NEW YORK, March 5, 2018 /PRNewswire/ --
- Net income attributable to common stockholders for the fourth
quarter and full year 2017 totaled $25.6
million and $25.0 million,
respectively, as compared to a net loss of $11.6 million and $17.5
million, respectively, for the same periods last year.
- Diluted net income attributable to common shareholders totaled
$0.58 per share and $0.66 per share for the fourth quarter and full
year 2017, respectively, as compared to a net loss of $0.33 per share and $0.50 per share, for the same periods last
year.
- Adjusted EBITDA of $2.8 million
and $8.0 million for the fourth
quarter and full year 2017, respectively, increased $1.6 million and $5.2
million, respectively, as compared to the same periods last
year.
- Revenue increased $0.1 million to
$16.0 million in the fourth quarter
2017 compared to the fourth quarter 2016. Revenue decreased
$1.0 million for the 2017 full year
to $62.5 million as compared to the
same periods in 2016, an improvement from the decrease in revenue
of $4.2 million in 2016 compared to
2015.
- Operating expense improved $1.4
million and $5.2 million year
over year for the fourth quarter and full year ended 2017,
respectively, as compared to the same period last year (excluding
the goodwill impairment recorded in 2016 and restructuring and
other charges recorded in the periods).
- Cash, cash equivalents, restricted cash and marketable
securities of $13.9 million decreased
$9.6 million as compared to
December 31, 2016 resulting primarily
from the extinguishment of the Series B Preferred Stock in
November 2017.
TheStreet, Inc. (Nasdaq: TST) a leading financial news and
information company, today reported financial results for the
fourth quarter and full year ended December
31, 2017.
For the fourth quarter of 2017, the company reported total
revenue of $16.0 million, an increase
of $0.1 million from the year prior.
Net income for the quarter was $3.2
million, which represents the third consecutive quarter in
2017 where the company reported net income. Adjusted EBITDA (1) for
the fourth quarter of 2017 was $2.8
million.
For the full year 2017, the company reported revenue of
$62.5 million, a decrease of
$1.0 million, or 1.6%, from
$63.5 million in the prior year. Net
income for the year was $2.6 million,
which represents the first reported full year net income for the
company since 2008. Adjusted EBITDA for full year 2017 was
$8.0 million.
"I'm pleased to announce that the turnaround we started in 2016
and throughout the past year led to net income both including and
excluding the unusual benefits and one-time charges for both the
fourth quarter and the full year," said David Callaway, President and CEO. "This is the
first full year of net income since before the financial crisis.
Combined with the retirement of our preferred stock in November and
the support of new and existing shareholders, we now have the
flexibility to extend the turnaround momentum into 2018."
On November 10, 2017 the company
announced that it had exchanged all shares of its Series B
Preferred Stock for 6,000,000 shares of the company's Common Stock
and $20,000,000 cash. As a result of
the retirement of the Series B Preferred Stock in the fourth
quarter, the Company recorded a $22.4
million capital contribution attributable to preferred
stockholders resulting in fully diluted net income to common
shareholders of $0.58 per share and
$0.66 for the fourth quarter and full
year 2017, respectively, as compared to a loss of $0.33 per share and $0.50 per share during the same periods last
year. Excluding the capital contribution attributable to preferred
stockholders, goodwill impairment in 2016 and other restructuring
charges recorded in both years, the Company recorded fully diluted
net income attributable to common stockholders of $0.08 per share for the fourth quarter 2017 and
$0.08 per share for the full year
2017 as compared to a net income of $0.01 attributable to common stockholders and a
net loss of $0.09 attributable to
common stockholders for the fourth quarter and full year of 2016,
respectively.
Fourth quarter and full year 2017 net income reflects declines
in cost of services and sales and marketing and depreciation and
amortization expense and lower full year general and administrative
expenses. This is partially offset by restructuring expense
totaling $0.3 million and
$0.5 million, for the fourth quarter
and full year 2017, respectively. Drivers of the fourth
quarter and full year 2016 net loss are a non-cash goodwill
impairment in the amount of $11.6
million, an additional non-cash depreciation charge of
$1.5 million, restructuring charges
related to severance as well as lower premium subscription revenue,
all partially offset by a $1.8
million non-cash contingent consideration reduction from the
purchase of Management Diagnostics Limited ("MDL").
