-and-oranges’ computational problems of cross-media management; we’re thrilled to pass AdBuyer’s capabilities on to our clients, and to expand those capabilities across digital and traditional media.”
AdBuyer will be MediaBank’s third major technology acquisition. In 2007, the company acquired leading competitor Datatech; it acquired MediaPlex Systems, another competitor, in 2008. The AdBuyer acquisition will bring the entire AdBuyer team into the MediaBank fold, with AdBuyer CEO Tim Ogilvie becoming MediaBank’s new SVP of Product. Ogilvie will report to John Bauschard, President of MediaBank Marketplaces, the MediaBank division which houses M|Buy.
Said Bauschard: “Tim and his team have proven themselves revolutionary thinkers in media technology, with a masterful ability to execute on game-changing ideas. They’ll be an incredible asset to MediaBank and its partner community, as together we push the media management technology revolution ahead.”
Added Ogilvie: “AdBuyer has always envisioned truly holistic, channel-agnostic campaign management that allows marketers to think only about their customers and their goals, letting the platform handle the analytical heavy lifting. In MediaBank, we’ve found the partner that will make that vision a new reality for some of the most sophisticated media businesses in the world, across all media channels. We’re thrilled to join forces with such an incredible change-agent.”
*About MediaBank* MediaBank, the operating system for the advertising industry, provides workflow systems, analytics platforms, and agency financial tools that deliver unprecedented levels of cross-media intelligence and efficiency for media planners, buyers, and vendors, at all levels of the market. To learn why MediaBank gains the trust of some of the leading names in media buying today, visit www.MBXG.com http://www.mbxg.com/ now.
*About AdBuyer.com* AdBuyer.com (www.adbuyer.com http://adbuyer.com/) is a disruptive buying and optimization platform spanning search and the display ad exchanges. AdBuyer.com helps the top 5,000 search marketers grow by allowing them to get more out of their existing search campaigns and expand profitably into the display ad exchanges.
AdBuyer.com was founded in 2007 and is based in New York City.
Oodle Chooses Aria Systems for Cloud Billing
Oodle Chooses Aria Systems for Cloud Billing
SAN MATEO, Calif. – April 28, 2011 – Aria Systems ( http://www.AriaSystems.com http://www.ariasystems.com/), the leading provider of cloud billing and subscription management solutions, today announced that Oodle has selected Aria to monetize their social-network-savvy classified advertising model.
Using the power of social media, Oodle is reinventing online classifieds by providing consumers with a local marketplace to buy, sell and trade. Oodle Pro enables local property managers, real estate agents and car dealers to join the conversation by adding their identity and reputation on Facebook and Twitter to their local listings. Oodle operates a network of online marketplaces with more than 12 million monthly unique users.
Originally, Oodle’s primary monetization model was based on flat-rate subscription plans. As the market evolved, Oodle identified an opportunity to expand and enhance its business model, by adding plans that could combine subscriptions with usage, credits and more. With Aria, Oodle can use any combination of one-time, subscription or usage-based fees as well as virtual goods and currencies, through pre-paid, post-paid, tiered, freemium and other monetization models.
“We’re in a very dynamic market where staying agile and aligned to our customers’ needs is critical,” said Matt Kaufman, vice president of product at Oodle. “We selected Aria to support that strategy with its flexible, cloud-based billing platform.”
“This is further validation showing that companies in fast-moving markets need a monetization platform that’s dynamic and flexible enough to drive higher lifetime customer value while enhancing our clients’ customer’s experience,” said Mike Morini, CEO at Aria Systems. “We’ve invested in developing the industry’s most robust cloud billing platform to help our customers maximize top-line revenue in any recurring model.” About Aria Systems
Aria is the market leader in subscription and recurring billing solutions. Since 2003, Aria has managed over one million accounts in more than 195 countries. Aria’s Billing Platform is the billing industry’s most reliable, flexible and scalable on demand tool for accelerating revenue capture while significantly reducing operating costs. Additionally, having achieved end-to-end Level 1 PCI Compliance and SAS70 Certification, Aria Systems leads the market in security and compliance. Backed by Hummer Winblad Venture Partners, Venrock Associates and Dave Labuda, Founder and former CEO of Portal Software, Aria’s team of SaaS and billing experts are part of a company that billed over 2.5 million customers for $1 billion a year in transactions. Aria Systems is headquartered in Media, PA (metropolitan Philadelphia) and has offices in the San Francisco Bay Area (San Mateo, CA). Aria Systems has been ranked as the 5th fastest growing, privately held company in the Philadelphia region by the Philadelphia 100. For more information about Aria Systems, visit http://www.AriaSystems.com
Monster Worldwide reports Q1 2011 results
| Q1 Bookings of $272 Million Increased 24% Year over Year Deferred Revenue Improved to $399 Million, a 31% Year over Year Increase; Cash Flow From Operations of $49 Million Q1 GAAP Revenue of $261 Million Increased 21% Year over Year; Q1 Non-GAAP Revenue of $264 Million Increased 23% Year over Year Q1 GAAP EPS Break-even; Q1 Non-GAAP EPS of $0.05 2011 Bookings and Revenue Growth Expected to be in the Range of 20-25% Year over Year; 2011 Non-GAAP EPS Expected to be in the Range of $0.36 – $0.48 Q2 2011 Bookings and Revenue Growth Expected to be in the Range of 20-25% Year over Year; Q2 2011 Non-GAAP EPS Expected to be in the Range of $0.06 – $0.10 NEW YORK, Apr 28, 2011 (BUSINESS WIRE) — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the first quarter ended March 31, 2011. Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “We had a strong start to the year with first quarter 2011 bookings and revenue growth of 24% and 23%, respectively. These results were driven by the improved value proposition we offer our customers worldwide and the continued global economic recovery. We are confident we have the right strategy in place and reiterate our outlook for bookings and revenue growth in 2011 to be in the range of 20 – 25% and remain committed to significantly improving profitability.” First Quarter Results Bookings, which represent the dollar value of contractual orders received, and are considered by the Company to be a key indicator of future revenues, increased 24% to $272 million compared to $219 million reported in the first quarter of 2010. On a year over year basis, currency translation had a $1.6 million positive impact on bookings in the first quarter. Historical data on bookings for prior quarters is available in the Company’s supplemental financial information. GAAP revenue of $261 million includes a $2.7 million purchase accounting adjustment related to the HotJobs acquisition. Non-GAAP revenue of $264 million increased 23% from revenue of $215 million in the first quarter of 2010. On a year over year basis, currency translation had a $1.2 million positive impact on non-GAAP revenue in the first quarter. Total Careers revenue on a non-GAAP basis was $231 million, an increase of 26%, compared to $183 million in the first quarter of 2010. Non-GAAP Careers-North America revenue was $124 million, an increase of 28% compared to $97 million in the first quarter of 2010. Careers-International revenue increased 25% to $107 million compared with $86 million in the prior year period. Internet Advertising & Fees revenue was relatively unchanged at $33 million. Consolidated GAAP operating expenses were $260 million. Net income was $0.1 million, or break-even on a per share basis. This compares to a net loss of $24 million, or $0.20 loss per share, in the first quarter of 2010, which included a pre-tax adjustment of $11 million or $0.06 per share net of tax. Net income for the first quarter 2011 included pre-tax adjustments of $9.5 million, or $0.05 per share net of tax. These items consisted of a $2.7 million reduction to revenue due to the purchase accounting adjustment related to the acquisition of HotJobs, $4.9 million primarily related to HotJobs integration costs, $3.0 million of charges relating to previously exited facilities, partially offset by $1.1 million of net realized gains on auction rate securities. These pro forma items are fully described in the “Notes Regarding the Use of Non-GAAP Financial Measures” and are reconciled to the GAAP measure in the accompanying tables. Monster Worldwide non-GAAP net income was $6.3 million, or $0.05 per share. This compares to a non-GAAP net loss of $17 million, or $0.14 loss per share in the first quarter of 2010. On a non-GAAP basis, operating expenses were $252 million or a 5% year over year increase compared to $239 million in the first quarter of 2010. Cash and cash equivalents were $191 million as of March 31, 2011 compared to $163 million as of December 31, 2010. The increase in cash and cash equivalents was primarily attributable to cash provided by operations of $49 million, partially offset by $16 million of capital expenditures. Monster Worldwide’s deferred revenue balance as of March 31, 2011 was $399 million compared to $376 million reported as of December 31, 2010 and $305 million as of March 31, 2010. Guidance The Company offered the following business outlook based on current available information and expectations as of April 28, 2011, exclusive of any future acquisitions or dispositions.
Special Note:The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company’s strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect tobookings, revenue or earningsper share for the second fiscal quarter of 2011 or the full 2011 fiscal year. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference.Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Conference Call and Webcast First quarter 2011 results will be discussed on Monster Worldwide’s quarterly conference call taking place on April 28, 2011 at 5:00 PM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website at ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID# 60740167. A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly at about-monster.com/sites/default/files/Q12011earningslidefinal.pdf or through the Company’s Investor Relations website at http://ir.monster.com. The Company has also made available certain supplemental financial information which can be accessed directly at about-monster.com/sites/default/files/q111supplement.pdf or through the Company’s Investor Relations website at http://ir.monster.com. For a replay of the conference call, please dial (800) 642-1687 or (706) 645-9291 and reference ID# 60740167. This number is valid until midnight on May 5, 2011. About Monster Worldwide Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster(R) the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, Asia and Latin America, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 index. To learn more about Monster’s industry-leading products and services, visit www.monster.com. Notes Regarding the Use of Non-GAAP Financial Measures The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. Non-GAAP revenue, operating expenses, operating income, operating margin, net income or loss and diluted earnings per share all exclude certain pro forma adjustments including: net costs associated with the Company’s historical stock option grant practices; the strategic restructuring actions initiated in the third quarter of 2007; severance charges related to the targeted global headcount reduction; facility charges primarily related to the product and technology global reorganization and changes in sublet assumptions on previously exited facilities; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR and HotJobs; realized and unrealized gains and losses on marketable securities; acquisition and integration-related costs associated with the acquisition of HotJobs; and a net non-cash benefit relating to the reversal of an income tax liability for uncertain tax positions. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Operating income before depreciation and amortization (“OIBDA”) is defined as net income or loss from operations before depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock-based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Bookings represent the dollar value of contractual orders received in the relevant period. Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company’s ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company’s cash position for the period and should not be considered a substitute for such a measure. Net cash and securities is defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.
SOURCE: Monster Worldwide, Inc. Monster Worldwide, Inc. |
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Baby boomer site Eons.com acquired
Crew Media Acquires EonsMedia Services Company Owned and Operated by Continuum Crew Purchases the Online Social Networking Website for Baby Boomers
SAN FRANCISCO, Calif. – April 28, 2011 – Crew Media, the media services company owned and operated by Continuum Crew, announced today that it has acquired the baby boomer-focused online social networking site Eons.com and baby boomer online advertising network Eons BOOM Media.
Founded in 2006 by Jeff Taylor, the creator of Monster.com, Eons is an online social networking site serving the baby boomer generation. Eons has more than 800,000 registered users, and is the anchor site in the Eons Boom Media network of 26 websites, whose combined monthly visits are more than four million1.
“Members of the large Eons community are loyal, actively participate in groups and engage one another – presenting a great opportunity to collect insights and deliver those to advertisers,” said Lori Bitter, President and CEO, Continuum Crew. “Maintaining the Eons forum and enabling it to further thrive is vital to that discourse and to serving mature consumers. The addition of Eons and Eons BOOM Media to the Continuum Crew portfolio is a next step that demonstrates our commitment to helping businesses build lasting and profitable relationships with mature consumers, by bringing those opportunities to Continuum Crew clients and stakeholders to motivate their boomer and senior customers to engage with their brands.”
“Continuum Crew with its 40-plus client focus is the perfect market match for our vibrant community and focus on the boomer consumer,” said Jeff Taylor, founder of Eons.com. “I can’t wait to watch the next chapter unfold as the Eons audience meets an exciting new leader in the boomer and senior marketplace.”
In the coming weeks, additional news will be announced by Crew Media pertaining to a strategic media sales partnership for Eons.com and the Eons BOOM Media network.
Ri Regina, a current Eons team member, has been retained and will serve as the Manager of Community and Member Engagement.
Read the open letter from Lori Bitter to the members of the Eons community at http://www.eons.com/blogs/entry/2491845-Hello-Eons-Members-.
For potential advertisers interested in learning more about custom social marketing and advertising opportunities on Eons.com and in the Eons BOOM Media network, contact salesinfo@eons.com. To learn more about Crew Media, contact Ashley Mercier, Group Publisher, Crew Media at 415-295-4575 ext. 7.
About Eons
Eons (Eons.com) is the premier online community for baby boomers and beyond, with more than 800,000 registered members. It was founded in 2006 by Jeff Taylor, the creator of Monster.com. In 2011 Eons was acquired by Crew Media, a media services company specializing in creating high-quality digital media engagements for the mature audience. For more information, visit www.eons.com http://www.eons.com.
About Eons BOOM Media
Eons BOOM Media is an online advertising network focused on reaching baby boomers on the web. In 2011 Eons BOOM Media was acquired by Crew Media, a media services company specializing in creating high-quality digital media engagements for the mature audience. For more information visit www.eonsboommedia.com http://www.eonsboommedia.com.
About Crew Media
Crew Media is a media services company specializing in high-quality digital media engagements for the mature audience. In 2011 Crew Media acquired its flagship media properties, Eons.com, the premier online community for baby boomers and beyond, and Eons BOOM Media, a baby boomer online advertising network. Crew Media is based in San Francisco, California and is owned and operated by Continuum Crew LLC.
About Continuum Crew
Continuum Crew – Engaging Consumers > 40 is an integrated communications firm that focuses on helping businesses to build lasting and profitable relationships with mature consumers. This includes offering services in consulting, research and planning, media strategy, creative production, both traditional and online advertising, interactive engagement and public relations. Continuum Crew owns and operates Crew Media, a media services company specializing in high-quality digital media engagements for the mature audience. In 2010 Continuum Crew was named on Entrepreneur magazine’s ‘100 to Watch’ list. Continuum Crew is based in San Francisco, California. For more information about Continuum Crew, visit: www.continuumcrew.com < http://www.continuumcrew.com, and Lori Bitter’s Boomers in the Wild blog at: www.BoomersInTheWild.com http://www.BoomersInTheWild.com.
For press inquires contact Rosa Mangiardi, Continuum Crew, 415-295-4575 x 12 or 415-728-2113, rosa.mangiardi@continuumcrew.com.
1 Quantcast, February 2011
Eons and Eons Boom Media are registered trademarks of Eons, Inc. All other brand names, product names or trademarks belong to their respective holders.
GateHouse Media Announces First Quarter 2011 Results
[image: GateHouse Media]
*GateHouse Media Announces First Quarter 2011 Results*
*First Quarter Highlights – Online advertising revenue increased 23.3% and monthly unique visitors and page views increased 21.2% and 17.9% in the first quarter, respectively, compared to the prior year. – Revenues for the first quarter were $119.8 million, down 10.0% from the prior year. Adjusting for timing factors and the impact of weather, as described in more detail below, revenue was down approximately 6.8%. – As Adjusted EBITDA was $10.3 million versus $14.2 million in the prior year and was negatively impacted by these timing factors and weather. – Operating costs and SG&A expense totaled $110.6 million in the first quarter, a decrease of $8.7 million or 7.3% from the prior year. – Levered Free Cash Flow per share was ($0.4) versus ($0.2) for the prior year and benefited from the timing of interest payments relative to the change in the quarterly reporting calendar. – Excess cash flow payment of $11.2 million was made on long-term debt in March.*
FAIRPORT, N.Y., April 28, 2011 /PRNewswire/ — GateHouse Media, Inc. (the “Company” or “GateHouse Media”) (OTC Pink Sheets: GHSE) today reported financial results for the first quarter ended March 27, 2011.
*First Quarter 2011 *
Total revenues were $119.8 million for the quarter, a decline of 10.0% as compared to the prior year. Several timing factors and severe weather accounted for approximately 3.2% of the decline. Excluding these special factors, the Company estimates its revenues were down approximately 6.8% versus the prior year. The Company experienced the impact of a change in its reporting period in 2011 from a calendar year to a 52 week operating year (see note below) and the shift of the positive impact of the Easter holiday on advertising revenue to the second quarter of 2011 compared to the first quarter in 2010. The impact of these two timing factors on revenue is estimated to be approximately $3.1 million, or 2.2%. Severe winter storms also impacted the Company’s New England and Illinois regions, which account for 52.0% of total revenue. The Company believes this had a significant impact on its single copy circulation sales and advertising revenue.
Commenting on GateHouse Media’s results, Michael E. Reed, GateHouse Media’s Chief Executive Officer, said, “Our reported revenue decline of 10% in the quarter does not portray a clear picture of our revenue trends. Revenue was negatively impacted by several timing-related items in the first quarter including a planned change in reporting periods and a late Easter this year, which collectively made up approximately 2.2% of our total revenue decline. We expect to benefit from both of these timing factors later in the year. We also experienced severe winter storms in each of our largest markets in the first quarter. We believe this negatively impacted circulation revenue and caused retailers to hold back advertising dollars in anticipation of lighter consumer traffic.
