Image Image Image Image Image Image Image Image Image Image Image Image

| January 21, 2019

Scroll to top

Top

NEWS Archives - Page 2813 of 3401 -

‘This is as close to the perfect car as I’ve ever seen’

August 11, 2013 |

‘This is as close to the perfect car as I’ve ever seen’

Autoblog

Our writer admittedly hasn’t driven every single car on the market. But he has driven a lot of them — and the package the RS7 offers blows them out of the water.See what left our expert ‘speechless’

Alec Baldwin in discussions for MSNBC talk show

August 11, 2013 |

Fans of “30 Rock” and Alec Baldwin, don’t despair: The actor, who played network executive Jack Donaghy on the NBC series during its entire 7-season run, may just be coming back to the small screen.That said, it’ll be a very different kind of role.


TODAY Entertainment

Missing teen found safe, alleged abductor killed

August 11, 2013 |

Missing teen found safe, alleged abductor killed

Teen

AP

James Lee DiMaggio, the man suspected of kidnapping 16-year-old Hannah Anderson, has been killed in Idaho and the teen has been found safe, authorities said Saturday.Latest on this developing story

Oprah gets apologies after ‘racist’ encounter

August 11, 2013 |

After Oprah Winfrey said this week that she was recently denied service at a Swiss store over her race, a press officer for the country’s tourism office has apologized for the way she was treated.


TODAY Entertainment

Marchex Announces Second Quarter 2013 Results

August 11, 2013 |

Call-Driven Revenue Growth Accelerates to 23% Year-over-Year and 9% Sequentially, Driving Increased Annual Guidance

SEATTLE–()–Marchex, Inc. (NASDAQ:MCHX), a leader in mobile performance advertising, today announced its financial results for the second quarter ended June 30, 2013.

“Our strong second quarter reflects the growing demand for Call Advertising products that deliver what businesses want most: exposure to mobile consumers and transparency on ad campaign performance”

“Our strong second quarter reflects the growing demand for Call Advertising products that deliver what businesses want most: exposure to mobile consumers and transparency on ad campaign performance,” said Russell Horowitz, Chief Executive Officer and Chairman of Marchex. “Advertisers spend billions each year on campaigns that get mobile consumers to call and they want the returns to show for it. We will continue to invest in solutions that drive this momentum and position us well for long-term growth.”

Q2 2013 Financial Highlights:

  • Revenue was $ 39.0 million for the second quarter of 2013, compared to $ 34.0 million for the same period in 2012.
  • GAAP net loss applicable to common stockholders was $ 354,000 for the second quarter of 2013 or $ 0.01 per diluted share. This compares to a GAAP net income applicable to common stockholders of $ 330,000 or $ 0.01 per diluted share for the same period in 2012. The second quarter 2013 results included non-cash stock-based compensation expense of $ 2.6 million, compared to non-cash stock-based compensation expense of $ 4.8 million for the same period in 2012.
  • Adjusted non-GAAP EPS1 for the second quarter of 2013 was $ 0.04, compared to $ 0.06 for the same period in 2012.
  • Adjusted OIBA1 was $ 2.2 million for the second quarter of 2013, compared to $ 3.7 million for the same period in 2012.
  • Adjusted EBITDA1 was $ 3.2 million for the second quarter of 2013, compared to $ 4.6 million for the same period in 2012.

1Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.

Marchex Q2 and Recent Call-Driven Business Highlights:

  • Revenue. Call-driven and other related revenue was $ 33.9 million for the second quarter of 2013 – a 23 percent increase compared to $ 27.5 million for the second quarter of 2012.
  • Products. For Publishers, we rolled out upgrades to our mobile and call advertising network technology. These enhancements include:
    • Performance-based monetization. This means high-quality publishers – those that deliver outcomes like call conversions – get paid based on measurable, data-driven results. In turn, these publishers yield more through Marchex’s Pay For Call ads than through integrations with other types of advertising, such as display or click.
    • Further integration of our proprietary Call Analytics technology to determine and score publisher quality.
    • Updates to our proprietary Clean Call technology to detect and block spam and prevent fraudulent calls to advertisers.
    • Updated APIs to streamline partner integration.

For Advertisers, we launched a new solution designed to optimize campaign performance for businesses with local branches. These advertisers have traditionally run marketing campaigns through separate national and local initiatives, but that has created widespread inefficiencies. Early customer data shows our solution helps drive brand consistency and greater customer conversions at the local level.

  • Customers and Partners. We added 5 new publisher partners to our call advertising network and more than 20 new national and local reseller customers across several categories, including Financial Services, Home Services and Travel.

Archeo Q2 Highlights and Transaction Update:

  • Archeo, Inc. (“Archeo”), a division of Marchex, includes non-call driven assets, which consist of domain assets and a pay-per-click advertising marketplace.
  • Archeo revenue was $ 5.1 million for the second quarter of 2013.
  • During the second quarter of 2013, Archeo sold a total of 70 domains that yielded $ 1.3 million.
  • Archeo Transaction Update. In July, certain pay-per-click assets were sold for proceeds totaling up to $ 2.6 million as part of a transaction to focus Archeo’s business on creating a premium domain marketplace. Those assets contributed $ 1.4 million in revenue and close to $ 100,000 in adjusted EBITDA in the second quarter and were on pace to contribute a projected $ 3 million in revenue and $ 200,000 in adjusted EBITDA for the remainder of 2013. Marchex estimates the full year impact for 2013 to be $ 6 million in revenue and $ 300,000 in EBITDA. Going forward, we anticipate this sale will be presented in our financial results as discontinued operations.
  • As a result of this sale, and Marchex’s need to update and refile the Form 10 for Archeo, it is currently anticipated the spinoff will occur not earlier than the fourth quarter of 2013. During this time, Marchex will continue to review the strategic pieces of Archeo’s revised profile to optimize its value for shareholders.

