Full Press Release Details
| FOR IMMEDIATE RELEASE | CONTACT: |
| March 26, 2009 | Andrew Zaref, CFO |
| (212) 716-1977 |
OPERATING RESULTS FOR THE FULL YEAR AND FOURTH QUARTER 2008.
AEBITDA of $7.7 MILLION FOR THE YEAR ENDED DECEMBER 31, 2008, EXCLUDES A $114.8
MILLION NON-CASH IMPAIRMENT CHARGE
| n | Proforma Revenues of $22.9 million and $128.4 million, and Proforma Adjusted EBITDA of $337 thousand ($0.02 per share) and $7.7 million ($0.35 per share) for the three and twelve months ended December 31, 2008. Proforma Revenues for the twelve months ended December 31, 2008 increased by 5.0% when compared to the prior year. | |
| n | Reported revenues of $22.9 million and $113.9 million, and net loss of ($116.6) million ($5.37 per share) and ($115.8) million ($5.43 per share), for the three and twelve months ended December 31, 2008 which includes a $114.8 million noncash impairment charge. Reported Revenues for the three and twelve months ended December 31, 2008 increased by 64.0% and 207.9% respectively when compared to the prior year. | |
| n | Cash, cash equivalents and marketable securities, of $24.7 million and net working capital of $23.7 million available for continued organic growth initiatives, continued share repurchases, and other strategic accretive investments. |
New York (March 26, 2009) - New Motion,
Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier diversified online
marketing services company, announced today that revenues for the fourth quarter
of 2008 were $22.9 million compared with $14.0 million in the fourth quarter of
2007, an increase of 64.0%. Revenues for the twelve months ended December 31,
2008 and 2007 were $113.9 million and $37.0 million, an increase of 207.9%. The
increase in revenues is primarily attributable to the Company's merger with
Traffix, Inc. which was consummated on February 4, 2008. The Company continues
to leverage the benefits of its cross media Internet and alternative billing
platforms, vertically integrate its proprietary content and online distribution
network, and diversify its revenues with new service offerings. For the twelve
months ended December 31, 2008, revenues derived from Subscription and
Transactional service offerings increased 19.5% and 100%, respectively.
Katz, Chief Executive Officer, said "despite a challenging macroeconomic
environment, Atrinsic was able to grow its top line revenue year over year and
generate positive cash flows from its core business. The Company continues to
transform itself into a diversified Internet marketing company through deploying
new direct to consumer products across the mobile and fixed Internet, winning
new advertising contracts, expanding its billing reach to landline phones, and
deploying its next generation, proprietary technology platform. We remain
cautiously optimistic for 2009 in addressing two large growth markets, mobile
media and online advertising, and see many opportunities to prudently and
successfully expand our business."
expenses for the fourth quarter of 2008, excluding the non-cash impairment of
Goodwill of $114.8 million, were $26.1 million compared with operating expenses
of $15.1 million in the fourth quarter of 2007, an increase of approximately
$11.0 million. The increase is primarily attributable to the merger with Traffix
which resulted in increases in the cost of media, non cash equity based
compensation, and depreciation and amortization; partially offset by
efficiencies gained through post merger integration. The Company continues to
achieve the anticipated $4.1 million efficiencies gained from the merger while
simultaneously developing an appropriate infrastructure to support anticipated
growth. In addition, the Company is carefully monitoring its performance
relative to expectations and market conditions to monitor its discretionary
customer acquisition and lead generation activities.
for the fourth quarter of 2008 was ($116.6) million (($5.37) per basic and
diluted earnings per share) compared with a net loss of ($941) thousand for the
fourth quarter of 2007 (($0.08) per basic and diluted loss per share). Net loss
for the twelve months ended December 31, 2008 was ($115.8) million (($5.43) per
basic and diluted earnings per share) compared with a net loss of ($4.1) million
for the twelve months ended December 31, 2007 (($0.37) per basic and diluted
December 31, 2008, the Company had $24.7 million of cash, cash equivalents and
marketable securities with significant working capital to support future growth,
business development initiatives, and capital activities. Pursuant to its stock
repurchase program previously announced on April 9, 2008, the Company
repurchased 1,289,554 and 1,908,926, shares of Common stock during the three and
twelve months ended December 31, 2008 at a cost of approximately $1.5 million
and $4.1 million, respectively. To date, since inception of the plan,
the Company has repurchased 2,381,318 shares at a cost of approximately $4.5
Zaref, Chief Financial Officer, said "We are pleased to end the year with a
strong balance sheet competitively positioning the Company in the digital media
sector. The Company generated positive cash from its core operations and used
its available resources to make strategic investments, which create the
opportunity for organic growth. In addition, the Company repurchased
approximately 10% of its common shares outstanding under its current share
Proforma EBITDA for the fourth quarter 2008 was $337 thousand as compared with
$1.4 million for the fourth quarter of 2007. On a non-GAAP per diluted share
basis, Adjusted EBITDA per share for the fourth quarter of 2008 was $0.02 as
compared to $0.12 for the fourth quarter of 2007.
2008, the Company consummated two significant business combinations and took
significant actions to maximize the efficiencies related to those transactions.
In addition, management has reduced operating expenses, launched numerous
operational initiatives, and continued to monitor the marketplace for additional
opportunities. The nature, timing, and magnitude of future activities will
depend on, among other things, operating performance, continued post merger
integration activities, and market conditions. Management continuously seeks to
build long term shareholder value by prudently deploying capital with
expectations for an anticipated risk adjusted return.
Company continues to execute on its long term strategic plans amidst a business
climate that is volatile and uncertain. Despite these challenges, management
remains committed, if necessary, to reduce discretionary operating expenses and
reevaluate new initiatives in order to preserve operating margins and generate
some of the Company's specific goals include:
1 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.
About New Motion, Inc.
(doing business as Atrinsic)
Motion, Inc., doing business as Atrinsic, is one of the leading digital
advertising and marketing services company in the United States. Atrinsic is
organized as a single segment with two principal offerings: (1)
Transactional services - offering full service online marketing and
distribution services which are targeted and measurable online campaigns and
programs for marketing partners, corporate advertisers, or their agencies,
generating qualified customer leads, online responses and activities, or
increased brand recognition, and (2) Subscription services - offering
our portfolio of subscription based content applications direct to
users working with wireless carriers and other distributors.
brings together the power of the Internet, the latest in mobile technology, and
traditional marketing/advertising methodologies, creating a fully integrated
multi platform vehicle for the advanced generation of qualified leads monetized
by the sale and distribution of subscription content, brand-based distribution
and pay-for-performance advertising. Atrinsic's content is organized into four
strategic content groups - digital music, casual games, interactive contests,