0-25779
|
06-1515824
|
|||
(Commission File Number)
|
(IRS Employer Identification No.)
|
Exhibit
Number
|
Description
|
99.1
|
Press Release dated May 3, 2012 Related to Results of Operations and Financial Condition for the Quarter Ended March 31, 2012
|
THESTREET, INC. (Registrant)
|
|||
Date: May 3, 2012
|
|||
By: /s/ Gregory Barton
|
|||
Gregory Barton
|
|||
Executive Vice President, Business and Legal Affairs,
|
|||
General Counsel and Secretary
|
·
|
TheStreet Business Desk service has been successfully implemented in approximately 270 of the nearly 400 newspapers under contract, notably the Denver Post and San Jose Mercury News.
|
·
|
Average monthly unique visitors to the Company’s network of sites, as measured internally, increased approximately 8% as compared to the prior year period.
|
·
|
Premium Services bookings decreased 22% as compared to the prior year period.
|
·
|
The average number of paid subscriptions was 83,154 compared to an average of 92,228 in the first quarter of 2011.
|
·
|
Average monthly churn(2) increased to 5.1% compared to 3.4% in the first quarter of 2011.
|
THESTREET, INC.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
March 31, 2012
|
December 31,2011
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 19,256,130 | $ | 44,865,191 | ||||
Accounts receivable, net of allowance for doubtful
|
||||||||
accounts of $140,026 at March 31, 2012 and $158,870 at
|
||||||||
December 31, 2011
|
5,638,503 | 6,225,424 | ||||||
Marketable securities
|
15,974,752 | 20,895,238 | ||||||
Other receivables
|
271,374 | 356,219 | ||||||
Prepaid expenses and other current assets
|
1,690,024 | 1,421,955 | ||||||
Restricted cash
|
660,370 | 660,370 | ||||||
Total current assets
|
43,491,153 | 74,424,397 | ||||||
Property and equipment, net of accumulated depreciation
|
||||||||
and amortization of $14,441,088 at March 31, 2012
|
||||||||
and $13,466,365 at December 31, 2011
|
7,345,141 | 8,494,648 | ||||||
Marketable securities
|
34,083,681 | 7,894,365 | ||||||
Other assets
|
136,978 | 172,055 | ||||||
Goodwill
|
24,057,616 | 24,057,616 | ||||||
Other intangibles, net of accumulated amortization of $5,825,510
|
||||||||
at March 31, 2012 and $5,529,730 at December 31, 2011
|
5,074,355 | 5,370,135 | ||||||
Restricted cash
|
1,000,000 | 1,000,000 | ||||||
Total assets
|
$ | 115,188,924 | $ | 121,413,216 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 2,344,854 | $ | 2,305,589 | ||||
Accrued expenses
|
6,594,508 | 7,970,802 | ||||||
Deferred revenue
|
18,280,371 | 17,625,666 | ||||||
Other current liabilities
|
585,065 | 509,214 | ||||||
Total current liabilities
|
27,804,798 | 28,411,271 | ||||||
Deferred tax liability
|
288,000 | 288,000 | ||||||
Other liabilities
|
4,299,160 | 4,569,497 | ||||||
Total liabilities
|
32,391,958 | 33,268,768 | ||||||
Stockholders' Equity:
|
||||||||
Preferred stock; $0.01 par value; 10,000,000 shares
|
||||||||
authorized; 5,500 shares issued and 5,500 shares
|
||||||||
outstanding at March 31, 2012 and December 31, 2011;
|
||||||||
the aggregate liquidation preference totals $55,000,000 as of
|
||||||||
March 31, 2012 and December 31, 2011
|
55 | 55 | ||||||
Common stock; $0.01 par value; 100,000,000 shares
|
||||||||
authorized; 39,419,851 shares issued and 32,736,948
|
||||||||
shares outstanding at December 31, 2011, and 38,461,595
|
||||||||
shares issued and 32,131,188 shares outstanding at
|
||||||||
December 31, 2011
|
394,199 | 384,616 | ||||||
Additional paid-in capital
|
269,989,546 | 270,230,246 | ||||||
Accumulated other comprehensive income
|
(340,686 | ) | (394,600 | ) | ||||
Treasury stock at cost; 6,682,903 shares at March 31, 2012
|
||||||||
and 6,330,407 shares at December 31, 2011
|
(11,743,650 | ) | (11,010,149 | ) | ||||
Accumulated deficit
|
(175,502,498 | ) | (171,065,720 | ) | ||||
Total stockholders' equity
|
82,796,966 | 88,144,448 | ||||||
Total liabilities and stockholders' equity
|
$ | 115,188,924 | $ | 121,413,216 |
THESTREET, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
For the Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
Net revenue:
|
||||||||
Premium services
|
$ | 9,189,981 | $ | 9,609,501 | ||||
Media
|
3,625,846 | 4,511,380 | ||||||
Total net revenue
|
12,815,827 | 14,120,881 | ||||||
Operating expense:
|
||||||||
Cost of services
|
6,435,162 | 6,959,048 | ||||||
Sales and marketing
|
4,090,249 | 4,370,773 | ||||||
General and administrative
|
3,822,521 | 4,008,666 | ||||||
Depreciation and amortization
|
1,287,262 | 1,620,849 | ||||||
