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LiveDeal, Inc. Reports 2012 First Quarter Financial Results

LiveDeal, Inc. (NASDAQ: LIVE), a provider of web-based local customer acquisition and related products for small businesses, today reported financial results for its first fiscal quarter ended December 31, 2011.

Net loss for the fiscal 2012 first quarter decreased 89%, or $1,538,756, to $191,638 from $1,730,394 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to the decrease in the company’s cost of services and general and administrative expenses described below. Gross profit for the fiscal 2012 first quarter increased 515%, or $515,549, to $615,594 from $100,045 reported for the fiscal 2011 first quarter, which is primarily ascribable to the decrease in the company’s cost of services described below.

Net revenues for the fiscal 2012 first quarter were $851,413, a decrease of $143,209 (14%) from $994,622 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to a pause in the company’s sales efforts since July 2011 during which time the company evaluated new sales programs, improved its marketing and fulfillment services, and implemented various cost reductions. The company’s cost of services for the fiscal 2012 first quarter was $235,819, a $658,758 (74%) decrease from $894,577 reported for the fiscal 2011 first quarter. The decrease was primarily ascribable to decreased fulfillment costs as the company took over fulfillment activities from third party vendors. General and administrative expenses for the fiscal 2012 first quarter were $766,808, a decrease of $1,205,761 (61%) from $1,972,569 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to decreased employee compensation and professional fee expenses.

Commenting on the results, Jon Isaac, LiveDeal’s newly appointed President and CEO, stated, “We are very encouraged with our recent financial results, especially since total operating losses have declined substantially due to the closing of unprofitable product lines, reductions in cost of services, and reductions in general and administrative expenses. We expect that continued operational improvements, along with top-line growth, can lead LiveDeal, Inc. toward profitability this fiscal year.”

                     

LiveDeal, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

 

December 31, 2011

September 30, 2011

Assets
Cash and cash equivalents $ 2,177,605 $ 244,470
Accounts receivable, net 556,350 654,856
Prepaid expenses and other current assets 73,023   113,323  
Total current assets 2,806,978 1,012,649
Accounts receivable, long term portion, net 382,365 371,438
Property and equipment, net 131,111 171,201
Deposits and other assets 29,007 31,007
Intangible assets, net 1,193,145   1,222,334  
Total assets $ 4,542,606   $ 2,808,629  
 
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable $ 620,938 $ 600,908
Accrued liabilities 398,533 424,595
Notes payable 900,000 1,000,000
Current portion of capital lease obligation 21,224   36,992  
Total current liabilities 1,940,695 2,062,495
Long term portion of capital lease obligation    
Total liabilities 1,940,695   2,062,495  
 
Commitments and contingencies
 
Stockholders' Equity
Series E convertible preferred stock, $0.001 par value 10,866 10,866
Common stock, $0.001 par value 2,338 698
Treasury stock (4,252 shares carried at cost) (70,923 )
Paid in capital 22,788,413 20,813,082
Accumulated deficit (20,199,706 ) (20,007,589 )
Total stockholders' equity 2,601,911   746,134  
 
Total liabilities and stockholders' equity $ 4,542,606   $ 2,808,629  
 
 
     

LiveDeal, Inc. and Subsidiaries

Condensed Statements of Operations

(Unaudited)

 

 

Three Months Ended December 31,

2011               2010
Net revenues $ 851,413 $ 994,622
Cost of services 235,819   894,577  
Gross profit 615,594   100,045  
 
Operating Expenses
General and administrative expenses 766,808 1,972,569
Sales and marketing expenses 60   13,592  
Total operating expenses 766,868   1,986,161  
Operating loss (151,274 ) (1,886,116 )
 
Other Income (expense)
Interest income (expense), net (43,944 ) 1,562
Other income (expense)    
Total other income (expense) (43,944 ) 1,562  
 
Loss before income taxes (195,218 ) (1,884,554 )
Income tax provision (benefit)    
Loss from continuing operations (195,218 ) (1,884,554 )
 