“On a positive note, we continue to see very good results from our digital initiatives and the investments we are making in this area. Our online advertising revenues grew 23.3% during the quarter. New products launched in 2010, primarily RadarFrog.com and our behavioral targeted advertising platform with Yahoo!, combined with our traditional banner advertising, drove the improvement. We continue to roll out mobile apps across our top properties as we expand our digital offerings. We also continue to execute the roll out of metered pay systems on our websites to drive subscription revenues.
“I am also encouraged by the growth in both our print and online employment classified category. The new Monster platform provides us with additional functionality and we anticipate further improvement in this category throughout the year. The real estate category, both listings and legal revenue from foreclosures, was the primary drag on our overall classified revenue. The pace of legal revenues coming from foreclosures remains slower than we had anticipated, particularly when compared to the very strong volumes we saw in the first quarter of 2010. However, the outlook for our real estate category is a little brighter as we are starting to see legal revenue related to foreclosures pick up again and we are rolling out a new real estate vertical platform with a soon to be announced national partner.
“We are concerned about the slow trends experienced so far in 2011 and are taking extra steps to ensure we remain focused on initiatives and best practices to drive both print and advertising sales. In addition, we continue to look at permanent cost reduction opportunities and have accelerated some of these initiatives in order to more positively impact 2011. We remain committed long term to removing legacy infrastructure costs and positioning GateHouse to be a nimble, multi-media platform business.”
Total advertising revenue declined 11.7% on a same store basis in the quarter. Adjusting for the timing factors and impact of weather noted above, the Company estimates advertising revenue would have declined approximately 8.0%. Online revenue, which now accounts for 8.3% of total advertising revenue, increased 23.3%. Continued strength in the employment and auto categories were not enough to offset weakness in real estate and legal revenue and the category as a whole was down 15.1% for the quarter. Circulation revenue declined 6.4% in the first quarter, 5.0% after adjusting for the calendar days, and was impacted by the severe weather in our New England and Illinois markets. Commercial printing and other revenues declined 8.8%.
Operating costs and SG&A expenses were $110.6 million in the quarter, a decline of $8.7 million or 7.3% from the prior year. The expense declines were driven primarily by lower compensation expense and hauling and delivery costs. Newsprint expense was up slightly for the quarter due to higher average pricing.
Operating loss for the quarter was $3.7 million, a decrease of $4.4 millionas compared to the prior year. As Adjusted EBITDA for the quarter was $10.3 million, a decrease of $3.9 million or 27.2% from the prior year.
Levered Free Cash Flow for the quarter decreased 88.6% to ($2.3) million as compared to ($1.2) million for the prior year. The timing of interest payments was impacted by the calendar change, with the March 31st payment of $2.4 million falling into the second quarter.
Non-cash compensation expense for Restricted Stock Grants in the fourth quarter was $0.3 million. One-time costs incurred and other non-cash expenses in the quarter were $2.7 million, and related primarily to reorganization efforts and initiatives introduced to realize permanent expense reductions.
*Change in Reporting Period*
The Company moved to a consistent 52-week reporting cycle for all locations during the first quarter. As a result, the first quarter of 2011 had 86 days compared to 90 days in the prior year quarter for approximately 40% of the business. The associated impact on prior year revenue is approximately $2.5 million and expense is approximately $1.5 – $2.0 million.
*About GateHouse Media, Inc.*
GateHouse Media, Inc., headquartered in Fairport, New York, is one of the largest publishers of locally based print and online media in the United States as measured by its 86 daily publications. GateHouse Media currently serves local audiences of more than 10 million per week across 21 states through hundreds of community publications and local websites. GateHouse Media is traded in the over-the-counter market under the symbol “GHSE.”
For more information regarding GateHouse Media and to be added to our email distribution list, please visit www.gatehousemedia.com.
*Non-GAAP Financial Measures*
A non-GAAP financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. GateHouse Media defines and uses Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues, and Levered Free Cash Flow, non-GAAP financial measures, as set forth below. The Company strongly urges stockholders and other interested persons not to rely on any single financial measure to evaluate its business. In addition, because Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measures of financial performance under GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented in this press release, may differ from and may not be comparable to similarly titled measures used by other companies.
*Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow*
The Company defines Adjusted EBITDA as income (loss) from continuing operations before interest, income tax expense (benefit), depreciation and amortization and other non-recurring or non-cash items. The Company defines As Adjusted EBITDA as Adjusted EBITDA before other non-cash items such as non-cash compensation, non-recurring integration and reorganization costs and Adjusted EBITDA from non-wholly owned subsidiaries. The Company defines As Adjusted Revenues as total revenues plus revenues of discontinued operations less revenues from non-wholly owned subsidiaries. The Company defines Levered Free Cash Flow as As Adjusted EBITDA less capital expenditures, cash taxes and interest expense, excluding non-wholly owned subsidiaries.
*Management’s Use of Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow*
Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are not measurements of financial performance under GAAP and should not be considered in isolation or as alternatives to income from operations, net income (loss), cash flow from continuing operating activities or any other measure of performance or liquidity derived in accordance with GAAP. GateHouse Media’s management believes these non-GAAP measures, as defined above, are useful to investors for the following reasons:
- Evaluating performance and identifying trends in day-to-day performance because the items excluded have little or no significance on its day-to-day operations; – Providing assessments of controllable expenses that afford management the ability to make decisions which are expected to facilitate meeting current financial goals as well as achieving optimal financial performance; and – Indicators for management to determine if adjustments to current spending decisions are needed.
Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow provide GateHouse Media with measures of financial performance, independent of items that are beyond the control of management in the short-term, such as depreciation and amortization, taxation and interest expense associated with its capital structure. These metrics measure GateHouse Media’s financial performance based on operational factors that management can impact in the short-term, namely the cost structure or expenses of the organization. Adjusted EBITDA, As Adjusted EBITDA, As Adjusted Revenues and Levered Free Cash Flow are some of the metrics used by senior management and the Board of Directors to review the financial performance of the business on a monthly basis. In addition, GateHouse Media’s management utilizes these metrics to evaluate the Company’s performance, along with other criteria, to determine the funds available for paying the quarterly dividend.
*Forward-Looking Statements*
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to various risks and uncertainties, including without limitation, statements relating to progress made by the Company in its integration efforts, growth in revenues and cash flow, on-line revenues, expense reduction efforts and potential acquisition and sale opportunities. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “would,” “project,” “predict,” “continue” or other similar words or expressions. Forward looking statements are based on certain assumptions or estimates, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on the Company’s operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, the condition of the economy and the credit markets generally, the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, the Company’s ability to maintain debt covenants, the Company’s ability to successfully implement cost reduction and cash preservation plans, the Company’s ability to close on a timely basis upon announced or contemplated transactions, unexpected liabilities arising from any transaction or that the Company will not receive the expected benefits from the transaction, the Company’s limited operating history on a combined basis, the Company’s ability to generate sufficient cash flow to cover required interest and long-term obligations, the effect of the Company’s indebtedness and long-term obligations on its liquidity, the Company’s ability to integrate acquired assets and businesses, any increases in the price or reduction in the availability of newsprint, seasonal and other fluctuations affecting the Company’s revenues and operating results, any declines in circulation, the Company’s ability to obtain additional capital on terms acceptable to it, the Company’s ability to compete effectively in the local media industry, the Company’s success or failure in pursuing its digital business and related initiatives and strategic realignments and undertakings, increases in health costs, the Company’s vulnerability to economic downturns, regulatory changes or acts of nature in certain geographic areas, increases in competition for skilled personnel, a portion of the Company’s workforce being unionized, departure of key officers, increases in market interest rates, the cost and difficulty of complying with increasing and evolving regulation, and other risks detailed from time to time in the Company’s SEC reports, including but not limited to its most recent Annual Report on Form 10-K filed with the SEC under Commission File Number 001-33091. When considering forward- looking statements, readers should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are also cautioned not to place undue reliance on any of these forward-looking statements, which reflect management’s views as of the date of this press release. The factors discussed above and the other factors noted in the Company’s SEC filings could cause actual results to differ significantly from those contained in any forward-looking statement. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements and expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
*GATEHOUSE MEDIA, INC. AND SUBSIDIARIES*
*Unaudited Condensed Consolidated Statements of Operations*
*(In thousands, except share and per share data)*
*Three months*
*Three months*
*ended*
*ended*
*March 27,*
*March 31,*
*2011*
*2010*
Revenues:
Advertising
$ 81,648
$ 92,415
Circulation
32,169
34,089
Commercial printing and other
6,000
6,599
Total revenues
119,817
133,103
Operating costs and expenses:
Operating costs
72,463
77,036
Selling, general, and administrative
38,153
42,298
Depreciation and amortization
11,057
11,861
Integration and reorganization costs
1,457
897
Loss on sale of assets
348
266
Operating income (loss)
(3,661)
745
Interest expense
13,780
14,908
Amortization of deferred financing costs
340
340
Loss on derivative instruments
379
2,797
Other income
(2)
(9)
Loss from continuing operations
before income taxes
(18,158)
(17,291)
Income tax expense
34
158
Loss from continuing operations
(18,192)
(17,449)
Loss from discontinued operations, net
of income taxes
-
(24)
Net loss
(18,192)
(17,473)
Net loss attributable to noncontrolling interest
224
153
Net loss attributable to GateHouse Media
$ (17,968)
$ (17,320)
Loss per share:
Basic and diluted:
Loss from continuing operations
attributable to GateHouse Media
$ (0.31)
$ (0.30)
Loss from discontinued operations
attributable to GateHouse Media, net of
income taxes
-
-
Net loss attributable to GateHouse Media
$ (0.31)
$ (0.30)
Basic weighted average shares outstanding
57,856,889
57,626,412
Diluted weighted average shares outstanding
57,856,889
57,626,412
*GATEHOUSE MEDIA, INC. AND SUBSIDIARIES*
*Consolidated Balance Sheets*
*(In thousands, except share data)*
* March 27, *
* December 31, *
* 2011 *
* 2010 *
* (unaudited) *
*Assets*
Current assets:
Cash and cash equivalents
$ 13,242
$ 9,738
Restricted cash
5,182
5,182
Accounts receivable, net of allowance for doubtful accounts of $3,045
and $3,260 at March 27, 2011 and December 31, 2010, respectively
52,327
61,512
Inventory
7,703
7,731
Prepaid expenses
5,345
10,506
Other current assets
7,539
7,253
Total current assets
91,338
101,922
Property, plant, and equipment, net of accumulated depreciation of $106,081
and $101,739 at March 27, 2011 and December 31, 2010, respectively
147,679
152,293
Goodwill
14,343
14,343
Intangible assets, net of accumulated amortization of $161,051 and $154,927
at March 27, 2011 and December 31, 2010, respectively
264,938
271,061
Deferred financing costs, net
3,994
4,334
Other assets
1,340
1,400
Long-term assets held for sale
944
974
Total assets
$ 524,576
$ 546,327
*Liabilities and Stockholders’ Deficit*
Current liabilities:
Current portion of long-term liabilities
$ 1,228
$ 1,224
Current portion of long-term debt
-
11,249
Accounts payable
7,791
5,905
Accrued expenses
30,112
26,766
Accrued interest
4,403
2,805
Deferred revenue
27,988
27,348
Total current liabilities
71,522
75,297
Long-term liabilities:
Long-term debt
1,181,238
1,181,238
Long-term liabilities, less current portion
3,263
3,636
Derivative instruments
58,121
65,490
Pension and other postretirement benefit obligations
12,627
12,787
Total liabilities
1,326,771
1,338,448
Stockholders’ deficit:
Common stock, $0.01 par value, 150,000,000 shares authorized at
March 27, 2011; 58,313,868 and 58,313,868 shares issued, and
58,077,756 and 58,078,607 outstanding at March 27, 2011 and
December 31, 2010, respectively
568
568
Additional paid-in capital
831,043
830,787
Accumulated other comprehensive loss
(54,752)
(62,614)
Accumulated deficit
(1,577,433)
(1,559,465)
Treasury stock, at cost, 236,112 and 235,261 shares at March 27, 2011
and December 31, 2010, respectively
(310)
(310)
Total GateHouse Media stockholders’ deficit
(800,884)
(791,034)
Noncontrolling Interest
(1,311)
(1,087)
Total stockholders’ deficit
(802,195)
(792,121)
Total liabilities and stockholders’ deficit
$ 524,576
$ 546,327
*GATEHOUSE MEDIA, INC. AND SUBSIDIARIES*
*Unaudited Condensed Consolidated Statements of Cash Flows*
*(In thousands)*
*Three months *
*Three months *
*ended*
*ended*
*March 27, 2011*
*March 31, 2010*
Cash flows from operating activities:
Net loss
$ (18,192)
$ (17,473)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization
11,057
11,863
Amortization of deferred financing costs
340
340
Loss on derivative instrument
379
2,797
Non-cash compensation expense
256
461
Loss on sale of assets
348
266
Pension and other postretirement benefit obligations
(9)
(142)
Changes in assets and liabilities, net of sales:
Accounts receivable, net
9,185
9,123
Inventory
28
(106)
Prepaid expenses
5,161
876
Other assets
(226)
913
Accounts payable
1,886
1,839
Accrued expenses
3,163
3,082
Accrued interest
1,598
(148)
Deferred revenue
640
1,404
Other long-term liabilities
(373)
(145)
Net cash provided by operating activities
15,241
14,950
Cash flows from investing activities:
Purchases of property, plant, and equipment
(525)
(636)
Proceeds from sale of other assets
37
471
Net cash used in investing activities
(488)
(165)
Cash flows from financing activities:
Repayments under current portion of long-term debt
(11,249)
(2,513)
Repayments under short-term debt
-
(1,500)
Net cash used in financing activities
(11,249)
(4,013)
Net increase in cash and cash equivalents
3,504
10,772
Cash and cash equivalents at beginning of period
9,738
5,734
Cash and cash equivalents at end of period
$ 13,242
$ 16,506
*GATEHOUSE MEDIA, INC. AND SUBSIDIARIES*
*As Adjusted EBITDA*
*(In thousands)*
*Three months*
*Three months*
*ended*
*ended*
*March 27, 2011*
*March 31, 2010*
Loss from continuing operations
$ (18,192)
$ (17,449)
Income tax expense
34
158
Loss on derivative
instruments (1)
379
2,797
Amortization of deferred
financing costs
340
340
Interest expense
13,780
14,908
Depreciation and amortization
11,057
11,861
Adjusted EBITDA from
continuing operations
7,398
12,615
Non-cash compensation and
other expense
1,142
574
Non-cash portion of
postretirement benefits
expense
(9)
(142)
Integration and reorganization
costs
1,457
897
Loss on sale of assets
348
266
Loss from discontinued operations
-
(15)
As Adjusted EBITDA
10,336
14,195
Net capital expenditures
(484)
(636)
Cash taxes
-
(40)
Interest paid
(12,158)
(14,742)
Levered Free Cash Flow
$ (2,306)
$ (1,223)
(1)
Non-cash loss on derivative instruments is related to interest rate swap agreements which
are financing related and are excluded from Adjusted EBITDA.
*GATEHOUSE MEDIA, INC. AND SUBSIDIARIES*
*As Adjusted Revenues*
*(In thousands)*
*Three months*
*Three months*
*ended*
*ended*
*March 27, 2011*
*March 31, 2010*
Total revenues from continuing
$ 119,817
$ 133,103
operations
Revenues from discontinued
operations
-
54
Revenues from non-wholly owned
subsidiary
(749)
(523)
As Adjusted Revenues
$ 119,068
$ 132,634
SOURCE GateHouse Media, Inc.
Detroit, San Diego, Indianapolis, and Dallas Show Double Digit Hiring in CareerCast.com/JobSerf April Employment Index
Detroit, San Diego, Indianapolis, and Dallas Show Double Digit Hiring in CareerCast.com/JobSerf April Employment Index
CARLSBAD, CA/RICHARDSON, TX (April 28, 2011) – The new April 2011 CareerCast.com/JobSerf Employment Index, which measures managerial hiring activity online, continues to rise, trending upward for the fourth month in a row. Despite a minuscule gain of 1.1 over last month, the April 2011 Index, at 110.6 points, now stands at its highest level since January 2008, with an 18.3 point lead over April 2010 and a 69.2 point gain over April 2009.
“Strong hiring continues to be sustained. Our research showed continued improvement as the month progressed,” says Jay Martin, COO, JobSerf. “80% of the cities in the Index showed a double digit increase in hiring activity this month.”
Detroit had the greatest improvement in per capita hiring based on percentage, with a 25% gain, followed by San Diego (+23%) Indianapolis (+22%), and Dallas (+21%). The only city to lose jobs in April was San Francisco (-2%) while the city with the least amount of job growth was Memphis (+3%).
“Sustained managerial hiring activity can fuel momentum for all levels of employment, which is especially good news for college graduates looking for new jobs,” says Tony Lee, publisher, CareerCast.com. “As hiring activity gains steam, we are poised for an upswing in the job market, which bodes well for those who have been out of work for many months.”
