Attached files
| file | filename |
|---|---|
| 8-K - Vertro, Inc. | v210803_8-k.htm |
| EX-99.2 - Vertro, Inc. | v210803_ex99-2.htm |
Vertro,
Inc. Reports Preliminary Fourth Quarter 2010 Results and Non-Financial
Metrics
Company
Anticipates Q4 2010 Revenue of Approximately $9.6 million; Expects EBITDA and
Adjusted EBITDA to increase sequentially from Q3 2010 to Q4 2010
Strong
User and Search Growth in ‘Rest-of-World’ Markets Offset by Sequential Quarterly
Decline in Region One Users and Search Queries
NEW YORK, NY – February 10,
2011 – Vertro, Inc. (NASDAQ: VTRO), today announced preliminary financial
results and non-financial metrics for its fourth quarter and full year ended
December 31, 2010.
Summary
of Preliminary Fourth Quarter 2010 Results from Continuing
Operations:
|
·
|
On
a preliminary unaudited basis, the Company expects revenue for Q4 2010 to
be approximately $9.6 million, compared to revenue of $9.8 million in Q3
2010, and revenue of $8.0 million in the fourth quarter of
2009.
|
|
·
|
On
a preliminary unaudited annual basis, the Company anticipates 2010 revenue
to be approximately $35.9 million, compared to annual revenue of $27.6
million in 2009.
|
|
·
|
EBITDA
and Adjusted EBITDA are both expected to increase sequentially from Q3
2010 to Q4 2010.
|
Estimated
Customer Acquisition Costs and Non-financial Metrics for the Fourth Quarter 2010
(in millions) (1):
|
2009
|
2010
|
||||||||
|
Estimated
Customer Acquisition Costs ($)
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
ALOT
Region One
|
4.0
|
5.5
|
5.7
|
4.6
|
4.5
|
4.6
|
5.4
|
4.7
|
|
|
ALOT
rest-of-world
|
0.3
|
0.3
|
0.3
|
0.3
|
0.4
|
0.6
|
1.2
|
1.5
|
|
|
Total
|
4.3
|
5.8
|
6.0
|
4.9
|
4.9
|
5.2
|
6.7
|
6.2
|
|
|
2009
|
2010
|
||||||||
|
Search
queries (2)
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
ALOT
Region One
|
96.8
|
102.6
|
121.6
|
140.1
|
151.9
|
154.7
|
174.5
|
161.4
|
|
|
ALOT
rest-of-world
|
21.4
|
27.9
|
71.4
|
74.7
|
82.9
|
87.6
|
144.2
|
200.2
|
|
|
Legacy
brand
|
43.8
|
35.0
|
23.3
|
17.2
|
11.7
|
8.1
|
5.8
|
*
|
|
|
Total
|
162.0
|
165.5
|
216.3
|
231.9
|
246.5
|
250.4
|
324.5
|
361.6
|
|
|
2009
|
2010
|
||||||||
|
Live
toolbar users (3)
|
Q1
|
Q2
|
Q3
|
Q4
|
Q1
|
Q2
|
Q3
|
Q4
|
|
|
ALOT
Region One
|
2.7
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2.9
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3.3
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3.3
|
4.1
|
4.7
|
5.1
|
4.7
|
|
|
ALOT
rest-of-world
|
0.6
|
1.1
|
1.5
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1.1
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1.7
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2.1
|
3.8
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4.6
|
|
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Legacy
brand
|
1.1
|
0.7
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0.5
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0.4
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0.3
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0.2
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0.2
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*
|
|
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Total
|
4.4
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4.7
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5.3
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4.7
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6.1
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7.0
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9.0
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9.4
|
|
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2010
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|||||||||
|
ALOT
Home (4)
|
Jul
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Aug
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Sep
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Oct
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Nov
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Dec
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|||
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Absolute
monthly unique users
|
6.2
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7.3
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7.6
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8.0
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8.3
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7.5
|
|||
(1)
Certain quarterly breakdowns don’t match totals due to rounding; legacy brand
users and search queries were de minimis in Q4 2010 so we have ceased reporting
these as part of our non-financial metrics
(2)
Source: Internal statistics; ‘Region One’ refers to ALOT users in the U.S.,
Canada, U.K., Ireland, Australia and New Zealand.
