Welcome!

Microsoft Cloud Authors: Pat Romanski, Srinivasan Sundara Rajan, Glenn Rossman, Janakiram MSV, Steven Mandel

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
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.