Fourth Quarter Results
Business-to-business ("B2B") revenue, which includes BoardEx,
The Deal and RateWatch, totaled $8.3
million for the fourth quarter, up $0.9 million or 12% as compared to the fourth
quarter of 2016. Business-to-consumer ("B2C") revenue was
$7.6 million for the fourth quarter
2017, down $0.8 million, or 10%,
compared to the fourth quarter of 2016. B2B revenue continues to
grow, comprising 52% of total revenue for the fourth quarter of
2017.
Operating expenses for the fourth quarter of 2017 were
$15.1 million as compared to
$28.2 million for the fourth quarter
of 2016. Operating expense for the fourth quarter of 2017 includes
$0.3 million of severance charges.
The fourth quarter of 2016 includes an $11.6
million non-cash goodwill impairment, a cumulative
adjustment of a non-cash depreciation charge of $1.5 million and a non-cash reduction of a
contingent consideration of $1.8
million from the purchase of MDL in 2014 (collectively
"Charges"), severance of $1.4
million, partially offset by the reversal of $0.7 million recorded in Q1 2016 as a one-time
sales tax provision. In 2016, the Company also recorded a goodwill
impairment charge related to a series of acquisitions made in 2012
and 2014 that have since produced results that were lower than
expected at the time of the acquisitions. In addition, the company
took measures to reduce costs and incurred a $1.4 million severance related charge. Excluding
the 2017 severance and 2016 Charges, severance and reversal of the
one-time sales tax provision, operating expenses for the fourth
quarter 2017 decreased $1.4 million
as compared to the fourth quarter of 2016.
Net income of $3.2 million for the
fourth quarter of 2017 was an increase of $14.9 million from the prior year period.
Excluding the Charges and one-time costs recorded during the
periods, net income was $3.5 million
for the fourth quarter 2017, an increase of $3.1 million over the same quarter last
year. Adjusted EBITDA for the fourth quarter of 2017 was
$2.8 million compared to $1.2 million from the prior year period. The
increase in Adjusted EBITDA primarily resulted from strong B2B
revenue growth, partially offset by the decline in B2C subscription
revenue and lower operating expenses from cost controls instituted
over the last year.
The Company reversed its UK operations tax valuation allowance
of $1.9 million during the fourth
quarter of 2017 due to positive earnings as well as a favorable
profit outlook of its UK business and recorded a tax credit related
to the recently enacted federal tax reform of $0.7 million.
Business-to-Business Revenue
B2B revenue for the fourth quarter of 2017 was $8.3 million, an increase of $0.9 million, or 12%, compared to the fourth
quarter of 2016. Year over year revenue growth resulted
primarily from increased subscription and information service
revenue in the BoardEx and RateWatch businesses. In addition, The
Deal also had higher year over year revenue in advertising and
events for the fourth quarter 2017. Revenue growth also resulted
from FX gains of $0.1 million during
the quarter. This was partially offset by lower subscription income
of $0.1 million in The Deal.
Business-to-Consumer Revenue
B2C revenue for the fourth quarter of 2017 was $7.6 million, a decrease of $0.8 million, or 10%, from $8.5 million in the fourth quarter of 2016.
B2C subscription revenue for the fourth quarter of 2017 was
$4.9 million, a decrease of
$0.5 million, or 9%, from
$5.3 million in the fourth quarter of
2016. This decrease primarily related to a 12% decline in the
weighted-average number of subscriptions offset by a 3% increase in
the average revenue recognized per subscription. Average
monthly churn (2) improved to 4.04% for the fourth of
2017 from 4.21% for the fourth quarter of 2016. B2C advertising
revenue also declined $0.5 million,
or 17% primarily from the lower advertising generated by repeat
advertisers. This was partially offset by higher event revenue
which resulted from a highly successful "Teach-In" event hosted by
Jim Cramer during the quarter.
Full Year Results
B2B revenue for the full year 2017 totaled $31.5 million, up $2.1
million or 7% from the prior year. Exchange rate changes
related to the Pound sterling, negatively impacted BoardEx revenue
by $0.2 million for the full year
2017. Adjusted for the negative impact of FX, total B2B revenue
increased 8%. Growth of $2.0 million
and $0.5 million in BoardEx and
RateWatch, respectively, was partially offset by a decline of
$0.4 million in The Deal (primarily
in subscription revenue).
B2C revenue was $31.0 million,
down 9%, compared to the prior year. The full year revenue decline
resulted primarily in premium newsletter which declined
$2.9 million year over year primarily
from a 14% decline in the number of subscriptions partially offset
by a 1% increase in average rate per subscriber. B2C advertising
revenue of $9.5 million also declined
$0.3 million as compared to full year
2016.
