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HomeAway, Inc. Reports Fourth Quarter And Full Year 2012 Financial Results

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HomeAway, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
         
  Three Months Ended December 31, Twelve Months Ended December 31,
  2012 2011 2012 2011
Revenue:        
Listing  $ 62,372  $ 50,790  $ 237,973  $ 199,457
Other  9,185  7,665  42,431  30,766
Total revenue  71,557  58,455  280,404  230,223
Costs and expenses:        
Cost of revenue (exclusive of amortization shown separately below)  12,237  8,908  45,342  34,456
Product development  12,092  8,655  43,152  32,744
Sales and marketing  22,066  20,403  93,366  81,532
General and administrative  14,275  12,882  56,311  47,268
Amortization expense  3,410  2,689  12,438  11,542
Total costs and expenses  64,080  53,537  250,609  207,542
Operating income  7,477  4,918  29,795  22,681
Other income (expense):        
Interest income  244  134  928  374
Other expense, net  (386)  (2,249)  (2,587)  (4,384)
Total other income (expense)  (142)  (2,115)  (1,659)  (4,010)
Income before income taxes  7,335  2,803  28,136  18,671
Income tax expense  (2,786)  (3,059)  (13,175)  (12,493)
Net income (loss)  4,549  (256)  14,961  6,178
Cumulative preferred stock dividends and discount accretion  --   --   --   (24,678)
Net income (loss) attributable to common stockholders  $ 4,549  $ (256)  $ 14,961  $ (18,500)
Net income (loss) per share attributable to common stockholders:        
Basic and diluted  $ 0.05  $ 0.00  $ 0.18  $ (0.31)
Weighted average number of shares outstanding:        
Basic  83,200  80,499  82,382  59,549
Diluted  85,410  80,499  84,942  59,549
         
     
HomeAway, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
     
  December 31, December 31,
  2012 2011
Assets    
Current assets:    
Cash and cash equivalents  $ 189,478  $ 118,208
Short-term investments  80,330  65,748
Accounts receivable, net of allowance for doubtful accounts of $633 and $425 as of December 31, 2012 and 2011, respectively  16,343  15,929
Income tax receivable  775  -- 
Prepaid expenses and other current assets  7,312  5,680
Restricted cash  284  1,039
Deferred tax assets  5,425  4,090
Total current assets  299,947  210,694
Property and equipment, net  32,901  25,865
Goodwill  312,412  301,015
Intangible assets, net  59,727  61,515
Restricted cash  230  244
Deferred tax assets  1,807  1,794
Other non-current assets  15,651  3,504
Total assets  $ 722,675  $ 604,631
Liabilities and stockholders' equity    
Current liabilities:    
Accounts payable  $ 6,613  $ 3,102
Income tax payable  11,137  6,283
Accrued expenses  33,856  26,931
Deferred revenue  126,351  101,955
Deferred tax liabilities  --   92
Total current liabilities  177,957  138,363
Deferred revenue, less current portion  2,879  2,608
Deferred tax liabilities  17,615  16,224
Other non-current liabilities  7,191  6,427
Total liabilities  205,642  163,622
Commitments and contingencies    
Stockholders' equity    
Common stock  8  8
Additional paid-in capital  618,700  558,667
Accumulated other comprehensive loss  (5,450)  (6,480)
Accumulated deficit  (96,225)  (111,186)
Total stockholders' equity  517,033  441,009
Total liabilities and stockholders' equity  $ 722,675  $ 604,631
     