Marchex Guidance

The following forward-looking statements reflect Marchex’s expectations as of August 6, 2013. Marchex anticipates providing updates in the event of completion of the spin-off.

Financial guidance for the fiscal year ending December 31, 2013:
Revenue:       $ 145-$ 148 million, with Call-Driven revenue of $ 132-$ 134 million;$ 151-$ 154 million on an adjusted comparative basis, including $ 6 million in revenue from discontinued operations (see Archeo Transaction Update above for details).
Adjusted

OIBA:

      $ 9-$ 10 million;$ 9.3-$ 10.3 million on an adjusted comparative basis including $ 0.3 million in adjusted OIBA from discontinued operations.
Adjusted

EBITDA:

      $ 13-$ 14 million based on estimated add-backs of approximately $ 4 million in additional depreciation and amortization to adjusted OIBA;$ 13.3-$ 14.3 million on an adjusted comparative basis including $ 0.3 million in adjusted EBITDA from discontinued operations.

For Call-Driven adjusted EBITDA2, Marchex had $ 4 million in adjusted EBITDA for the six months ended June 30, 2013 and the company expects more than $ 9 million in adjusted EBITDA for the full year 2013.

2This non-GAAP Call-Driven measure is an alternate approach to Call-Driven profitability measures in that all Marchex indirect overhead costs are assigned to the Call-Driven results versus a portion to Archeo. Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.

2013 GAAP income (loss) from operations is expected to be ($ 3.0) million or better, assuming stock-based compensation between $ 9-$ 10.5 million and amortization of intangible assets from acquisitions between $ 3-$ 3.5 million. This estimate excludes any prospective gain or loss on sales and disposals of intangible assets or costs related to the separation of Archeo.

Financial guidance for the Third Quarter ending September 30, 2013:
Revenue:       $ 37-$ 38.5 million, with Call-Driven revenue of $ 34-$ 35 million;$ 38.5-$ 40 million on an adjusted comparative basis, including $ 1.5 million in revenue from discontinued operations (see Archeo Transaction Update above for details).
Adjusted

OIBA:

      $ 1.5-$ 2.5 million;$ 1.6-$ 2.6 million on an adjusted comparative basis including $ 0.1 million in adjusted OIBA from discontinued operations.
Adjusted

EBITDA:

      $ 2.5-$ 3.5 million, including estimated add-backs of approximately $ 1 million in additional depreciation and amortization to adjusted OIBA;$ 2.6-$ 3.6 million on an adjusted comparative basis including $ 0.1 million in adjusted EBITDA from discontinued operations.

Third quarter GAAP income (loss) from operations is expected to be ($ 2.5) million or better, assuming stock-based compensation between $ 2-$ 3 million and amortization of intangible assets from acquisitions between $ 0.6-$ 1 million. This estimate excludes any prospective gain or loss on sales and disposals of intangible assets. In the short-term, the above estimates for our measures of profitability may be impacted further by the timing of investments and costs related to the separation of Archeo.

Conference Call and Webcast Information

Management will hold a conference call, starting at 5:00 p.m. ET on Tuesday, August 6, 2013 to discuss its second quarter ended June 30, 2013 financial results, and other company updates. Access to the live webcast of the conference call will be available online from the Investors section of the Marchex’s website at www.marchex.com. An archived version of the webcast will also be available at the same location, beginning two hours after completion of the call.

About Marchex

Marchex, Inc. delivers customer calls to businesses and analyzes those calls so companies can get the most out of their mobile advertising.

Marchex supports its customers through a unique technology platform that has three primary components: (1) Call Analytics, which powers all of Marchex’s advertising solutions, and allows partners to leverage data and insights that accurately measure the performance of mobile, online and offline call advertising; (2) Call Marketplace, which annually connects hundreds of millions of consumer calls to advertisers from a range of mobile and online sources on a Pay For Call basis; and (3) Local Leads, a white-labeled, full service digital advertising solution for national businesses who have a local presence and small business resellers that drives quality phone calls and other leads to small business advertisers.

On November 1, 2012, Marchex announced its intention to pursue separation of its business into two distinct, publicly-traded entities. If the proposed tax-free spin-off transaction is completed, Marchex’s existing shareholders would hold interests in: (1) Marchex, a pure play mobile advertising company focused on calls, and (2) Archeo, a premium domain and advertising marketplace. The spin-off is currently anticipated to be completed not earlier than the fourth quarter of 2013.

Marchex is based in Seattle. To learn more, please visit www.marchex.com.

Forward-Looking Statements:

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, other financial guidance, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. In addition, there are certain risks and uncertainties relating to our announced spin-off transaction which contemplates a separation of our mobile and call advertising business and our domain and advertising marketplace business, including, but not limited to, the impact and possible disruption to our operations, the timing and certainty of completing the transaction, the high costs in connection with the spin-off which we would not be able to recoup if the spin-off is not consummated, the expectation that the spin-off will be tax-free, revenue and growth expectations for the two independent companies following the spin-off, unanticipated developments that may delay or negatively impact the spin-off, and the ability of each business to operate as an independent entity upon completion of the spin-off. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. There are a number of important factors that could cause Marchex’s actual results to differ materially from those indicated by such forward-looking statements which are described in the “Risk Factors” section of our most recent periodic report and registration statement filed with the SEC. All of the information provided in this release is as of August 6, 2013 and Marchex undertakes no duty to update the information provided herein.

Non-GAAP Financial Information:

To supplement Marchex’s consolidated financial statements presented in accordance with GAAP and to provide clarity internally and externally, Marchex uses certain non-GAAP measures of financial performance and liquidity, including OIBA, Adjusted OIBA, Adjusted EBITDA, Revenue with Domain Sales, Adjusted OIBA and EBITDA with Domain Sales, Revenue with Domain Sales excluding Divested Assets, Adjusted OIBA and EBITDA with Domain Sales excluding Divested Assets, Call-Driven Adjusted EBITDA2, and Adjusted non-GAAP EPS.

