An explanation of the company’s use of non-GAAP financial measures, including the limitations of such measures relative to GAAP measures is included below and reconciliation between GAAP and non-GAAP measures, where appropriate, is included in the financial tables attached to this release.
Second Quarter Results Highlights
– Second quarter 2012 revenue was a record $27.1 million representing an increase of 75% over second quarter 2011 revenue of $15.5 million.
• GAAP Net Income (Loss)
– Second quarter 2012 GAAP net loss was $9.3 million or ($0.42) per diluted share, compared to the second quarter 2011 GAAP net loss of $5.4 million or ($0.25) per diluted share. Included in GAAP Net Income (Loss) is $6.5 million or ($0.29) per diluted share of impairment charges relating to Spreebird goodwill and intangible assets.
Adjusted Net Income (Loss)
– Second quarter 2012 Adjusted Net Income was $0.5 million or $0.02 per diluted share compared to second quarter 2011 Adjusted Net Loss of $1.5 million or ($0.07) per diluted share, and includes a non-recurring adjustment for severance costs incurred during the quarter totaling $514,000 or ($0.02) per diluted share.
– On June 30, 2012, the company’s cash balance was $7.1 million, an increase of $316,000 over the prior quarter. Cash provided by operating activities of approximately $1.1 million during the second quarter 2012 was offset by approximately $0.8 million cash used for capital expenditures.
• Debt –
On June 30, 2012, the company had borrowings of $8.0 million outstanding under its Square One Bank line of credit.
“The company exceeded revenue and bottom-line projections for the quarter and generated positive cash flow,” said Ken Cragun, Local Corporation chief financial officer. “During the second quarter we took actions to improve future cash flow through the reduction of operating expenses and the anticipated sale of the Rovion business.”