Attached files
| file | filename |
|---|---|
| 8-K - Protagenic Therapeutics, Inc.\new | v179363_8k.htm |
|
FOR IMMEDIATE RELEASE
|
CONTACT:
|
|
March
30, 2010
|
Thomas
Plotts, CFO (Interim), (212) 716-1977 x 222
|
ATRINSIC REPORTS
OPERATING RESULTS FOR THE FULL YEAR AND FOURTH QUARTER 2009
New York (March 30, 2010) - Atrinsic,
Inc., (NASDAQ: ATRN), a leading direct to consumer Internet marketing company,
announced fourth quarter (unaudited) and year end 2009 results
today.
Revenues
for the fourth quarter of 2009 were $13.7 million compared with $22.9 million in
the fourth quarter of 2008, a decrease of 40%. Subscription revenue increased by
approximately $1.9 million, or 36%, to $7.2 million for the three months ended
December 31, 2009, compared to $5.3 million for the three months ended December
31, 2008. At December 31, 2009 the number of subscribers was 338,000 compared to
501,000 at December 31, 2008. The increase in subscription revenue is due to the
introduction of the Company’s Kazaa music subscription service. Transactional
revenue decreased by approximately $11.1 million or 63% to $6.5 million for the
three months ended December 31, 2009 compared to $17.6 million for the three
months ended December 31, 2008. The decrease was primarily attributable to the
reduction in discretionary advertising expenditures by our clients in the agency
service portion of our business.
Operating
expenses for the fourth quarter of 2009 were $32.8 million compared with
operating expenses of $140.8 million in the fourth quarter of 2008, a decrease
of approximately $108.0 million. In 2009 and 2008, the Company determined that
there was an impairment of goodwill and intangibles of $17.3 million and $115
million, respectively. Excluding the effect of goodwill and intangibles
impairment in 2009 and 2008, operating expenses for the fourth quarter of 2009
were $15.5 million compared with operating expenses of $26.0 million in the
fourth quarter of 2008, a decrease of approximately $10.5 million. The decrease
is primarily attributable to a reduced amount of purchased third party media,
correlated to decreased revenues, and a reduction in labor and operating
costs.
Adjusted
EBITDA for the fourth quarter of 2009 was a loss of ($1.5) million compared with
income of $0.3 million in the fourth quarter of 2008, a decrease of
approximately $1.8 million. The decrease is primarily attributable to the
decrease in revenue, partially offset by decreases in operating expenses, a
portion of which Atrinsic has invested in new product and services development
for future growth. During the quarter, the Company had a net benefit to Adjusted
EBITDA of approximately $1.5 million as a result of several offsetting items,
including certain accruals and expense reimbursements, offset by severance,
legal costs and write-offs. Adjusted EBITDA is a non-GAAP measure – see
Supplemental Disclosure regarding Non-GAAP Measures below.
Net loss
for the fourth quarter of 2009 was ($23.9) million (($1.15) loss per basic and
diluted share) compared with net loss of ($116.6) million for the fourth quarter
of 2008 (($5.37) loss per basic and diluted share). Excluding the effect of
goodwill impairment and intangibles in 2009 and 2008, net loss for the fourth
quarter increased by ($4.8) million to ($6.6) million at December 31, 2009
compared to ($1.8) million at December 31, 2008.
For the
fiscal years ended December 31, 2009 and 2008, revenues were $69.1 million and
$113.9 million, a decrease of $44.8 million. Net loss and loss per share for the
years ending December 31, 2009 and 2008 were ($29.5) million and ($1.43) loss
per share and ($115.8) million and ($5.43) loss per share. Excluding the effect
of goodwill and intangibles impairment, net loss was ($12.2) million and ($1.0)
million for the years ended December 31, 2009 and 2008.
As of
December 31, 2009, the Company had $16.9 million of cash and cash equivalents
with adequate working capital to support future growth, business development
initiatives, and capital activities.
All
non-GAAP amounts have been adjusted from comparable GAAP measures. A description
of all adjustments and reconciliations to comparable GAAP measures for all
periods presented are included within this communication.
