Fourth Quarter Results Highlights:
• Revenue — Fourth quarter 2010 revenue of $20.0 million represents an increase of 22% over fourth quarter 2009 revenue of $16.4 million.
• GAAP Net Income — Fourth quarter 2010 GAAP net loss was $891,000 or $(0.05) per diluted share, compared to fourth quarter 2009 GAAP net loss of
$458,000 or $(0.03) per diluted share. Fourth quarter 2010 and 2009 GAAP net income included a loss on warrant revaluation of $1.0 million and $573,000 or
$0.06 and $0.04 per diluted share, respectively.
• Adjusted Net Income — Fourth quarter 2010 Adjusted Net Income of $3.2 million or $0.19 per diluted share represents an increase of 60% over fourth
quarter 2009 Adjusted Net Income of $2.0 million or $0.13 per diluted share.
Adjusted Net Income is defined 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 warrant revaluation; and non-recurring items.
An explanation of the company's use of non-GAAP financial measures, including the limitations of such measures relative to GAAP measures is included
below, and the reconciliation between GAAP and non-GAAP measures, where appropriate, is included in the financial tables attached to this release.
Full Year 2010 Results Highlights:
• Revenue — Revenue was $84.1 million for the year ended December 31, 2010, which represents a 49.5% increase over $56.3 million in 2009.
• GAAP Net Income — GAAP net income was $4.2 million or $0.25 per diluted share for the year ended December 31, 2010. This compares to a GAAP net
loss of $6.3 million or ($0.44) per share for the year ended December 31, 2009. Fiscal year 2010 and 2009 GAAP net income (loss) included a gain (loss) on
warrant revaluation of $887,000 and ($3.0) million or $0.05 and ($0.21) per diluted share, respectively.
• Adjusted Net Income — Adjusted Net Income was $13.8 million or $0.82 per diluted share for the year ended December 31, 2010. This compares to
Adjusted Net Income of $3.0 million or $0.21 per diluted share for the year ended December 31, 2009.
• Cash — On December 31, 2010, the company's cash balance was $13.1 million. During the fourth quarter 2010, the company used $2.0 million in cash
related to earnout payments for the OCTANE360 acquisition, $1.3 million in cash for capital expenditures, including capitalized website development costs,
and $1.0 million in cash for purchase of intangible assets. These cash expenditures were offset by positive cash flow from operations resulting in an increase
is cash of approximately $1.2 million.
• Debt — On December 31, 2010, the company had borrowings of $7.0 million outstanding under its $30 million revolving line of credit. At December 31,
2010, the company had $23 million available under the line of credit.
"We finished another year with 49 percent revenue growth," said Ken Cragun, Local.com chief financial officer. "While we will continue to adapt to the
Yahoo/Bing integration, we are encouraged by the prospects of our entry into the group buying market and the development of our sales channels for the