The CareerCast.com/JobSerf Employment Index per capita hiring levels for U.S. cities in April, are:
1. Washington, DC – 179
2. Boston – 151
3. Seattle – 126
4. San Francisco – 125
5. Atlanta – 100
6. Chicago – 94
7. Baltimore – 88
8. New York City – 87
9. Denver – 82
10. Dallas – 76
11. Cleveland – 75
12. Philadelphia – 74
13. Nashville – 73
14. Hartford – 71
15. San Diego – 69
16. Louisville – 68
17. Milwaukee – 67
18. Minneapolis – 64
19. Houston – 63
20. Indianapolis – 62
21. Pittsburgh – 62
22. Cincinnati – 59
23. St. Louis – 56
24. Phoenix – 55
25. Los Angeles – 53
26. Miami – 51
27. Tampa – 48
28. Detroit – 45
29. Memphis – 41
30. Riverside – 23
The CareerCast.com/JobSerf Employment Index is an exclusive barometer showing managerial hiring activity based on the number of jobs posted online nationally. The Index reveals the differences in job listings by month, and offers valuable trends and forecasts using proprietary employment data hand-counted by a team of researchers.
To read the full report and get more information on the best and worst cities to find a job, visit www.careercast.com/career-guidance/employment-trends.
About JobSerf
JobSerf, Inc. (www.jobserf.com) is a privately held Texas-based corporation that pioneered the job search outsourcing (JSO) industry with its revolutionary ‘Find & Apply’ service. The company’s patent-pending process provides for an affordable means to both ‘find & apply’ for jobs on behalf of clients. For more information, visit the website at www.jobserf.com.
About CareerCast.com
CareerCast.com, created by Adicio, is a job search portal that offers extensive local, niche and national job listings from across North America, job-hunting, career-management and HR-focused editorial content, videos and blogs, and provides recruiters with the ability to post jobs directly to more than 800 niche career sites. CareerCast.com also compiles the Jobs Rated Report (www.jobsrated.com), where 200 jobs across North America are ranked based on detailed analysis of specific careers factors.
###
Editor’s Note: Historical hiring data is available upon request.
Media Contact:
Beth Brody, Brody PR
609-397-3737
eBay Inc. Reports Strong First Quarter 2011 Results
*eBay Inc. Reports Strong First Quarter 2011 Results*
SAN JOSE, Calif.–(BUSINESS WIRE http://www.businesswire.com/)–Global ecommerce and online payments leader eBay Inc. (Nasdaq:EBAY) today reported that revenue for the first quarter ended March 31, 2011 increased 16% to $2.5 billion, compared to the same period of 2010. The company recorded first quarter net income on a GAAP basis of $475.9 million, or $0.36 per diluted share, and non-GAAP net income of $619.0 million, or $0.47 per diluted share, representing a 12% increase for each compared to the same period of 2010. The first quarter increase in non-GAAP earnings per diluted share was due primarily to solid top line growth and a lower effective tax rate.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”
“In the first quarter, PayPal continued to drive strong growth globally, eBay sharply accelerated growth in the U.S. and we announced several acquisitions that we believe will enhance our leadership and innovation in commerce and payments. The year is off to a strong start,” said eBay Inc. President and CEO John Donahoe.
The company’s PayPal business delivered strong first quarter performance, expanding its leadership position in global payments. PayPal grew active registered accounts 16% year over year, ending the quarter with 97.7 million and adding approximately one million active accounts per month for the sixth consecutive quarter. PayPal’s net total payment volume grew 28% to $27.4 billion in the first quarter of 2011 compared to the same period of last year, driven primarily by strong 38% year-over-year growth in its Merchant Services business across global markets, increased merchant adoption and greater usage by customers. PayPal continued to deliver solid growth in mobile payments and digital goods, with increased usage of Mobile Express Checkout, PayPal Send Money apps and the newly-launched PayPal for Digital Goods service.
The company’s Marketplaces business continued to deliver improved performance during the first quarter of 2011. Gross merchandise volume excluding vehicles (GMV), increased by 8% year over year to $14.5 billion, reflecting progress against underlying customer metrics focused on trust, value and selection. GMV in the U.S. increased 10% year over year, the second consecutive quarter of acceleration. International GMV increased 8% year over year, driven by continued strength in Europe, partially offset by weakness in Korea. The Marketplaces business continued to drive technology-led innovation in key areas such as mobile, where the company is on track to double eBay’s mobile GMV to $4 billion in 2011. Worldwide, active users increased 5% year over year to 95.9 million, with growth in North America, the U.K., Germany and Australia.
*First Quarter 2011 Financial Highlights (presented in millions, except per share data and percentages)* *First Quarter*
*2010* *2011*
*Change* *GAAP* Net revenue$2,196$2,546$35016%Net income$398$476$7820%Earnings per diluted share$0.30$0.36$0.0620%*Non-GAAP* Net income$554$619$6512%Earnings per diluted share$0.42$0.47$0.0512%*Business Units* *Payments* Net revenue$809$992$18323%Net total payment volume$21,342$27,362$6,02028%Merchant Services$12,533$17,243$4,71038%On eBay$8,581$9,795$1,21414%Bill Me Later$228 $324$9642%*Marketplaces* Net revenue$1,387$1,553$16612%Gross merchandise volume (excl. vehicles)$13,371$14,496$1,1258%
U.S. $5,130$5,631$50110%International$8,241$8,865$6248%
*Other Selected Financial Results*
- Operating margin — GAAP operating margin remained flat at 22.2% both for the first quarter of 2011 and for the same period last year. Non-GAAP operating margin decreased to 29.4% for the quarter, compared to 30.6% for the same period last year. The decrease in non-GAAP operating margin was due primarily to business mix with stronger growth in our lower margin businesses, primarily PayPal, and the inclusion of our recently completed acquisitions of Brands4Friends, Milo.com and Critical Path Software. – Taxes — The GAAP effective tax rate for the first quarter of 2011 was 16%, compared to 20% for the first quarter of 2010. For the first quarter of 2011, the non-GAAP effective tax rate was 19%, compared to 22% for the first quarter of 2010. – Cash flow — The company generated $699.6 million of operating cash flow and $551.0 million of free cash flow during the first quarter. – Stock repurchase program — The company repurchased approximately $356.2 million of its common stock in the first quarter. – Cash and cash equivalents and non-equity investments — The company’s cash and cash equivalents and non-equity investments portfolio totaled $8.1 billion at March 31, 2011, compared to $7.8 billion at December 31, 2010.
*Business Outlook*
- Second quarter 2011 — eBay expects net revenues in the range of $2.550 to $2.650 billion with GAAP earnings per diluted share in the range of $0.36 to $0.37 and non-GAAP earnings per diluted share in the range of $0.45 to $0.46. – Full year 2011 — eBay now expects net revenues in the range of $10.600 to $10.900 billion with GAAP earnings per diluted share in the range of $1.53 to $1.58 and non-GAAP earnings per diluted share in the range of $1.93 to $1.97.
*Quarterly Conference Call*
eBay will host a conference call to discuss first quarter 2011 results at 2:00 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company’s Investor Relations web site at http://investor.ebayinc.com
*About eBay Inc.*
Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) connects millions of buyers and sellers globally on a daily basis through eBay, the world’s largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive online payments. We also reach millions through specialized marketplaces such as StubHub, the world’s largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com
*Non-GAAP Financial Measures*
This press release includes the following financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission, or SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate and free cash flow. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. For a reconciliation of these non-GAAP financial measures to the nearest comparable GAAP measures, see “Business Outlook,” “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income,” “Reconciliation of GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release.
*Forward-Looking Statements*
This press release contains forward-looking statements relating to, among other things, the future performance of eBay and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding expected financial results for the second quarter and full year 2011 and the future growth in the Payments and Marketplaces businesses. The company’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: the after effects of the global economic downturn, changes in political, business and economic conditions, including any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; the company’s ability to profitably integrate, manage and grow businesses that have been acquired recently or may be acquired in the future; the company’s need to increasingly achieve growth from its existing users, particularly in its more established markets; the company’s ability to deal with the increasingly competitive ecommerce environment, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; the company’s need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the effect of management changes and business initiatives; the company’s need and ability to manage other regulatory, tax and litigation risks as its services are offered in more jurisdictions and applicable laws become more restrictive; any changes the company may make to its product offerings; the competitive, regulatory, credit card association-related and other risks specific to PayPal and Bill Me Later, especially as PayPal continues to expand geographically and grow its open platform initiative and as new laws and regulations related to financial services companies come into effect; the company’s ability to upgrade and develop its systems, infrastructure and customer service capabilities at reasonable cost; and the company’s ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations web site at http://investor.ebayinc.com
*eBay Inc. Unaudited Condensed Consolidated Balance Sheet* *December 31,*
*2010* *March 31,*
*2011*
*ASSETS* (In thousands)Current assets:Cash and cash equivalents$5,577,411$5,464,582Short-term investments1,045,4031,300,026Accounts receivable, net454,366447,810Loans and interest receivable, net956,189952,615Funds receivable and customer accounts 2,550,7312,746,079Other current assets 481,238 603,716
Total current assets 11,065,33811,514,828 Long-term investments2,492,0122,715,363Property and equipment, net1,523,3331,547,943Goodwill6,193,1636,445,103Intangible assets, net540,711582,372Other assets 189,205 199,251Total assets$22,003,762$ 23,004,860
*LIABILITIES AND STOCKHOLDERS’ EQUITY* Current liabilities:Accounts payable$184,963$152,023Short-term debt300,000 300,000Funds payable and amounts due to customers2,550,7312,746,079Accrued expenses and other current liabilities1,343,8881,424,343Deferred revenue 96,464101,689Income taxes payable 40,468 39,415Total current liabilities 4,516,5144,763,549 Deferred and other tax liabilities, net645,457752,597Long-term debt1,494,2271,494,482Other liabilities 45,385 49,819Total liabilities 6,701,583 7,060,447Total stockholders’ equity 15,302,179 15,944,413Total liabilities and stockholders’ equity$22,003,762$23,004,860 *eBay Inc.* *Unaudited Condensed Consolidated Statement of Income* *Three Months Ended March 31,**2010**2011*(In thousands, except per share amounts) Net revenues (2)$2,196,057$2,545,609Cost of net revenues (1) 606,555 728,978 Gross profit 1,589,502 1,816,631 Operating expenses:Sales and marketing (1) 446,161532,679Product development (1)210,139274,782General and administrative (1)276,743293,478Provision for transaction and loan losses 106,029107,091Amortization of acquired intangible assets53,25244,096 Restructuring 8,569 (149)Total operating expenses 1,100,893 1,251,977 Income from operations (2)488,609564,654Interest and other income (expense), net 6,046 3,692 Income before income taxes494,655568,346Provision for income taxes (97,002) (92,481)Net income$397,653 $475,865 Net income per share: Basic$0.31 $0.37 Diluted$0.30 $0.36 Weighted average shares:Basic 1,301,248 1,297,278 Diluted 1,326,021 1,320,151 (1) Includes stock-based compensation as follows:Cost of net revenues$13,034$14,094Sales and marketing28,49134,622Product development27,16431,485General and administrative 33,380 38,656 $102,069 $118,857 (2)
For the three-month period ended March 31, 2011, foreign currency movements relative to the U.S. dollar, including the impact of revenue hedging activities, positively impacted net revenues by approximately $12.5 million and negatively impacted operating income by approximately $3.5 million compared to the same period of the prior year.
*eBay Inc.*
*Unaudited Condensed Consolidated Statement of Cash Flows* *Three Months Ended March 31,**2010**2011*Cash flows from operating activities:(In thousands)Net income$397,653$475,865Adjustments:Provision for transaction and loan losses106,029107,091Depreciation and amortization 188,022193,089Stock-based compensation102,069118,857Changes in assets and liabilities, net of acquisition effects (375,511) (195,292)Net cash provided by operating activities 418,262 699,610 Cash flows from investing activities:Purchases of property and equipment, net(152,256)(148,568)Changes in principal loans receivable, net15,650(3,816)Purchases of investments (944,393)(484,951)Maturities and sales of investments259,446230,358Acquisitions, net of cash acquired-(190,537)Repayment of Skype note receivable125,000- Other (4,416) 941 Net cash used in investing activities (700,969) (596,573) Cash flows from financing activities:Proceeds from issuance of common stock42,117 72,742Purchases of common stock-(356,543)Excess tax benefits from stock-based compensation20,99353,905Tax withholdings related to net share settlements of restricted stock awards and units(70,500)(108,696)Funds receivable and customer accounts(157,215)(195,348)Funds payable and amounts due to customers 157,215 195,348 Net cash used in financing activities (7,390) (338,592)Effect of exchange rate changes on cash and cash equivalents (116,718) 122,726 Net decrease in cash and cash equivalents (406,815)(112,829)Cash and cash equivalents at beginning of period 3,999,818 5,577,411 Cash and cash equivalents at end of period$3,593,003 $5,464,582
*eBay Inc.*
*Unaudited Summary of Consolidated Net Revenues*
*Net Revenues by Type*
*Three Months Ended* *March 31,* *2010* *June 30,* *2010* *September 30,* *2010* *December 31,* *2010* *March 31,* *2011**Net transaction revenues*
(In thousands, except percentages) Marketplaces$1,172,939$1,182,513$1,185,562$1,259,179$1,284,755*Current quarter vs prior quarter**(4%)**1%**0%**6%**2%**Current quarter vs prior year quarter**13%**12%**3%**3%**10%**Percent of Marketplaces revenue from international**58%**56%**54%**57%**56%* Payments766,572770,755797,826926,161 942,709*Current quarter vs prior quarter**1%**1%**4%**16%**2%**Current quarter vs prior year quarter**27%**22%**23%**22%**23%**Percent of Payments revenue from international**47%**48%**49%**51%**50%* Total net transaction revenues1,939,5111,953,2681,983,3882,185,3402,227,464*Current quarter vs prior quarter**(7%)**1%**2%**10%**2%**Current quarter vs prior year quarter**9%**6%**1%**5%**15%* *Marketing services and other revenues* Marketplaces213,856215,821225,761264,996268,507*Current quarter vs prior quarter**(12%)**1%**5%**17%**1%**Current quarter vs prior year quarter**12%* *7%**6%**9%**26%**Percent of Marketplaces revenue from international**71%** 70%**69%**69%**74%* Payments42,69046,29040,33945,01449,638*Current quarter vs prior quarter**11%**8%**(13%)**12%**10%**Current quarter vs prior year quarter**12%**18%**4%**17%**16%**Percent of Payments revenue from international**7%**6%**10%**10%**9%* Total marketing services and other revenues256,546262,111266,100310,010318,145*Current quarter vs prior quarter**(12%)**2%**2%**17%**3%**Current quarter vs prior year quarter**7%** 3%**1%**7%**24%* *Total net revenues*$2,196,057 $2,215,379 $ 2,249,488 $2,495,350 $2,545,609*Current quarter vs prior quarter**(7%)**1%** 2%**11%**2%**Current quarter vs prior year quarter**9%**6%**1%**5%**16%*
*eBay Inc.*
*Unaudited Summary of Consolidated Net Revenues* *Net Revenues by Segment*
*Three Months Ended* *March 31,* *2010* *June 30,* *2010* *September 30,* *2010* *December 31,* *2010* *March 31,* *2011*
(In thousands, except percentages) Marketplaces$1,386,795$1,398,334$1,411,323$1,524,175$1,553,262*Current quarter vs prior quarter**(5%)**1%**1%**8%**2%**Current quarter vs prior year quarter**13%**11%**3%**4%**12%**Percent of Marketplaces revenue from international**60%**58%**57%**59%**60%* Payments809,262817,045838,165971,175 992,347*Current quarter vs prior quarter**2%**1%**3%**16%**2%**Current quarter vs prior year quarter**26%**22%**22%**22%**23%**Percent of Payments revenue from international**45%**46%**47%**49%**48%* *Total net revenues*$2,196,057 $2,215,379 $2,249,488 $2,495,350 $2,545,609*Current quarter vs prior quarter**(7%)**1%**2%**11%**2%**Current quarter vs prior year quarter**9%**6%**1%**5%**16%* *Net Revenues by Geography (1)*
*Three Months Ended* *March 31,* *2010* *June 30,* *2010* *September 30,* *2010* *December 31,* *2010* *March 31,* *2011*
(In thousands, except percentages) *U.S. net revenues*$1,004,211$1,032,104$1,058,258$1,119,642$1,141,051*Current quarter vs prior quarter**(4%)**3%**3%**6%**2%**Current quarter vs prior year quarter**4%**8%**4%**7%**14%**Percent of total**46%**47%**47%**45%**45% * *International net revenues*1,191,8461,183,2751,191,2301,375,7081,404,558*Current quarter vs prior quarter**(10%)**(1%)**1%**15%**2%**Current quarter vs prior year quarter**13%**4%**(3%)**4%**18%**Percent of total**54%**53%**53%**55%** 55%* *Total net revenues*$2,196,057 $2,215,379 $2,249,488 $2,495,350 $2,545,609*Current quarter vs prior quarter**(7%)**1%**2%**11%**2%**Current quarter vs prior year quarter**9%**6%**1%**5%**16%*(1)
Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located.