 
HomeAway, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
     
  Twelve Months
  Ended December 31,
  2012 2011
Cash flows from operating activities    
Net income  $ 14,961  $ 6,178
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation  11,051  8,429
Amortization of intangible assets  12,438  11,542
Amortization of premiums on securities and other  2,364  352
Stock-based compensation  27,033  23,933
Excess tax benefit from stock-based compensation  (7,122)  (505)
Deferred income taxes  (3,119)  8,630
Loss (gain) on sale of investments and other  45  (95)
Net realized/unrealized foreign exchange loss  817  2,086
Realized loss on foreign currency forwards  1,910  2,537
Changes in operating assets and liabilities, net of assets and liabilities assumed in business combinations:    
Accounts receivable  251  (7,170)
Income tax receivable  (672)  1,057
Prepaid expenses and other assets  (6,987)  (6,297)
Accounts payable  3,376  (1,676)
Accrued expenses  4,457  4,864
Income tax payable  11,486  4,271
Deferred revenue  22,401  16,420
Deferred rent and other non-current liabilities  713  2,416
Net cash provided by operating activities  95,403  76,972
Cash flows from investing activities    
Cash paid for businesses acquired, net of cash acquired  (16,207)  (4,748)
Change in restricted cash  773  1,538
Cash paid for trademarks and other assets acquired  (251)  (302)
Cash paid for non-marketable equity investment  (6,446)  -- 
Purchases of short-term investments  (57,080)  (66,206)
Proceeds from maturities of marketable securities  40,406  10,000
Proceeds from sales of marketable securities and other  --   1,731
Net settlement of foreign currency forwards  (1,910)  (2,537)
Purchases of property and equipment  (17,260)  (12,978)
Net cash used in investing activities  (57,975)  (73,502)
Cash flows from financing activities    
Proceeds from exercise of options to purchase common stock  25,878  3,950
Shares withheld for employee taxes  --   (1,131)
Payments of dividends on preferred stock  --   (54,436)
Proceeds from initial public offering, net underwriting discount and offering cost  --   146,193
Payments for repurchase of preferred stock  --   (43,451)
Excess tax benefit from stock-based compensation  7,122  505
Net cash provided by financing activities  33,000  51,630
Effect of exchange rate changes on cash  842  (2,589)
Net increase in cash and cash equivalents  71,270  52,511
Cash and cash equivalents at beginning of period  118,208  65,697
Cash and cash equivalents at end of period  $ 189,478  $ 118,208
     
         
HomeAway, Inc. 
Schedule of Non-GAAP Reconciliations 
(Unaudited, in thousands) 
         
  Three Months Twelve Months
  Ended December 31, Ended December 31,
  2012 2011 2012 2011
Net income (loss)  $ 4,549  $ (256)  $ 14,961  $ 6,178
Add:        
Depreciation and amortization  6,424  4,898  23,489  19,971
Stock-based compensation  7,477  6,754  27,033  23,933
Interest income  (244)  (134)  (928)  (374)
Foreign exchange expense  333  2,395  2,618  4,555
Income tax expense (benefit)  2,786  3,059  13,175  12,493
Adjusted EBITDA  $ 21,325  $ 16,716  $ 80,348  $ 66,756
         
  Three Months Twelve Months
  Ended December 31, Ended December 31,
  2012 2011 2012 2011
Cash provided by operating activities  $ 24,752  $ 19,501  $ 95,403  $ 76,972
Excess tax (shortfall) benefit from stock-based compensation  (222)  (536)  7,122  505
Capital expenditures  (2,619)  (4,074)  (17,260)  (12,978)
Free cash flow  $ 21,911  $ 14,891  $ 85,265  $ 64,499
         
  Three Months Twelve Months
  Ended December 31, Ended December 31,
  2012 2011 2012 2011
Net income (loss)  $ 4,549  $ (256)  $ 14,961  $ 6,178
Add:        
Stock-based compensation  7,477  6,754  27,033  23,933
Amortization expense  3,410  2,689  12,438  11,542
Related tax effect  (3,810)  (3,305)  (13,815)  (12,416)
Pro forma net income  $ 11,626  $ 5,882  $ 40,617  $ 29,237
         
         
HomeAway, Inc.
Supplemental Financial Information
(Unaudited, in thousands)
         
  Three Months Twelve Months
  Ended December 31, Ended December 31,
  2012 2011 2012 2011
         
Stock-based compensation:        
Cost of revenue  $ 933  $ 491  $ 2,675  $ 1,805
Product development  1,669  1,395  5,642  5,023
Sales and marketing  1,666  1,750  6,629  6,292
General and administrative  3,209  3,118  12,087  10,813
Total  $ 7,477  $ 6,754  $ 27,033  $ 23,933
         
  Three Months Twelve Months
  Ended December 31, Ended December 31,
  2012 2011 2012 2011
         
Depreciation:        
Cost of revenue  $ 997  $ 705  $ 3,682  $ 2,703
Product development  696  493  2,470  1,885
Sales and marketing  928  714  3,438  2,763
General and administrative  393  297  1,461  1,078
Total  $ 3,014  $ 2,209  $ 11,051  $ 8,429
         
CONTACT: Investor Contact:
         HomeAway Investor Relations
         (512) 505-1700
         investors@homeaway.com
         or Addo Communications at (310) 829-5400
         
         Media Contact:
         Eileen Buesing
         VP of Communications, HomeAway, Inc.
         (512) 493-0375
         ebuesing@homeaway.com

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