(3)
Source: Internal statistics; live users are defined as the number of unique
toolbar users active on the Internet in the last 15 days of each
period.
(4)
Source: Google Analytics “Absolute Unique Visitors” report.
“The
fourth quarter of 2010 presented challenges compared to other quarters of the
year for two primary reasons.” said Peter Corrao, Vertro’s President and Chief
Executive Officer, commenting on the preliminary results. “First, we had an
issue with a Region One bundle distribution partner, which resulted in a
sequential decline in Region One users and search queries during the quarter.
Second, we saw softer than expected revenue per search over the Holiday season
in both Region One and our rest-of-world markets.”
“Despite
these challenges, we expect to close 2010 with 20% year-over-year revenue growth
in Q4 2010, and a sequential increase in EBITDA and Adjusted EBITDA over the
same period. As we move into 2011 with a better understanding of our revenue mix
and distribution partners, we’re excited about our growth plans in both Region
One and rest-of-world.
Management
Conference Call
Management
will participate in a conference call to discuss preliminary results for the
Company on Thursday, February 10, 2011, at approximately 5:00 p.m. ET. Details
of the call for interested parties are as follows:
Date: Thursday, February 10,
2011
Time: 5:00 p.m.
ET
Dial-in numbers: (877)
353-0044 / (970) 315-0525 (Intl.)
Live webcast: http://ir.vertro.com/events.cfm
Conference call replay: http://ir.vertro.com/events.cfm
Vertro
believes that “EBITDA” and “Adjusted EBITDA” provide meaningful measures for
comparison of the Company’s current and projected operating performance with its
historical results due to the significant changes in non-cash amortization that
began in 2004 primarily due to certain intangible assets resulting from mergers
and acquisitions that have since been written off. Vertro defines Adjusted
EBITDA as EBITDA (earnings before interest, income taxes, depreciation and
amortization) plus non-cash compensation expense and plus or minus certain
identified revenues or expenses that are not expected to recur or be
representative of future ongoing operation of the business. Vertro uses EBITDA
and Adjusted EBITDA as internal measures of its business and believes they are
utilized as important measures of performance by the investment community.
Vertro sets goals and awards bonuses in part based on performance relative to
Adjusted EBITDA. Vertro believes the use of these measures does not lessen the
importance of GAAP measures.
About
Vertro, Inc.
Vertro,
Inc. (NASDAQ: VTRO) is an Internet company that owns and operates the ALOT
product portfolio. Through ALOT, consumers can discover apps which they can
display through three specific products: ALOT Appbar, ALOT Toolbar and ALOT
Home. These apps are developed in-house and by third party app developers and
are designed to enhance the way people interact with content online. ALOT has
millions of users across its product portfolio. Together these users conduct
high-volumes of type-in-search queries, which are monetized through third-party
search and content agreements.
Source:
VTRO-E
Forward-looking
Statements
This
press release contains certain forward-looking statements, including statements
regarding our expected fourth quarter 2010 and fiscal 2010 results with respect
to revenue, EBITDA, and Adjusted EBITDA, 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 (1) our ability to successfully
execute upon our corporate strategies, (2) our ability to distribute and
monetize our international products at rates sufficient to meet our
expectations, (3) our ability to develop and successfully market new products
and services, (4) the potential acceptance of new products in the market, and
(5) our expected revenue, EBITDA and Adjusted EBITDA are unaudited preliminary
estimates and could change pending completion of our audit for 2010. Additional
key risks are described in Vertro's reports filed with the U.S. Securities and
Exchange Commission, including the Form 10-Q for Q3 2010.
Contact:
Alex
Vlasto, VP Marketing and Communications
646-253-0627
Alex.vlasto@vertro.com
OR
ICR,
Inc.
Denise
Garcia, SVP
203-682-8335
Denise.Garcia@icrinc.com