OIBA represents income (loss) from operations plus (1) stock-based compensation expense and (2) amortization of intangible assets from acquisitions. This measure, among other things, is one of the primary metrics by which Marchex evaluates the performance of its business. Additionally, Marchex’s management uses Adjusted OIBA, which excludes any gain/loss on sales and disposals of intangible assets for each asset and acquisition and separation related costs as these items are not indicative of Marchex’s recurring core operating results. Adjusted OIBA is the basis on which Marchex’s internal budgets are based and by which Marchex’s management is currently evaluated. Marchex believes these measures are useful to investors because they represent Marchex’s consolidated operating results, taking into account depreciation and other intangible amortization, which Marchex believes is an ongoing cost of doing business, but excluding the effects of certain other expenses or gain/loss such as stock-based compensation, amortization of intangible assets from acquisitions, acquisition and separation related costs, and gain/loss on sales and disposals of intangible assets. Adjusted EBITDA represents income (loss) before interest, income taxes, depreciation, amortization, stock compensation expense, acquisition and separation related cost, and gain/loss on sales and disposals of intangible assets. Marchex believes that Adjusted EBITDA is another alternative measure of liquidity to GAAP net cash provided by operating activities that provides meaningful supplemental information regarding liquidity and is used by Marchex’s management to measure its ability to fund operations and its financing obligations. In conjunction with the anticipated spin-off, Marchex has also presented Revenue with Domain Sales, Adjusted OIBA and EBITDA with Domain Sales. Revenue with Domain Sales represents revenue plus sales proceeds from the sale of intangible domain assets and Adjusted OIBA and EBITDA with Domain Sales includes the above descriptions of Adjusted OIBA and EBITDA plus the gain/loss on sales and disposals of intangible assets. Revenue with Domain Sales excluding Divested Assets and Adjusted OIBA and EBITDA with Domain Sales excluding Divested Assets excludes preliminary estimates of revenue and adjusted OIBA and EBITDA contributed by the Divested Assets. It is anticipated if the spin-off is completed, that Archeo will further it’s domain marketplace business initiative to buy and sell domains which differs from Marchex’s historical approach to intangible asset transactions. Accordingly, it is anticipated upon Archeo fully engaging in this business initiative, sales proceeds from intangible domain assets may be presented as revenue prospectively. Financial analysts and investors may use the non-GAAP historical Revenue with Domain Sales, Adjusted OIBA and EBITDA with Domain Sales and similarly those excluding the Divested Assets to help with comparative financial evaluation to make informed investment decisions. The alternate approach to Call-Driven Adjusted EBITDA2 assigns all Marchex indirect overhead costs to the Call-Driven results.

Adjusted non-GAAP EPS represents Adjusted non-GAAP Net Income (Loss) applicable to common stockholders divided by GAAP diluted shares outstanding. Adjusted non-GAAP Net Income (Loss) applicable to common stockholders generally captures those items on the statement of operations that have been, or ultimately will be, settled in cash exclusive of certain items that are not indicative of Marchex’s recurring core operating results and represents net income (loss) applicable to common stockholders plus the net of tax effects of: (1) stock-based compensation expense, (2) amortization of intangible assets from acquisitions, (3) gain/loss on sales and disposals of intangible assets, (4) acquisition and separation related costs, (5) interest and other income (expense), and (6) dividends paid to participating securities, and also excludes the effect of the tax valuation allowance. Financial analysts and investors may use Adjusted non-GAAP EPS to analyze Marchex’s financial performance since these groups have historically used EPS related measures, along with other measures, to estimate the value of a company, to make informed investment decisions, and to evaluate a company’s operating performance compared to that of other companies in its industry.

Marchex’s management believes that investors should have access to, and Marchex is obligated to provide, the same set of tools that management uses in analyzing the company’s results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, and should not be considered in isolation, as a substitute for, or superior to, GAAP results. Marchex’s non-GAAP financial measures may be defined differently from time to time and may be defined differently than similar titled terms used by other companies, and accordingly, care should be exercised in understanding how Marchex defines its non-GAAP financial measures in this release. Marchex endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measure with equal or greater prominence, GAAP financial statements, and detailed descriptions of the reconciling items and adjustments, including quantifying such items, to derive the non-GAAP measure.

MARCHEX, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
           
        Three Months Ended
        June 30,
          2012     2013  
Revenue   $ 34,013   $ 39,020  
           
Expenses:      
    Service costs (1), (2)     19,349     23,864  
    Sales and marketing (1), (2)     4,510     3,031  
    Product development (1), (2)     5,801     6,998  
    General and administrative (1), (2)     5,441     5,509  
    Amortization of intangible assets from acquisitions     1,082     736  
    Acquisition and separation related costs         309  
    Total operating expenses     36,183     40,447  
    Gain on sales and disposals of intangible assets, net     3,258     1,329  
Income (loss) from operations     1,088     (98 )
Interest expense and other, net     (115 )   (12 )
Income (loss) before provision for income taxes     973     (110 )
Income tax expense     577     244  
Net income (loss)     396     (354 )
Dividends paid to participating securities     (66 )    
Net income (loss) applicable to common stockholders   $ 330   $ (354 )
           
Basic and diluted net income (loss) per share applicable to Class A and Class B common stockholders   $ 0.01   $ (0.01 )
Dividends paid per share   $ 0.02   $  
Shares used to calculate basic net income (loss) per share applicable to common stockholders
    Class A     9,570     9,570  
    Class B     24,341     25,853  
Shares used to calculate diluted net income (loss) per share applicable to common stockholders
    Class A     9,570     9,570  
    Class B     35,208     35,423  
(1 )   Includes stock-based compensation allocated as follows:  
    Service costs   $ 483   $ 188  
    Sales and marketing     1,602     203  
    Product development     329     398  
    General and administrative     2,402     1,825  
    Total   $ 4,816   $ 2,614  
(2 )   Certain reclassifications have been made to prior period to conform to current period presentation.
       