*eBay Inc.*
*Unaudited Payments Supplemental Operating Data*
*Three Months Ended* *March 31,* *2010* *June 30,* *2010* *September 30,* *2010* *December 31,* *2010* *March 31,* *2011*
(In millions, except percentages) *Active registered accounts (1)*84.3 87.2 90.5 94.4 97.7*Current quarter vs prior quarter**4%**3%**4%**4%**3%**Current quarter vs prior year quarter** 15%**16%**16%**17%**16%* *Net number of payments (2)*336.0335.0357.0421.1 424.6*Current quarter vs prior quarter**2%**0%**7%**18%**1%**Current quarter vs prior year quarter**32%**29%**31%**28%**26%* *Net total payment volume (3)*$21,342$21,382$22,365$26,866$27,362*Current quarter vs prior quarter**0% **0%**5%**20%**2%**Current quarter vs prior year quarter**35%**28%**26%**26% **28%* *Merchant Services net total payment volume as % of net total payment volume**59%**61%**62%**62%**63%**Bill Me Later net total payment volume as % of net total payment volume**1%**1%**1%**2%**1%* *Transaction rates (4)*Transaction revenue rate3.59%3.60%3.57%3.45%3.45%Transaction processing expense rate 1.13%1.17%1.18%1.10%1.10%Transaction loss rate0.18%0.17%0.17%0.15%0.17% *Loan portfolio rates*Risk adjusted margin (5)11.53%12.82%11.51%14.43%14.74%Net charge-off rate (6)9.49%8.56%7.28%6.07%4.86%90-day delinquency rate (7)3.84% 3.31%3.10%2.37%2.16%(1)All registered accounts that successfully sent or received at least one payment or payment reversal through the PayPal system or Bill Me Later accounts that are currently able to transact and that received a statement within the last 12 months.(2)Number of payments, net of payment reversals, successfully completed through PayPal’s payments network and on Bill Me Later accounts during the quarter, excluding PayPal’s payments gateway business.(3)Total dollar volume of payments, net of payment reversals, successfully completed through PayPal’s payments network and on Bill Me Later accounts during the quarter, excluding PayPal’s payments gateway business.(4)Transaction rates represent the ratio of Payments net transaction revenues (including PayPal’s payments gateway business and Bill Me Later), Payments third-party processing expenses, and Payments fraud, credit and protection program losses relative to net total payment volume (including Bill Me Later).(5)The risk adjusted margin represents the annualized ratio of Bill Me Later revenue, excluding contra-revenue incentives to customers or merchants, less cost of funds, and less net credit and fraud losses relative to average loans receivable for the quarter.(6)Net charge-off rate represents the annualized ratio of Bill Me Later net credit losses relative to average loans receivable for the quarter.(7)90-day delinquency rate is the ratio of Bill Me Later end of period account balances that have missed three or more consecutive payments relative to total ending loan receivables.
*eBay Inc.*
*Unaudited eBay Marketplaces Supplemental Operating Data*
*Three Months Ended* *March 31,* *2010* *June 30,* *2010* *September 30,* *2010* *December 31,* *2010* *March 31,* *2011*
(In millions, except percentages) *Active Users (1)*91.3
* 91.8 93.2 94.5 95.9*Current quarter vs prior quarter**1%**1%**1%**1%**1%**Current quarter vs prior year quarter**3%**4%**4%**5%**5%* *Gross Merchandise Volume (excluding vehicles) (2)*$13,371$12,531$12,591$15,039$14,496*Current quarter vs prior quarter**(6%)*(6%)*0%**19%**(4%)**Current quarter vs prior year quarter**24%**13%**3%**6%**8%* *Vehicles Gross Merchandise Volume (3)*$2,021 $2,189$2,157$1,920$2,050*Current quarter vs prior quarter**(4%)**8%**(1%)** (11%)**7%**Current quarter vs prior year quarter**(3%)**(5%)**(10%)**(8%)** 1%* *Fixed Price Trading (4) as % of total gross merchandise volume**57%** 59%**60%**62%**61%* * Number was restated due to a calculation error.eBay’s classifieds websites (including Rent.com) and Shopping.com are not included in these metrics. (1)All users, excluding users of Half.com, StubHub, and our Korean subsidiaries (Gmarket and eBay Auction Co.), who bid on, bought, listed or sold an item within the previous 12-month period. Users may register more than once, and as a result, may have more than one account.(2)Total value of all successfully closed items between users on eBay Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction, excluding vehicles gross merchandise volume.(3)Total value of all successfully closed vehicle transactions between users on eBay Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction.(4)Primarily, total gross merchandise volume related to eBay’s “Buy It Now” feature on eBay Marketplaces trading platforms relative to total gross merchandise volume during the quarter.
*eBay Inc.* *Business Outlook* *(In Millions, Except Per Share Amounts)*
*The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because eBay’s future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and eBay assumes no obligation to update it.*
eBay’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect eBay’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s investor relations web site athttp://investor.ebayinc.com
Estimated non-GAAP amounts above for the twelve months ending December 31, 2011, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $215-$255 million, estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $460-$510 million, and gain from the acquisition of a business of approximately $17 million.
*eBay Inc.* *Non-GAAP Measures of Financial Performance*
To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, eBay uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin, non-GAAP effective tax rate, and free cash flow.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with eBay’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate eBay’s results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the tables included on pages 11, 13 and 14 of this press release.
These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and the company’s prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because eBay has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.
For its internal budgeting process, and as discussed further below, eBay’s management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, significant gains or losses from the disposal/acquisition of a business, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, eBay’s management also uses the foregoing non-GAAP measures in reviewing the financial results of eBay.
eBay excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin and non-GAAP effective tax rate:
*Stock-based compensation expense.* This expense consists of expenses for stock options, restricted stock and employee stock purchases. eBay excludes stock-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. eBay also excludes its proportionate share of Skype’s stock-based compensation expense.
*Employer payroll taxes on stock-based compensation.* This amount is dependent on eBay’s stock price and the timing and size of exercises by employees of their stock options and the vesting of their restricted stock, over which management has limited to no control, and as such management does not believe it correlates to eBay’s operation of the business.
*Amortization or impairment of acquired intangible assets, impairment of goodwill and significant gains or losses from the disposal/acquisition of a business. *eBay incurs amortization or impairments of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the disposal/acquisition of a business and therefore excludes these amounts from its non-GAAP measures. eBay also excludes its proportionate share of Skype’s amortization of acquired intangibles expense. eBay also settled a legal exposure in conjunction with the disposal/acquisition of a business and excludes this settlement payment. In addition, eBay’s results are also impacted by hedge transactions related to unique movements of cash from significant business acquisitions or dispositions. eBay excludes these items because management does not believe they have any direct correlation to the current operating results of eBay’s business.
*Restructuring.* These charges consist of expenses for employee severance and other exit and disposal costs. eBay excludes restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
*Income taxes associated with certain non-GAAP entries.* This amount is used to present stock-based compensation and the other amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.
In addition to the non-GAAP measures discussed above, eBay also uses free cash flow. Free cash flow represents operating cash flows less net purchases of property and equipment. eBay considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in eBay’s business, make strategic acquisitions, and repurchase stock. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period.
*eBay Inc.* *Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin* *Three Months Ended**March 31,* *2010* *March 31,* *2011*(In thousands, except percentages)GAAP operating income$488,609$ 564,654Stock-based compensation expense102,069118,857Employer payroll taxes on stock-based compensation8,53913,062Amortization of acquired intangible assets within cost of net revenues11,8148,503Amortization of acquired intangible assets within operating expenses53,25244,096Restructuring 8,569 (149)Non-GAAP operating income$672,852 $749,023 Non-GAAP operating margin 30.6% 29.4%
*Reconciliation of GAAP Net Income to Non-GAAP Net Income* *Three Months Ended**March 31,* *2010**March 31,* *2011*(In thousands, except per share amounts)GAAP net income$397,653$ 475,865Stock-based compensation expense102,069118,857Employer payroll taxes on stock-based compensation8,53913,062Amortization of acquired intangible assets within cost of net revenues11,8148,503Amortization of acquired intangible assets within operating expenses53,25244,096Restructuring8,569 (149)Charges associated with the sale of Skype28,048-Amortization of intangibles and stock-based compensation for Skype4,2699,208Income taxes associated with certain non-GAAP entries (60,034) (50,423)Non-GAAP net income$554,179 $619,019 Diluted net income per share:GAAP$0.30 $0.36 Non-GAAP$0.42 $0.47 Shares used in GAAP and non-GAAP diluted net income per-share calculation 1,326,021 1,320,151
*eBay Inc.*
*Reconciliation of GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate* *Three Months Ended**March 31,* *2010**March 31,* *2011*(In thousands, except percentages)GAAP provision for income taxes (a)$ 97,002$92,481Income taxes associated with certain non-GAAP entries 60,034 50,423 Non-GAAP provision for income taxes (b)$157,036 $142,904 GAAP income before income taxes (c)$494,655$568,346Stock-based compensation expense 102,069118,857Employer payroll taxes on stock-based compensation8,53913,062Amortization of acquired intangible assets within cost of net revenues11,8148,503Amortization of acquired intangible assets within operating expenses53,25244,096 Restructuring8,569(149)Charges associated with the sale of Skype28,048-Amortization of intangibles and stock-based compensation for Skype 4,269 9,208 Non-GAAP income before income taxes (d)$711,215 $761,923 GAAP effective tax rate (a/c) 20% 16% Non-GAAP effective tax rate (b/d) 22% 19%
*Reconciliation of Operating Cash Flow to Free Cash Flow* *Three Months Ended**March 31,* *2010**March 31,* *2011*(In thousands)Net cash provided by operating activities$418,262$ 699,610Less: Purchases of property and equipment, net (152,256) (148,568)Free cash flow$266,006 $551,042
Television Company Belo Corp. (BLC) Reports Results For First Quarter 2011
April 27, 2011
*Television Company Belo Corp. (BLC) Reports Results For First Quarter 2011*
*DALLAS* – Belo Corp. (NYSE: BLC), one of the nation’s largest pure-play, publicly-traded television companies, today reported pro forma earnings per share of $0.09 in the first quarter of 2011 versus pro forma earnings per share of $0.11 in the first quarter of 2010. Pro forma earnings per share in the first quarter of 2011 exclude a net non-cash charge, after taxes, of $13.3 million, or $0.13 per share, related to the January 2011 split of The G. B. Dealey Retirement Pension Plan (“Pension Plan”) with A. H. Belo Corporation (“A. H. Belo”). Pro forma earnings per share in the first quarter of 2010 exclude a credit of $2.5 million, net of taxes, or $0.02 per share, from pension contribution reimbursements received from A. H. Belo related to its obligation to reimburse Belo for 60 percent of any pension contributions Belo made to the Pension Plan prior to the completion of the split. Including these items, net earnings (loss) per share in the first quarter of 2011 were ($0.04) compared to $0.13 per share in the first quarter of 2010.
Dunia A. Shive, Belo’s president and Chief Executive Officer, said, “Belo’s spot revenue excluding political was up slightly in the first quarter of 2011 despite difficult comparisons to the first quarter of 2010, which included significant Olympics and Super Bowl revenue. The Company’s station adjusted EBITDA was $47.4 million in the first quarter of 2011. During the quarter, the Company paid off the remaining balance of its revolving credit facility. While we expect to draw on the facility to accommodate interest payments in the second quarter, we currently expect to begin accumulating a cash balance in the back half of the year as the Company’s next tranche of debt does not mature until May 2013.”
Shive also noted that Belo’s Board of Directors lifted the Company’s dividend suspension, with the declaration of a $0.05 per share quarterly dividend as detailed in a separate press release, also issued today.
*First Quarter in Review*
*Operating Results *Total revenue decreased 1.9 percent in the first quarter of 2011 versus the first quarter of 2010. Total spot revenue, excluding political, was up 0.4 percent with a 2.1 percent increase in local spot revenue and a 2.7 percent decrease in national spot revenue. Core local and national spot revenue was affected by the loss of Olympics and Super Bowl revenue from the first quarter of 2010, which totaled $10.7 million. Total spot revenue, including political, was down 4.2 percent in the first quarter of 2011 compared to the first quarter of 2010. Political revenue in the first quarter of 2011 was $5.9 million lower than the first quarter of 2010.
Other revenue, which includes barter and trade advertising, network compensation, Internet advertising and retransmission revenue, was up 10 percent in the first quarter of 2011 due primarily to increases in Internet and retransmission revenue, which were partially offset by a decrease in network compensation.
Station salaries, wages and employee benefits increased $2.6 million, or 5.1 percent, during the first quarter of 2011 versus the first quarter of 2010 due primarily to employee merit increases, partial reinstatement of the Company’s 401(k) plan matching contribution which was suspended in 2009, and higher station pension expense.
Station programming and other operating costs were up $4.6 million in the first quarter of 2011 compared to the first quarter 2010 due primarily to a $3.9 million non-cash expense reduction related to third-party funding of certain newsgathering equipment in the first quarter of 2010.
Station adjusted EBITDA was $47.4 million for the first quarter of 2011, and the station adjusted EBITDA margin for the first quarter of 2011 was 31 percent.
*Corporate* Corporate operating costs of $6.3 million in the first quarter of 2011 were $3.3 million lower than the first quarter of 2010 due primarily to lower accrued bonus expense, a decrease in outside services expense primarily related to lower technology costs, and lower pension expense.
The Company’s reported combined station and corporate operating costs were up 3.6 percent in the first quarter of 2011 compared to the first quarter of 2010.
*Other Items *On January 3, 2011, Belo announced the completion of the split of the Pension Plan with A. H. Belo. In the first quarter of 2011, the Company recorded a net non-cash charge of $20.5 million related to the Pension Plan split, with an associated tax benefit of $7.1 million. The $20.5 million charge is shown as a separate component of total operating costs and expenses on Belo’s Consolidated Statements of Operations. The Company also recorded an increase in equity of $72 million and a reduction in its unfunded pension liability of $117 million in the first quarter 2011 in connection with the split.
The Company recorded a reduction in operating expenses of $4.1 million in the first quarter of 2010 related to pension contribution reimbursements received from A. H. Belo pursuant to its obligation to reimburse Belo for 60 percent of any pension contributions Belo made to the Pension Plan prior to the split.
Belo’s depreciation expense totaled $7.9 million in the first quarter of 2011, down from $9.2 million in the first quarter of 2010.
The Company’s interest expense decreased $1.9 million in the first quarter of 2011 compared to the first quarter of 2010 due primarily to lower borrowings on its revolving credit facility and lower ongoing fees associated with the Company’s election to reduce the commitment amount under its facility in 2010.
Income tax expense decreased $9.7 million in the first quarter of 2011 compared to the first quarter of 2010 due primarily to the $7.1 million tax benefit related to the Pension Plan split and lower pre-tax earnings. The Company’s full year effective tax rate for 2011 is currently expected to be around 40 percent.
Total debt at March 31, 2011, was $886 million, which consisted entirely of fixed-rate debt. The Company paid down the remaining $11 million of its revolving credit facility during the quarter and had approximately $9 million invested in marketable securities at March 31, 2011. The Company’s total leverage ratio, as defined in the Company’s credit facility, was 3.6 times at March 31, 2011, down from 3.7 times at December 31, 2010. Belo invested $3 million in capital expenditures in the first quarter of 2011 and currently expects full year capital expenditures to be approximately $16 million.
*Non-GAAP Financial Measures*
A reconciliation of station adjusted EBITDA to earnings from operations and a reconciliation of net earnings (loss) to pro forma net earnings are set forth in an exhibit to this release.
*Outlook*
Looking to the second quarter, Shive said, “While we have not yet seen a significant change in the overall pace of our business related to ongoing events in Japan, we do expect some level of disruption in the second quarter, particularly in the automotive category. While pacings currently reflect a higher percentage growth rate, we are currently estimating spot revenue excluding political to be flat to up low-single digits in the second quarter of 2011 compared to the second quarter of 2010 due to the uncertainty surrounding auto supply in the second quarter.
“For the second quarter of 2011, combined station and corporate operating costs are currently estimated to be up about 8 percent compared to the second quarter of 2010. Excluding a $3.1 million non-cash expense reduction related to third-party funding of certain newsgathering equipment in the second quarter of 2010, combined station and corporate operating costs are estimated to be up about 5 percent.”
A conference call to discuss this release and other matters of interest to shareholders and analysts will follow at 1:00 p.m. CDT this afternoon. The conference call will be simultaneously Webcast on Belo Corp.’s Web site ( www.belo.com/invest). Following the conclusion of the Webcast, a replay of the conference call will be archived on Belo’s Web site. To access the listen-only conference lines, dial 1-877-764-2008. A replay line will be open from 3:00 p.m. CDT on April 27 until 11:59 p.m. CDT May 11. To access the replay, dial 800-475-6701 or 320-365-3844. The access code for the replay is 200861.
*About Belo Corp.*
Belo Corp. (BLC), one of the nation’s largest pure-play, publicly-traded television companies, owns and operates 20 television stations (nine in the top 25 markets) and their associated Web sites. Belo stations, which include affiliations with ABC, CBS, NBC, FOX, and the CW, reach more than 14 percent of U.S. television households in 15 highly-attractive markets. Belo stations rank first or second in nearly all of their local markets. Additional information is available at www.belo.com or by contacting Paul Fry, vice president/Investor Relations & Treasury Operations, at 214-977-4465.
