LOCAL Corp - FORM 8-K - EX-99.2

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8-K - 8-K - LOCAL Corp	d773654d8k.htm
EX-99.1 - EX-99.1 - LOCAL Corp	d773654dex991.htm

Exhibit 99.2

Quarterly earnings summary: Q2 2014

This Q4-2013 Quarterly Earnings Summary contains forward

looking statements which are made pursuant to the Safe Harbor

provisions of section 21-E of the Securities Exchange Act of

1934. Investors are cautioned that statements which are not

strictly historical statements, including statements concerning

future expected financial performance.

The forward looking statements include, but are not limited to, any

statements containing the words “expect”, “anticipate”, “estimates”,

“believes”, “should”, “could”, “may”, “possibly”, and similar

expressions and the negatives thereof. These forward looking

statements involve a number of risks and uncertainties that could

cause actual results to differ materially from the forward looking

statements. Those risks and uncertainties are detailed in the

company’s filings from time to time with the Securities and

Exchange Commission. The information contained in the forward

looking statements is provided as of the date first set forth above

and the company disclaims any obligation to update such

statements.

This document includes the non-GAAP financial measure of

“Adjusted EBITDA”

See page 12 for a note regarding the

Company’s use of Non-GAAP financial measures and slide 10

for a reconciliation of GAAP to non-GAAP.

Quarterly earnings summary: Q2 2014

Growth

•

Financials

•

Mobile

•

Note: Since we cannot predict the valuation of the warrant liability and the conversion option liability, we cannot reasonably project our GAAP net income (loss).

We, therefore, cannot provide GAAP guidance, but we do report GAAP results. An explanation of the Company’s use of Non-GAAP measures is set forth on Slide 10

Q2 revenue of $22.5M

Q2 Adjusted EBITDA $1.0M, positive for

the sixth consecutive quarter

Q2 O&O revenue up 14 percent

from the prior year period

RKV of $204 up 8% from Q1 2014

Ended Q2 with $6.7M in total cash

2014 guidance: Revenue between

$103M and $107M, and Adjusted

EBITDA between $3M and $4M

Launched nQuery

by Local which is

already powering millions of user

searches per month

Quarterly earnings summary: Q2 2014

$ in Millions

Q2-14

Q1-14

Q2-13

GAAP Revenue

$ 22.5

$ 26.2

$ 22.7

Adjusted EBITDA

$ 1.0

$ 0.7

$ 1.2

Net Loss

$ (1.3)

$ (2.8)

$ (3.6)

Diluted Adjusted EBITDA per share

$ 0.04

$ 0.03

$ 0.05

Diluted GAAP net loss per share

$ (0.06)

$ (0.12)

$ (0.16)

Diluted weighted avg shares used for Adj EBITDA per share

23,306

23,254

23.051

Diluted weighted avg shares used for GAAP net loss per share

23,228

23,225

22,877

Cash

$ 6.68

$ 3.71

$ 4.81

Ending Employees

Note: An explanation of the Company’s use of Non-GAAP measures is set forth on Slide 10

Quarterly earnings summary: Q2 2014

70.7

67.5

54.7

60.8

$299

$276

$230

$215

54.9

$199.5

49.3

$180.3

60.2

$178

$189.3

59.9

$204

61.9

Local.com

Quarterly earnings summary: Q2 2014

% of Total Revenue by Business Unit

15%

85%

20%

80%

37%

63%

39%

61%

51%

49%

Quarterly Revenues by Business Unit

$4.1

$22.6

$5.0

$19.4

$7.6

$12.9

$8.3

$13.2

$11.6

$11.1

$ in Millions

Q2-12

Q3-12

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

Network

$ 4.1

$ 5.0

$ 7.6

$ 8.3

$ 11.6

$ 14.5

$ 16.1

$ 14.8

$ 9.9

O&O

$ 22.6

$ 19.4

$ 12.9

$ 13.2

$ 11.1

$ 8.9

$ 10.7

$ 11.4

$ 12.6

Consolidated Revenue

$ 26.7

$ 24.4

$ 20.6

$ 21.5

$ 22.7

$ 23.5

$ 26.8

$ 26.2

$ 22.5

$14.5

$8.9

62%

38%

60%

40%

$16.1

$10.7

$26.7

$24.4

$20.6

$21.5

$22.7

$23.5

$26.8

$14.8

$11.4

$26.2

56%

44%

$22.5

$9.9

$12.6

44%

56%

Quarterly earnings summary: Q2 2014

Description

FY-09

FY-10

FY-11

FY-12

FY-13

FY-14*

Adjusted EBITDA

$3,041

$13,775

$3,247

$777

$4,533

$3,500

Less interest and other income (expense), net

(27)

(275)

(413)

(425)

(2,321)

(1,700)

Less provision for income taxes

(158)

(102)

(178)

(111)

(139)