MARCHEX, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
         
      Six Months Ended
      June 30,
        2012     2013  
Revenue   $ 69,495   $ 75,233  
         
Expenses:      
  Service costs (1),(2)     39,427     45,267  
  Sales and marketing (1),(2)     8,306     5,856  
  Product development (1),(2)     11,829     13,856  
  General and administrative (1),(2)     11,677     10,350  
  Amortization of intangible assets from acquisitions     2,619     1,791  
  Acquisition and separation related costs     (132 )   654  
  Total operating expenses     73,726     77,774  
  Gain on sales and disposals of intangible assets, net     4,721     2,691  
Income from operations     490     150  
Interest expense and other, net     (312 )   (29 )
Income before provision for income taxes     178     121  
Income tax expense     497     390  
Net loss     (319 )   (269 )
Dividends paid to participating securities     (139 )    
Net loss applicable to common stockholders   $ (458 ) $ (269 )
         
Basic and diluted net loss per share applicable to common stockholders   $ (0.01 ) $ (0.01 )
Dividends paid per share   $ 0.04   $  
Shares used to calculate basic net loss applicable to common stockholders
  Class A     9,578     9,570  
  Class B     24,190     25,720  
Shares used to calculate diluted net loss applicable to common stockholders
  Class A     9,578     9,570  
  Class B     33,768     35,290  
(1 ) Includes stock-based compensation allocated as follows:  
  Service costs   $ 1,007   $ 377  
  Sales and marketing     1,862     264  
  Product development     665     773  
  General and administrative     5,190     3,119  
  Total   $ 8,724   $ 4,533  
(2 ) Certain reclassifications have been made to prior period to conform to current period presentation.
     
MARCHEX, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
         
        December 31, June 30,
    Assets     2012     2013  
Current assets:      
  Cash and cash equivalents   $ 15,930   $ 18,742  
  Accounts receivable, net     25,988     34,103  
  Prepaid expenses and other current assets     2,667     3,513  
  Refundable taxes     264     168  
  Deferred tax assets     830     1,116  
    Total current assets     45,679     57,642  
           
  Property and equipment, net     6,005     6,171  
  Deferred tax assets     27,677     27,391  
  Intangibles and other assets, net     611     695  
  Goodwill     65,815     65,815  
  Intangible assets from acquisitions, net     3,360     1,569  
    Total Assets   $ 149,147   $ 159,283  
           
    Liabilities and Stockholders’ Equity      
           
Current liabilities:      
  Accounts payable   $ 12,378   $ 18,858  
  Accrued expenses and other current liabilities     9,609     8,880  
  Deferred revenue     2,009     2,034  
    Total current liabilities     23,996     29,772  
           
  Other non-current liabilities     2,216     2,284  
    Total Liabilities     26,212     32,056  
           
Stockholder’s equity:      
  Class A common stock     98     98  
  Class B common stock     284     284  
  Treasury stock     (13 )   (5 )
  Additional paid-in capital     295,532     300,085  
  Accumulated deficit     (172,966 )   (173,235 )
    Total Stockholders’ Equity     122,935     127,227  
    Total Liabilities and Stockholders’ Equity   $ 149,147   $ 159,283  
                   
 

MARCHEX, INC. AND SUBSIDIARIES

Reconciliation of GAAP Income (Loss) from Operations to Operating Income Before Amortization (OIBA)
and Adjusted Operating Income Before Amortization (Adjusted OIBA)
(in thousands)
(unaudited)
         
         
      Three Months Ended
      June 30,
        2012     2013  
         
Income (loss) from operations   $ 1,088   $ (98 )
  Stock-based compensation     4,816     2,614  
  Amortization of intangible assets from acquisitions     1,082     736  
Operating income before amortization (OIBA)     6,986     3,252  
  Acquisition and separation related costs         309  
  Gain on sales and disposals of intangible assets, net     (3,258 )   (1,329 )
Adjusted operating income before amortization (Adjusted OIBA)   $ 3,728   $ 2,232  
         
         
         
      Six Months Ended
      June 30,
        2012     2013  
         
Income from operations   $ 490   $ 150  
  Stock-based compensation     8,724     4,533  
  Amortization of intangible assets from acquisitions     2,619     1,791  
Operating income before amortization (OIBA)     11,833     6,474  
  Acquisition and separation related costs     (132 )   654  
  Gain on sales and disposals of intangible assets, net     (4,721 )   (2,691 )
Adjusted operating income before amortization (Adjusted OIBA)   $ 6,980   $ 4,437  
               
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation from Net Cash provided by Operating Activities to Adjusted EBITDA
(in thousands)
(unaudited)
       
       
      Three Months Ended
      June 30,
        2012     2013  
         
Net cash provided by operating activities   $ 7,980   $ 1,014  
  Changes in asset and liabilities     (3,997 )   1,393  
  Income tax expense     577     244  
  Separation related costs         309  
  Interest expense and other, net     21     12  
  Excess tax benefits related to stock compensation     23     189  
Adjusted EBITDA   $ 4,604   $ 3,161  
         
Net cash provided by investing activities   $ 2,032   $ 449  
         
Net cash provided by (used in) financing activities   $ (17,734 ) $ 179  
         
         
         
