CONWAY, AR — (Marketwired) — 07/29/15 — Inuvo, Inc. (NYSE MKT: INUV), an advertising technology and digital publishing company, today announced revenues of $16.7 million in the second quarter of 2015 compared to $10.9 million in the same quarter last year, a 53% increase. Net income in the second quarter of 2015 was $445,000 or $0.02 per diluted share compared to $382,000 or $0.02 per diluted share in the same quarter of 2014. For the first half of 2015, revenue was $30.1 million, a 43% increase over the first half of last year. Net income for the first half of 2015 was $1,071,000 or $0.04 per diluted share compared to $1,057,000 or $0.04 per diluted share in the same period last year.
“We are pleased to report a third consecutive quarter of strong year-over-year growth and a seventh consecutive quarter of profitability,” stated Rich Howe, Chairman and CEO of Inuvo. “We are making and will continue to make the necessary investments to capture market share in support of growth. While both segments experienced strong growth in the quarter, the Partner Network benefited from an uncharacteristically strong spring, the result of strong advertiser demand in Automotive that is likely to normalize in the second half of the year. We remain poised to deliver on the potential of the SearchLinks Native Advertising solution and committed to increasing user engagement within the ALOT sites.”
Revenue was $16.7 million, 53% ahead of the second quarter 2014 revenue of $10.9 million.
Partner revenue was $9.3 million, 67% ahead of the second quarter 2014 Partner revenue of $5.6 million.
Owned & Operated revenue was $7.4 million, 39% ahead of the second quarter 2014 Owned & Operated revenue of $5.4 million.
Net income was $445,000 or $0.02 per diluted share, 16% ahead of the second quarter of 2014.
Adjusted EBITDA, a non-GAAP measure, was $1.1 million.
Revenue was $30.1 million, 43% ahead of the first half 2014 revenue of $21.1 million.
Partner revenue was $16.9 million, 53% ahead of the first half 2014 Partner revenue of $11.0 million.
Owned & Operated revenue was $13.3 million, 32% ahead of the first half 2014 Owned & Operated revenue of $10.0 million.
Net income was $1,071,000 or $0.04 per diluted share, largely unchanged from the first half of 2014.
Adjusted EBITDA, a non-GAAP measure, was $1.8 million.
Debt decreased to $1.5 million at June 30, 2015 compared to $3.6 million at December 31, 2014.
The Inuvo business is managed along two segments, the Partner Network and the Owned and Operated Network. The Partner Network facilitates transactions between advertisers and our partners– websites and applications. The Owned and Operated Network designs, builds and markets mobile-ready consumer websites and applications mainly under the ALOT brand. The segments share the utilization of the company–s core ad delivery software as a service (SaaS) technologies.
Net revenues for the three months ended June 30, 2015, were $16.7 million as compared to $10.9 million for the three months ended June 30, 2014. Revenue in our Partner Network was $9.3 million in the second quarter of 2015 compared to $5.6 million in the same quarter last year and is reflective of the growth in this segment. Revenue in our Owned and Operated Network was $7.4 million in the second quarter of 2015 compared to $5.4 million in the same quarter last year and is the result of expansion across the sites both existing and new. Operating expenses increased from $5.8 million in the second quarter of 2014 to $9.1 million in the same quarter this year, comprised notably of increased marketing and compensation expenses.
For the quarter ended June 30, 2015, Net Income was $445,000 or $0.02 per diluted share compared to $382,000, or $0.02 per diluted share, for the three months ended June 30, 2014.
For the quarter ended June 30, 2015, Adjusted EBITDA, a non-GAAP measure, was $1.1 million compared to $1.2 million in the second quarter of 2014.
Cash and cash equivalents totaled $3.8 million at June 30, 2015. Current assets and total assets were $10.4 million and $27.4 million, respectively, and current liabilities and total liabilities were $13.2 million and $18.2 million, respectively, as of June 30, 2015. Bank debt was reduced to $1.5 million from $3.6 million at December 31, 2014. Stockholders– equity was approximately $9.2 million at June 30, 2015.
Date: Wednesday, July 29, 2015
Time: 4:15 p.m. EDT
Domestic Dial-in number: 1-888-503-8175
International Dial-in number: 1-719-325-2463
Live webcast:
In addition, the call will be webcast on the Investor Relations section of the Company–s website at where it will also be archived for 45 days. A telephone replay will be available through Saturday, September 12, 2015. To access the replay, please dial 1-877-870-5176 (domestic) or 1-858-384-5517 (international). At the system prompt, enter the code 1503372 followed by the # sign. You will then be prompted for your name, company and phone number. Playback will then automatically begin.
Inuvo®, Inc. (NYSE MKT: INUV) is an advertising technology and digital publishing business that serves billions of income generating ads monthly across a network of websites and apps serving desktop, tablet and mobile devices. To learn more about Inuvo, please visit or download our app at for Apple iPhone or for Android.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as “anticipate,” “plan,” “will,” “intend,” “believe” or “expect–” or variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations with respect to our lack of profitable operating history, changes in our business, potential need for additional capital, fluctuations in demand; changes to economic growth in the U.S. economy; and government policies and regulations, including, but not limited to those affecting the Internet, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2014. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Inuvo and are difficult to predict. Inuvo undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Reconciliation of Net Loss from Continuing Operations before Taxes to Adjusted EBITDA
In addition to disclosing financial results in accordance with United States generally accepted accounting principles (“GAAP”), our earnings release contains the non-GAAP financial measure “Adjusted EBITDA.”
Adjusted EBITDA is not a measure of performance defined in accordance with GAAP. However, management believes that Adjusted EBITDA is useful to investors in evaluating the Company–s performance because Adjusted EBITDA is a commonly used financial analysis tool for measuring and comparing companies in the Company–s industry in areas of operating performance.
Management believes that the disclosure of Adjusted EBITDA offers an additional view of the Company–s operations that, when coupled with the GAAP results and the reconciliation to GAAP net loss, provides a more complete understanding of the Company–s results of operations and the factors and trends affecting the Company–s business.
We present Adjusted EBITDA as a supplemental measure of our performance. We defined Adjusted EBITDA as net income (loss) from continuing operations before taxes plus (i) interest expense, net, (ii) depreciation, (iii) amortization, (iv) stock-based compensation, and (v) accrued severance and other non-recurring, noncash expense. These further adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Inuvo, Inc.
Wally Ruiz
Chief Financial Officer
501-205-8397
or
Investor Relations
Capital Markets Group
Alan Sheinwald
914-669-0222
You must be logged in to post a comment Login