UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark one)
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2003 |
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or |
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o TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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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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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 August 12, 2003 |
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Common Stock, par value $.01 per share |
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79,117,665 |
24/7 Real Media, Inc.
June 30, 2003
FORM 10-Q
INDEX
2
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
24/7 REAL MEDIA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
9,120 |
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$ |
7,674 |
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Accounts receivable, less allowances of $1,664 and $1,369, respectively |
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11,439 |
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9,799 |
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Notes and amounts receivable from disposition |
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420 |
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720 |
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Prepaid expenses and other current assets |
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1,039 |
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1,565 |
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Total current assets |
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22,018 |
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19,758 |
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Property and equipment, net |
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3,300 |
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3,988 |
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Goodwill |
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2,621 |
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2,621 |
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Intangible assets, net |
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5,957 |
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6,007 |
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Notes and amounts receivable from disposition |
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1,235 |
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1,045 |
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Other assets |
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549 |
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548 |
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Total assets |
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$ |
35,680 |
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$ |
33,967 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
4,848 |
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$ |
4,039 |
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Accrued liabilities |
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9,410 |
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12,015 |
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Current installments of obligations under capital leases |
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41 |
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47 |
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Deferred revenue |
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3,461 |
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2,748 |
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Total current liabilities |
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17,760 |
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18,849 |
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Obligations under capital leases, excluding current installments |
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48 |
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66 |
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Loan payable - related party |
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— |
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7,876 |
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Other long term liabilities |
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338 |
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292 |
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Total liabilities |
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18,146 |
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27,083 |
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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, 1,518,250 and 925,000 shares issued, respectively (liquidation preference of $10 per share) |
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15 |
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9 |
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Common stock; $.01 par value; 140,000,000 shares authorized; 77,568,203 and 59,219,844 shares issued, respectively |
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776 |
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592 |
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Additional paid-in capital |
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1,106,539 |
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1,089,575 |
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Deferred stock compensation |
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(114 |
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(209 |
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Accumulated other comprehensive income |
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320 |
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358 |
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Accumulated deficit |
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(1,090,002 |
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(1,083,441 |
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Total stockholders’ equity |
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17,534 |
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6,884 |
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Total liabilities and stockholders’ equity |
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$ |
35,680 |
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$ |
33,967 |
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See accompanying notes to unaudited interim consolidated financial statements.
3
24/7 REAL MEDIA, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, expect share and per share data)
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Three months ended June 30, |
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Six months ended June 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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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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$ |
8,362 |
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$ |
7,330 |
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$ |
16,705 |
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$ |
14,845 |
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Technology solutions |
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3,788 |
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3,250 |
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7,269 |
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6,485 |
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Total revenues |
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12,150 |
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10,580 |
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23,974 |
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21,330 |
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Cost of revenues: |
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Integrated media solutions |
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5,084 |
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4,866 |
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10,594 |
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10,101 |
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Technology solutions (exclusive of $10, $0, $10 and $7, respectively, reported below as stock-based compensation |
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1,062 |
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887 |
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2,227 |
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1,739 |
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Total cost of revenues |
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