      Six Months Ended
      June 30,
        2012     2013  
         
Net cash provided by operating activities   $ 11,934   $ 3,155  
         
  Changes in asset and liabilities     (3,695 )   1,856  
  Income tax expense     497     390  
  Acquisition and separation related costs         654  
  Interest expense and other, net     41     29  
  Excess tax benefits related to stock compensation     120     196  
Adjusted EBITDA   $ 8,897   $ 6,280  
         
Net cash provided by (used in) investing activities   $ 3,226   $ 961  
         
Net cash used in financing activities   $ (19,030 ) $ (1,304 )
       
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS
(in thousands, except per share data)
(unaudited)
             
          Three Months Ended
          June 30,
            2012     2013  
Adjusted Non-GAAP EPS   $ 0.06   $ 0.04  
             
Net income (loss) per Class B share applicable to common stockholders – diluted (GAAP EPS)   $ 0.01   $ (0.01 )
Shares used to calculate diluted net income (loss) per Class B share applicable to common stockholders     35,208     35,423  
             
Net income (loss) applicable to common stockholders   $ 330   $ (354 )
    Stock-based compensation     4,816     2,614  
    Acquisition and separation related costs         309  
    Amortization of intangible assets from acquisitions     1,082     736  
    Gain on sales and disposals of intangible assets, net     (3,258 )   (1,329 )
    Interest expense and other, net     115     12  
    Dividends paid to participating securities     66      
    Tax valuation allowance         225  
    Estimated impact of income taxes     (734 )   (761 )
Adjusted Non-GAAP net income applicable to common stockholders   $ 2,417   $ 1,452  
             
Adjusted Non-GAAP EPS   $ 0.06   $ 0.04  
             
Shares used to calculate diluted net income (loss) per Class B share applicable      
to common stockholders     35,208     35,423  
    Weighted average stock options and common shares subject to purchase or cancellation (if applicable)         790  
    Weighted average common shares related to deferred acquisition payments     5,236      
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)     40,444     36,213  
             
(1 )   For the purpose of computing the number of diluted shares for Adjusted Non-GAAP EPS, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP EPS.
   
     
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation of GAAP EPS to Adjusted Non-GAAP EPS
(in thousands, except per share data)
(unaudited)
             
          Six Months Ended
          June 30,
            2012     2013  
             
Adjusted Non-GAAP EPS $ 0.11   $ 0.08  
             
Net loss per Class B share applicable to common stockholders – diluted (GAAP EPS) $ (0.01 ) $ (0.01 )
Shares used to calculate diluted net loss per Class B share applicable    
to common stockholders   33,768     35,290  
             
Net loss applicable to common stockholders $ (458 ) $ (269 )
    Stock-based compensation   8,724     4,533  
    Acquisition and separation related costs   (132 )   654  
    Amortization of intangible assets from acquisitions   2,619     1,791  
    Gain on sales and disposals of intangible assets, net   (4,721 )   (2,691 )
    Interest expense and other, net   312     29  
    Dividends paid to participating securities   139      
    Tax valuation allowance       651  
    Estimated impact of income taxes   (1,976 )   (1,812 )
Adjusted Non-GAAP net income applicable to common stockholders $ 4,507   $ 2,886  
             
Adjusted Non-GAAP EPS $ 0.11   $ 0.08  
             
Shares used to calculate diluted net income (loss) per Class B share applicable    
to common stockholders   33,768     35,290  
    Weighted average stock options and common shares subject to purchase or cancellation (if applicable)   1,313     593  
    Weighted average common shares related to deferred acquisition payments   5,236      
Diluted shares used to calculate Adjusted Non-GAAP EPS (1)   40,317     35,883  
             
             
(1 )   For the purpose of computing the number of diluted shares for non-GAAP EPS, Marchex uses the accounting guidance that would be applicable for computing the number of diluted shares for GAAP EPS.  
     
       
MARCHEX, INC. AND SUBSIDIARIES
(in thousands)
(unaudited)
                       
Reconciliation of GAAP Income (Loss) from Operations to Operating Income before Amortization (OIBA)
and Adjusted Operating Income Before Amortization (Adjusted OIBA)
                         
                         
          Three months ended     Six months ended
          6/30/2012     9/30/2012     12/31/2012     3/31/2013     6/30/2013     6/30/2012     6/30/2013
                                             
Income (loss) from operations   $   1,088   $  

(492)

    (18,188)   $ 248   $ (98)   $ 490   $ 150
  Stock-based compensation       4,816     3,715     3,257     1,919     2,614     8,724     4,533
  Amortization of intangible assets from acquisitions       1,082     1,055     1,054     1,055     736     2,619     1,791
Operating income before amortization (OIBA)       6,986     4,278     (13,877)     3,222     3,252     11,833     6,474
  Acquisition and separation related costs           296     589     345     309     (132)     654
  Impairment of goodwill               16,739                
  Gain on sales and disposals of intangible assets, net       (3,258)     (713)     (862)     (1,362)     (1,329)     (4,721)     (2,691)
Adjusted operating income before amortization (Adjusted OIBA)   $   3,728   $ 3,861   $ 2,589   $ 2,205   $ 2,232   $ 6,980   $ 4,437
                                     
 

Reconciliation from Net Cash provided by Operating Activities to Adjusted EBITDA

                             
          Three months ended     Six months ended
          6/30/2012     9/30/2012     12/31/2012     3/31/2013     6/30/2013     6/30/2012     6/30/2013
                                             