The
Company intends to host a conference call to discuss its first quarter results
and to provide an update on key items of focus and progress. Jeffrey Schwartz,
CEO of Atrinsic, noted, “Having been in the permanent CEO role now for almost
two months, I am beginning to see clearly the areas of opportunity in the
business. Our focus remains on building a scalable direct to consumer
subscriptions business, and we are finding areas within the entertainment
category, particularly music, where we are seeing progress. As we focus the
business, this has emerged as an area of opportunity and progress. We are also
seeing a good measure of progress in our services business, particularly in our
search related marketing services, as we have experienced some client wins that
tell me our integrated online marketing message is resonating with
clients.” Schwartz continued, noting “We have taken measures to
reduce our overall operating expense rate and we feel confident that 2010 will
be a year of revenue growth. I also have confidence that we can begin
growing our subscriber base as well.”
About Atrinsic,
Inc.
Atrinsic,
Inc. is a leading Internet focused marketing company. We
combine the power of the Internet with traditional direct response marketing
techniques to sell entertainment and lifestyle subscription products directly to
consumers. We also leverage our media network and marketing expertise to provide
lead generation and search related marketing services to our corporate and
advertising clients. We have developed our marketing media network, consisting
of web sites, proprietary content and licensed media, to attract consumers,
corporate partners and advertisers. We believe our marketing media network and
proprietary technology allows us to cost-effectively acquire consumers and
provide targeted leads and marketing data to our corporate partners and
advertisers.
Forward-Looking
Statements
This
press release contains “forward-looking” statements based on management’s
current expectations as of the date of this release. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward looking statements include the
Company’s discussion relating to management’s current strategic priorities.
Because such statements inherently involve risks and uncertainties, actual
results may differ materially from those expressed or implied by such forward
looking statements. Such risks include, among others, the Company’s ability to
maintain customer and strategic business relationships, the impact of
competitive products and pricing, growth in targeted markets, the adequacy of
the Company’s liquidity and financial strength to support growth, and other
information that may be detailed from time to time in the Company’s filings with
the United States Securities and Exchange Commission. All information
in this release is as of March 30, 2010. The Company does not undertake any
obligation to update or revise these forward-looking statements to conform to
actual results or changes in the Company’s expectations.
Supplemental Disclosure
regarding Non-GAAP Measures
EBITDA
and Adjusted EBITDA
The
following tables set forth the Company’s EBITDA and Adjusted EBITDA for the
three month periods and fiscal years ending on December 31, 2009 and 2008,
respectively. The Company defines “EBITDA” and “Adjusted EBITDA” as net income
adjusted to exclude the following line items presented in its Statement of
Operations: Equity in loss of investee, noncontrolling interest, income taxes,
other expense (income), interest expense, interest and dividend income, net,
depreciation and amortization, and in the case of Adjusted EBITDA non-cash
equity based compensation. While this non-Generally Accepted Accounting
Principles (“GAAP”) measure has been relabeled to more accurately describe in
the title the method of calculation of the measure, the actual method of
calculating the measure is presented below.
The
Company uses Adjusted EBITDA, among other things, and possibly with additional
adjustments, to evaluate the Company’s operating performance, to value
prospective acquisitions, and as one of several components of incentive
compensation targets for certain management personnel, and this measure is among
the primary measures used by management for planning and forecasting of future
periods. This measure is an important indicator of the Company’s operational
strength and performance of its business because it provides one of several
links between profitability and operating cash flow. The Company believes the
presentation of this measure is relevant and useful for investors because it
allows investors to view performance in a manner similar to the method used by
the Company’s management, helps improve their ability to understand the
Company’s operating performance and makes it easier to compare the Company’s
results with other companies that have different financing and capital
structures or tax rates. In addition, it is our understanding that this measure
is also among the primary measures used externally by the Company’s investors,
analysts and peers in its industry for purposes of valuation and comparing the
operating performance of the Company to other companies in its industry. The
Company has elected to not adjust EBITDA for the impact of the adoption of ASC
718 (formerly FAS No.123R) and the Company has provided what it believes to be
relevant supplemental information in this communication for analysis by others
to fit their particular needs.