Operating expenses for the full year 2017 were $61.8 million, a decrease of $18.9 million, or 23%, from $80.7 million in the prior year. Operating
expense for the full year of 2017 includes $0.6 million of restructuring and severance
related charges. Excluding the 2017 restructuring and severance
expense and the 2016 Charges mentioned in the Fourth Quarter
Results above, along with other 2016 one-time expenses including
severance of $1.6 million,
restructuring charges of $1.0 million
and a one-time sales tax expense of $0.7
million, operating expenses for full year 2017 decreased by
$5.2 million, or 8%, as compared to
the same period of the prior year. The $5.2 million reduction in operating expense
primarily resulted from lower employee compensation and related
benefits, outside freelance costs, change in the utilization of
advertising and promotion along with savings in other general
operating costs. Savings were partially offset by fluctuations of
FX rates. Net income for the full year 2017 was $2.6 million compared to a net loss $17.5 million in the prior year.
With the retirement of the Company's Series B Preferred Stock in
November 2017, the company recorded a
capital contribution attributable to preferred stockholders of
$22.4 million resulting in a diluted
net income attributable to common shareholders of $0.66 per share for full year 2017, as compared
to a net loss to common shareholders of $0.50 per share for the prior year period.
Adjusted EBITDA for the full year 2017 was $8.0 million compared to $2.8 million for the prior year.
Cash on hand
Net cash provided by operating activities for the full year
ending December 31, 2017 totaled
$6.0 million, up $8.7 million as compared to the same period
during the prior year. The increase in net cash provided by
operating activities was primarily the result of the change in our
net income (loss) between periods, net of the 2016 goodwill
impairment and change in the fair value of contingent
consideration, change in the balance of deferred revenue and
accounts receivable, partially offset by the change in the balance
of accrued expenses and accounts payable. Increased cash from
operating activities, lower year over year capital expenditures of
approximately $1.2 million and
proceeds received from the common stock PIPE with 180 Degree
Capital Corp. was offset by the $20.9
million payment related to the extinguishment of the Series
B preferred stock and related costs. As a result, the Company ended
the year with cash and cash equivalents, restricted cash and
marketable securities of $13.9
million, as compared to $23.4
million at December 31,
2016.
Conference Call Information
TheStreet will discuss its financial results for the fourth
quarter and full year ending December 31,
2017 on March 6, 2018 at
8:30 a.m. EDT.
To participate in the call, please dial
866-548-4713 (domestic) or 323-794-2093 (international). The
conference code is 1986342. This call is being webcast and can be
accessed on the Investor Relations section
of TheStreet website at.
http://investor-relations.thestreet.com/events.cfm
A replay of the webcast will be available approximately two
hours after the conclusion of the call and remain available for
approximately 90 calendar days.
About TheStreet
TheStreet, Inc. (NASDAQ: TST, www.t.st) is a leading financial
news and information provider to investors and institutions
worldwide. The Company's flagship brand, TheStreet
(www.thestreet.com), has produced unbiased business news and market
analysis for individual investors for more than 20 years. The
Company's portfolio of institutional brands includes The Deal
(www.thedeal.com), which provides actionable, intraday coverage of
mergers, acquisitions and all other changes in corporate control;
BoardEx (www.boardex.com), a relationship mapping service of
corporate directors and officers; and RateWatch
(www.rate-watch.com), which supplies rate and fee data from banks
and credit unions across the U.S.
Non-GAAP Financial Information
(1) To supplement the Company's financial statements
presented in accordance with generally accepted accounting
principles ("GAAP"), the Company also uses "EBITDA" and "Adjusted
EBITDA", non-GAAP measures of certain components of financial
performance. "EBITDA" is adjusted from results based on GAAP
to exclude interest, income taxes, depreciation and
amortization. This non-GAAP measure is provided to enhance
investors' overall understanding of the Company's current financial
performance and its prospects for the future. Specifically,
the Company believes that the non-GAAP EBITDA results are an
important indicator of the operational strength of the Company's
business and provide an indication of the Company's ability to
service debt and fund acquisitions and capital expenditures.
