WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 2012

WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the fourth quarter and full year ended December 31, 2012.

Highlights for the fourth quarter of 2012 include:

• Revenues for the fourth quarter of 2012 were $3.3 million and revenues from trade shows and research increased 24% and 6%, respectively, compared to the same period in 2011.
• Net loss for the fourth quarter of 2012 was $6.5 million and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $9.1 million for the same period in 2011.

Highlights for the year ended December 31, 2012 include:

• Revenues for the year ended December 31, 2012 were $14.0 million compared to revenues of $12.4 million for the year ended December 31, 2011, an increase of 12%. Revenues from research, trade shows and advertising increased 80%, 35% and 18%, respectively, compared to 2011. Inside Network’s market research and data services business, which includes AppData, contributed $1.7 million in revenues during 2012. We acquired Inside Network in May 2011.
• Net loss was $8.7 million for the year ended December 31, 2012, and included a non-cash impairment charge of $5.5 million related to the write-down of goodwill, compared to a net loss of $11.9 million for the year ended December 31, 2011. Non-GAAP loss, excluding interest, taxes, impairment, depreciation, amortization and stock-based compensation, or EBITDA, was $1.5 million for the year ended December 31, 2012 and included severance-related costs and a loss on the sale of certain assets totaling $402,000. EBITDA loss was $1.6 million for the same period in 2011. Stock-based compensation expense was $528,000 during the year ended December 31, 2012 compared to $991,000 during the same period in 2011.

“Our financial results for the year ended December 31, 2012, included revenue growth of 12%, with our research and trade show businesses leading the way with growth of 80% and 35%, respectively,” stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. “We have continued to invest in our product offerings, specifically with our research and trade show businesses,” added Meckler. “We remain optimistic and encouraged about the future success and value of our business.”

WebMediaBrands Inc. Fourth Quarter 2012 Financial Results Conference Call Alert

WebMediaBrands Inc. invites you to participate in its conference call reviewing 2012 fourth quarter results on Wednesday, February 27, 2013 at 5:00 pm EST.

The conference call number is 888-437-9445 for domestic participants and 719-325-2329 for international participants; confirmation code “4162863.” Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, March 5, 2013. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code “4162863.”

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Year Ended December 31, 2012 and 2011

(in thousands, except per share amounts)

Three Months Ended

December 31,

Year Ended

December 31,

2012

2011

2012

2011

        
        
        
      
      
        
          Revenues
        
        
        
        
          $
        
        
          3,320
        
        
        
        
        
        
          $
        
        
          3,375
        
        
        
        
        
        
          $
        
        
          13,962
        
        
        
        
        
        
          $
        
        
          12,429
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of revenues
        
        
        
        
        
        
          2,101
        
        
        
        
        
        
        
        
          1,897
        
        
        
        
        
        
        
        
          7,931
        
        
        
        
        
        
        
        
          7,154
        
        
        
      
      
        
          Advertising, promotion and selling
        
        
        
        
        
        
          772
        
        
        
        
        
        
        
        
          551
        
        
        
        
        
        
        
        
          2,692
        
        
        
        
        
        
        
        
          2,088
        
        
        
      
      
        
          General and administrative
        
        
        
        
        
        
          1,142
        
        
        
        
        
        
        
        
          1,395
        
        
        
        
        
        
        
        
          5,080
        
        
        
        
        
        
        
        
          5,475
        
        
        
      
      
        
          Depreciation
        
        
        
        
        
        
          71
        
        
        
        
        
        
        
        
          77
        
        
        
        
        
        
        
        
          309
        
        
        
        
        
        
        
        
          319
        
        
        
      
      
        
          Amortization
        
        
        
        
        
        
          131
        
        
        
        
        
        
        
        
          142
        
        
        
        
        
        
        
        
          540
        
        
        
        
        
        
        
        
          513
        
        
        
      
      
        
          Impairment
        
        
        
        
        
        
          5,542
        
        
        
        
        
        
        
        
          8,289
        
        
        
        
        
        
        
        
          5,542
        
        
        
        
        
        
        
        
          8,289
        
        
        
      
      
        
          Contingent acquisition consideration
        
        
        
        
           
        
        
          —
        
        
        
        
        
        
           
        
        
          —
        
        
        
        
        
        
           
        
        
          —
        
        
        
        
        
        
           
        
        
          329
        
        
        
      
      
        
          Total operating expenses
        
        
        
        
           
        
        
          9,759
        
        
        
        
        
        
           
        
        
          12,351
        
        
        
        
        
        
           
        
        
          22,094
        
        
        
