UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark one)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
or
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TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-14355
24/7 Real Media, Inc.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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13-3995672 |
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(STATE OR OTHER JURISDICTION OF |
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(IRS EMPLOYER |
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INCORPORATION OR ORGANIZATION) |
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IDENTIFICATION NO.) |
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7319 |
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(STANDARD INDUSTRIAL CLASSIFICATION CODE) |
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1250 BROADWAY, NEW YORK, NY |
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10001 |
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) |
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(ZIP CODE) |
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(212) 231-7100 |
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(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE) |
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Indicate by check mark whether the registrant has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý NO o
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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CLASS |
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OUTSTANDING AT November 11, 2002 |
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Common Stock, par value $.01 per share |
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58,474,109 Shares |
24/7 Real Media, Inc.
September 30, 2002
FORM 10-Q
INDEX
1
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
24/7 REAL MEDIA, INC.
(in thousands, except share data)
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September 30, |
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December 31, |
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(unaudited) |
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(notes 1 and 3) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
10,625 |
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$ |
6,974 |
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Restricted cash |
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— |
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1,500 |
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Accounts receivable, less allowances of $1,232 and $2,493, respectively |
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6,742 |
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9,623 |
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Notes and amounts receivable from dispositions |
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1,775 |
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— |
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Net current assets of discontinued operation |
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— |
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1,546 |
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Prepaid expenses and other current assets |
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1,285 |
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1,931 |
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Total current assets |
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20,427 |
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21,574 |
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Property and equipment, net |
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4,081 |
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6,308 |
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Intangible assets, net |
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10,675 |
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14,518 |
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Notes and amounts receivable from dispositions |
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1,331 |
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— |
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Net long-term assets of discontinued operation |
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— |
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1,136 |
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Receivable from related party |
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— |
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600 |
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Other assets |
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711 |
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1,452 |
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Total assets |
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$ |
37,225 |
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$ |
45,588 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
6,755 |
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$ |
8,781 |
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Accrued liabilities |
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9,489 |
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15,750 |
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Net current liabilities of discontinued operations |
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— |
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244 |
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Current installments of obligations under capital leases |
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50 |
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42 |
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Deferred revenue |
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2,971 |
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2,422 |
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Deferred gain on sale of subsidiary |
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87 |
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2,308 |
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Total current liabilities |
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19,352 |
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29,547 |
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Obligations under capital leases, excluding current installments |
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74 |
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112 |
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Loan payable - related party, including interest |
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7,779 |
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4,534 |
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Other long-term liabilities |
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455 |
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522 |
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Minority interest |
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21 |
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21 |
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Commitments and contingencies |
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Stockholders' equity: |
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Preferred stock, $.01 par value; 10,000,000 shares authorized 925,000 and 0 shares issued and outstanding, respectively |
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9 |
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— |
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Common stock, $.01 par value; 140,000,000 shares authorized; 58,474,109 and 49,532,127 shares issued and outstanding, respectively |
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585 |
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495 |
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Additional paid-in capital |
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1,082,938 |
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1,070,403 |
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Deferred stock compensation |
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(298 |
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(670 |
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Accumulated other comprehensive income (loss) |
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84 |
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(62 |
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Accumulated deficit |
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(1,073,774 |
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(1,059,314 |
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Total stockholders' equity |
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9,544 |
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10,852 |
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Total liabilities and stockholders' equity |
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$ |
37,225 |
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$ |
45,588 |
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See accompanying notes to unaudited interim consolidated financial statements.
2
24/7 REAL MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, expect share and per share data)
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Three months ended September 30, |
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Nine months ended September 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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(unaudited) |
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(unaudited) |
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Revenues: |
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Integrated media solutions |
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$ |
6,379 |
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$ |
7,039 |
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$ |
21,224 |
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$ |
28,269 |
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Technology solutions |
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3,340 |
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— |
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9,825 |
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8,062 |
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Total revenues |
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9,719 |
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7,039 |
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31,049 |
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36,331 |
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