EBITDA eliminates the uneven effect of considerable amounts of
non-cash depreciation of tangible assets and amortization of
certain intangible assets that were recognized in business
combinations. "Adjusted EBITDA" further eliminates the impact
of non-cash stock compensation, impairment charges, restructuring,
transaction related costs, severance and other charges affecting
comparability. A limitation of these measures, however, is
that they do not reflect the periodic costs of certain capitalized
tangible and intangible assets used in generating revenues in the
Company's businesses. Management evaluates the investments in
such tangible and intangible assets through other financial
measures, such as capital expenditure budgets and investment
spending levels. "Free cash flow" means net income/loss plus
non-cash expenses net of gains/losses on dispositions of assets,
less changes in operating assets and liabilities and capital
expenditures. The Company believes that this non-GAAP
financial measure is an important indicator of the Company's
financial results because it gives investors a view of the
Company's ability to generate cash.
(2) Average monthly churn is defined as subscriber
terminations/expirations in the quarter divided by the sum of the
beginning subscribers and gross subscriber additions for the
quarter, and then divided by three. Subscriptions that are on
a free-trial basis are not regarded as added or terminated unless
the subscription is active at the end of the free-trial period.
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements
regarding planned investments in our business, improved premium
subscription products and expectations for 2018. Such
forward-looking statements are subject to risks and uncertainties,
including those described in the Company's filings with the
Securities and Exchange Commission ("SEC") that could cause actual
results to differ materially from those reflected in the
forward-looking statements. Factors that might contribute to
such differences include, among others, economic downturns and the
general state of the economy, including the financial markets and
mergers and acquisitions environment; our ability to drive revenue,
and increase or retain current subscription revenue, particularly
in light of the investments in our expanded news operations; our
ability to develop new products; competition and other factors set
forth in our filings with the SEC, which are available on the SEC's
website at www.sec.gov. All forward-looking statements
contained herein are made as of the date of this press
release. Although the Company believes that the expectations
reflected in the forward-looking statements are reasonable, the
Company cannot guarantee future results or occurrences. The
Company disclaims any obligation to update these forward-looking
statements, whether as a result of new information, future
developments or otherwise.
Contact: Eric Lundberg,
Chief Financial Officer, TheStreet, Inc., ir at thestreet.com;
John Evans, Investor Relations, PIR
Communications, 415-309-0230, ir at thestreet.com
THESTREET,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
ASSETS
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
(unaudited)
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
11,684,817
|
|
$
21,371,122
|
Accounts receivable,
net of allowance for doubtful accounts of
|
|
|
|
|
$278,997
at December 31, 2017 and $316,204 at December 31, 2016
|
|
4,684,570
|
|
5,119,959
|
Other
receivables
|
|
389,353
|
|
358,266
|
Prepaid expenses and
other current assets
|
|
1,707,574
|
|
1,416,956
|
Total current
assets
|
|
18,466,314
|
|
28,266,303
|
Noncurrent
Assets:
|
|
|
|
|
Property and
equipment, net of accumulated depreciation and
|
|
|
|
|
amortization of $5,090,658 at December 31, 2017 and $5,682,286
at
|
|
|
|
|
December 31,
2016
|
|
2,751,812
|
|
3,550,007
|
Marketable
securities
|
|
1,680,000
|
|
1,550,000
|
Other
assets
|
|
306,465
|
|
285,843
|
Goodwill
|
|
29,419,522
