Homestore.com, Inc. Reports Net Income Cash Profitability
Leading Online Home and Real Estate Network Joins Elite Group Of Profitable Internet Companies and Announces Net Income Cash Profitability for the Third Quarter
THOUSAND OAKS, Calif., Oct. 19 /PRNewswire/ -- Homestore.com, Inc. (Nasdaq: HOMS - news) joined the ranks of the small group of cashflow-positive publicly traded dot-com companies in the third quarter, achieving net income cash profitability of $554,000 for the period. The company today reported financial results for the quarter ended September 30, 2000, with continued growth in revenues, professional subscribers and unique visitors to its online home and real estate network, and over $370 million in cash on its balance sheet.
``This quarter we joined an elite group of Internet companies that have achieved cash profitability,'' said Stuart Wolff, Homestore.com's chairman and chief executive officer, ``and to accomplish this with such continued strong top-line growth, not only demonstrates the strength of our financial model, but also highlights the power of our strategic positioning and the continued execution of our management team.''
``The tremendous value of a central, online home and real estate marketplace is becoming apparent to more consumers and real estate professionals every quarter,'' Wolff added. ``Our network has aggregated the largest audience of consumers and home professionals on the Internet today which serves as a powerful platform to further extend our subscription, advertising and transaction services and products,'' said Wolff.
The company said revenues for the third quarter increased to $62.2 million, a 201% increase over pro forma revenues of $20.7 million for the third quarter of 1999 and a 24% increase over revenues of $50.2 million for the second quarter of 2000. The company's gross profit margin improved to 74.0% for the quarter as compared to 69.3%, on a pro forma basis, for the third quarter of 1999 and 73.5% for the second quarter of 2000. Pro forma net income for the quarter was $554,000, or $0.01 per share. That compares to a pro forma net loss of $16.8 million, or $0.25 per share, for the third quarter of 1999 and a pro forma net loss of $2.8 million, or $0.03 per share, for the second quarter of 2000.
Pro forma net income and loss exclude the effects of non-cash charges for (i) amortization of intangible assets, (ii) stock-based charges, (iii) in-process research and development and (iv) a litigation settlement. To enhance comparability, pro forma operating results assume that the acquisitions of SpringStreet.com(TM) and HomeFair.com(TM), as well as the reorganization of the company's corporate structure, occurred on January 1, 1999.
On a GAAP basis, the company's revenues for the quarter were $62.2 million, compared to $18.6 million for the third quarter of 1999 and $50.2 million for the second quarter of 2000. The net loss for the quarter was $27.1 million, or $0.33 per share, compared to a net loss of $34.2 million, or $0.65 per share, for the third quarter of 1999, and $24.7 million, or $0.31 per share, for the second quarter of 2000.
Homestore.com, Inc.
Consolidated Statements of Operations - Pro Forma Basis
(in thousands, except per share amounts)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
Revenues $62,203 $20,651 $150,954 $45,306
Cost of revenues 16,188 6,342 40,033 16,216
Gross profit 46,015 14,309 110,921 29,090
Operating expenses:
Sales and marketing 30,141 21,252 90,366 55,972
Product development 4,329 2,025 9,767 5,025
General and
administrative 16,784 7,551 39,458 19,577
Amortization of
intangible assets 12,128 7,166 31,455 21,202
Stock-based charges 11,436 7,461 33,271 15,523
In-process research
and development 4,048 -- 4,048 --
Litigation settlement -- 8,406 -- 8,406
Total operating expenses 78,866 53,861 208,365 125,705
Loss from operations (32,851) (39,552) (97,444) (96,615)
Interest and other
income (expense), net 5,793 (271) 16,462 (3,410)
Net loss $(27,058) $(39,823) $(80,982) $(100,025)
Basic and diluted
net loss per share $(0.33) $(0.60) $(1.03) $(1.67)
Shares used to calculate
basic and diluted net
loss per share 82,065 66,313 78,769 59,914
Net income (loss),
excluding non-cash
charges (1) $554 $(16,790) $(12,208) $(54,894)
Basic and diluted net
income (loss) per share,
excluding non-cash
charges (1) (2) $0.01 $(0.25) $(0.15) $(0.92)
(1) Excludes the effect of non-cash charges for (i) amortization of
intangible assets, (ii) stock-based charges, (iii) in-process research
and development and (iv) a litigation settlement.
(2) Net income per share, excluding non-cash charges, for the three months
ended September 30, 2000 was calculated using fully diluted shares.
Fully diluted shares for the three months ended September 30, 2000
were 89,285.
Homestore.com, Inc.
Consolidated Statements of Operations - GAAP Basis
(in thousands, except per share amounts)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
Revenues $62,203 $18,625 $150,954 $35,211
Cost of revenues 16,188 5,897 40,033 13,007
Gross profit 46,015 12,728 110,921 22,204
Operating expenses:
Sales and marketing 30,141 20,403 90,366 44,765
Product development 4,329 1,955 9,767 3,322
General and
administrative 16,784 7,034 39,458 12,953
Amortization of
intangible assets 12,128 3,003 31,455 4,313
Stock-based charges 11,436 7,461 33,271 12,711
In-process research
and development 4,048 -- 4,048 --
Litigation settlement -- 8,406 -- 8,406
Total operating expenses 78,866 48,262 208,365 86,470
Loss from operations (32,851) (35,534) (97,444) (64,266)
Interest and other
income (expense), net 5,793 1,308 16,462 1,274
Net loss $(27,058) $(34,226) $(80,982) $(62,992)
Basic and diluted
net loss per share $(0.33) $(0.65) $(1.03) $(2.00)
Shares used to calculate
basic and diluted net
loss per share 82,065 52,903 78,769 31,421
Net income (loss),
excluding non-cash
charges (1) $554 $(15,356) $(12,208) $(37,562)
Basic and diluted net
income (loss) per share,
excluding non-cash
charges (1) (2) $0.01 $(0.29) $(0.15) $(1.20)
(1) Excludes the effect of non-cash charges for (i) amortization of
intangible assets, (ii) stock-based charges, (iii) in-process research
and development and (iv) a litigation settlement.
(2) Net income per share, excluding non-cash charges, for the three months
ended September 30, 2000 was calculated using fully diluted shares.
Fully diluted shares for the three months ended September 30, 2000
were 89,285.
SOURCE: Homestore.com, Inc. |