Since
EBITDA and Adjusted EBITDA are not measures of performance calculated in
accordance with GAAP, it should not be considered in isolation of, or as a
substitute for, net income as an indicator of operating performance. EBITDA and
Adjusted EBITDA, as the Company calculates it, may not be comparable to
similarly titled measures employed by other companies. In addition, this measure
does not necessarily represent funds available for discretionary use, and is not
necessarily a measure of the Company’s ability to fund its cash needs. As EBITDA
and Adjusted EBITDA exclude certain financial information compared with net
income, the most directly comparable GAAP financial measure, users of this
financial information should consider what information is excluded. As required
by the SEC, the Company provides below a reconciliation of EBITDA and Adjusted
EBITDA to net income, the most directly comparable amount reported under
GAAP.
|
Reconciliation of Reported Net Income (Loss)
|
|
To EBITDA and Adjusted EBITDA
|
|
(Dollars in thousands, except per share data)
|
|
(UNAUDITED)
|
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
loss attributable to Atrinsic
|
$ | (23,948 | ) | $ | (116,559 | ) | $ | (29,470 | ) | $ | (115,766 | ) | ||||
|
Reconciliation
Items:
|
||||||||||||||||
|
Equity
in income of Investee
|
(173 | ) | - | (59 | ) | - | ||||||||||
|
Net
loss (income) attributable to noncontrolling interest
|
- | 69 | 28 | (24 | ) | |||||||||||
|
Income
taxes
|
4,976 | (1,369 | ) | 640 | (852 | ) | ||||||||||
|
Other
(income) expense
|
(10 | ) | 8 | (5 | ) | 153 | ||||||||||
|
Interest
(income) expense and dividends, net
|
(5 | ) | (117 | ) | 4 | (601 | ) | |||||||||
|
Goodwill
and Intangibles Impairment
|
17,289 | 114,783 | 17,289 | 114,783 | ||||||||||||
|
Depreciation
and amortization
|
587 | 3,250 | 3,698 | 5,867 | ||||||||||||
|
EBITDA
|
$ | (1,284 | ) | $ | 65 | $ | (7,875 | ) | $ | 3,560 | ||||||
|
Non-cash
equity based compensation
|
(223 | ) | 272 | 857 | 1,282 | |||||||||||
|
Adjusted
EBITDA
|
$ | (1,507 | ) | $ | 337 | $ | (7,018 | ) | $ | 4,842 | ||||||
|
Diluted
Adjusted EBITDA per Common Share
|
$ | (0.07 | ) | $ | 0.02 | $ | (0.34 | ) | $ | 0.23 | ||||||
Condensed
Pro Forma Summary
The
following table sets forth the Company’s Condensed Proforma results for the
three months and year ended December 31, 2009 and 2008. The following pro forma
consolidated amounts give effect to the merger with Traffix, Inc. on February 4,
2008 and the acquisition of Ringtone.com on June 30, 2008 with both being
accounted for by the purchase method of accounting as if they had occurred as of
the beginning of the periods presented. The pro forma consolidated results are
not necessarily indicative of the operating results that would have been
achieved had the transactions been in effect as of the beginning of the periods
presented and should not be construed as being representative of future
operating results. The Consolidated Statement of Operations for the three months
and year ending December 31, 2009 is presented for comparative
purposes.
(Dollars
in thousands, except per share data)
(UNAUDITED)
|
Three Months Ended
|
Year ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
|
2009 (Actual)
|
2008 (Actual)
|
2009 (Actual)
|
2008(Proforma)
|
|||||||||||||
|
Revenue
|
$ | 13,660 | $ | 22,875 | $ | 69,089 | $ | 128,421 | ||||||||
|
|
||||||||||||||||
|
Operating
expense net of interest and other expense
|
32,632 | 140,803 | 97,919 | 242,678 | ||||||||||||
|
Income
taxes
|
4,976 | (1,369 | ) | 640 | (852 | ) | ||||||||||
|
Net
Proforma Loss
|
$ | (23,948 | ) | $ | (116,559 | ) | $ | (29,470 | ) | $ | (113,405 | ) | ||||
|
Diluted
loss per share
|
$ | (1.15 | ) | $ | (5.37 | ) | $ | (1.43 | ) | $ | (5.32 | ) | ||||
Pro
Forma EBITDA and Adjusted EBITDA
The
following table sets forth pro forma EBITDA and pro forma Adjusted EBITDA
amounts after giving effect to the merger with Traffix, Inc. on February 4, 2008
and the acquisition of Ringtone.com on June 30, 2008 as if they had occurred as
of the beginning of the periods presented. The pro forma consolidated results
are not necessarily indicative of the operating results that would have been
achieved had the transactions been in effect as of the beginning of the periods
presented and should not be construed as being representative of future
operating results. EBITDA and Adjusted EBITDA for the three months and year
ending December 31, 2009 are presented for comparative purposes.