|
|
29,183,141
|
Other intangibles,
net of accumulated amortization of $23,563,514
|
|
|
|
|
at
December 31, 2017 and $20,134,178 at December 31, 2016
|
|
14,020,982
|
|
15,127,818
|
Deferred tax
asset
|
|
1,865,453
|
|
-
|
Restricted
cash
|
|
500,000
|
|
500,000
|
Total
assets
|
|
$
69,010,548
|
|
$
78,463,112
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
2,013,797
|
|
$
2,526,034
|
Accrued
expenses
|
|
3,765,795
|
|
5,115,558
|
Deferred
revenue
|
|
23,308,678
|
|
22,476,962
|
Other current
liabilities
|
|
1,904,614
|
|
983,799
|
Total current
liabilities
|
|
30,992,884
|
|
31,102,353
|
Noncurrent
Liabilities:
|
|
|
|
|
Deferred tax
liability
|
|
1,932,606
|
|
2,036,487
|
Other
liabilities
|
|
2,064,109
|
|
3,274,816
|
Total
liabilities
|
|
34,989,599
|
|
36,413,656
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Preferred stock;
$0.01 par value; 10,000,000 shares authorized;
|
|
|
|
|
5,500
shares issued and 5,500 shares outstanding at Decdember 31,
2016;
|
|
|
|
|
the
aggregate liquidation preference totals $55,000,000 at
|
|
|
|
|
December
31, 2016
|
|
-
|
|
55
|
Common stock; $0.01
par value; 100,000,000 shares authorized;
|
|
|
|
|
56,891,551 shares issued and 49,181,462 shares outstanding
at
|
|
|
|
|
December
31, 2017, and 42,936,906 shares issued and 35,421,217
|
|
|
|
|
shares
outstanding at December 31, 2016
|
|
568,916
|
|
429,369
|
Additional paid-in
capital
|
|
259,569,737
|
|
271,143,445
|
Accumulated other
comprehensive loss
|
|
(4,845,650)
|
|
(5,898,305)
|
Treasury stock at
cost; 7,710,089 shares at December 31, 2017
|
|
|
|
|
and
7,515,689 shares at December 31, 2016
|
|
(13,484,924)
|
|
(13,211,141)
|
Accumulated
deficit
|
|
(207,787,130)
|
|
(210,413,967)
|
Total stockholders'
equity
|
|
34,020,949
|
|
42,049,456
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
69,010,548
|
|
$
78,463,112
|
|
|
|
|
|
THESTREET,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Business to
business
|
|
$
8,338,387
|
|
$
7,443,532
|
|
$
31,450,697
|
|
$
29,323,401
|
Business to
consumer
|
|
7,638,165
|
|
8,480,186
|
|
31,018,693
|
|
34,176,130
|
Total
revenue
|
|
15,976,552
|
|
15,923,718
|
|
62,469,390
|
|
63,499,531
|
|
|
|
|
|
|
|
|
|
Operating
expense:
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
6,483,645
|
|
8,484,313
|
|
27,115,500
|
|
32,440,598
|
Sales and
marketing
|
|
3,360,437
|
|
4,062,663
|
|
13,559,393
|
|
15,697,065
|
General and
administrative
|
|
3,732,817
|
|
3,226,628
|
|
15,494,219
|
|
16,157,151
|
Depreciation and
amortization
|
|
1,297,474
|
|
2,685,442
|
|
5,132,259
|
|
5,681,563
|
Impairment of
goodwill
|
|
-
|
|
11,583,000
|
|
-
|
|
11,583,000
|
Change in fair value
of contingent consideration
|
|
-
|
|
(1,807,945)
|
|
-
|
|
(1,807,945)
|
Restructuring and
other charges
|
|
271,320
|
|
(805)
|
|
470,299
|
|
959,686
|
Total operating
expense
|
|
15,145,693
|
|
28,233,296
|
|
61,771,670
|
|
80,711,118
|
Operating income
(loss)
|
|
830,859
|
|
(12,309,578)
|
|
697,720
|
|
(17,211,587)
|
Net interest income
(expense)
|
|
20,583
|
|
(9,848)
|
|
46,807
|
|
(34,121)
|
Net income (loss)
before income taxes
|
|
851,442
|
|
(12,319,426)
|
|
744,527
|
|
(17,245,708)
|
Recovery (provision)
for income taxes
|
|
2,368,222
|
|
680,650
|
|
1,882,310
|
|
(269,007)
|
Net income
(loss)
|
|
3,219,664
|
|
(11,638,776)
|
|
2,626,837
|
|
(17,514,715)
|
Capital contribution
attributable to preferred stockholders
|
|
22,367,520
|
|
-
|
|
22,367,520
|
|
-
|
Net income (loss)
attributable to common stockholders
|
|
$
25,587,184
|
|
$
(11,638,776)
|
|
$
24,994,357
|
|
$
(17,514,715)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic net income (loss)
attributable to common stockholders
|
|
$
0.59
|
|
$
(0.33)
|
|
$
0.66
|
|
$
(0.50)
|
Diluted net income (loss)
attributable to common stockholders
|
|
$
0.58
|
|
$
(0.33)
|
|
$
0.66
|
|
$
(0.50)
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
|
43,303,851
|
|
35,257,706
|
|
37,624,103
|
|
35,236,113
|
Weighted average