Discontinued Operations
Income from discontinued component, including disposal costs 3,580 154,160
Income tax provision (benefit)    
Income from discontinued operations 3,580 154,160
 
Net loss $ (191,638 ) $ (1,730,394 )
 
Earnings per share - basic and diluted 1:
Loss from continuing operations $ (0.18 ) $ (2.96 )
Discontinued operations 0.00   0.24  
Net loss $ (0.18 ) $ (2.72 )
 
Weighted average common shares outstanding
Basic 1,043,960   636,828  
Diluted 1,043,960   636,828  
 

1 Certain amounts may not total due to rounding of individual components.

     

LiveDeal, Inc. and Subsidiaries

Condensed Statements of Cash Flows

(Unaudited)

 

 

Three Months Ended December 31,

2011                 2010
Cash Flows From Operating Activities
Net loss $ (191,638 ) $ (1,730,394 )
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 69,279 205,477
Stock based compensation expense 47,894 23,499
Amortization of deferred stock compensation 17,885
Provision for uncollectible accounts 14,181 206,990
Changes in Assets and Liabilities
Accounts receivable 73,398 (108,988 )
Prepaid expenses and other current assets 40,300 126,441
Deposits and other assets 2,000
Accounts payable 20,030 66,263
Accrued liabilities (26,541 ) (267,643 )
 
Net cash provided by/(used in) operating activities 48,903   (1,460,470 )
 
Cash Flows From Investing Activities
Expenditures for intangible assets
Purchases of property and equipment    
 
Net cash provided by/(used in) investing activities    
 
Cash Flows From Financing Activities
Principal repayments on capital lease obligations (15,768 ) (15,203 )
Issuance of common stock for cash 2,000,000 100,000
Payments on notes payable (100,000 )  
 
Net cash provided by financing activities 1,884,232   84,797  
 
Increase/(Decrease) In Cash And Cash Equivalents 1,933,135 (1,375,673 )
 
Cash And Cash Equivalents, beginning of period 244,470   3,227,374  
 
Cash And Cash Equivalents, end of period $ 2,177,605   $ 1,851,701  
 
Supplemental cash flow disclosures
Noncash financing and investing activities
Accrued and unpaid dividends $ 479   $ 479  
 
Interest paid $ 43,987   $ 832  
 
Income tax paid (received) $   $  
 
 

For more information about LiveDeal’s fiscal first quarter results, including the notes accompanying the foregoing condensed consolidated financial statements, please review the company’s quarterly report on Form 10-Q filed today, together with its annual report on Form 10-K for the fiscal year ended September 30, 2011. Both reports can be accessed by visiting the company’s website at www.livedeal.com or the SEC’s website at www.sec.gov.

About LiveDeal, Inc.

LiveDeal, Inc. provides local customer acquisition services and related products for small businesses to deliver an affordable way for businesses to extend their marketing reach to target customers via the Internet. For more information, visit www.livedeal.com.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this news release may not occur. Generally, these statements relate to LiveDeal’s business plans or strategies, projected or anticipated benefits or other consequences of LiveDeal’s plans or strategies, financing plans, projected or anticipated costs of and benefits from acquisitions that LiveDeal may make, or projections involving anticipated revenues, earnings, costs, expenses, or other aspects of LiveDeal’s operating results or financial position, and the outcome of any contingencies. Any such forward-looking statements are based on current expectations, estimates and projections of management. LiveDeal intends for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company’s future profitability. LiveDeal cautions you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond LiveDeal’s control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, risks and uncertainties discussed in LiveDeal’s reports filed with the Securities and Exchange Commission, including, but not limited to, LiveDeal’s Annual Report or Form 10-K for the fiscal year ended September 30, 2011 and other filings. Copies of these filings are available at the SEC’s website at www.sec.gov .

Any one or more of these uncertainties, risks and other influences could materially affect LiveDeal’s results of operations and whether the forward-looking statements made by LiveDeal ultimately prove to be accurate. LiveDeal’s actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements speak only as of the date the statement was made. LiveDeal undertakes no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

Copyright Business Wire 2010

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