|
Reconciliation
of Pro Forma Net Income/(Loss)
|
|
To
Pro Forma EBITDA and Pro Forma Adjusted EBITDA
|
|
(Dollars in thousands, except
per share data)
|
|
(UNAUDITED)
|
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
|
2009 (Actual)
|
2008 (Actual)
|
2009 (Actual)
|
2008 (Proforma)
|
|||||||||||||
|
Net
Pro Forma Loss
|
$ | (23,948 | ) | $ | (116,559 | ) | $ | (29,470 | ) | $ | (113,405 | ) | ||||
|
Reconciliation
Items:
|
||||||||||||||||
|
Equity
in income of Investee
|
(173 | ) | - | (59 | ) | - | ||||||||||
|
Net
loss (income) attributable to noncontrolling interest
|
- | 69 | 28 | (24 | ) | |||||||||||
|
Income
taxes
|
4,976 | (1,369 | ) | 640 | (852 | ) | ||||||||||
|
Other
(income) expense
|
(10 | ) | 8 | (5 | ) | 181 | ||||||||||
|
Interest
(income) expense and dividends, net
|
(5 | ) | (117 | ) | 4 | (601 | ) | |||||||||
|
Goodwill
and intangible impairment
|
17,289 | 114,783 | 17,289 | 114,783 | ||||||||||||
|
Depreciation
and amortization
|
587 | 3,250 | 3,698 | 6,306 | ||||||||||||
|
Pro
Forma EBITDA
|
$ | (1,284 | ) | $ | 65 | $ | (7,875 | ) | $ | 6,388 | ||||||
|
Non-cash
equity based compensation
|
(223 | ) | 272 | 857 | 1,282 | |||||||||||
|
Adjusted
Pro Forma EBITDA
|
$ | (1,507 | ) | $ | 337 | $ | (7,018 | ) | $ | 7,670 | ||||||
|
Diluted
Adjusted EBITDA per Common Share
|
$ | (0.07 | ) | $ | 0.02 | $ | (0.34 | ) | $ | 0.35 | ||||||
|
ATRINSIC,
INC. AND SUBSIDIARIES
|
||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||
|
Years
Ended December 31,
|
||||
|
(Dollars
in thousands, except per share
data)
|
|
2009
|
2008
|
|||||||
|
ASSETS
|
||||||||
|
Current
Assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 16,913 | $ | 20,410 | ||||
|
Marketable
securities
|
- | 4,245 | ||||||
|
Accounts
receivable, net of allowance for doubtful accounts of $4,295 and
$2,938
|
7,985 | 16,790 | ||||||
|
Income
tax receivable
|
4,373 | 2,666 | ||||||
|
Prepaid
expenses and other current assets
|
2,643 | 3,686 | ||||||
|
Total
Currents Assets
|
31,914 | 47,797 | ||||||
|
PROPERTY
AND EQUIPMENT, net of accumulated depreciation of $1,078 and
$1,435
|
3,553 | 3,525 | ||||||
|
GOODWILL
|
- | 11,075 | ||||||
|
INTANGIBLE
ASSETS, net of accumulated amortization of $8,605 and
$5,683
|
7,253 | 12,508 | ||||||
|
DEFERRED
INCOME TAXES
|
- | 778 | ||||||
|
INVESTMENTS,
ADVANCES AND OTHER ASSETS
|
1,878 | 3,080 | ||||||
|
TOTAL
ASSETS
|
$ | 44,598 | $ | 78,763 | ||||
|
LIABILITIES
AND EQUITY
|
||||||||
|
Current
Liabilities
|
||||||||
|
Accounts
payable
|
$ | 6,257 | $ | 7,194 | ||||
|
Accrued
expenses
|
9,584 | 13,941 | ||||||
|
Note
payable
|
- | 1,858 | ||||||
|
Deferred
revenues and other current liabilities
|
725 | 152 | ||||||
|
Total
Current Liabilities
|
16,566 | 23,145 | ||||||
|
DEFERRED
TAX LIABILITY, NET
|
1,697 | - | ||||||
|
OTHER
LONG TERM LIABILITIES
|
988 | 969 | ||||||
|
TOTAL
LIABILITIES
|
$ | 19,251 | $ | 24,114 | ||||
|
STOCKHOLDERS'
EQUITY
|
||||||||
|
Common
stock - par value $.01, 100,000,000 authorized, 23,583,581 and 22,992,280
shares issued at 2009 and 2008, respectively; and, 20,842,263 and
21,083,354 shares outstanding at 2009 and 2008,
respectively.