diluted shares outstanding
|
|
43,896,676
|
|
35,257,706
|
|
37,842,479
|
|
35,236,113
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income (loss) to adjusted EBITDA - see note (1):
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
3,219,664
|
|
$
(11,638,776)
|
|
$
2,626,837
|
|
$
(17,514,715)
|
(Recovery) provision
for income taxes
|
|
(2,368,222)
|
|
(680,650)
|
|
(1,882,310)
|
|
269,007
|
Net interest (income)
expense
|
|
(20,583)
|
|
9,848
|
|
(46,807)
|
|
34,121
|
Depreciation and
amortization
|
|
1,297,474
|
|
2,685,442
|
|
5,132,259
|
|
5,681,563
|
EBITDA
|
|
2,128,333
|
|
(9,624,136)
|
|
5,829,979
|
|
(11,530,024)
|
Impairment of
goodwill
|
|
-
|
|
11,583,000
|
|
-
|
|
11,583,000
|
Change in fair value
of contingent consideration
|
|
-
|
|
(1,807,945)
|
|
-
|
|
(1,807,945)
|
Restructuring and
other charges
|
|
271,320
|
|
(805)
|
|
470,299
|
|
959,686
|
Stock based
compensation
|
|
400,702
|
|
366,628
|
|
1,606,680
|
|
1,518,698
|
Severance
|
|
-
|
|
1,425,926
|
|
105,531
|
|
1,618,308
|
One-time sales tax
provision
|
|
-
|
|
(700,000)
|
|
-
|
|
665,198
|
Recovery of
previously impaired investment
|
|
-
|
|
(40,593)
|
|
-
|
|
(206,791)
|
Adjusted
EBITDA
|
|
$
2,800,355
|
|
$
1,202,075
|
|
$
8,012,489
|
|
$
2,800,130
|
|
|
|
|
|
|
|
|
|
THESTREET,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the Year Ended
December 31,
|
|
|
2017
|
|
2016
|
Cash Flows from
Operating Activities:
|
|
(unaudited)
|
|
|
Net income
(loss)
|
|
$
2,626,837
|
|
$
(17,514,715)
|
Adjustments to
reconcile net loss to net cash provided by
|
|
|
|
|
(used
in) operating activities:
|
|
|
|
|
Stock-based
compensation expense
|
|
1,606,680
|
|
1,518,698
|
Provision for
doubtful accounts
|
|
21,154
|
|
54,625
|
Depreciation and
amortization
|
|
5,132,259
|
|
5,681,563
|
Impairment of
goodwill
|
|
-
|
|
11,583,000
|
Deferred
taxes
|
|
(1,900,594)
|
|
130,192
|
Change in fair value
of contingent consideration
|
|
-
|
|
(1,807,945)
|
Restructuring and
other charges
|
|
-
|
|
105,113
|
Deferred
rent
|
|
(526,579)
|
|
(678,064)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
485,592
|
|
(226,980)
|
Other receivables
|
|
(30,101)
|
|
421,843
|
Prepaid expenses and other current assets
|
|
(273,101)
|
|
(231,310)
|
Other assets
|
|
(2,693)
|
|
26,271
|
Accounts payable
|
|
(518,834)
|
|
41,541
|
Accrued expenses
|
|
(1,383,875)
|
|
67,540
|
Deferred revenue
|
|
728,118
|
|
(1,916,494)
|
Other current liabilities
|
|
(3,511)
|
|
(138,187)
|
Other liabilities
|
|
-
|
|
125,264
|
Net cash provided by (used in) operating activities
|
|
5,961,352
|
|
(2,758,045)
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Restricted
cash
|
|
-
|
|
161,250
|
Capital
expenditures
|
|
(2,505,816)
|
|
(3,676,051)
|
Net cash used in investing activities
|
|
(2,505,816)
|
|
(3,514,801)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Cash dividends paid
on common stock
|
|
(68,245)
|
|
(12,762)
|
Proceeds from the
sale of common stock
|
|
7,849,999
|
|
-
|
Cash dividends paid
on preferred stock
|
|
(20,891,480)
|
|
-
|
Shares withheld on
RSU vesting to pay for withholding taxes
|
|
(273,783)
|
|
(154,600)
|
Net cash used in financing activities
|
|
(13,383,509)
|
|
(167,362)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
241,668
|
|
(634,086)
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(9,686,305)
|
|
(7,074,294)
|
Cash and cash
equivalents, beginning of period
|
|
21,371,122
|
|
28,445,416
|
Cash and cash
equivalents, end of period
|
|
$
11,684,817
|
|
$
21,371,122
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss to free cash flow - see note (1):
|
|
|
|
Net income
(loss)
|
|
$
2,626,837
|
|
$
(17,514,715)
|
Noncash
expenditures
|
|
4,332,920
|
|
16,587,182
|
Changes in operating
assets and liabilities
|
|
(998,405)
|
|
(1,830,512)
|
Capital
expenditures
|
|
(2,505,816)
|
|
(3,676,051)
|
Free cash
flow
|
|
$
3,455,536
|
|
$
(6,434,096)
|
|
|
|
|
|
|
|
|
|
|
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SOURCE TheStreet, Inc.