0-25779
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06-1515824
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(Commission File Number)
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(IRS Employer Identification No.)
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Exhibit
Number
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Description
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99.1
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Press Release dated November 8, 2012 Related to Results of Operations and Financial Condition for the Quarter Ended September 30, 2012
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THESTREET, INC. (Registrant)
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Date: November 8, 2012
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By: /s/ Thomas Etergino
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Thomas Etergino
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Executive Vice President, Chief Financial Officer
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·
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Average monthly unique visitors to the Company’s network of sites, as measured internally, increased approximately 30% as compared to the prior year period(2).
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·
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Average revenue per user increased 7.6% as compared to the prior year period (2).
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·
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Average monthly churn decreased to 2.6% from 2.7% in the prior year period and 3.9% in the second quarter of 2012(2) (3).
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·
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Subscription Services bookings decreased 10% as compared to the prior year period.
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·
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The average number of paid subscriptions was 74,855 for the quarter (2).
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THESTREET, INC.
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
ASSETS
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September 30, 2012
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December 31,2011
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||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$ | 19,669,082 | $ | 44,865,191 | ||||
Marketable securities
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17,127,107 | 20,895,238 | ||||||
Accounts receivable, net of allowance for doubtful
|
||||||||
accounts of $154,175 at September 30, 2012 and $158,870 at
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||||||||
December 31, 2011
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4,831,404 | 6,225,424 | ||||||
Other receivables
|
1,174,407 | 356,219 | ||||||
Prepaid expenses and other current assets
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1,553,959 | 1,421,955 | ||||||
Restricted cash
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660,370 | 660,370 | ||||||
Total current assets
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45,016,329 | 74,424,397 | ||||||
Property and equipment, net of accumulated depreciation
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||||||||
and amortization of $15,894,017 at September 30, 2012
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||||||||
and $13,466,365 at December 31, 2011
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6,610,318 | 8,494,648 | ||||||
Marketable securities
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22,715,811 | 7,894,365 | ||||||
Other assets
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110,780 | 172,055 | ||||||
Goodwill
|
25,726,239 | 24,057,616 | ||||||
Other intangibles, net of accumulated amortization of $6,164,272
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||||||||
at September 30, 2012 and $5,529,730 at December 31, 2011
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11,562,593 | 5,370,135 | ||||||
Restricted cash
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1,301,000 | 1,000,000 | ||||||
Total assets
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$ | 113,043,070 | $ | 121,413,216 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts payable
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$ | 2,223,595 | $ | 2,305,589 | ||||
Accrued expenses
|
6,750,030 | 7,970,802 | ||||||
Deferred revenue
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20,862,328 | 17,625,666 | ||||||
Other current liabilities
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986,431 | 509,214 | ||||||
Total current liabilities
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30,822,384 | 28,411,271 | ||||||
Deferred tax liability
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288,000 | 288,000 | ||||||
Other liabilities
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4,735,702 | 4,569,497 | ||||||
Total liabilities
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35,846,086 | 33,268,768 | ||||||
Stockholders' Equity:
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||||||||
Preferred stock; $0.01 par value; 10,000,000 shares
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||||||||
authorized; 5,500 shares issued and 5,500 shares
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||||||||
outstanding at September 30, 2012 and December 31, 2011;
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||||||||
the aggregate liquidation preference totals $55,000,000 as of
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September 30, 2012 and December 31, 2011
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55 | 55 | ||||||
Common stock; $0.01 par value; 100,000,000 shares
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||||||||
authorized; 39,625,079 shares issued and 32,877,360
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||||||||
shares outstanding at September 30, 2012, and 38,461,595
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||||||||
shares issued and 32,131,188 shares outstanding at
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||||||||
December 31, 2011
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396,251 | 384,616 | ||||||
Additional paid-in capital
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270,374,962 | 270,230,246 | ||||||
Accumulated other comprehensive income
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(129,153 | ) | (394,600 | ) | ||||
Treasury stock at cost; 6,747,719 shares at September 30, 2012
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and 6,330,407 shares at December 31, 2011
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(11,840,818 | ) | (11,010,149 | ) | ||||
Accumulated deficit
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(181,604,313 | ) | (171,065,720 | ) | ||||
Total stockholders' equity
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77,196,984 | 88,144,448 | ||||||
Total liabilities and stockholders' equity
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$ | 113,043,070 | $ | 121,413,216 |
THESTREET, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||
For the Three Months Ended September 30,
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For the Nine Months Ended September 30,
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|||||||
2012
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2011
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2012
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2011
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|||||
Net revenue:
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||||||||
Subscription services
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$ 9,101,050
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$ 9,994,184
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$ 27,140,853
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$ 29,678,616
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Media
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2,496,705
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4,346,907
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9,753,885
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13,812,144
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Total net revenue
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11,597,755
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14,341,091
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36,894,738
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43,490,760
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Operating expense:
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||||||||
Cost of services
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5,699,275
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6,274,741
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17,834,336
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20,036,270
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Sales and marketing
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2,717,794
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4,640,908
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10,076,902
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13,122,182
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General and administrative
|
3,143,160
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3,750,475
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10,242,852
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12,159,579
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Depreciation and amortization
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1,295,197
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1,326,484
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3,740,649
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4,492,525
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Restructuring and other charges
|
3,046,104
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-
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6,039,797
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-
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Loss (gain) on disposition of assets
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14,011
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-
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(205,989)
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-
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Total operating expense
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15,915,541
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15,992,608
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47,728,547
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49,810,556
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Operating loss
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(4,317,786)
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(1,651,517)
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(10,833,809)
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(6,319,796)
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Net interest income
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91,271
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155,123
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295,216
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529,898
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||||
Loss from continuing operations before income taxes
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(4,226,515)
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(1,496,394)
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(10,538,593)
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(5,789,898)
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Provision for income taxes
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-
|
-
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-
|
-
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||||
Loss from continuing operations
