Welcome!

Microsoft Cloud Authors: Pat Romanski, Jnan Dash, Andreas Grabner, Lori MacVittie, Jim Kaskade

News Feed Item

SearchCore Announces Third Quarter 2012 Financial Results

Revenues Increase 21% Year-over-Year; EBITDA of $1.3 million

NEWPORT BEACH, Calif., Nov. 19, 2012 /PRNewswire/ -- SearchCore, Inc. (OTCQX: SRER), a technology-based Internet marketing services company that connects consumers with brands, products and services, today announced its consolidated financial results for the third quarter ended September 30, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20120106/LA31342LOGO)

Third Quarter 2012 Highlights

  • Revenues increased 21% year-over-year for the third quarter.
  • EBITDA was $1.3 million as compared to $1.0 million in the third quarter of 2011.
  • EBITDA margin was 30% as compared to 27% for the third quarter of 2011.
  • Operating income increased 38% year-over-year to $1.2 million for the third quarter.

Management Commentary
"We are pleased with our growth in revenues, EBITDA and operating income for the third quarter and believe these results reflect the value of our technology and the benefits of our online marketing services," said Jim Pakulis, CEO of SearchCore, Inc.  "We are continuing to make significant progress in identifying new internet-supported verticals in large, attractive and fragmented market niches where we can apply our proven business model to establish a leading network of successful web properties and finder sites. We look forward to sharing more details on the progress of our diversification efforts in the coming months."

Third Quarter 2012 Financial Results
SearchCore's revenues for the third quarter ended September 30, 2012 totaled $4.3 million, a year-over-year increase of 21% as compared with $3.6 million for the third quarter ended September 30, 2011.The increase in revenues was primarily due to increases in fees charged for the "listing packages" offered to customers, the number of customers and the variety of packages offered.

Total operating expenses were $3.1 million for the third quarter of 2012, or 72% of revenue, as compared with $2.7 million, or 76% of revenue for the third quarter of 2011. The increase in operating expenses was due to higher investments in research and development as well as increased salaries, benefits and professional fees in support of business expansion efforts.

EBITDA for the third quarter ended September 30, 2012 increased to $1.3 million, as compared to EBITDA of $1.0 million for the third quarter of 2011. EBITDA as a percentage of total revenue was 30% for the third quarter ended September 30, 2012, as compared to 27% for the third quarter of 2011. Operating income for the third quarter ended September 30, 2012 increased to $1.2 million, as compared to $0.9 million for the third quarter of 2011.  

Income from continuing operations increased to $1.0 million for the third quarter ended September 30, 2012, as compared to $0.6 million for the third quarter of 2011. Income from continuing operations for the third quarter of 2012 included a non-cash gain of $0.2 million on the change in fair value of earn-out liabilities.

Including the non-cash gain, net income increased to $1.0 million, or $0.02 per share, for the third quarter ended September 30, 2012, as compared to net income of $0.4 million, or $0.01 per share for the third quarter of 2011. Weighted average shares outstanding for the third quarter of 2012 and 2011 were 53.6 million and 83.1 million, respectively.

Balance Sheet Overview
At September 30, 2012, SearchCore had cash and cash equivalents of $0.8 million, total debt of $8.6 million and non-cash earn-out liability of $36,000, as compared with cash and cash equivalents of $1.5 million, total debt of $7.1 million and non-cash earn-out liability of $18.6 million at December 31, 2011.  As of September 30, 2012, the Company had 37,567,967 shares of common stock issued and outstanding.  

About SearchCore, Inc.
SearchCore, Inc. is a technology-based Internet marketing services company that offers customers an integrated suite of services including media, technology, marketing and information.  Founded in 2010, SearchCore is headquartered in Newport Beach, California.  The Company's common stock trades on the OTC Market's highest tier, OTCQX, under the ticker symbol "SRER."  www.SearchCore.com

Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995).  SearchCore, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management.  Actual results could differ materially from current projections or implied results.  SearchCore, Inc. undertakes no obligation to revise these statements following the date of this news release.

 

SEARCHCORE, INC.

Condensed Consolidated Statements of Operations (Unaudited)








Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2012

2011


2012

2011



























REVENUE













Sales


$

4,334,682


$

3,586,729


$

12,172,350


$

8,586,519














Total revenue



4,334,682



3,586,729



12,172,350



8,586,519














OPERATING EXPENSES













Cost of sales



290,049



40,239



722,462



176,020

Selling, general and administrative expenses



2,839,430



2,671,008



8,589,514



5,848,491














Total operating expenses



3,129,479



2,711,247



9,311,976



6,024,511














Operating Income (loss)



1,205,203



875,482



2,860,374



2,562,008














Other Income (Expense)













Gain on change in fair value of earn-out liabilities



200,859





5,954,030



Interest income



587



35



587



214

Interest expense



(11,017)





(36,786)
















Total other income



190,429



35



5,917,831



214



























INCOME (LOSS) FROM CONTINUING

OPERATIONS BEFORE INCOME TAXES



1,395,632



875,517



8,778,205



2,562,222














Provision for Income Taxes



353,000



324,000



721,000



853,000

INCOME (LOSS) FROM CONTINUING OPERATIONS



1,042,632



551,517



8,057,205



1,709,222














(Loss) income from discontinued operations, net of $73,000 and zero tax benefit for the nine months ended September 30, 2012 and 2011, respectively, and net of $3,000 and zero tax benefit for the three months ended September 30, 2012 and 2011, respectively.



