Local.com Corp. (LOCM, Financial) filed Quarterly Report for the period ended 2010-03-31.
Local.com Corp. has a market cap of $114.47 million; its shares were traded at around $7.83 with a P/E ratio of 37.29 and P/S ratio of 2.03. LOCM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Owned and operated revenue for the three months ended March 31, 2010 increased $2.5 million, or 30%, compared to the same period in 2009. The increase in revenue is primarily due to increased traffic on our Local.com website coupled with increased monetization as our revenue per thousand visitors (RKV) increased to $260 for the three months ended March 31, 2010 from $246 for the three months ended March 31, 2009. The increase in RKV was a result of additional ad units per page, optimization of search results to improve page yields, greater revenue share received from our advertising partners and improved search engine marketing.
Interest and other income (expense), net was ($56,000) and $3,000 for the three months ended March 31, 2010 and 2009, respectively. The decrease is due to interest expense and amortization of fees related to our revolving credit facility. On December 29, 2009, we borrowed $3.0 million on our revolving credit facility, which bears interest at a rate equal to the greater of (i) 5.0% or (ii) the Prime Rate (as announced by Square 1 Bank) plus 1.75%. We expect interest and other income (expense) to continue at current levels.
We have funded our business, to date, primarily from issuances of equity and debt securities. Cash and cash equivalents were $10.9 million as of March 31, 2010 and $10.1 million as of December 31, 2009. We had working capital of $6.4 million as of March 31, 2010 and $4.8 million as of December 31, 2009. Additionally, pursuant to the Loan and Security Agreement with Square 1 Bank that we entered into on June 26, 2009, as further discussed below, we have established a revolving credit facility of up to $10 million, based on certain formulas.
Net cash provided by operating activities was $1,710,000 for the three months ended March 31, 2010. Net income (loss) adjusted for non-cash charges provided cash of $2.5 million. Changes in operating assets and liabilities used cash of $796,000.
Net cash provided by operations was $3.7 million for the three months ended March 31, 2009. Net loss adjusted for non-cash charges used cash of $1.8 million. Changes in operating assets and liabilities provided cash of $5.4 million, the largest component of which represents an increase in deferred revenue related to a prepayment from a significant customer.
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Local.com Corp. has a market cap of $114.47 million; its shares were traded at around $7.83 with a P/E ratio of 37.29 and P/S ratio of 2.03. LOCM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On February 12, 2010, we entered into an Asset Purchase Agreement with LaRoss whereby we purchased up to 10,000 website hosting accounts for up to $1,586,000 in cash, which amount will be reduced in the event any of the subscribers are not successfully transferred to us or the subscriber base fails to achieve a certain performance requirement. The performance requirement relates to the average settlement rate of billings related to the purchased website hosting accounts over a six month period. Depending on certain performance criteria, the maximum purchase price per account is $158.60 or an aggregate $1,586,000 and the minimum purchase price per account is $125.00 or an aggregate $1,250,000, based on 10,000 accounts. LaRoss will provide ongoing billing services and hosting of the sites. The purchase price will be amortized over four years based on how we expect the customer relationships to contribute to future cash flows.Owned and operated revenue for the three months ended March 31, 2010 increased $2.5 million, or 30%, compared to the same period in 2009. The increase in revenue is primarily due to increased traffic on our Local.com website coupled with increased monetization as our revenue per thousand visitors (RKV) increased to $260 for the three months ended March 31, 2010 from $246 for the three months ended March 31, 2009. The increase in RKV was a result of additional ad units per page, optimization of search results to improve page yields, greater revenue share received from our advertising partners and improved search engine marketing.
Interest and other income (expense), net was ($56,000) and $3,000 for the three months ended March 31, 2010 and 2009, respectively. The decrease is due to interest expense and amortization of fees related to our revolving credit facility. On December 29, 2009, we borrowed $3.0 million on our revolving credit facility, which bears interest at a rate equal to the greater of (i) 5.0% or (ii) the Prime Rate (as announced by Square 1 Bank) plus 1.75%. We expect interest and other income (expense) to continue at current levels.
We have funded our business, to date, primarily from issuances of equity and debt securities. Cash and cash equivalents were $10.9 million as of March 31, 2010 and $10.1 million as of December 31, 2009. We had working capital of $6.4 million as of March 31, 2010 and $4.8 million as of December 31, 2009. Additionally, pursuant to the Loan and Security Agreement with Square 1 Bank that we entered into on June 26, 2009, as further discussed below, we have established a revolving credit facility of up to $10 million, based on certain formulas.
Net cash provided by operating activities was $1,710,000 for the three months ended March 31, 2010. Net income (loss) adjusted for non-cash charges provided cash of $2.5 million. Changes in operating assets and liabilities used cash of $796,000.
Net cash provided by operations was $3.7 million for the three months ended March 31, 2009. Net loss adjusted for non-cash charges used cash of $1.8 million. Changes in operating assets and liabilities provided cash of $5.4 million, the largest component of which represents an increase in deferred revenue related to a prepayment from a significant customer.
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