Net cash provided by operating activities   $   7,980   $ 3,656   $ 4,311   $ 2,141   $ 1,014   $ 11,934   $ 3,155
  Changes in asset and liabilities       (3,997)     811     (17,696)     463     1,393     (3,695)     1,856
  Income tax expense (benefit)       577     (67)     16,127     146     244     497     390
  Separation related costs           296     589     345     309         654
  Interest expense and other, net       21     28     20     17     12     41     29
  Excess tax benefits related to stock compensation       23     42     146     7     189     120     196
Adjusted EBITDA   $   4,604   $ 4,766   $ 3,497   $ 3,119   $ 3,161   $ 8,897   $ 6,280
Net cash provided by (used in) investing activities   $   2,032   $ (103)   $ 197   $ 512   $ 449   $ (10,392)     961
Net cash provided by (used in) financing activities   $   (17,734)   $ (1,592)   $ (24,112)   $ (1,483)   $ 179   $ (6,275)     (1,304)
                                           
Financial Summary
(in thousands)
(unaudited)
                       
      Three months ended     Six months ended
        6/30/2012     9/30/2012     12/31/2012     3/31/2013     6/30/2013     6/30/2012     6/30/2013
Marchex – consolidated                                      
    Revenue   $ 34,013   $ 34,822   $ 33,989   $ 36,213   $ 39,020   $ 69,495   $ 75,233
    Revenue with Domain Sales   $ 37,283   $ 35,535   $ 34,851   $ 37,575   $ 40,350   $ 74,238   $ 77,925
    Revenue with Domain Sales excluding Archeo Divested Assets2   $ 36,101   $ 34,405   $ 33,297   $ 36,094   $ 38,909   $ 71,410   $ 75,003
    Adjusted OIBA   $ 3,728   $ 3,861   $ 2,589   $ 2,205   $ 2,232   $ 6,980   $ 4,437
    Adjusted OIBA with Domain Sales   $ 6,986   $ 4,574   $ 3,451   $ 3,567   $ 3,561   $ 11,701   $ 7,128
    Adjusted OIBA with Domain Sales excluding Archeo Divested Assets2   $ 6,997   $ 4,586   $ 3,312   $ 3,535   $ 3,508   $ 11,668   $ 7,043
    Adjusted EBITDA   $ 4,604   $ 4,766   $ 3,497   $ 3,119   $ 3,161   $ 8,897   $ 6,280
    Adjusted EBITDA with Domain Sales   $ 7,862   $ 5,479   $ 4,359   $ 4,481   $ 4,490   $ 13,618   $ 8,971
    Adjusted EBITDA with Domain Sales excluding Archeo Divested Assets2   $ 7,872   $ 5,490   $ 4,219   $ 4,448   $ 4,436   $ 13,583   $ 8,884
                                           
Call-Driven and Other1                                      
    Revenue   $ 27,497   $ 29,270   $ 28,468   $ 31,107   $ 33,893   $ 54,148   $ 65,000
    Adjusted OIBA   $ 2,214   $ 2,773   $ 1,760   $ 2,211   $ 2,269   $ 3,059   $ 4,480
    Adjusted EBITDA   $ 2,917   $ 3,538   $ 2,530   $ 2,985   $ 3,061   $ 4,463   $ 6,046
                                           
Archeo1                                      
    Revenue   $ 6,516   $ 5,552   $ 5,521   $ 5,106   $ 5,127   $ 15,347   $ 10,233
    Revenue with Domain Sales   $ 9,786   $ 6,265   $ 6,383   $ 6,468   $ 6,457   $ 20,090   $ 12,925
    Revenue with Domain Sales excluding Divested Assets2   $ 8,604   $ 5,135   $ 4,829   $ 4,987   $ 5,016   $ 17,262   $ 10,003
    Adjusted OIBA   $ 1,514   $ 1,088   $ 829   $ (6)   $ (37)   $ 3,921   $ (43)
    Adjusted OIBA with Domain Sales   $ 4,772   $ 1,801   $ 1,692   $ 1,356   $ 1,292   $ 8,642   $ 2,648
    Adjusted OIBA with Domain Sales excluding Divested Assets2   $ 4,783   $ 1,813   $ 1,553   $ 1,324   $ 1,239   $ 8,609   $ 2,563
    Adjusted EBITDA   $ 1,687   $ 1,228   $ 967   $ 134   $ 100   $ 4,434   $ 234
    Adjusted EBITDA with Domain Sales   $ 4,945   $ 1,941   $ 1,829   $ 1,496   $ 1,429   $ 9,155   $ 2,925
    Adjusted EBITDA with Domain Sales excluding Divested Assets2   $ 4,955   $ 1,952   $ 1,690   $ 1,463   $ 1,375   $ 9,120   $ 2,838
                                           
1   The financial results for Call-Driven and Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Call-Driven and Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented.
2   In July 2013, Marchex divested certain pay-per-click assets related to Archeo.          
    The financial results for the Divested Assets are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented.
                         
MARCHEX, INC. AND SUBSIDIARIES
Archeo Financial Summary
(in thousands)
(unaudited)
                       
      Three months ended     Six months ended
        6/30/2012     9/30/2012     12/31/2012     3/31/2013     6/30/2013     6/30/2012     6/30/2013
Archeo including Divested Assets1,2                                      
    Revenue   $ 6,516   $ 5,552   $ 5,521   $ 5,106   $ 5,127   $ 15,347   $ 10,233
    Revenue with Domain Sales   $ 9,786   $ 6,265   $ 6,383   $ 6,468   $ 6,457   $ 20,090   $ 12,925
    Adjusted OIBA   $ 1,514   $ 1,088   $ 829   $ (6)   $ (37)   $ 3,921   $ (43)
    Adjusted OIBA with Domain Sales   $ 4,772   $ 1,801   $  

1,692

  $ 1,356   $ 1,292   $ 8,642   $ 2,648
    Adjusted EBITDA   $ 1,687   $ 1,228   $ 967   $ 134   $ 100   $ 4,434   $ 234
    Adjusted EBITDA with Domain Sales   $ 4,945   $ 1,941   $ 1,829   $ 1,496   $ 1,429   $ 9,155   $ 2,925
                                           