*Statements in this communication concerning Belo’s business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures, investments, future financings, impairments, pension matters, and other financial and non-financial items that are not historical facts, are “forward-looking statements” as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.*
*Such risks, uncertainties and factors include, but are not limited to, uncertainties regarding the costs, consequences (including tax consequences) and other effects of the Company’s spin-off distribution of its newspaper businesses and related assets to A. H. Belo Corporation and the associated agreements between the Company and A. H. Belo relating to various matters; changes in capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and programming and production costs; changes in viewership patterns and demography, and actions by Nielsen; changes in the network-affiliate business model for broadcast television; technological changes, and the development of new systems and devices to distribute and consume television and other audio-visual content; changes in the ability to secure, and in the terms of, carriage of Belo programming on cable, satellite, telecommunications and other program distribution methods; development of Internet commerce; industry cycles **; changes in pricing or other actions by competitors and suppliers; Federal Communications Commission and other regulatory, tax and legal changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions, dispositions, co-owned ventures, and investments; pension plan matters; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo’s other public disclosures and filings with the SEC including Belo’s Annual Report on Form 10-K.*
*View Exhibits http://www.belo.com/files/03.31.11_Financials.pdf*
Consumers Rate Newspaper Advertising as Primary Shopping Information Source
NEW RESEARCH: CONSUMERS RATE NEWSPAPER ADVERTISING AS PRIMARY SHOPPING INFORMATION SOURCE
*Newspaper Ads Rank First in Driving Consumers to Take Action; Preprints Still Read By Strong Majority of U.S. Adults
Ads on Local Newspaper Websites Rank Ahead of Portals, Search Engines and Social Media*
*Arlington, Va.* – Newspaper advertising is the leading advertising medium cited by consumers in planning, shopping and making purchasing decisions, according to data from a Frank N. Magid Associates survey of 2,500 adults. The findings, announced today by the Newspaper Association of America, paint a strong picture of the unmatched value newspaper advertising continues to deliver in today’s media landscape.
“This important new research reaffirms the power of newspaper advertising to engage consumers and drive them to take action,” said NAA President and CEO John Sturm. “More than all other media, adults continue to turn to newspapers to inform shopping decisions that lead to purchases. They are an opt-in media in an opt-out world, making newspaper advertising an ideal and effective choice for advertisers who want to reach consumers ready to shop and spend.”
This study
- Four-in-five adults (79 percent) of those surveyed said they “took action” as a result of newspaper advertising in the past month, including: – Clipping a coupon (54 percent) – Buying something (46 percent) – Visiting Web sites to learn more (37 percent) – Trying something for the first time (20 percent) – More than half of all adults (52 percent) identify newspapers as the medium they use to help plan shopping or make purchase decisions – Almost three-fourths (72 percent) of all adults regularly or occasionally read newspaper preprints; For Sunday inserts, this figure increases to 90 percent of all adults. Over the course of 30 days, 8 in 10 adults (79 percent) acted on newspaper preprint advertising. – Nearly four-in-10 (38 percent) adults who identify themselves as newspaper “non-readers” recalled other forms of engagement in the past week, including checking sales in local stores, clipping coupons, comparing prices, checking movie or TV listings and classified, and also various forms of editorial content. Altogether, this unofficial exposure overall adds another 13 percentage points to the newspapers’ weekly reach among all adults and so may be considered as a bonus beyond the “normal” audience. – Advertising on local newspaper websites ranked second (behind only e-mailed store or product information) among online options for advertising sources, beating general interest websites, or portals, paid ads that appear on the right side of the search engine screens, ads on social network pages, and ads on mobile devices
Newspapers also lead other media on the following advertising benefits:
- Checking for your regular shopping (41 percent). – Having advertising that you consult from stores that you regularly shop (36 percent) – Being the most believable and trustworthy (36 percent). – Being the best for bringing sales to your attention (38 percent) – Being the most valuable in planning your shopping (36 percent) – Preferred for receiving advertising information (36 percent) – You Look Forward to This Kind of Advertising (30 percent)
The data also reveals that other media trailed well behind newspapers as the primary medium for checking advertising. The closest competitor – the Internet – trailed newspapers by seven percentage points (35 percent vs. 28 percent). Direct mail only mustered a 12 percent response in the survey, and television was cited by only nine percent of respondents. The numbers for other media trail off from that point (totals are displayed in the chart below).
Primary Medium for Checking Advertising 2011 Newspapers35%Internet28%Ads received in the mail (Direct mail)12%Television 9%Catalogs7%Magazines3%Radio1%None of these5%
Frank N. Magid Associates, based in Minneapolis, conducted this phone and Internet survey of 2,502 adults for the Newspaper Association of America.
NAA is a nonprofit organization representing nearly 2,000 newspapers and their multiplatform businesses in the U.S. and Canada. NAA members include daily newspapers, as well as non-dailies, other print publications and online products. Headquartered near Washington, D.C., in Arlington, Va., the Association focuses on the major issues that affect today’s newspaper industry: public policy/legal matters, advertising revenue growth
IAC Reports Q1 Results
IAC Reports Q1 Results
NEW YORK, April 26, 2011 /PRNewswire http://www.prnewswire.com// — IAC (Nasdaq: IACI) released first quarter 2011 results today.
*SUMMARY RESULTS*
*$ in millions (except per share amounts)*
*Q1 2011*
*Q1 2010*
*Growth*
Revenue
$ 460.2
$ 378.2
22%
Operating Income Before Amortization
60.0
33.6
78%
Adjusted Net Income
35.5
2.5
NM
Adjusted EPS
0.37
0.02
NM
Operating Income
37.3
8.9
318%
Net Income (Loss)
18.1
(18.7)
NM
GAAP Diluted EPS
0.19
(0.16)
NM
*See reconciliation of GAAP to non-GAAP measures beginning on page 9.*
*Information Regarding the Results:*
- Q1 revenue increased 22% reflecting double digit growth across each segment. Operating Income Before Amortization grew 78% driven by strong profit growth at Search, Match and ServiceMagic. – Q1 net income and Adjusted Net Income grew $36.8 million and $33.0 million, respectively, reflecting strong operating performance. The prior year period included an impairment charge related to an investment, partially offset by a gain associated with the sale of certain securities which collectively impacted net loss and Adjusted Net Income by $15.8 million and GAAP EPS and Adjusted EPS by $0.14 and $0.13, respectively. – Q1 Free Cash Flow and cash flows from operating activities attributable to continuing operations were $45.6 million and $53.9 million, respectively.
*Principal Areas of Focus:*
- *Search*: IAC extended its contract with Google through March 31, 2016; Mindspark announced distribution deals with Booyah, Lolapps and Social Point in the social gaming space; The Daily Burn launched its new Meal Snap app for the iPhone, which hit the top 25 list of apps on iTunes in the first week; and Dictionary.com reached more than 30 million mobile app downloads. – *Local:* CityGrid Media announced a distribution partnership with CBS Local Digital Media, bringing new local businesses into the CityGrid advertising network; and ServiceMagic grew domestic service professionals 11% to 81,400 and international service professionals 44% to 24,000. – *Personals*: Subscribers logging in through mobile devices grew 135% year over year to almost 30% of total on Match.com U.S., Core subscribers grew 22%. – *Media: *Electus and NBC announced a fashion reality competition to be hosted by Elle Macpherson; Vimeo launched its iPhone app that allows* * users* *to* *shoot and edit video and has reached over half a million downloads since its release in early April; IAC launched Hatch Labs, a business focused on building mobile products; and IAC and Harman Newsweek formed The Newsweek Daily Beast Company joint venture.
*DISCUSSION OF FINANCIAL AND OPERATING RESULTS*
Q1 2011
Q1 2010
Growth
Revenue
*$ in millions*
Search
$ 248.6
$ 199.0
25%
Match
111.6
89.3
25%
ServiceMagic
46.3
42.2
10%
Media & Other
54.3
48.1
13%
Intercompany Elimination
(0.6)
(0.4)
-46%
$ 460.2
$ 378.2
22%
Operating Income Before Amortization
Search
$ 49.4
$ 31.5
57%
Match
25.0
14.8
69%
ServiceMagic
4.2
2.9
46%
Media & Other
(3.4)
(2.4)
-40%
Corporate
(15.2)
(13.2)
-16%
$ 60.0
$ 33.6
78%
Operating Income (Loss)
Search
$ 49.1
$ 31.1
58%
Match
23.4
13.7
71%
ServiceMagic
3.8
2.4
59%
Media & Other
(3.7)
(3.8)
2%
Corporate
(35.3)
(34.4)
-2%
$ 37.3
$ 8.9
318%
*Search*
Search includes Mindspark, our digital consumer products business consisting of our proprietary operations through which we develop, market and distribute downloadable applications, and our B2B operations, which provide customized browser-based applications for software and media companies; destination websites, including Ask.com and Dictionary.com, through which we provide search and additional services; and CityGrid Media, an online media company that aggregates and integrates local ads and content and distributes them to publishers across web and mobile platforms.
Search revenue reflects strong growth from Mindspark’s B2B and proprietary operations as well as continued improvements from destination websites and CityGrid Media. The revenue growth in B2B was driven by increased engagement from existing partners as well as the contribution from new partners while the growth in the proprietary business was driven primarily by the nearly 30 new products launched since the prior year period. The revenue growth in destination websites reflects increased marketing efforts while the growth in CityGrid Media primarily reflects the contribution from new resellers. Profits were favorably impacted by higher revenue and lower depreciation expense, partially offset by higher traffic acquisition costs and increased marketing expense.
*Match*
Match revenue benefited from strong growth within its Core(1) and Developing(2) operations. Core revenue increased 18% to $93.3 million driven by a 22% increase in subscribers. Developing revenue increased 82% to $18.3 million driven by the full quarter contribution of Singlesnet, as well as from our venture with Meetic in Latin America and the acquisition of OkCupid, neither of which were reflected in the year ago results. Profits were favorably impacted by higher revenue and lower selling and marketing expense as a percentage of revenue.
S*erviceMagic*
ServiceMagic revenue benefited from growth in its domestic and international operations. Domestically, revenue growth reflects a 9% increase in accepted service requests, which was driven by an 11% increase in service professionals, partially offset by lower average accepted service request fees. Average accepted service request fees were impacted by a shift in mix to lower value service requests. Domestic service requests declined 1% due primarily to reduced marketing efforts in the current year period. Domestic growth also reflects an increase in revenue from website fulfillment and hosting services. ServiceMagic International revenue growth reflects an 85% increase in accepted service requests. Profits were favorably impacted by higher revenue and lower domestic marketing expenses. Profits in 2010 benefited from the reversal of a $1.5 million provision for contingent consideration related to an acquisition, which was not earned.
*Media & Other*
Media & Other includes Electus, CollegeHumor, Notional, Vimeo, Pronto, Shoebuy, Proust and Hatch Labs. The increase in revenue primarily reflects growth at Shoebuy, Notional, Electus and Vimeo, partially offset by a decline at Pronto. Operating Income Before Amortization loss increased due to the inclusion in the year ago period of $3.1 million in profit related to our former interest in Reveille; lower profits in the current year period from Pronto due to lower revenue; and investments in Hatch Labs, which was not in the year ago period, and Proust. These items more than offset the reduced losses at The Daily Beast, which, following the formation of the joint venture with Harman Newsweek on January 31, 2011, has been accounted for as an equity method investment. The reduced operating loss reflects a decrease of $1.1 million in amortization of intangibles.
*Corporate*
Corporate expenses in the current year period reflect increased compensation and other employee-related costs and a non-income tax refund in the year ago results.
*Note 1: Match Core consists of Match.com in the United States, Chemistry.com and People Media.*
*Note 2: Match Developing consists of OkCupid, Singlesnet, mobile-only products and our international operations**.*
*OTHER **ITEMS*
Equity in losses of unconsolidated affiliates in Q1 2011 reflects losses related to our investment in The Newsweek Daily Beast Company partially offset by income related to our investment in Meetic.
Equity in losses of unconsolidated affiliates in Q1 2010 includes a write-down of $18.3 million related to our investment in The HealthCentral Network, Inc. Other income in Q1 2010 includes a $4.0 million pre-tax gain related to the sale of certain securities.
The effective tax rates for continuing operations and Adjusted Net Income in Q1 2011 were 44% and 39%, respectively. The effective tax rate for continuing operations was higher than the statutory rate of 35% due principally to interest for tax contingencies and state taxes, partially offset by foreign income taxed at lower rates. The effective tax rate for Adjusted Net Income was higher than the statutory rate of 35% due principally to state taxes and interest for tax contingencies. The tax provision for continuing operations was $6.1 million in Q1 2010 on a pre-tax loss of $8.5 million. The effective tax rate for Adjusted Net Income was 86% in Q1 2010. The continuing operations tax provision, despite a pre-tax loss, and the Adjusted Net Income effective tax rate, which was higher than the statutory rate of 35%, were due principally to a valuation allowance on the deferred tax asset created by the impairment charge for our investment in The HealthCentral Network, Inc., interest on tax contingencies and state taxes.
*LIQUIDITY AND CAPITAL RESOURCES*
As of March 31, 2011, IAC had 89.9 million common and class B common shares outstanding. IAC may purchase shares over an indefinite period of time, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook.
As of March 31, 2011, IAC had approximately $1.3 billion in cash and marketable securities, and $95.8 million in long-term debt.
*OPERATING METRICS*
Q1 2011
Q1 2010
Growth
*SEARCH*
Revenue by traffic source (a)
Proprietary
72%
74%
Network
28%
26%
*MATCH*
Core – Paid Subscribers (000s)
1,600
1,315
22%
Developing – Paid Subscribers (000s)
324
270
20%
Total Paid Subscribers (000s)
1,924
1,585
21%
*SERVICEMAGIC*
Domestic Service Requests (000s) (b)
1,377
1,391
-1%
Domestic Accepts (000s) (c)
1,937
1,783
9%
International Service Requests (000s) (b)
185
99
87%
International Accepts (000s) (c)
217
118
85%
*(a) Proprietary includes proprietary consumer product operations, Ask.com and Dictionary.com. Network includes B2B operations, and distributed search and sponsored listings.*
*(b) Fully completed and submitted customer requests for service on ServiceMagic.*
*(c)** **The number of times “Service Requests” are accepted by Service Professionals. A “Service Request” can be transmitted to and accepted by more than one Service Professional.*
*DILUTIVE SECURITIES*
IAC has various tranches of dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions, rounding differences may occur).
Avg.
Strike /
As of
Shares
Conversion
4/22/11
Dilution at:
*Share Price*
*$32.08*
*$ 35.00*
*$ 40.00*
*$ 45.00*
*$ 50.00*
*Absolute Shares as of 4/22/11*
*89.9*
*89.9*
*89.9*
*89.9*
*89.9*
*89.9*
RSUs and Other
6.5
6.4
6.2
6.0
5.8
5.6
Options
13.9
$23.70
3.8
4.6
5.7
6.5
7.3
Warrants
18.3
$28.07
2.3
3.6
5.5
6.9
8.0
*Total Treasury Method Dilution*
*12.5*
*14.5*
*17.1*
*19.1*
*20.9*
% Dilution
12.2%
13.9%
16.0%
17.5%
18.9%
*Total Treasury Method Diluted Shares Outstanding*
*102.4*
*104.3*
*107.0*
*109.0*
*110.8*
*CONFERENCE CALL*
IAC will audiocast its conference call with investors and analysts discussing the Company’s Q1 financial results on Tuesday, April 26, 2011, at 11:00 a.m. Eastern Time (ET). This call will include the disclosure of certain information, including forward-looking information, which may be material to an investor’s understanding of IAC’s business. The live audiocast is open to the public at www.iac.com/investors.htm.