        
        
        
           
        
        
          24,167
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Operating loss
        
        
        
        
        
        
          (6,439
        
        
          )
        
        
        
        
        
        
          (8,976
        
        
          )
        
        
        
        
        
        
          (8,132
        
        
          )
        
        
        
        
        
        
          (11,738
        
        
          )
        
      
      
        
          Other loss, net
        
        
        
        
        
        
          (24
        
        
          )
        
        
        
        
        
        
          (2
        
        
          )
        
        
        
        
        
        
          (240
        
        
          )
        
        
        
        
        
        
          (9
        
        
          )
        
      
      
        
          Interest income
        
        
        
        
        
        
          1
        
        
        
        
        
        
        
        
          45
        
        
        
        
        
        
        
        
          4
        
        
        
        
        
        
        
        
          86
        
        
        
      
      
        
          Interest expense
        
        
        
        
           
        
        
          (62
        
        
          )
        
        
        
        
           
        
        
          (122
        
        
          )
        
        
        
        
           
        
        
          (271
        
        
          )
        
        
        
        
           
        
        
          (657
        
        
          )
        
      
      
        
          Loss before income taxes
        
        
        
        
        
        
          (6,524
        
        
          )
        
        
        
        
        
        
          (9,055
        
        
          )
        
        
        
        
        
        
          (8,639
        
        
          )
        
        
        
        
        
        
          (12,318
        
        
          )
        
      
      
        
          Provision (benefit) for income taxes
        
        
        
        
           
        
        
          4
        
        
        
        
        
        
           
        
        
          14
        
        
        
        
        
        
           
        
        
          34
        
        
        
        
        
        
           
        
        
          (403
        
        
          )
        
      
      
        
          Net loss
        
        
        
        
          $
        
        
          (6,528
        
        
          )
        
        
        
        
          $
        
        
          (9,069
        
        
          )
        
        
        
        
          $
        
        
          (8,673
        
        
          )
        
        
        
        
          $
        
        
          (11,915
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic net loss
        
        
        
        
          $
        
        
          (1.09
        
        
          )
        
        
        
        
          $
        
        
          (1.52
        
        
          )
        
        
        
        
          $
        
        
          (1.45
        
        
          )
        
        
        
        
          $
        
        
          (2.05
        
        
          )
        
      
      
        
          Diluted net loss
        
        
        
        
          $
        
        
          (1.09
        
        
          )
        
        
        
        
          $
        
        
          (1.52
        
        
          )
        
        
        
        
          $
        
        
          (1.45
        
        
          )
        
        
        
        
          $
        
        
          (2.05
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average shares used in computing loss per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
           
        
        
          6,014
        
        
        
        
        
        
           
        
        
          5,976
        
        
        
        
        
        
           
        
        
          5,991
        
        
        
        
        
        
           
        
        
          5,818
        
        
        
      
      
        
          Diluted
        
        
        
        
           
        
        
          6,014
        
        
        
        
        
        
           
        
        
          5,976
        
        
        
        
        
        
           
        
        
          5,991
        
        
        
        
        
        
           
        
        
          5,818
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stocksplit implemented on August 16, 2012.

WebMediaBrands Inc.

Unaudited Consolidated Condensed Balance Sheets

December 31, 2012 and 2011

(in thousands, except share and per share amounts)

December 31,

2012

December 31,

2011

ASSETS

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $
        
        
          2,210
        
        
        
        
        
        
          $
        
        
          3,438
        
        
        
      
      
        
          Accounts receivable, net of allowances of $16 and $11, respectively
        
        
        
        
        
        
          524
        
        
        
        
        
        
        
        
          489
        
        
        
      
      
        
          Prepaid expenses and other current assets
        
        
        
        
           
        
        
          503
        
        
        
        
        
        
           
        
        
          575
        
        
        
      
      
        
          Total current assets
        
        
        
        
        
        
          3,237
        
        
        
        
        
        
        
        
          4,502
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Property and equipment, net of accumulated depreciation of $1,475 
          and $1,350, respectively
        
        
        
        
        
        
          268
        
        
        
        
        
        
        
        
          477
        
        
        
      
      
        
          Intangible assets, net of accumulated amortization of $1,144 and 
          $722, respectively
        
        
        
        
        
        
          2,305
        
        
        
        
        
        
        
        
          2,626
        
        
        
      
      
        
          Goodwill
        
        
        
        
        
        
          9,574
        
        
        
        
        
        
        
        
          15,116
        
        
        
      
      
        
          Investments and other assets
        
        
        
        
           