Divested Assets2                                      
    Revenue   $ 1,182   $ 1,130   $ 1,554   $ 1,481   $ 1,441   $ 2,828   $ 2,922
    Adjusted OIBA   $ (11)   $ (12)   $ 139   $ 32   $ 53   $ 33   $ 85
    Adjusted EBITDA   $ (10)   $ (11)   $ 140   $ 33   $ 54   $ 35   $ 87
                                           
Archeo excluding Divested Assets2                                      
    Revenue   $ 5,334   $ 4,422   $ 3,967   $ 3,625   $ 3,686   $ 12,519   $ 7,311
    Revenue with Domain Sales   $ 8,604   $ 5,135   $ 4,829   $ 4,987   $ 5,016   $ 17,262   $ 10,003
    Adjusted OIBA   $ 1,525   $ 1,100   $ 690   $ (38)   $ (90)   $ 3,888   $ (128)
    Adjusted OIBA with Domain Sales   $ 4,783   $ 1,813   $ 1,553   $ 1,324   $ 1,239   $ 8,609   $ 2,563
    Adjusted EBITDA   $ 1,697   $ 1,239   $ 827   $ 101   $ 46   $ 4,399   $ 147
    Adjusted EBITDA with Domain Sales   $ 4,955   $ 1,952   $ 1,690   $ 1,463   $ 1,375   $ 9,120   $ 2,838
                                           
1   The financial results for Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented.
   
   
2   In July 2013, Marchex divested certain pay-per-click assets related to Archeo.      
    The financial results for the Divested Assets are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented.
     
MARCHEX, INC. AND SUBSIDIARIES
Archeo Direct Contributions
(in thousands)
(unaudited)
 
      Three months ended   Six months ended
        6/30/2012     9/30/2012     12/31/2012     3/31/203     6/30/203     6/30/202     6/30/203
Call Driven and Other1                            
    Adjusted OIBA   $ 2,214   $ 2,773   $ 1,759   $ 2,211   $ 2,269   $ 3,059   $ 4,480
    Adjusted EBITDA   $ 2,917   $ 3,538   $ 2,529   $ 2,985   $ 3,061   $ 4,463   $ 6,046
                                 
    Effect of Reallocated Costs:                            
                                 
    Reallocated Costs3   $ (658)   $ (583)   $ (608)   $ (844)   $ (761)   $ (1,364)   $ (1,605)
    Adjusted OIBA after Reallocated Costs   $ 1,557   $ 2,189   $ 1,152   $ 1,367   $ 1,508   $ 1,695   $ 2,875
    Adjusted EBITDA after Reallocated Costs   $ 2,259   $ 2,955   $ 1,922   $ 2,141   $ 2,300   $ 3,099   $ 4,441
                                 
Archeo1                            
    Adjusted OIBA   $ 1,514   $ 1,088   $ 829   $ (6)   $ (37)   $ 3,920   $ (43)
    Adjusted OIBA with Domain Sales   $ 4,772   $ 1,801   $ 1,692   $ 1,356   $ 1,292   $ 8,642   $ 2,648
    Adjusted OIBA with Domain Sales excluding Divested Assets2   $ 4,783   $ 1,813   $ 1,553   $ 1,324   $ 1,239   $ 8,609   $ 2,563
    Adjusted EBITDA   $ 1,687   $ 1,228   $ 967   $ 134   $ 100   $ 4,433   $ 234
    Adjusted EBITDA with Domain Sales   $ 4,945   $ 1,941   $ 1,829   $ 1,496   $ 1,430   $ 9,155   $ 2,926
    Adjusted EBITDA with Domain Sales excluding Divested Assets2   $ 4,955   $ 1,952   $ 1,690   $ 1,463   $ 1,375   $ 9,120   $ 2,838
                                 
    Effect of Reallocated Costs:                            
                                 
    Reallocated Costs3   $ 658   $ 583   $ 608   $ 844   $ 761   $ 1,364   $ 1,605
    Adjusted OIBA after Reallocated Costs – Archeo Direct Contribution   $ 2,172   $ 1,672   $ 1,437   $ 838   $ 724   $ 5,285   $ 1,562
    Adjusted OIBA with Domain Sales after Reallocated Costs – Archeo Direct Contribution   $ 5,429   $ 2,384   $ 2,299   $ 2,200   $ 2,053   $ 10,006   $ 4,253
    Adjusted OIBA with Domain Sales excluding Divested Assets2 after Reallocated Costs – Archeo Direct Contribution   $ 5,440   $ 2,396   $ 2,160   $ 2,168   $ 2,000   $ 9,973   $ 4,168
    Adjusted EBITDA after Reallocated Costs – Archeo Direct Contribution   $ 2,345   $ 1,811   $ 1,575   $ 978   $ 861   $ 5,798   $ 1,839
    Adjusted EBITDA with Domain Sales after Reallocated Costs – Archeo Direct Contribution   $ 5,603   $ 2,524   $ 2,437   $ 2,340   $ 2,191   $ 10,519   $ 4,531
    Adjusted EBITDA with Domain Sales excluding Divested Assets2 after Reallocated Costs – Archeo Direct Contribution   $ 5,613   $ 2,535   $ 2,297   $ 2,307   $ 2,136   $ 10,484   $ 4,443
               
1   The financial results for Call-Driven and Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Call-Driven and Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented.
2   In July 2013, Marchex divested certain pay-per-click assets related to Archeo.
    The financial results for the Divested Assets are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented.
3   Estimate of general corporate expenses (as defined in Note 1) reallocated to Call-Driven and Other from Archeo to estimate Archeo direct contribution.
     