*GAAP FINANCIAL STATEMENTS*
*IAC CONSOLIDATED STATEMENT OF OPERATIONS*
*(unaudited; $ in thousands except per share amounts)*
*Three Months Ended March 31,*
*2011*
*2010*
Revenue
$ 460,213
$ 378,178
Costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)
172,718
131,149
Selling and marketing expense
140,250
130,381
General and administrative expense
76,291
73,964
Product development expense
17,722
14,792
Depreciation
13,439
15,793
Amortization of intangibles
2,457
3,174
Total costs and expenses
422,877
369,253
Operating income
37,336
8,925
Equity in losses of unconsolidated affiliates
(1,879)
(22,613)
Other income, net
752
5,236
Earnings (loss) from continuing operations before income taxes
36,209
(8,452)
Income tax provision
(16,041)
(6,145)
*Earnings (loss) from continuing operations*
20,168
(14,597)
Loss from discontinued operations, net of tax
(1,948)
(4,727)
*Net earnings (loss)*
18,220
(19,324)
Net (earnings) loss attributable to noncontrolling interests
(150)
619
*Net earnings (loss) attributable to IAC shareholders*
$ 18,070
$ (18,705)
*Per share information attributable to IAC shareholders:*
Basic earnings (loss) per share from continuing operations
$ 0.22
$ (0.12)
Diluted earnings (loss) per share from continuing operations
$ 0.21
$ (0.12)
Basic earnings (loss) per share
$ 0.20
$ (0.16)
Diluted earnings (loss) per share
$ 0.19
$ (0.16)
*Non-cash compensation expense by function:*
Cost of revenue
$ 1,082
$ 941
Selling and marketing expense
1,035
983
General and administrative expense
16,400
18,143
Product development expense
1,644
1,478
Total non-cash compensation expense
$ 20,161
$ 21,545
*IAC CONSOLIDATED BALANCE SHEET*
*($ in thousands)*
*March 31,*
*December 31,*
*2011*
*2010*
*ASSETS*
*(unaudited)*
*(audited)*
Cash and cash equivalents
$ 848,595
$ 742,099
Marketable securities
468,890
563,997
Accounts receivable, net
131,735
119,581
Other current assets
118,115
118,308
Total current assets
1,567,335
1,543,985
Property and equipment, net
262,569
267,928
Goodwill
1,074,885
989,493
Intangible assets, net
248,431
245,044
Long-term investments
199,179
200,721
Other non-current assets
184,230
192,383
*TOTAL ASSETS*
$ 3,536,629
$ 3,439,554
*LIABILITIES AND SHAREHOLDERS’ EQUITY*
*LIABILITIES*
Accounts payable, trade
57,943
56,375
Deferred revenue
92,658
78,175
Accrued expenses and other current liabilities
254,018
222,323
Total current liabilities
404,619
356,873
Long-term debt
95,844
95,844
Income taxes payable
478,203
475,685
Other long-term liabilities
19,906
20,350
Redeemable noncontrolling interests
60,117
59,869
Commitments and contingencies
*SHAREHOLDERS’ EQUITY*
Common stock
227
226
Class B convertible common stock
16
16
Additional paid in capital
11,457,311
11,428,749
Accumulated deficit
(633,948)
(652,018)
Accumulated other comprehensive income
20,843
17,546
Treasury stock
(8,366,509)
(8,363,586)
Total shareholders’ equity
2,477,940
2,430,933
*TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY*
$ 3,536,629
$ 3,439,554
*IAC CONSOLIDATED STATEMENT OF CASH FLOWS*
*(unaudited; $ in thousands)*
*Three Months Ended March 31,*
*2011*
*2010*
*Cash flows from operating activities attributable to continuing operations: *
Net earnings (loss)
$ 18,220
$ (19,324)
Less: loss from discontinued operations, net of tax
1,948
4,727
*Earnings (loss) from continuing operations*
20,168
(14,597)
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities attributable to continuing operations:
Depreciation
13,439
15,793
Amortization of intangibles
2,457
3,174
Non-cash compensation expense
20,161
21,545
Deferred income taxes
6,374
6,816
Equity in losses of unconsolidated affiliates
1,879
22,613
Gain on sales of investments
(846)
(3,989)
Changes in current assets and liabilities:
Accounts receivable
(13,711)
(12,129)
Other current assets
(1,008)
(2,955)
Accounts payable and other current liabilities
(13,714)
4,816
Income taxes payable
(195)
6,997
Deferred revenue
14,263
6,544
Other, net
4,625
1,920
*Net cash provided by operating activities attributable to continuing operations*
53,892
56,548
*Cash flows from investing activities attributable to continuing operations: *
Acquisitions, net of cash acquired
(48,269)
(9,759)
Capital expenditures
(8,294)
(11,490)
Proceeds from sales and maturities of marketable debt securities
190,936
195,665
Purchases of marketable debt securities
(98,484)
(284,933)
Proceeds from sales of long-term investments
7,829
5,325
Purchases of long-term investments
(604)
(213)
Other, net
40
(2,371)
*Net cash provided by (used in) investing activities attributable to continuing operations*
43,154
(107,776)
*Cash flows from financing activities attributable to continuing operations: *
Purchase of treasury stock
-
(246,154)
Issuance of common stock, net of withholding taxes
(1,081)
2,471
Excess tax benefits from stock-based awards
9,680
4,800
Other, net
20
-
*Net cash provided by (used in) financing activities attributable to continuing operations*
8,619
(238,883)
*Total cash provided by (used in) continuing operations*
105,665
(290,111)
*Total cash used in discontinued operations*
(1,047)
(386)
Effect of exchange rate changes on cash and cash equivalents
1,878
(3,228)
*Net increase (decrease) in cash and cash equivalents*
106,496
(293,725)
Cash and cash equivalents at beginning of period
742,099
1,245,997
*Cash and cash equivalents at end of period*
$ 848,595
$ 952,272
*RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES *
*IAC RECONCILIATION OF OPERATING CASH FLOW FROM CONTINUING OPERATIONS TO FREE CASH FLOW*
(unaudited; $ in millions; rounding differences may occur)
*Three Months Ended March 31,*
*2011*
*2010*
Net cash provided by operating activities attributable to continuing operations
$ 53.9
$ 56.5
Capital expenditures
(8.3)
(11.5)
Free Cash Flow
$ 45.6
$ 45.1
For the three months ended March 31, 2011 consolidated Free Cash Flow increased by $0.5 million due to higher income and lower capital expenditures, partially offset by the timing of payments related to accounts payable. The prior year period benefited from certain tax refunds versus cash taxes paid in 2011.
*IAC RECONCILIATION OF GAAP EPS TO ADJUSTED EPS*
*(unaudited; in thousands except per share amounts)*
*Three Months Ended March 31,*
*2011*
*2010*
*Diluted earnings (loss) per share*
$ 0.19
$ (0.16)
*GAAP Diluted weighted average shares outstanding*
93,676
116,446
*Net earnings (loss) attributable to IAC shareholders*
$ 18,070
$ (18,705)
Non-cash compensation expense
20,161
21,545
Amortization of intangibles
2,457
3,174
Gain on sale of VUE interests and related effects
1,541
1,716
Discontinued operations, net of tax
1,948
4,727
Impact of income taxes and noncontrolling interests
(8,665)
(9,975)
*Adjusted Net Income*
$ 35,512
$ 2,482
*Adjusted EPS weighted average shares outstanding*
96,948
121,840
*Adjusted EPS*
$ 0.37
$ 0.02
*GAAP Basic weighted average shares outstanding*
89,081
116,446
Options, warrants and RSUs, treasury method
4,595
-
*GAAP Diluted weighted average shares outstanding*
93,676
116,446
Options, warrants and RSUs, treasury method not included in diluted shares above
-
3,468
Impact of RSUs
3,272
1,926
*Adjusted EPS shares outstanding*
96,948
121,840
For Adjusted EPS purposes, the impact of RSUs on shares outstanding is based on the weighted average number of RSUs outstanding as compared with shares outstanding for GAAP purposes, which includes RSUs on a treasury method basis. The weighted average number of RSUs outstanding for Adjusted EPS purposes includes the weighted average number of performance-based RSUs that the Company believes are probable of vesting. There are no performance-based RSUs included for GAAP purposes.
*IAC RECONCILIATION OF DETAILED SEGMENT RESULTS TO GAAP*
(unaudited; $ in millions; rounding differences may occur)
*For the three months ended March 31, 2011*
*Operating Income*
*Before*
*Amortization*
*Non-cash*
*compensation*
*expense*
*Amortization of*
*intangibles*
*Operating income*
*(loss)*
Search
$ 49.4
$ -
$ (0.3)
$ 49.1
Match
25.0
-
(1.6)
23.4
ServiceMagic
4.2
-
(0.4)
3.8
Media & Other
(3.4)
(0.1)
(0.2)
(3.7)
Corporate
(15.2)
(20.0)
-
(35.3)
Total
$ 60.0
$ (20.2)
$ (2.5)
37.3
Equity in losses of unconsolidated affiliates
(1.9)
Other income, net
0.8
Earnings from continuing operations before income taxes
36.2
Income tax provision
(16.0)
Earnings from continuing operations
20.2
Loss from discontinued operations, net of tax
(1.9)
Net earnings
18.2
Net earnings attributable to noncontrolling interests
(0.2)
Net earnings attributable to IAC shareholders
$ 18.1
*Supplemental: Depreciation*
Search
$ 7.0
Match
2.3
ServiceMagic
1.1
Media & Other
0.8
Corporate
2.3
Total depreciation
$ 13.4
*For the three months ended March 31, 2010*
*Operating Income*
*Before*
*Amortization*
*Non-cash*
*compensation*
*expense*
*Amortization of*
*intangibles*
*Operating income*
*(loss)*
Search
$ 31.5
$ (0.1)
$ (0.3)
$ 31.1
Match
14.8
-
(1.1)
13.7
ServiceMagic
2.9
-
(0.5)
2.4
Media & Other
(2.4)
(0.1)
(1.3)
(3.8)
Corporate
(13.2)
(21.3)
-
(34.4)
Total
$ 33.6
$ (21.5)
$ (3.2)
8.9
Equity in losses of unconsolidated affiliates
(22.6)
Other income, net
5.2
Loss from continuing operations before income taxes
(8.5)
Income tax provision
(6.1)
Loss from continuing operations
(14.6)
Loss from discontinued operations, net of tax
(4.7)
Net loss
(19.3)
Net loss attributable to noncontrolling interests
0.6
Net loss attributable to IAC shareholders
$ (18.7)
*Supplemental: Depreciation*
Search
$ 9.1
Match
3.0
ServiceMagic
0.9
Media & Other
0.5
Corporate
2.2
Total depreciation
$ 15.8
*IAC’S PRINCIPLES OF FINANCIAL REPORTING*
IAC reports Operating Income Before Amortization, Adjusted Net Income, Adjusted EPS and Free Cash Flow, all of which are supplemental measures to GAAP. These measures are among the primary metrics by which we evaluate the performance of our businesses, on which our internal budgets are based and by which management is compensated. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. IAC endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures contained in this release and which we discuss below. Interim results are not necessarily indicative of the results that may be expected for a full year.
*Definitions of Non-GAAP Measures*
*Operating Income Before Amortization* is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment, (4) pro forma adjustments for significant acquisitions, and (5) one-time items. We believe this measure is useful to investors because it represents the consolidated operating results from IAC’s segments, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC’s statement of operations of certain expenses, including non-cash compensation and acquisition-related accounting.
*Adjusted Net Income* generally captures all items on the statement of operations that have been, or ultimately will be, settled in cash and is defined as net income available to common shareholders excluding, net of tax effects and noncontrolling interest, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment, (4) pro forma adjustments for significant acquisitions, (5) income or loss effects related to IAC’s former passive ownership in VUE, including the gain on sale, (6) non-cash income or expense reflecting changes in the fair value of the derivatives created in the Expedia spin-off as a result of both IAC and Expedia shares being issuable upon the exercise of certain IAC warrants, (7) income or expense reflecting changes in the fair value of the derivative asset associated with the HSE sale, (8) one-time items, and (9) discontinued operations. We believe Adjusted Net Income is useful to investors because it represents IAC’s consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other charges which are not allocated to the operating businesses such as interest expense, taxes and noncontrolling interest, but excluding the effects of any other non-cash expenses.
*Adjusted EPS* is defined as Adjusted Net Income divided by fully diluted weighted average shares outstanding for Adjusted EPS purposes. We include dilution from options and warrants in accordance with the treasury stock method and include all restricted stock units (“RSUs”) in shares outstanding for Adjusted EPS, with performance-based RSUs included based on the number of shares that the Company believes are probable of vesting. This differs from the GAAP method for including RSUs, which treats them on a treasury method basis and with respect to performance-based RSUs only to the extent the performance criteria are met (assuming the end of the reporting period is the end of the contingency period). Shares outstanding for Adjusted EPS purposes are therefore higher than shares outstanding for GAAP EPS purposes. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, IAC’s consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other charges which are not allocated to the operating businesses such as interest expense, taxes and noncontrolling interest, but excluding the effects of any other non-cash expenses. Adjusted Net Income and Adjusted EPS have the same limitations as Operating Income Before Amortization, and in addition Adjusted Net Income and Adjusted EPS do not account for IAC’s former passive ownership in VUE. Therefore, we think it is important to evaluate these measures along with our consolidated statement of operations.
*Free Cash Flow* is defined as net cash provided by operating activities, less capital expenditures. In addition, Free Cash Flow excludes, if applicable, tax payments and refunds related to the sale of IAC’s interests in VUE, PRC and HSE, an internal restructuring and dividends that represent a return of capital due to the exclusion of the proceeds from these sales and dividends from cash provided by operating activities. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account cash movements that are non-operational. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. For example, it does not take into account stock repurchases. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.
*Pro Forma Results*
We will only present Operating Income Before Amortization, Adjusted Net Income and Adjusted EPS on a pro forma basis if we view a particular transaction as significant in size or transformational in nature. For the periods presented in this release, there are no transactions that we have included on a pro forma basis.
*One-Time Items*
Operating Income Before Amortization and Adjusted Net Income are presented before one-time items, if applicable. These items are truly one-time in nature and non-recurring, infrequent or unusual, and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. GAAP results include one-time items. For the periods presented in this release, there are no adjustments for one-time items.
*Non-Cash Expenses That Are Excluded From Our Non-GAAP Measures*
*Non-cash compensation* expense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of stock options, restricted stock units and performance-based RSUs. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding which, for stock options and restricted stock units, are included on a treasury method basis. We view the true cost of our restricted stock units and performance-based RSUs as the dilution to our share base, and as such units are included in our shares outstanding for Adjusted EPS purposes as described above under the definition of Adjusted EPS. Upon the exercise of certain stock options and vesting of restricted stock units and restricted stock, the awards are settled, at the Company’s discretion, on a net basis, with the Company remitting the required tax withholding amount from its current funds.
*Amortization of intangibles* is a non-cash expense relating primarily to acquisitions. At the time of an acquisition, the intangible assets of the acquired company, such as technology and supplier agreements, are valued and amortized over their estimated lives. While it is likely that we will have significant intangible amortization expense as we continue to acquire companies, we believe that since intangibles represent costs incurred by the acquired company to build value prior to acquisition, they were part of transaction costs.
*Income or loss effects related to IAC’s former passive ownership in VUE, including the gain on sale* are excluded from Adjusted Net Income and Adjusted EPS because IAC had no operating control over VUE, which was sold for a gain in 2005, had no way to forecast this business, and did not consider the results of VUE in evaluating the performance of IAC’s businesses.
*Non-cash income or expense reflecting changes in the fair value of the derivatives created in the Expedia spin-off* was excluded from Adjusted Net Income and Adjusted EPS because the obligations underlying these derivatives, which related to the Ask Convertible Notes and certain IAC warrants, were expected to ultimately be settled in shares of IAC common stock and Expedia common stock, and not in cash.
*Non-cash income or expense reflecting changes in the fair value of the derivative asset related to the Arcandor AG stock* was excluded from Adjusted Net Income and Adjusted EPS because the variations in the value of the derivative were non-operational in nature.
*Free Cash Flow*
We look at Free Cash Flow as a measure of the strength and performance of our businesses, not for valuation purposes. In our view, applying “multiples” to Free Cash Flow is inappropriate because it is subject to timing, seasonality and one-time events. We manage our business for cash and we think it is of utmost importance to maximize cash — but our primary valuation metrics are Operating Income Before Amortization and Adjusted EPS.
*OTHER INFORMATION*
*Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995*
This press release and our conference call to be held at 11:00 a.m. Eastern Time today may contain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “estimates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: IAC’s future financial performance, IAC’s business prospects and strategy, anticipated trends and prospects in the industries in which IAC’s businesses operate and other similar matters. These forward-looking statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: changes in senior management at IAC and/or its businesses, changes in our relationship with, or policies implemented by, Google, adverse changes in economic conditions, either generally or in any of the markets in which IAC’s businesses operate, adverse trends in the online advertising industry or the advertising industry generally, our ability to convert visitors to our various websites into users and customers, our ability to offer new or alternative products and services in a cost-effective manner and consumer acceptance of these products and services, operational and financial risks relating to acquisitions, changes in industry standards and technology, our ability to expand successfully into international markets and regulatory changes. Certain of these and other risks and uncertainties are discussed in IAC’s filings with the Securities and Exchange Commission (“SEC”). Other unknown or unpredictable factors that could also adversely affect IAC’s business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of IAC management as of the date of this press release. IAC does not undertake to update these forward-looking statements.
*About IAC*
IAC operates more than 50 leading and diversified Internet businesses across 30 countries…our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. To view a full list of the companies of IAC please visit our website at http://www.iac.com/.
Despite Rising Fuel Prices, the Outlook for “Green” Vehicles Remains Limited for the Foreseeable Future
*J.D. Power and Associates Reports:*
*Despite Rising Fuel Prices, the Outlook for “Green” Vehicles Remains Limited for the Foreseeable Future*
* *
*Share of Hybrid and Electric Vehicles Is Expected to Remain below 10 Percent Of the U.S. Market through 2016*
* *
*WESTLAKE VILLAGE**, Calif.**: 27 April 2011 *— Growth of alternative powertrain vehicles sales will be limited by consumer concerns about costs as well as functionality, according to the J.D. Power and Associates 2011 U.S. Green Automotive StudySM released today. Despite a rapid increase in the number of alternative powertrain vehicle models projected for the next several years, automakers will be fighting over the relatively few consumers who are willing to drive green.
The inaugural study examines attitudes of U.S. consumers toward four primary alternative powertrain technologies: hybrid electric vehicles; clean diesel engines; plug-in hybrid electric vehicles; and battery electric vehicles. The study gauges consumer consideration rates of these powertrain types for their next new vehicle purchase and explores specific perceived benefits and concerns that factor into the decision-making process.
*For Most Consumers, Cost Matters More than the Environment*
While consumers often cite saving money on fuel as the primary benefit of owning an alternative powertrain vehicle, the reality for many is that the initial cost of these vehicles is too high, even as fuel prices in the United States approach record levels. Reduced expenditure on fuel is the predominant benefit cited by considerers for each of the primary alternative powertrain technologies examined in the study. Although the environmental benefits of these vehicles are recognized, they are mentioned far less frequently than saving money on fuel. For example, 75 percent of consumers who indicate they would consider a hybrid electric vehicle cite lower fuel costs as a main benefit. In contrast only 50 percent cite ‘better for the environment’ as a main benefit of these vehicles.