        
        
          687
        
        
        
        
        
        
           
        
        
          1,146
        
        
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          16,071
        
        
        
        
        
        
          $
        
        
          23,867
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          

LIABILITIES AND STOCKHOLDERS’ EQUITY

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          $
        
        
          509
        
        
        
        
        
        
          $
        
        
          367
        
        
        
      
      
        
          Accrued payroll and related expenses
        
        
        
        
        
        
          493
        
        
        
        
        
        
        
        
          391
        
        
        
      
      
        
          Accrued expenses and other current liabilities
        
        
        
        
        
        
          649
        
        
        
        
        
        
        
        
          662
        
        
        
      
      
        
          Deferred revenues
        
        
        
        
           
        
        
          1,294
        
        
        
        
        
        
           
        
        
          1,288
        
        
        
      
      
        
          Total current liabilities
        
        
        
        
        
        
          2,945
        
        
        
        
        
        
        
        
          2,708
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loan from related party
        
        
        
        
        
        
          7,647
        
        
        
        
        
        
        
        
          7,647
        
        
        
      
      
        
          Deferred revenues
        
        
        
        
        
        
          17
        
        
        
        
        
        
        
        
          22
        
        
        
      
      
        
          Deferred income taxes
        
        
        
        
        
        
          474
        
        
        
        
        
        
        
        
          444
        
        
        
      
      
        
          Other long-term liabilities
        
        
        
        
           
        
        
          —
        
        
        
        
        
        
           
        
        
          60
        
        
        
      
      
        
          Total liabilities
        
        
        
        
           
        
        
          11,083
        
        
        
        
        
        
           
        
        
          10,881
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Commitments and contingencies:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders’ equity:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Preferred stock, $.01 par value, 4,000,000 shares authorized, no 
          shares issued
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          —
        
        
        
      
      
        
          Common stock, $.01 par value, 75,000,000 shares authorized, 
          6,138,879 and 6,077,911 shares issued and 6,019,594 and 5,958,626 
          shares outstanding at December 31, 2012 and 2011, respectively
        
        
        
        
        
        
          61
        
        
        
        
        
        
        
        
          61
        
        
        
      
      
        
          Additional paid-in capital
        
        
        
        
        
        
          289,711
        
        
        
        
        
        
        
        
          289,036
        
        
        
      
      
        
          Accumulated deficit
        
        
        
        
        
        
          (284,288
        
        
          )
        
        
        
        
        
        
          (275,615
        
        
          )
        
      
      
        
          Treasury stock, 119,285 shares, at cost
        
        
        
        
           
        
        
          (496
        
        
          )
        
        
        
        
           
        
        
          (496
        
        
          )
        
      
      
        
          Total stockholders’ equity
        
        
        
        
           
        
        
          4,988
        
        
        
        
        
        
           
        
        
          12,986
        
        
        
      
      
        
          Total liabilities and stockholders’ equity
        
        
        
        
          $
        
        
          16,071
        
        
        
        
        
        
          $
        
        
          23,867
        
        
        
      
      
        
           
        
      
      
        
          

Shares outstanding and per share data have been adjusted to give effect to the one-for-seven reverse stocksplit implemented on August 16, 2012.

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011 (in thousands)

Year Ended December 31,

2012

2011

        
        
        
      
      
        
          Cash flows from operating activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net loss
        
        
        
        
          $
        
        
          (8,673
        
        
          )
        
        
        
        
          $
        
        
          (11,915
        
        
          )
        
      
      
        
          Adjustments to reconcile net loss to net cash used in operating 
          activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Impairment
        
        
        
        
        
        
          5,542
        
        
        
        
        
        
        
        
          8,289
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
        
        
          849
        
        
        
        
        
        
        
        
          832
        
        
        
      
      
        
          Stock-based compensation
        
        
        
        
        
        
          528
        
        
        
        
        
        
        
        
          991
        
        
        
      
      
        
          Provision for losses on accounts receivable
        
        
        
        
        
        
          27
        
        
        
        
        
        
        
        
          15
        
        
        
      
      
        
          Other, net
        
        
        
        
        
        
          236
        
        
        
        
        
        
        
        
          (2
        
        
          )
        
      
      
        
          Amortization of debt issuance costs
        
        
        
        
        
        
          36
        
        
        
        
        
        
        
        
          28
        
        
        
      
      
        
          Deferred income taxes
        
        
        
        
        
        
          30
        
        
        
        
        
        
        
        
          (410
        
        
          )
        
      
      