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(4,226,515)
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(1,496,394)
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(10,538,593)
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(5,789,898)
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Discontinued operations:
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Loss from discontinued operations
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-
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(46)
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-
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(1,798)
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Net loss
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(4,226,515)
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(1,496,440)
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(10,538,593)
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(5,791,696)
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Preferred stock cash dividends
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-
|
96,424
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192,848
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289,272
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Net loss attributable to common stockholders
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$ (4,226,515)
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$ (1,592,864)
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$ (10,731,441)
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$ (6,080,968)
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Basic and diluted net loss per share:
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||||||||
Loss from continuing operations
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$ (0.13)
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$ (0.05)
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$ (0.32)
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$ (0.18)
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Loss from discontinued operations
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-
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(0.00)
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-
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(0.00)
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Net loss
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(0.13)
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(0.05)
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(0.32)
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(0.18)
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Preferred stock dividends
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-
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(0.00)
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(0.01)
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(0.01)
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Net loss attributable to common stockholders
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$ (0.13)
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$ (0.05)
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$ (0.33)
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$ (0.19)
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Weighted average basic and diluted shares outstanding
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32,848,076
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31,994,227
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32,648,487
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31,933,296
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Net loss
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$ (4,226,515)
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$ (1,496,440)
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$ (10,538,593)
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$ (5,791,696)
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Net interest income
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(91,271)
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(155,123)
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(295,216)
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(529,898)
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Depreciation and amortization
|
1,295,197
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1,326,484
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3,740,649
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4,492,525
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EBITDA
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(3,022,589)
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(325,079)
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(7,093,160)
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(1,829,069)
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Restructuring and other charges
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3,046,104
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-
|
6,039,797
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-
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Stock based compensation
|
565,601
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736,198
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1,632,405
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2,166,161
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Loss (gain) on disposition of assets
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14,011
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-
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(205,989)
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-
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Transaction related costs
|
443,318
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84,173
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518,647
|
419,568
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Adjusted EBITDA
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$ 1,046,445
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$ 495,292
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$ 891,700
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$ 756,660
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THESTREET, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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For the Nine Months Ended September 30,
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2012
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2011
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Cash Flows from Operating Activities:
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Net loss
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$ (10,538,593)
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$ (5,791,696)
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Loss from discontinued operations
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-
|
1,798
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Loss from continuing operations
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(10,538,593)
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(5,789,898)
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Adjustments to reconcile loss from continuing operations
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to net cash (used in) provided by operating activities:
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Stock-based compensation expense
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1,632,405
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2,166,161
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Provision for doubtful accounts
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100,887
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133,089
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Depreciation and amortization
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3,740,649
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4,492,525
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||
Restructuring and other charges
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1,396,695
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-
|
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Deferred rent
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(239,968)
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742,447
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Noncash barter activity
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126,940
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-
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Gain on disposition of assets
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(205,989)
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-
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Changes in operating assets and liabilities:
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Accounts receivable
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2,058,490
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1,538,860
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||
Other receivables
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(502,866)
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(272,110)
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Prepaid expenses and other current assets
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(334,508)
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(160,091)
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Other assets
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40,601
|
5,119
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Accounts payable
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(473,986)
|
(420,271)
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||
Accrued expenses
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(1,531,416)
|
(1,074,228)
|
||
Deferred revenue
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(1,139,243)
|
1,948,915
|
||
Other current liabilities
|
113,626
|
10,609
|
||
Net cash (used in) provided by continuing operations
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(5,756,276)
|
3,321,127
|
||
Net cash used in discontinued operations
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-
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(3,669)
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Net cash (used in) provided by operating activities
|
(5,756,276)
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3,317,458
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Cash Flows from Investing Activities:
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Purchase of marketable securities
|
(41,151,130)
|
(24,854,469)
|
||
Sale and maturity of marketable securities
|
30,363,261
|
39,603,926
|
||
Capital expenditures
|
(915,263)
|
(1,475,768)
|
||
Proceeds from the disposition of assets
|
222,300
|
-
|
||
Purchase of The Deal, LLC
|
(5,430,063)
|
-
|
||
Sale of Promotions.com
|
-
|
265,000
|
||
Net cash (used in) provided by investing activities
|
(16,910,895)
|
13,538,689
|
||
Cash Flows from Financing Activities:
|
||||
Cash dividends paid on common stock
|
(1,640,421)
|
(2,595,645)
|
||
Cash dividends paid on preferred stock
|
(192,848)
|
(289,272)
|
||
Proceeds from the sale of common stock
|
135,000
|
-
|
||
Purchase of treasury stock
|
(830,669)
|
(351,316)
|
||
Net cash used in financing activities
|
(2,528,938)
|
(3,236,233)
|
||
Net (decrease) increase in cash and cash equivalents
|
(25,196,109)
|
13,619,914
|
||
Cash and cash equivalents, beginning of period
|
44,865,191
|
20,089,660
|
||
Cash and cash equivalents, end of period
|
$ 19,669,082
|
$ 33,709,574
|
||
Supplemental disclosures of cash flow information:
|
||||
Cash payments made for interest
|
$ -
|
$ -
|
||
Cash payments made for income taxes
|
$ -
|
$ -
|
||
Net loss
|
$ (10,538,593)
|
$ (5,791,696)
|
||
Noncash expenditures
|
6,551,619
|
7,534,222
|
||
Changes in operating assets and liabilities
|
(1,769,302)
|
1,574,932
|
||
Capital expenditures
|
(915,263)
|
(1,475,768)
|
||
Free cash flow
|
$ (6,671,539)
|
$ 1,841,690
|