MARCHEX, INC. AND SUBSIDIARIES
Reconciliation to Reported Financial and Non-GAAP Information
(in thousands)
(unaudited)
                       
       

Three months ended

  Six months ended
        6/30/2012     9/30/2012     12/31/2012     3/31/2013     6/30/2013     6/30/2012     6/30/2013
Revenue                                
  Consolidated – as reported   $ 34,013   $ 34,822   $ 33,989   $ 36,213   $ 39,020   $ 69,495   $ 75,233
  Add: Domain Sales     3,270     713     862     1,362     1,330     4,743     2,692
  Consolidated with Domain Sales1     37,283     35,535     34,851     37,575     40,350     74,238     77,925
  Less: Archeo Divested Assets4     1,182     1,130     1,554     1,481     1,441     2,828     2,922
  Consolidated with Domain Sales excluding Archeo Divested Assets4     36,101     34,405     33,297     36,094     38,909     71,410     75,003
  Less: Archeo with Domain Sales excluding Divested Assets4     8,604     5,135     4,829     4,987     5,016     17,262     10,003
  Other     175     174     181     171     162     356     333
  Call-Driven3   $ 27,322   $ 29,096   $ 28,287   $ 30,936   $ 33,731   $ 53,792   $ 64,667
                                   
Adjusted operating income                                
  Consolidated – as reported   $ 3,728   $ 3,861   $ 2,589   $ 2,205   $ 2,232   $ 6,980   $ 4,437
  Add: Gain on Domain Sales     3,258     713     862     1,362     1,329     4,721     2,691
  Consolidated with Domain Sales2     6,986     4,574     3,451     3,567     3,561     11,701     7,128
  Less: Archeo Divested Assets4     (11 )   (12 )   139     32     53     33     85
  Consolidated with Domain Sales excluding certain Archeo Divested Assets4     6,997     4,586     3,312     3,535     3,508     11,668     7,043
  Less: Archeo with Domain Sales excluding Divested Assets4     4,783     1,813     1,553     1,324     1,239     8,609     2,563
  Other     116     105     105     106     86     187     192
  Call-Driven3   $ 2,098   $ 2,668   $ 1,654   $ 2,105   $ 2,183   $ 2,872   $ 4,288
                                   
Adjusted EBITDA                                
  Consolidated – as reported   $ 4,604   $ 4,766   $ 3,497   $ 3,119   $ 3,161   $ 8,897   $ 6,280
  Add: Gain on Domain Sales     3,258     713     862     1,362     1,329     4,721     2,691
  Consolidated with Domain Sales2     7,862     5,479     4,359     4,481     4,490     13,618     8,971
  Less: Archeo Divested Assets4     (10 )   (11 )   140     33     54     35     87
  Consolidated with Domain Sales excluding certain Archeo Divested Assets4     7,872     5,490     4,219     4,448     4,436     13,583     8,884
  Less: Archeo with Domain Sales excluding Divested Assets4     4,955     1,952     1,690     1,463     1,375     9,120     2,838
  Other     116     105     105     106     86     187     192
  Call-Driven3   $ 2,801   $ 3,433   $ 2,424   $ 2,879   $ 2,975   $ 4,276   $ 5,854
                                   
1   Consolidated revenue with Domain Sales is a non-GAAP measure of financial results and includes sales proceeds from sales of intangible domain assets.
2   Adjusted operating income (loss), adjusted EBITDA and each with Domain Sales, are non-GAAP measures of operating results and liquidity. Adjusted OIBA and EBITDA with Domain Sales include net gains from the sales of intangible assets.
3   The financial results for Call-Driven and Archeo are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented. The unaudited Call-Driven and Archeo financial results include certain expenses of Marchex which were allocated for certain functions, including general corporate expenses related to finance, legal, information technology, human resources, shared services, insurance, employee benefits and incentives and stock-based compensation. However, these allocations may not be indicative of the actual expenses that would have incurred as two separate stand-alone entities or of the costs expected to be incurred in the future. As such, the financial results included herein may not necessarily reflect the results of operations or cash flows in the future or what the results of operations or cash flows would have been had Archeo been an independent company during the periods presented.
4   In July 2013, Marchex divested certain pay-per-click assets related to Archeo. The financial results for the Divested Assets are preliminary and have been derived from the unaudited consolidated financial statements of Marchex, Inc. for all periods presented.

 

Contacts

Marchex Investor Relations
Trevor Caldwell
Telephone: 206-331-3600
Email: ir(at)marchex.com
or
MEDIA INQUIRIES
Marchex Public Relations
Sonia Krishnan
Telephone: 206-331-3434
Email: skrishnan(at)marchex.com

TNTNames.com

Obama pledges more help for veterans

August 10, 2013 |

Obama pledges more help for veterans

Obama

AP

Speaking to a group of disabled veterans Saturday in Orlando, President Obama touted his administration’s ongoing efforts to reduce the backlog of disability claims.‘We are making progress’

Now ear this! Channing Tatum goes blond, adds goatee and fake ears for movie

August 10, 2013 |

Hollywood actresses often go blond, but it’s rarer for men to bleach out their locks. Channing Tatum is the exception.


TODAY Entertainment

Oprah gets Swiss apologies after ‘racist’ encounter

August 10, 2013 |

After Oprah Winfrey said this week that she was recently denied service at a Swiss store over her race, a press officer for the country’s tourism office has apologized for the way she was treated.


TODAY Entertainment

Four bodies pulled from crash wreckage

August 10, 2013 |

Four bodies pulled from crash wreckage

Crash

AP

Those presumed dead from the fatal plane crash in a residential Connecticut town are the pilot who was a former Microsoft executive, his teenage son and two children in a home struck by the plane.
Touching reason why father, son were traveling

From ‘Breaking Bad’ to worse: When TV shows inspire wickedcrimes

August 10, 2013 |

If there’s one thing AMC’s “Breaking Bad” has shown, it’s that anyone can break bad.


TODAY Entertainment