(3,505)



(117,282)



(108,255)



(425,491)














NET INCOME (LOSS)


$

1,039,127


$

434,235


$

7,948,950


$

1,283,731














Income (loss) per share, Basic and Diluted













Income (loss) from continuing operations


$

0.02


$

0.01


$

0.11


$

0.02

Income (loss) from discontinued operations



0.00



(0.00)



(0.00)



(0.01)

Total income (loss) per share


$

0.02


$

0.01


$

0.11


$

0.02














WEIGHTED AVERAGE COMMON SHARES OUTSTANDING



53,572,158



83,140,256



72,236,822



83,116,446














 

SEARCHCORE, INC.

Condensed Consolidated Balance Sheets






September 30,


December 31,


2012


2011


(Unaudited)


(Audited)

ASSETS






CURRENT ASSETS






Cash and cash equivalents

$

812,232


$

1,512,590

Accounts receivable


127,671



206,091

Inventory




9,830

Other current assets


966,667



379,860

Current assets - discontinued operations


151,007



51,795

TOTAL CURRENT ASSETS

$

2,057,577


$

2,160,166







Property and equipment, net


414,679



430,041

Intangible assets:






Domain names


1,008,572



114,119

Domain name - Marijuana.com, net


4,243,754



4,250,000

Trademarks


87,832



Web software, net


715,615



501,343

Goodwill


486,403



486,403

Other assets


82,332



82,332

Other assets - discontinued operations




51,976

TOTAL ASSETS

$

9,096,764


$

8,076,380







LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)












CURRENT LIABILITIES












Accounts payable

$

87,219


$

50,632

Accrued liabilities


4,186,961



759,312

Notes payable


733,901



708,901

Notes payable - related party


2,659,091



1,130,000

Current liabilities - discontinued operations


125,000



243,017







TOTAL CURRENT LIABILITIES

$

7,792,172


$

2,891,862







LONG TERM LIABILITIES












Other accrued liabilities


2,067,001



155,025

Notes payable


3,334,756



3,416,099

Notes payable - related party


1,945,834



1,800,000

Earn-out provisions


36,426



18,567,223







TOTAL LONG TERM LIABILITIES


7,384,017



23,938,347







TOTAL LIABILITIES

$

15,176,189


$

26,830,209







STOCKHOLDERS' EQUITY (DEFICIT)












Preferred stock, $0.001 par value: 20,000,000 shares authorized;






zero shares issued and outstanding at September 30, 2012;






zero shares issued and outstanding at December 31, 2011;




Common stock, $0.001 par value: 200,000,000 shares authorized;






89,340,256 shares issued and outstanding at September 30, 2012,






83,140,256 shares issued and outstanding at December 31, 2011;


89,340



83,140

Treasury stock;






51,772,289 shares issued and outstanding at September 30, 2012,






zero shares issued and outstanding at December 31, 2011;


(51,772)



-

Paid-in capital


(11,194,018)



(15,965,044)

Retained earnings (accumulated deficit)


5,077,025



(2,871,925)







TOTAL STOCKHOLDERS' EQUITY (DEFICIT)


(6,079,425)



(18,753,829)







TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

9,096,764


$

8,076,380

 

SEARCHCORE, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)




Nine Months Ended


September 30,


September 30,


2012


2011

Cash flows from operating activities:






Net income

$

7,948,950


$

1,283,731

Adjustments to reconcile net income to net cash used in operating activities:






Depreciation


87,834



50,703

Amortization


138,306



110,755

Stock-based compensation


125,000



Gain on change in fair value of earn-out liabilities


(5,954,030)




Changes in operating assets and liabilities:






Accounts receivable


78,420



(197,140)

Inventories


9,830



Prepaid expenses and deposits


(811,019)



569,176

Other assets


51,976



Accounts payable and accrued liabilities


414,882



96,781













          Net cash provided by operating activities


2,090,149



1,914,006







Cash flows from investing activities:






  Purchases of property and equipment


(72,472)



(471,949)

  Purchases of intangible assets


(616,617)



(148,518)







          Net cash used in investing activities


(689,089)



(620,467)







Cash flows from financing activities:






  Payments on note payable


(506,343)



  Payments on note payable - related party


(1,595,075)



(1,295,000)







          Net cash used in financing activities


(2,101,418)



(1,295,000)







Net (decrease) increase in cash and cash equivalents


(700,358)



(1,461)







Cash and cash equivalents at beginning of period


1,512,590



1,388,574







Cash and cash equivalents at end of period

$

812,232


$

1,387,113







Non-cash investing and financing activity:












Shares issued pursuant to Revyv acquisition

$


$

1,000,000

Shares issued pursuant to MMJMenu acquisition

$

262,000


$

Shares issued pursuant to WeedMaps Earn-outs

$

9,120,000


$

SOURCE SearchCore, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...