|
$ | 236 | $ | 230 | ||||
|
Additional
paid-in capital
|
178,442 | 177,347 | ||||||
|
Accumulated
other comprehensive loss
|
(20 | ) | (286 | ) | ||||
|
Common
stock, held in treasury, at cost, 2,741,318 and 1,908,926 shares at 2009
and 2008, respectively.
|
(4,992 | ) | (4,053 | ) | ||||
|
Accumulated
deficit
|
(148,319 | ) | (118,849 | ) | ||||
|
Total
Stockholders' Equity
|
25,347 | 54,389 | ||||||
|
NONCONTROLLING
INTEREST
|
- | 260 | ||||||
|
TOTAL
EQUITY
|
25,347 | 54,649 | ||||||
|
TOTAL
LIABILITIES AND EQUITY
|
$ | 44,598 | $ | 78,763 | ||||
|
ATRINSIC,
INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Dollars
in thousands, except per share
data)
|
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
|
December
31, 2009
|
December
31, 2008
|
December
31, 2009
|
December
31, 2008
|
|||||||||||||
|
Unaudited
|
Unaudited
|
|||||||||||||||
|
Subscription
|
$ | 7,155 | $ | 5,277 | $ | 22,254 | $ | 44,196 | ||||||||
|
Transactional
|
6,505 | 17,598 | 46,835 | 69,688 | ||||||||||||
|
REVENUE
|
13,660 | 22,875 | 69,089 | 113,884 | ||||||||||||
|
OPERATING
EXPENSES
|
||||||||||||||||
|
Cost
of media-third party
|
7,454 | 13,764 | 43,313 | 74,541 | ||||||||||||
|
Product
and distribution
|
2,056 | 2,225 | 10,559 | 9,749 | ||||||||||||
|
Selling
and marketing
|
1,291 | 3,217 | 8,386 | 9,974 | ||||||||||||
|
General,
administrative and other operating
|
4,143 | 3,604 | 14,706 | 16,060 | ||||||||||||
|
Depreciation
and amortization
|
587 | 3,250 | 3,698 | 5,867 | ||||||||||||
|
Impairment
of Goodwill and Intangible Assets
|
17,289 | 114,783 | 17,289 | 114,783 | ||||||||||||
| 32,820 | 140,843 | 97,951 | 230,974 | |||||||||||||
|
LOSS
FROM OPERATIONS
|
(19,160 | ) | (117,968 | ) | (28,862 | ) | (117,090 | ) | ||||||||
|
OTHER
(INCOME) EXPENSE
|
||||||||||||||||
|
Interest
income and dividends
|
(5 | ) | (181 | ) | (72 | ) | (748 | ) | ||||||||
|
Interest
expense
|
- | 64 | 76 | 147 | ||||||||||||
|
Other
(income) expense
|
(10 | ) | 8 | (5 | ) | 153 | ||||||||||
| (15 | ) | (109 | ) | (1 | ) | (448 | ) | |||||||||
|
LOSS
BEFORE TAXES AND EQUITY IN LOSS OF INVESTEE
|
(19,145 | ) | (117,859 | ) | (28,861 | ) | (116,642 | ) | ||||||||
|
INCOME
TAXES
|
4,976 | (1,369 | ) | 640 | (852 | ) | ||||||||||
|
EQUITY
IN INCOME OF INVESTEE, AFTER TAX
|
(173 | ) | - | (59 | ) | - | ||||||||||
|
NET
LOSS
|
(23,948 | ) | (116,490 | ) | (29,442 | ) | (115,790 | ) | ||||||||
|
LESS:
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING
INTEREST, AFTER TAX
|
- | 69 | 28 | (24 | ) | |||||||||||
|
NET
LOSS ATTRIBUTABLE TO ATRINSIC, INC
|
$ | (23,948 | ) | $ | (116,559 | ) | $ | (29,470 | ) | $ | (115,766 | ) | ||||
|
NET
LOSS PER SHARE ATTRIBUTABLE TO ATRINSIC COMMON
STOCKHOLDERS
|
||||||||||||||||
|
Basic
|
$ | (1.15 | ) | $ | (5.37 | ) | $ | (1.43 | ) | $ | (5.43 | ) | ||||
|
Diluted
|
$ | (1.15 | ) | $ | (5.37 | ) | $ | (1.43 | ) | $ | (5.43 | ) | ||||
|
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
|
Basic
|
20,841,331 | 21,689,795 | 20,648,929 | 21,320,638 | ||||||||||||
|
Diluted
|
20,841,331 | 21,689,795 | 20,648,929 | 21,320,638 | ||||||||||||
ATRINSIC,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
Years
Ended December 31,
(Dollars
in thousands, except per share data)
|
2009
|
2008
|