(200)

Less amortization of intangibles

(2,524)

(5,734)

(4,864)

(3,611)

(912)

(900)

Less depreciation

(734)

(1,418)

(3,182)

(3,658)

(3,896)

(4,000)

Less stock-based compensation

(2,364)

(2,911)

(3,442)

(2,533)

(1,619)

(800)

Less LEC receivable reserve

(1,407)

Less net loss from discontinued operations

(6,899)

(14,250)

(3,740)

Plus gain on sale of Rovion

1,458

Plus revaluation of warrants

(2,981)

887

2,633

202

1,100

Less Geo-Tag settlement

(550)

Less non-recurring charges

(520)

(1,461)

(684)

(2,829)

(1,200)

GAAP Net income (loss)

$(6,267)

$4,222

$(14,559)

$(24,242)

$(10,373)

$(5,300)

Note: Since we cannot predict the valuation of the warrant liability and the conversion option liability, we cannot reasonably project our GAAP net income (loss).

We, therefore, cannot provide GAAP guidance, but we do report GAAP results. An explanation of the Company’s use of Non-GAAP measures is set forth on Slide 10

*As of August 2014

Quarterly earnings summary: Q2 2014

$ in Millions

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

Assets

Cash & marketable debt securities

$ 4.8

$ 5.1

$ 3.7

$ 6.7

Accounts receivable, net

13.4

14.9

17.3

18.2

12.8

Total Assets

50.4

51.4

51.6

50.7

47.7

Liabilities and Equity

Total Debt

12.6

13.1

13.2

14.0

13.6

Total Liabilities

27.1

29.7

31.3

33.1

31.2

Total Liabilities & Equity

$ 50.4

$ 51.4

$ 51.6

$ 50.7

$ 47.7

Quarterly earnings summary: Q2 2014

$ in Millions

FY-2014

Total Revenue

$103M –

107M

Adjusted EBITDA

$3.0M –

4.0M

Per Diluted Share

$0.13 –

$0.17

Diluted Weighted Avg. Shares

23,500

Projected as of August 12, 2014

Note: Since we cannot predict the valuation of the warrant liability and the conversion option liability, we cannot reasonably project our GAAP net income (loss).

We, therefore, cannot provide GAAP guidance, but we do report GAAP results. An explanation of the Company’s use of Non-GAAP measures is set forth on Slide 10

Quarterly earnings summary: Q2 2014

This document includes the non-GAAP financial measure of “Adjusted

EBITDA”

which we define as net income (loss) excluding: provision for

income taxes; interest and other income (expense), net; depreciation;

amortization; stock based compensation charges; gain or loss on

derivatives’

revaluation, net income (loss) from discontinued operations;

gain on sale of Rovion; impairment charges; LEC receivables reserve;

finance related charges; accrued lease liability/asset; and severance

charges.

Adjusted

EBITDA,

defined

above,

not

measurement

under

GAAP. Adjusted EBITDA is reconciled to net income (loss) which we

believe is the most comparable GAAP measure. A reconciliation of net

income (loss) to Adjusted EBITDA is set forth within this presentation.

Management believes that Adjusted EBITDA provides useful information to

investors about the company’s performance because it eliminates the

effects of period-to-period changes in income from interest on the

company’s cash and marketable securities, expense from the company’s

financing transactions and the costs associated with income tax expense,

capital investments, stock-based compensation expense, LEC receivables

reserve, warrant revaluation charges; finance related charges; accrued

lease liability; and severance charges which are not directly attributable to

the underlying performance of the company’s business operations.

Management uses Adjusted EBITDA in evaluating the overall performance

of the company’s business operations.

A limitation of non-GAAP Adjusted EBITDA is that it excludes items that

often have a material effect on the company’s net income and earnings per

common share calculated in accordance with GAAP. Therefore,

management compensates for this limitation by using Adjusted EBITDA in

conjunction with net income (loss) and net income (loss) per share

measures. The company believes that Adjusted EBITDA provides

investors with an additional tool for evaluating the company’s core

performance, which management uses in its own evaluation of overall

performance, and as a base-line for assessing the future earnings potential

of the company. While the GAAP results are more complete, the company

prefers to allow investors to have this supplemental metric since, with

reconciliation to GAAP; it may provide greater insight into the company’s

financial results. The non-GAAP measures should be viewed as a

supplement

to,

and

not

substitute

for,

superior

to,

GAAP

net

income

(loss) or earnings (loss) per share.

Fred Thiel

Chairman & CEO

fred@local.com

Local

Corporation

7555

Irvine

Center

Drive

Irvine

92618

949.784.0800

www.localcorporation.com

Ken Cragun

CFO

kcragun@local.com

Quarterly earnings summary: Q2 2014

LOCAL Corp - FORM 8-K - EX-99.2 - August 12, 2014

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LOCAL Corp Reports