Consumers who are not considering an alternative powertrain vehicle also recognize the fuel-cost savings these vehicles can offer. However, they cite significant perceived or actual impediments to ownership in addition to purchase price, including driving range, increased maintenance costs and compromised vehicle performance. These consumers are far more likely to switch into a more fuel-efficient vehicle powered by a traditional internal combustion engine than an alternative powertrain vehicle.
“Alternative powertrains face an array of challenges as they attempt to gain widespread acceptance in the market,” said Mike VanNieuwkuyk, executive director of global vehicle research at J.D. Power and Associates. “It is the financial issues that most often resonate with consumers, whether it is the higher price of the vehicle itself, the cost to fuel or charge the vehicle, or the fear of higher maintenance costs. The bottom line is that most consumers want to be green, but not if there is a significant personal cost to them.”
According to VanNieuwkuyk, concern about the purchase price of alternative powertrain vehicles—particularly for hybrid electric vehicles—has become even more of an issue in 2011. At the end of 2010, tax credits from the Energy Policy Act of 2005 were phased out.
“Hybrid electric vehicles have been available in the automotive market for more than 10 years, and consumer awareness and understanding of them has grown during that time,” said VanNieuwkuyk. “As concerns about the functionality and performance of hybrid vehicles have abated, vehicle price has become more prevalent as the primary purchase impediment. Without a tax credit to offset the price premium, consumers must absorb all of this additional cost. Furthermore, aggressive government subsidies are unlikely to be sustainable over the long term. Ultimately, the true cost of the technology needs to come down substantially.”
Although there are also significant price premiums for battery electric vehicles, functional concerns are more likely to limit consideration rates for this powertrain. Driving range and the availability of charging sites away from home are the two concerns cited most often by those not considering this powertrain. This “range anxiety” contributes to the lowest consideration levels of the primary alternative powertrain technologies.
For clean diesel engines, fuel prices and availability—factors largely out of the control of vehicle manufacturers—have long been impediments to acceptance of the technology. Furthermore, negative perceptions of older diesel-powered vehicles continue to affect perceptions of clean diesel vehicles, as concerns about emissions and exhaust odor are mentioned frequently.
“Advocates of clean diesel engines tend to be some of the most vocal among consumers who tout the benefits of their chosen technology,” said VanNieuwkuyk. “However, this consumer group is relatively small. Clean diesel technology continues to struggle not only against concerns about cost and perceived fuel availability, but also against the lingering perception that diesel is ‘dirty.’”
*Implications for Automakers*
Overall, the study reveals interest in alternative powertrain vehicles among a majority of consumers, with perceptions of green vehicles being largely positive. However, converting this interest into actual sales will require concerted efforts to improve the technology and infrastructure and reduce the cost to consumers.
By the end of 2016, J.D. Power and Associates expects there to be 159 hybrid and electric vehicle models available for purchase in the U.S. market. This is a significant increase from only 31 hybrid and electric models in 2009. Despite this, according to VanNieuwkuyk, automakers, along with government entities and others, have considerable work to do in educating consumers as to the true costs and benefits of these technologies. Only through promotion and education will significant numbers of U.S. consumers become sufficiently comfortable with both the financial investment and, in some cases, lifestyle changes required to make the leap from traditional vehicles to alternative powertrain vehicles.
The 2011 U.S. Green Automotive Study combines information and insight from J.D. Power’s primary consumer research, social media intelligence, forecasting and transactional sales data. The primary research includes a study of more than 4,000 consumers who indicate they will be in the market for a new vehicle within the next one to five years. The study was fielded in February 2011.
*About J.D. Power and Associates*
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings http://www.jdpower.com/autos, car insurance
*About The McGraw-Hill Companies*
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.
* *
[Adicio] DiversityInc.com Extends Partnership With Adicio
DiversityInc.com Extends Partnership With Adicio
CARLSBAD, CA, USA (April 26, 2011) – Adicio Inc. http://www.adicio.com/, the leading provider of interactive classified advertising software solutions for media companies, announced DiversityInc.com has extended its partnership with the Adicio Careers platform.
DiversityInc.com’s job board and career center is the leader in online diversity recruitment, providing employers with unparalleled access to active and passive diverse professionals across most major career fields and industries, helping companies that value diversity connect with relevant job seekers. Adicio has powered DiversityInc.com’s recruitment site for the past eight years.
“At contract renewal, we decided to go through an RFP process, simply for due diligence. Adicio was the clear winner across the board based on its proven ability to interface seamlessly with our thousands of corporate customers and nine newspaper partners,” said Luke Visconti, CEO, DiversityInc. “We’ve been with Adicio since 2003 and remain confident that we have the right partner to help us continue to grow our online recruitment business. We conduct business with thousands of companies on our career center and hundreds of thousands of people have posted their resumes – at the end of our RFP process, we felt that Adicio was best positioned to continue to supply us with the most reliable, efficient and totally reliable end-to-end career center software solution.”
“We’re delighted to continue our partnership with DiversityInc.com,” said Tony Lee, Chief Alliance Officer and EVP, Adicio. “We provide them with the products and services they need to successfully connect prospective employers who understand the business benefits of diversity with diversity candidates via a range of cutting-edge tools and features.”
*About DiversityInc.com *DiversityInc http://www.DiversityInc.com/ is the leading source of information on diversity management. Founded in 1998 as DiversityInc.com
DiversityInc’s has the leading diversity benchmarking consultancy, based on data obtained over the past 12 years in The DiversityInc Top 50 Companies for Diversity® survey, which had 535 participants in 2011, up 19 percent from the previous year. DiversityInc also has two major events a year, which average more than 600 attendees from 200 companies and have featured more than 20 CEOs of major corporations, www.DiversityInc.com/events.
*About Adicio, Inc. *
*** *Adicio http://www.adicio.com/ develops interactive classified advertising software solutions for the careers, real estate, and motors markets, which serve the Internet’s leading media companies and web portals. With its award-winning technology and enterprise-class software platforms, domain expertise, and customer service, Adicio delivers a white-label application that seamlessly integrates within online classified advertising offerings, enabling clients to generate revenue and retain their brand while building and managing their online classified efforts. Clients can deploy Adicio’s software as a turnkey solution or customize Adicio’s application to leverage existing brand strategy and support online sales and marketing objectives. Adicio also powers CareerCast.com http://www.careercast.com/, a job search portal and JobsRated.com http://www.jobsrated.com/, where 200 jobs across North America are ranked based on detailed analysis of specific careers factors.
Realtor.com launches IPad app, IPhone app update
Realtor.com(R) Launches iPad App
15 Million iPad Users Now Have The Search Power of Realtor.com In All Inclusive Application
CAMPBELL, Calif., April 26, 2011 /PRNewswire/ — The search power of Realtor.com is now available on the iPad at http://www.realtor.com/mobile/iPad. Launched today by Move, Inc., (NASDAQ: MOVE), the leader in online real estate, the Realtor.com iPad app is the only real estate search app delivering everything from listings with maps and GPS directions to personalization tools that keep users organized and connected when searching across country or across town. Realtor.com mobile apps are also the only real estate search apps with access to Realtor.com, the largest and most accurate collection of online property listings, with more than 80 percent of all property listings updated every 15 minutes.
Today, 10 properties are viewed every second on a Realtor.com mobile app, including the iPhone, Android, Windows Phone 7, and now iPad at http://www.realtor.com/mobile. Realtor.com mobile apps have been downloaded 3.6 million times and active users have increased by 79 percent in four months.
“With a Realtor.com mobile app, there’s no waiting or wondering anymore if a property is on or off the market, how much it costs, or if it will fit your needs,” said Steve Berkowitz, chief executive officer of Move, Inc., operator of Realtor.com. “Mobile is changing the way people buy and sell homes and our iPad app opens up real estate to millions of people with an amazing visual search experience. It combines mobile’s instant gratification and investigative component that everyone loves with Move’s search technology. We’re very excited to expand our mobile offerings and deliver the power of Realtor.com to millions of iPad users.”
Finding the ideal home among the millions of properties on Realtor.com is fast, easy and fun with the Realtor.com iPad app:
Draw Your Own Search Boundaries anywhere in the U.S. with Area Highlighter. It’s fast and allows for hyper-local searches down to street levels. Tap the Show More Listings button, and more properties instantly populate the map. Use the iPad’s finger controls to slide, pinch, zoom and pan through a map to drill down into a neighborhood or particular street.
Personalize your experience by rating properties and saving personal notes on each home for later reference or to share with an agent via email. Sort, refine or filter your search results according to what’s important to you — price, distance, square footage, etc. Create new searches for homes or open houses nationwide or nearby based on your location, MLS ID number, or by city, state, or street name.
Tap My Real Estate to instantly access My Listings, My Saved Searches, or My Recent Searches.
Stay Connected with an agent from each listing detail page via email with questions or to schedule a tour. Store their contact details within the app so it’s easier to send notes, comments and ratings about properties to your agent. Keep friends and family connected to your house hunting adventure by sharing favorite properties via email, Facebook and Twitter.
“The Realtor.com iPad app gives buyers and agents everything they need when they need it most to work together successfully in finding properties,” said Realtor.com President, Errol Samuelson. “In the past year, Realtor.com mobile apps have contributed to a 240 percent increase in consumer outreach to local agents, and open house views have increased by 459 percent in just four months. Even more exciting, in-app communication between agents and consumers (1) has increased by 148 percent since December. We’re very excited with the fast adoption of Realtor.com mobile apps by agents and consumers. We expect these numbers will only improve with the launch of our iPad app because it includes so many easy-to-use interactive features that encourage collaboration between agents and consumers.”
The Realtor.com iPad app offers other notable features including:
Easy-to-Use results feed directly from Realtor.com to a pull down menu that floats over a map with property pins or in a magazine-style gallery view with bold photos. Switching between views and three mapping options is easy, and diving into a listing’s detail page for open house dates, property details, large photos, agent contact details, map’s with GPS-based directions, and share buttons requires one touch. Scroll through the helpful search tips on the homepage.
Self-Contained Listing Detail Pages feature maps enabling users to view properties on a street or satellite view and scan the neighborhood for items of interest. With one touch, quickly enter the information into your personal notes field saving notes on why a listing has great appeal, such as proximity to a local park or hiking trail. There’s no need to exit the app for directions, maps, or for property details.
Remain Organized by using the visual ‘Check marks’ that appear on map-based property pins, the pull down menu and gallery view to track previously viewed properties. Buyers can also add open house events to their calendar, and save favorite listings or frequently used searches to their Realtor.com account for later use.
Realtor.com 2.0 iPhone App Also Announced
Today, Realtor.com also announced the availability of key updates to the app compatible with the iPhone iOS 4.0, including a new home screen with grouped features and easier access to recent searches, Area Highlighter and Area Scout. In addition, a “My Real Estate” screen has been added that includes Saved Listings, Saved Searches, Recently Viewed Listings and Recent Searches. A simplified location selection in Search mode and a more prominent Search button on the search screen are also now available. A new Viewed indicator on the list and map views displays once a user has looked at a Listing Detail Page, while an “in-page” send and share option have been added to the iPhone iOS 4.0 search experience.
The free Realtor.com Real Estate iPad app is compatible with iPad iOS 4.0 or higher and can be downloaded at itunes.apple.com/us/app/real-estate-search/id336698281?mt=8# or by going to http://www.realtor.com/mobile/iPad. Additional photos and short videos on key features can be found at: http://www.realtor.com/mobile
ABOUT MOVE, INC.
Move, Inc. (Nasdaq: MOVE) is the leader in online real estate with 14.5 (2) million monthly visitors to its online network of web sites. Move, Inc. operates: Move.com, a leading destination for information on new homes and rental listings, moving, home and garden and home finance; Realtor.com(R), the official web site of the National Association of Realtors(R); Moving.com; SeniorHusingNet; Top Producer Systems, and ListHub. Move, Inc. is based in Campbell, California.
ABOUT REALTOR.COM®
Realtor.com®, where the world shops for real estate online, is operated by Move, Inc., (NASDAQ:MOVE) and is the official web site of the National Association of Realtors®. Ranked as the #1 homes-for-sale site, Realtor.com® currently offers potential home buyers access to over four million property listings, as well as the most brokers and agents. It also provides Realtors® and the home sellers they represent with the Internet’s largest real estate marketplace, reaching more than 12.7 (2) million consumers in March 2011. Agents and companies have the power to customize Realtor.com® resources to maximize their brand and productivity.
This press release may contain forward-looking statements, including information about management’s view of Move’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.
(1) Email leads, phone calls and send to agent outreach from users to agents
(2) comScore Media Metrics, key measures report March 2011
SOURCE Move, Inc.
NADAguides Releases Q1 Consumer Market Interest Report Revealing Shift Towards Foreign Makes
*NADAguides Releases Q1 Consumer Market Interest Report Revealing Shift towards Foreign Makes*
*While Ford Maintains a Firm Interest, Hyundai, Kia and Toyota Gain Momentum *
*COSTA MESA, Calif. – April 25, 2011 *
*News Highlights*
· NADAguides http://www.nadaguides.com, the most comprehensive vehicle information provider on the Internet today, announces its Consumer Market Interest Report for the first quarter of 2011 – revealing that the consumer interest leaders on NADAguides.com are the 2011 Ford F-150, 2011 Hyundai Sonata, 2011 Kia Sorento, 2011 Ford Explorer and the 2011 Ford Mustang.
· Data analysis shows Ford leading consumer market interest this first quarter, with three of the top five most researched vehicles on NADAguides.com including the F-150, the Mustang and the Explorer; all of which belong to the domestic brand.
· Analysis of consumer market interest patterns on NADAguides.com from Q4 2010 to Q1 2011 revealed a shift towards Korean brands and heightened interest in Toyota models as the 2011 Hyundai Sonata
· NADAguides’ analysts pointed out that the 2011 Ford F-150
· Data shows a shift back towards the SUV segment in Q1 2011 as compared to Q4 2010 as more consumers considered new SUVs with attractive fuel efficiency compared to crossover vehicles. Consumer interest on NADAguides.com for SUVs grew by 10 percent as crossover interest shrunk by 6.6 percent.
· Trucks and sedans continued their dominance of consumer interest with very little movement in overall popularity and a combined segment interest of 50 percent compared to SUVs, coupes, crossovers, hybrids, vans and wagons.
· Data analysis shows a drop in popularity for Q1 2011 as compared to Q4 2010 on NADAguides.com for the Dodge Ram, Chevrolet Malibu, Chevrolet Impala and Chrysler Town and Country as the competition for these models heated up primarily lead by 2011 Chevrolet trucks, Sonata, Sorento and Sienna.
· Not having been updated since 2009, the completely redesigned and now front-wheel drive 2011 Kia Sorento generated a tremendous amount of consumer interest replacing the Chevrolet Camaro as the third most researched model on NADAguides.com in Q1. NADAguides’ analysts pointed out the attraction is most likely due to a comfortable ride, 29 MPG highway, keyless ignition, rear parking assist, dual-climate control and a nice list of luxury options including navigation with real-time traffic updates.
· While it would be assumed that smaller models or hybrid models might be on the rise, data on NADAguides.com shows differently. Consumer interest leaders, F-150, Sonata, Sorento, Explorer, and Mustang, offer fuel economy ranging from 23 to 35 miles per gallon, which shows that consumers are not only researching vehicles that offer great mileage, but are also taking long term practical needs and functionality into consideration as well.
· NADAguides’ analysts note the current challenges faced by the Japanese auto industry have reduced the production of popular models such as the Toyota Prius as well as higher volume models such as the Toyota Camry and Honda Accord. This lack of vehicle supply will cause a consumer interest shift towards non supply-impacted models.
*Key Quotes*
· *Troy Snyder, director of product development, NADAguides:* “Consumers shopping for new cars more choices than ever before when it comes to economy, practicality, functionality, comfort and fuel efficiency. The versatility of the F-150 keeps it at the top of consumers’ interest for obvious reasons, but crossovers and sedans are demanding more attention than ever with luxury-grade features, safety and more of what consumers are seeking for everyday life without the fear of needing to downgrade just to get what they truly want. It is a great time to be in the market for a new car.”
· *Jim Farley, Group Vice President, Global Marketing, Sales & Service, Ford Motor Company:* “We are very proud of the F150, the new Explorer and the iconic Mustang, so it is very rewarding for us to see these vehicles researched to such a high level by car buyers. This is yet another great achievement for our customers and for the Ford brand in North America. We believe this is recognition of the momentum we have built with our range of fuel efficient, technologically advanced new products that customers want to learn about and own. It is products like these that will continue to differentiate Ford Motor Company as a leader.”
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· *Scott Margason, director, product planning, Hyundai Motor America: *“Being the second most shopped vehicle in the entire industry for the first quarter of 2011 is a testament to Sonata’s ability to attract consumer interest. With its Fluidic Sculpture design, large interior and standard 35 mpg highway fuel economy, Sonata continues to be one of the most shopped vehicles in the industry more than a year after its initial launch.”
*About the NADAguides Consumer Market Interest Report*
The NADAguides Consumer Market Interest Report is a collection of data points from hundreds of thousands of research behaviors on NADAguides.com each quarter. NADAguides’ Consumer Market Interest Report is an ongoing study tracking and trending consumer research patterns, purchase intents, and market and data interests within new vehicles.