|||||||
|
Cash
Flows From Operating Activities
|
||||||||
|
Net
loss
|
$ | (29,442 | ) | $ | (115,790 | ) | ||
|
Adjustments
to reconcile net loss to net cash
|
||||||||
|
(used
in) provided by operating activities:
|
||||||||
|
Allowance
for doubtful accounts
|
1,991 | 2,152 | ||||||
|
Depreciation
and amortization
|
3,698 | 5,867 | ||||||
|
Impairment
of goodwill and intangible assets
|
17,289 | 114,783 | ||||||
|
Stock-based
compensation expense
|
857 | 1,282 | ||||||
|
Stock
based consulting expense
|
40 | - | ||||||
|
Excess
tax benefit from share-based compensation
|
- | (1,017 | ) | |||||
|
Impairment
of investment in Mango Networks
|
225 | - | ||||||
|
Net
loss on sale of marketable securities
|
- | 175 | ||||||
|
Deferred
income taxes
|
3,651 | (2,345 | ) | |||||
|
Equity
in loss (income) of investee
|
(108 | ) | - | |||||
|
Changes
in operating assets and liabilities of business, net of
acquisitions:
|
||||||||
|
Accounts
receivable
|
6,686 | 4,532 | ||||||
|
Prepaid
income tax
|
(1,617 | ) | (2,464 | ) | ||||
|
Prepaid
expenses and other current assets
|
(359 | ) | 1,152 | |||||
|
Accounts
payable
|
(937 | ) | (3,205 | ) | ||||
|
Other,
principally accrued expenses
|
(4,989 | ) | (767 | ) | ||||
|
Net
cash (used in) provided by operating activities
|
(3,015 | ) | 4,355 | |||||
|
Cash
Flows From Investing Activities
|
||||||||
|
Cash
received from investee
|
1,940 | 11,212 | ||||||
|
Cash
paid to investees
|
(914 | ) | (2,519 | ) | ||||
|
Purchases
of marketable securities
|
- | (6,577 | ) | |||||
|
Proceeds
from sales of marketable securities
|
4,242 | 24,708 | ||||||
|
Business
combinations
|
(1,740 | ) | (7,030 | ) | ||||
|
Acquisition
of loan receivable
|
(480 | ) | - | |||||
|
Capital
expenditures
|
(682 | ) | (2,029 | ) | ||||
|
Net
cash provided by investing activities
|
2,366 | 17,765 | ||||||
|
Cash
Flows From Financing Activities
|
||||||||
|
Repayments
of notes payable
|
(1,750 | ) | (111 | ) | ||||
|
Liquidation
of non-controlling interest
|
(288 | ) | - | |||||
|
Return
of investment - noncontrolling interest
|
138 | - | ||||||
|
Excess
tax benefit on share-based compensation
|
- | 1,017 | ||||||
|
Purchase
of common stock held in treasury
|
(939 | ) | (4,053 | ) | ||||
|
Proceeds
from exercise of options
|
- | 343 | ||||||
|
Net
cash used in financing activities
|
(2,839 | ) | (2,804 | ) | ||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
(9 | ) | (18 | ) | ||||
|
Net
(Decrease) Increase In Cash and Cash Equivalents
|
(3,497 | ) | 19,298 | |||||
|
Cash
and Cash Equivalents at Beginning of Year
|
20,410 | 1,112 | ||||||
|
Cash
and Cash Equivalents at End of Period
|
$ | 16,913 | $ | 20,410 | ||||
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
|
Cash
paid for interest
|
$ | (76 | ) | $ | (35 | ) | ||
|
Cash
paid for taxes
|
$ | 867 | $ | (2,620 | ) | |||
|
Acquisition
of intangibles assets by issuance of note payable
|
$ | - | $ | 1,750 | ||||
|
Extinguishment
of loan receivable in connection with business combination
|
$ | 480 | $ | - | ||||
|
Common
stock issued for extinguishment of loan receivable in connection with
business combination
|
$ | 155 | $ | - | ||||
|
Common
stock issued in connection with business combination
|
$ | 600 | $ | 155,232 | ||||