        
          Changes in current assets and liabilities (net of businesses 
          acquired):
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts receivable, net
        
        
        
        
        
        
          (62
        
        
          )
        
        
        
        
        
        
          135
        
        
        
      
      
        
          Prepaid expenses and other assets
        
        
        
        
        
        
          176
        
        
        
        
        
        
        
        
          660
        
        
        
      
      
        
          Accounts payable, accrued expenses and other liabilities
        
        
        
        
        
        
          167
        
        
        
        
        
        
        
        
          (702
        
        
          )
        
      
      
        
          Deferred revenues
        
        
        
        
           
        
        
          1
        
        
        
        
        
        
           
        
        
          236
        
        
        
      
      
        
          Net cash used in operating activities
        
        
        
        
           
        
        
          (1,143
        
        
          )
        
        
        
        
           
        
        
          (1,843
        
        
          )
        
      
      
        
          Cash flows from investing activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Purchases of property and equipment
        
        
        
        
        
        
          (117
        
        
          )
        
        
        
        
        
        
          (57
        
        
          )
        
      
      
        
          Acquisitions of businesses, assets and other
        
        
        
        
        
        
          (220
        
        
          )
        
        
        
        
        
        
          (9,062
        
        
          )
        
      
      
        
          Proceeds from sale of assets
        
        
        
        
           
        
        
          132
        
        
        
        
        
        
           
        
        
          —
        
        
        
      
      
        
          Net cash used in investing activities
        
        
        
        
           
        
        
          (205
        
        
          )
        
        
        
        
           
        
        
          (9,119
        
        
          )
        
      
      
        
          Cash flows from financing activities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Borrowings from related party
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          1,750
        
        
        
      
      
        
          Purchase of treasury stock
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          (390
        
        
          )
        
      
      
        
          Debt issuance costs
        
        
        
        
        
        
          (23
        
        
          )
        
        
        
        
        
        
          (26
        
        
          )
        
      
      
        
          Repayment of borrowings from related party
        
        
        
        
        
        
          —
        
        
        
        
        
        
        
        
          (50
        
        
          )
        
      
      
        
          Proceeds from exercise of stock options
        
        
        
        
           
        
        
          143
        
        
        
        
        
        
           
        
        
          146
        
        
        
      
      
        
          Net cash provided by financing activities
        
        
        
        
           
        
        
          120
        
        
        
        
        
        
           
        
        
          1,430
        
        
        
      
      
        
          Effect of exchange rates on cash
        
        
        
        
           
        
        
          —
        
        
        
        
        
        
           
        
        
          —
        
        
        
      
      
        
          Net decrease in cash and cash equivalents
        
        
        
        
        
        
          (1,228
        
        
          )
        
        
        
        
        
        
          (9,532
        
        
          )
        
      
      
        
          Cash and cash equivalents, beginning of year
        
        
        
        
           
        
        
          3,438
        
        
        
        
        
        
           
        
        
          12,970
        
        
        
      
      
        
          Cash and cash equivalents, end of year
        
        
        
        
          $
        
        
          2,210
        
        
        
        
        
        
          $
        
        
          3,438
        
        
        
      
      
        
          Supplemental disclosures of cash flow:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash refund of income taxes, net
        
        
        
        
          $
        
        
          70
        
        
        
        
        
        
          $
        
        
          393
        
        
        
      
      
        
          Cash paid for interest
        
        
        
        
          $
        
        
          235
        
        
        
        
        
        
          $
        
        
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About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com) is a leading Internet media company that provides content, education, and career services to social media, traditional media, and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The Company's online business includes: (i) mediabistro.com, a leading blog network providing content, education, community, and career resources (including the industry's leading online job board) about major media industry verticals including new media, social media, Facebook, TV news, advertising, public relations, publishing, design, and mobile; (ii) InsideNetwork.com, a leading network of online properties providing original market research, data services, news, and job listings on the Facebook platform, on social gaming, and on mobile applications ecosystems; and (iii) SemanticWeb.com, a leading blog providing content, education, community resources and career resources on the commercialization and application of Semantic Technologies, Linked Data, and Big Data. The Company's online business also includes community, membership and e-commerce offerings including a freelance listing service, a marketplace for designing and purchasing logos (stocklogos.com) and premium membership services. The Company's trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by the Company's online business.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example: general economic conditions; the competitive environment in which WebMediaBrands competes; and the unpredictability of WebMediaBrands’s future revenues, expenses, cash flows and stock prices. For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands’s reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.

All current WebMediaBrands press releases can be found online at http://www.webmediabrands.com/corporate/press.html.