*About NADAguides*
NADAguides (http://www.nadaguides.com) is the largest publisher of vehicle pricing and information for new and used cars, classic cars, motorcycles, boats, RVs, and manufactured homes. NADAguides offers in-depth shopping and research tools in addition to the most market-reflective pricing available. The company also produces software, raw data, web services, web-syndicated products and print guidebooks.
*Resources*
· NADAguides http://www.nadaguides.com/
· NADAguides on Twitter http://twitter.com/NADAguides
· NADAguides on Facebook
· NADAguides on YouTube http://www.youtube.com/user/NADAguides
*Industries *
- Automotive
MOVE, INC. AND ZILLOW, INC. SIGN NEW LISTING SYNDICATION AGREEMENT FOR LISTHUB
*MOVE, INC. AND ZILLOW, INC. SIGN NEW LISTING SYNDICATION AGREEMENT FOR LISTHUB*
CAMPBELL, CA and SEATTLE, WA– (April 21, 2011) — ListHub operator Move, Inc., (NASDAQ: MOVE) and Zillow, Inc., today announced a long term content syndication agreement for the ListHub publishing network. ListHub is the largest online syndicator of real estate listings to real estate web sites and provider of performance reports for brokers, franchises, and Multiple Listing Services (MLSs). ListHub is Zillow’s largest listings syndication partner.
This agreement confirms Zillow and Move’s commitment to the publishing and syndication of accurate MLS real estate listings. As a result of the new agreement, ListHub will continue to send approximately two million listings to Zillow directly from 358 MLSs every day representing 40,000 brokers throughout the United States. In addition, Zillow will now provide web site and mobile metrics and listing performance data to ListHub for inclusion in reports that brokers, agents and franchises use when working with clients to evaluate the value of publishing destinations and efficiently manage their online marketing strategies.
This new content syndication agreement also provides MLSs, brokers and other content providers with the ability to designate how listings syndicated through ListHub are used by Zillow. Zillow will not re-syndicate listings to third party sites outside of the Zillow Real Estate Network, and MLSs and brokers will have the ability to approve the inclusion of their listings on the Zillow Network and opt-out of unrelated non-display uses.
“This partnership solidifies Zillow’s long-standing efforts to provide quality listing information to consumers on Zillow, and gives brokers and agents greater efficiency in their online marketing efforts,” said Greg Schwartz, chief revenue officer at Zillow. “ListHub provides one of the most accurate and timely online data feeds available today and is a trusted partner for communicating our metrics through their reporting platform. Extending our relationship with ListHub is yet another example of how Zillow is working with leading industry brands to streamline and simplify the real estate professional’s experience on Zillow.”
Since the September 2010 acquisition of the ListHub brand by Move, Inc., the ListHub publishing network of content providers has increased by 51 real estate franchises and MLSs to now represent 358. ListHub Publishers have also increased from 79 to 97 public-facing real estate web sites since September 2010.
“This new agreement with Zillow furthers ListHub’s commitment to provide our industry partners with a neutral and trusted syndication platform that addresses important issues such as data rights and ownership, listing accuracy and reporting transparency for the marketing of their listings,” said ListHub President, Luke Glass. “Inclusion of Zillow’s performance metrics broadens the value of the ListHub system to our entire network of members. Agents and brokers will now be able to give their clients one comprehensive report to help them better demonstrate the value of their online marketing efforts.”
As a Zillow preferred syndication partner, ListHub is a part of the Zillow Listings Feed program, which launched in November 2007 and has for-sale listings and for-rent listings from more than 900 feeds from agents, brokers, multiple listing services, and syndicates. All listings on the Zillow Real Estate Network appear on Zillow.com, Yahoo! Real Estate, and Zillow Mobile applications across iPhone, iPad, Android and BlackBerry.
NEW ADVERTISING CAMPAIGN HIGHLIGHTS AUTOTRADER.COM’S LARGE SELECTION OF NEW CARS FOR SALE ON SI TE
*NEW ADVERTISING CAMPAIGN HIGHLIGHTS AUTOTRADER.COM’S LARGE SELECTION*
*OF NEW CARS FOR SALE ON SITE*
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*Brand New TV Spot Borrows Imagery from AutoTrader.com’s Heart & Mind Campaign;*
*Multi-Channel Campaign Emphasizes Finding the Perfect New Car*
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*ATLANTA* – April 25, 2011 – AutoTrader.com launched today a new advertising campaign aimed at reminding consumers about the huge number of new cars listed for sale on AutoTrader.com and of the robust search and research functionality AutoTrader.com offers to help shoppers locate the perfect new car.
The new 30-second advertisement borrows imagery from AutoTrader.com’s successful “Heart & Mind” campaign, which has aired continually since May of 2010. The “Heart & Mind” campaign uses high-energy graphics, visuals and music to creatively highlight the functionality AutoTrader.com offers for people to review and compare new and used vehicles listed for sale on the site. In the past year, AutoTrader.com has seen an increase in site traffic and studies of the “Heart & Mind” campaign AutoTrader.com conducted indicate it is very memorable and well-received by the car-buying public.
“As the new-car market continues its recovery and the spring-summer car-buying season heats up, we wanted to use our very memorable ‘Heart & Mind’ imagery to specifically highlight how AutoTrader.com can help people find the perfect new car,” said AutoTrader.com Chief Marketing Officer Clark Wood. “With more than 1 million new cars listed for sale on our site and an unrivaled suite of tools for reviewing new car inventory on dealers’ lots, AutoTrader.com is one of the largest new-car marketplaces in the country.”
In the spot, a man begins searching for a new car and is brought into the world of “Heart & Mind,” where he learns about his options while narrowing down his search for the perfect new car that meets his needs and wants using AutoTrader.com’s new-car shopping tools. Click this link to view the spot: www.youtube.com/findtherightcar.
The New Car campaign will be launching with a fully integrated advertising plan aimed at surrounding new car shoppers. The new-car campaign’s 30-second spot will be debuting with a broadcast plan across the NBA Playoffs and networks like HGTV, USA, Lifetime, ESPN, Adult Swim and the History Channel. The campaign message will also be carried via custom integrations into original programming as well as a “DVD on FX” spotlight featuring the new car shopping process on AutoTrader.com.
The new car message will also be featured on a national radio over several top radio networks, including ESPN, Premier, Westwood One and Dial. On radio, the new-car message will be carried via two spots that highlight messages about AutoTrader.com’s leadership in and wealth of information about new-car shopping that are similar to the message of the television spot.
In the digital realm, the new-car campaign message will be communicated via highly targeted ads aimed at new-car shoppers across the Internet, video ads, search engine marketing and social media. The digital campaign will span website like YouTube.com, targeted auto channels like Yahoo Autos, AOL Autos, Undertone Networks and video networks like Tremor and YouMe.
AutoTrader.com’s new-car shopping tools, specifically highlighted or alluded to in the campaign, include actual photos of new cars on dealers lots; the ability to search by make, model, color, price and other options, including new-car special offers; detailed descriptions of new cars listed for sale; and a research and compare area that includes information about new cars as well as new-car reviews.
Even with signs of economic recovery increasing, car buyers more than ever want to know they bought the right vehicle. To help eliminate potential buyer’s remorse, car shoppers are doing more research on-line to review makes and models; compare prices and special offers; and build their consideration sets. This new car campaign makes clear that AutoTrader.com is the top destination for new-car shoppers to find the perfect car at the perfect price that they’re hearts and minds agree on.
“About 13 years ago, AutoTrader.com helped change the way people shopped for used cars,” said Wood. “We’ve made similar inroads in how people shop for new cars and wanted to make sure even more people know how AutoTrader.com can bring certainty to this major purchase.”
*About AutoTrader.com*
Atlanta-based AutoTrader.com, created in 1997, is the Internet’s ultimate automotive marketplace and consumer information website. AutoTrader.com aggregates in a single location millions of new cars
Apartments.com Kicks Off Third Annual Roommate of the Year Contest Today
*APARTMENTS.COM SEEKS AMERICA’S MOST TALENTED AND TERRIFIC*
*ROOMMATES TO SHARE THEIR STORIES AND WIN FREE RENT FOR 1 YEAR + $10,000! *
*Third Annual **Roommate of the YearVideo Contest *
*Kicks Off April 25, 2011*
*CHICAGO (April 25, 2011) – *Apartments.com is looking to crown America’s best roommate in its third annual *Roommate of the Year* video contest with a grand prize of free rent for one year plus $10,000 in cash and a one year membership to freecreditscore.com. According to a recent Apartments.com survey, 45 percent of renters currently live with a roommate or plan to move in with one, so finding the right person to live with is an important decision for a large number of renters. In 2010, Andrew Prestler of Kokomo, Indiana and a student at Ball State beat out stiff competition to be named the 2010 *Roommate of the Year* by Apartments.com. To capture those unique qualities that make a great roommate exceptional, Prestler composed an original rap and created an eye-catching video, singling him out as the “Da Best” and securing his title as the *Apartments.com* *Roommate of the Year*. Beginning April 25, 2011, renters can view last year’s winning video for inspiration, enter the contest and get details for submitting their own entries at *http://www.roommateoftheyear.com*.
Finding the ideal roommate can be tough, and with recent census data illustrating that people are holding off on marriage until they are older, people may find themselves living with a roommate for longer than they originally planned. Meanwhile, apartment rents have steadily risen since 1980 and are likely to continue that trend this year with experts projecting that rents will rise by 3.5-4.5 percent each month in 2011.
A recent Apartments.com survey reveals that 77 percent of respondents have never lived with a roommate they would consider “the best,” – up 17 percent from last year’s survey – and more than half are not planning on living with their current roommate when they move. The *Roommate of the Year Contest*seeks to find those roommates who do qualify as” the best” and showcase them for America to see.
“Most people take choosing a roommate very seriously and put a lot of thought and time into making the right selection. This contest gives people a fun and creative outlet to express their feelings about their living situations,” said Tammy Kotula, Apartments.com spokesperson. “It’s always fun to see what people really think makes a good roommate. The video entries that we receive are as varied and unique as roommates themselves.”
Prestler continues to prove his claim as 2010 Apartments.com *Roommate of the Year*, as one of his current college roommates has already signed up to live with him again for the 2011-12 school year.
“I say a lot of over-the-top things in my video about what it takes to be the best roommate and be named the Apartments.com Roommate of the Year,” states Prestler. “But in reality, a big part of being a good roommate is being respectful and treating people the way you want to be treated.”
Apartments.com survey findings also show that the number one quality people look for in a roommate is someone who is responsible and pays the bills on time.
*How to Enter the 2011 Apartments.com Roommate of the Year Contest*
Get out the video camera, get creative and get one step closer to winning free rent for a year, plus $10,000 in cash, a one year membership to freecreditscore.com and the coveted Apartments.com 2011 title of *Roommate of the Year*. Renters across the nation are invited to enter the * Apartments.com* *Roommate of the Year* Contest by submitting a video entry of two minutes or less to *http://www.roommateoftheyear.com*.
Entrants are challenged to showcase the specific attributes that quality them to be *Roommate of the Year* by featuring their inner roomie in one of the four contest categories. For detailed information on how to enter, including specific video instructions, an official entry form and contest rules, go to *http://www.roommateoftheyear.com. *All entries must be received by noon EST on June 13, 2011.
*TheRoommate of the Year Contest Categories*
Apartments.com *Roommate of the Year* Contest entrants should distinguish themselves from all of the other roommates around the country. Finding the category that best defines their special roommate skills is job number one. Categories are:
- *The Loveable Compulsive* It’s not a glamorous job, but somebody has to do it. Making sure the electric bill gets paid each month and scrubbing the microwave after someone’s “soup explosion” two months ago sometimes makes you feel like you are running a daycare in your apartment. But all that work is about to pay off big. Show us how you manage the household while still maintaining your sanity and a year of FREE Rent could leave you with one less item on that LONG to-do list. – *The Purr-fect Pet Owner* Sometimes the best roommates aren’t even human. They may not pay rent, but pets are great at making us laugh or helping us get through tough times. Show us what makes you the best roommate to your pets including games you play together or tricks that they have learned and that freeloader can start pulling his or her weight by helping you win FREE Rent for a Year. – *The Environmentalist* Do you wash out and reuse plastic baggies? Switch out energy-guzzling 150W bulbs for CFLs? Know what “1,” “3,” “5,” or “7″ means on plastic bottles? If you’re the roommate who makes living “green” a priority, this is your category. Show us your efforts to help save the planet and we could be recycling a year of FREE Rent into your bank account (and promising to turn off the lights when we leave a room!). – *The All-Star Roomie* If you have special roommate qualities that don’t fit the categories, or don’t want to commit to only one area of roommate greatness, use this entry to submit your video. Get crazy, get creative! But don’t just tell us why you’re the best roommate – show us – and you could win FREE Rent for a Year.
Renters’ entries will be judged with equal weight on (1) originality and creativity, (2) overall “wow” factor, (3) persuasive argument and (4) style and production. Judging will take place in three stages.
*How to Become the Roommate of the Year and Win Free Rent for One Year Plus $10,000 in Cash*
All entries will be narrowed down to a field of up to 15 finalists, selected across all categories by a panel of judges looking for entries that best fit the criteria for *Roommate of the Year*. Once the finalists are selected, America, along with the Apartments.com panel of qualified judges, will vote for their favorite roomie using the judging criteria to narrow down the competition to five winners. From the five winners, one Grand Prize winner will be named and receive free rent for one year, plus $10,000 in cash, along with roommate bragging rights. The four runners-up will each receive $500.
*About Apartments.com* Apartments.com (http://www.apartments.com/) is the most visited national apartment Internet listing subscription service with more than 50,000 unique addresses representing more than three million rental units from managed properties, newspaper classifieds and for-rent-by-owner properties. With personalized searches, highly visual ads featuring “Walk Through Video,” “Apartments.com Anywhere” mobile solutions, 360-degree virtual tours, professional photography and comprehensive community listings, Apartments.com makes it possible for renters to access apartment rental inventory from across town or across the country. Leads from highly qualified ready-to-rent prospects are delivered to Apartments.com customers, increasing closure rates and decreasing the average cost of leasing an apartment. The website’s foundation of solid partnerships with the local newspaper and television station websites of more than 1,000 newspaper affiliate and strategic partners across the country include Yahoo! Real Estate, Univision (www.univision.com), the Chicago Tribune ( www.chicagotribune.com), The Washington Post (www.washingtonpost.com) and the Los Angeles Times (www.latimes.com). Apartments.com is a division of Chicago-based Classified Ventures, LLC. Additionally, Apartments.com owns and operates Apartment Home Living (http://www.apartmenthomeliving.com), a leading social media apartment website distinguished by a “live for fun” community experience, proprietary lifestyle matching and local living guides to help renters find their perfect place to live.
Consumers Selective in Paying for Home Improvement Services while Professionals Adapt to New Market
Consumers Selective in Paying for Home Improvement Services while Professionals Adapt to New Market
by SERVICEMAGIC on APRIL 25, 2011
*ServiceMagic releases home improvement data from first quarter 2011*
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*GOLDEN, Colo**. (April 25, 2011) *Homeowner remodeling activity remains down while spending on home maintenance and convenience services continued to make gains in this tough economy, according to a nationwide survey released today by a leader in home improvement. ServiceMagic
“As consumers shift from investing in large home improvement remodeling projects to convenience service and maintenance projects; the marketing strategy of the small businesses in our network has shifted as well,” said Craig Smith, president for ServiceMagic. “Professionals in our network are utilizing online marketing tools and looking for new opportunities such as deals and social media to bring in new business.”
Homeowners overwhelmingly indicated that their motivation to hire convenience service professionals was because they have less time to do these services themselves. Furthermore, 45 percent of homeowners plan to utilize these services for seven months or more on a regular basis. Service-oriented professionals are taking advantage of the opportunity with 60 percent reporting they are offering deals and discounts to increase their volume of new customers.
Results from the service professional online survey indicate that 19 percent of home improvement professionals in the ServiceMagic network have a company Facebook page, and 5 percent of these professionals utilize Twitter for business. Of those with a company Facebook fan page:
- 35 percent are using the platform to share company news – 32 percent are using their page to showcase project portfolios and customer testimonials – 13 percent are offering deals through their Facebook page – 16 percent are using it as a customer service channel – 4 percent use their Facebook page schedule appointments
Of the professionals with a company Twitter handle, sharing company news was the top use for this social media channel. Less than 3 percent of consumers indicated that they are using Facebook to locate service professionals for home improvement projects, however 28 percent of service professionals have received job leads through their company Facebook page.
The data is collected from ServiceMagic’s *Q1 2011 Home Remodeling and Repair Index* http://corp.servicemagic.com/media-room/q1-2011/*,* containing information compiled from 1.3 million service requests received through ServiceMagic’s online marketplace from January to March of this year, as well as results from a survey of homeowners and service professionals conducted in April. The online survey
*More Information** * Home Remodeling and Repair Index Highlights http://corp.servicemagic.com/q1-2011/Survey Results
*Survey Methodology* This survey was conducted online by ServiceMagic, Inc. in April 2011. This survey polled 300 service professionals and 525 consumers in the ServiceMagic network.
*About ServiceMagic®, Inc* ServiceMagic http://www.servicemagic.com/ is the nation’s leading website connecting consumers with prescreened, customer-rated service professionals