Restructuring and other charges
|
1,713,498 | - | ||||||
Total operating expense
|
17,348,692 | 16,959,336 | ||||||
Operating loss
|
(4,532,865 | ) | (2,838,455 | ) | ||||
Net interest income
|
96,087 | 198,027 | ||||||
Loss from continuing operations before income taxes
|
(4,436,778 | ) | (2,640,428 | ) | ||||
Provision for income taxes
|
- | - | ||||||
Loss from continuing operations
|
(4,436,778 | ) | (2,640,428 | ) | ||||
Discontinued operations:
|
||||||||
Loss from discontinued operations
|
- | (1,616 | ) | |||||
Net loss
|
(4,436,778 | ) | (2,642,044 | ) | ||||
Preferred stock cash dividends
|
96,424 | 96,424 | ||||||
Net loss attributable to common stockholders
|
$ | (4,533,202 | ) | $ | (2,738,468 | ) | ||
Basic and diluted net loss per share:
|
||||||||
Loss from continuing operations
|
$ | (0.14 | ) | $ | (0.09 | ) | ||
Loss from discontinued operations
|
- | (0.00 | ) | |||||
Net loss
|
(0.14 | ) | (0.09 | ) | ||||
Preferred stock dividends
|
(0.00 | ) | (0.00 | ) | ||||
Net loss attributable to common stockholders
|
$ | (0.14 | ) | $ | (0.09 | ) | ||
Weighted average basic and diluted shares outstanding
|
32,342,541 | 31,880,600 | ||||||
Net loss
|
$ | (4,436,778 | ) | $ | (2,642,044 | ) | ||
Net interest income
|
(96,087 | ) | (198,027 | ) | ||||
Depreciation and amortization
|
1,287,262 | 1,620,849 | ||||||
EBITDA
|
(3,245,603 | ) | (1,219,222 | ) | ||||
Noncash compensation
|
532,908 | 721,115 | ||||||
Restructuring and other charges
|
1,713,498 | - | ||||||
Transaction related costs
|
1,469 | 20,000 | ||||||
Adjusted EBITDA
|
$ | (997,728 | ) | $ | (478,107 | ) |
THESTREET, INC.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Three Months Ended March 31,
|
||||||||
2012
|
2011
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net loss
|
$ | (4,436,778 | ) | $ | (2,642,044 | ) | ||
Loss from discontinued operations
|
- | 1,616 | ||||||
Loss from continuing operations
|
(4,436,778 | ) | (2,640,428 | ) | ||||
Adjustments to reconcile loss from continuing operations
|
||||||||
to net cash provided by operating activities:
|
||||||||
Stock-based compensation expense
|
532,908 | 721,115 | ||||||
Restructuring and other charges
|
847,980 | - | ||||||
Provision for doubtful accounts
|
65,769 | 53,142 | ||||||
Depreciation and amortization
|
1,287,262 | 1,620,849 | ||||||
Deferred rent
|
(79,989 | ) | 335,737 | |||||
Noncash barter activity
|
48,183 | - | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
521,152 | (17,429 | ) | |||||
Other receivables
|
84,845 | 96,990 | ||||||
Prepaid expenses and other current assets
|
(544,764 | ) | (75,925 | ) | ||||
Other assets
|
28,186 | (9,173 | ) | |||||
Accounts payable
|
39,265 | (1,346,943 | ) | |||||
Accrued expenses
|
(1,386,689 | ) | (2,925,746 | ) | ||||
Deferred revenue
|
507,501 | 2,947,216 | ||||||
Other current liabilities
|
75,207 | 22,519 | ||||||
Net cash provided by continuing operations
|
(2,409,962 | ) | (1,218,076 | ) | ||||
Net cash used in discontinued operations
|
- | (2,257 | ) | |||||
Net cash provided by operating activities
|
(2,409,962 | ) | (1,220,333 | ) | ||||
Cash Flows from Investing Activities:
|
||||||||
Purchase of marketable securities
|
(35,700,010 | ) | (9,172,053 | ) | ||||
Sale of marketable securities
|
14,485,094 | 13,521,347 | ||||||
Capital expenditures
|
(486,657 | ) | (490,953 | ) | ||||
Net cash provided by (used in) investing activities
|
(21,701,573 | ) | 3,858,341 | |||||
Cash Flows from Financing Activities:
|
||||||||
Cash dividends paid on common stock
|
(802,601 | ) | (862,132 | ) | ||||
Cash dividends paid on preferred stock
|
(96,424 | ) | (96,424 | ) | ||||
Proceeds from the sale of common stock
|
135,000 | - | ||||||
Purchase of treasury stock
|
(733,501 | ) | (233,533 | ) | ||||
Net cash used in financing activities
|
(1,497,526 | ) | (1,192,089 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
(25,609,061 | ) | 1,445,919 | |||||
Cash and cash equivalents, beginning of period
|
44,865,191 | 20,089,660 | ||||||
Cash and cash equivalents, end of period
|
$ | 19,256,130 | $ | 21,535,579 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash payments made for interest
|
$ | - | $ | - | ||||
Cash payments made for income taxes
|
$ | - | $ | - | ||||
Net loss
|
$ | (4,436,778 | ) | $ | (2,642,044 | ) | ||
Noncash expenditures
|
2,702,113 | 2,730,843 | ||||||
Changes in operating assets and liabilities
|
(675,297 | ) | (1,309,132 | ) | ||||
Capital expenditures
|
(486,657 | ) | (490,953 | ) | ||||
Free cash flow
|
$ | (2,896,619 | ) | $ | (1,711,286 | ) |