WOODLAND HILLS, Calif.– United Online, Inc. (Nasdaq: UNTD), a leading provider of consumer products and services over the Internet, reported financial results for its fourth quarter and full year ended December 31, 2012.
"We are continuing to work toward our planned spin-off of FTD as an independent, publicly-traded company, and expect to complete this transaction by the end of the third quarter of 2013. We already have submitted our request for a private letter ruling from the Internal Revenue Service regarding the tax-free status of the spin-off,” said Mark R. Goldston, Chairman, President and Chief Executive Officer of United Online. “We also are continuing to explore strategic alternatives for our other businesses and monetization opportunities for our patent portfolio.”
“Fourth quarter 2012 results were in line with expectations, as consolidated revenues and adjusted OIBDA were within our guidance range,” Goldston said. “FTD segment revenues for the fourth quarter and full year 2012 increased 7% and 4%, respectively, compared to the year-ago periods, driven by increases in consumer orders. FTD segment adjusted OIBDA for the fourth quarter and full year 2012 increased 2% and 4%, respectively, compared to the year-ago periods. During the quarter, the FTD segment achieved its eighth consecutive quarter of year-over-year revenue growth, when prior periods are adjusted for the timing of the U.K. Mother’s Day in 2011.”
“In our Communications segment, quarterly revenues increased 6% compared to the third quarter of 2012, the largest sequential-quarter increase in almost eight years,” Goldston continued. “This increase was driven by increased advertising revenues, which are seasonally stronger in the fourth quarter, and by growth in the number of accounts in our NetZero 4G mobile broadband business, which reached approximately 32,000 at year-end 2012. In our Content & Media segment, pay accounts declined by 123,000 during the quarter, the smallest net decrease in two and a half years. The quarterly net decrease in segment pay accounts has now improved for four consecutive quarters.”
“Consolidated cash flows from operating activities and free cash flow for the quarter were $41.7 million and $41.8 million, respectively, representing increases of 6% and 19%, respectively, compared to the year-ago quarter. These increases resulted primarily from favorable changes in net working capital and a decrease in capital expenditures, partially offset by decreased adjusted OIBDA,” said Neil P. Edwards, Executive Vice President and Chief Financial Officer. “In the fourth quarter, the company recorded a $26.9 million goodwill and intangible asset impairment charge due to a material decline in the fair value of our MyPoints reporting unit. This was a non-cash charge, which did not impact adjusted OIBDA, cash flows from operating activities or free cash flow.”
Click here for the Summary Results for Fourth Quarter Ended December 31, 2012 and Unaudited Condensed Consolidated Statements of Operations:
About United Online®:
United Online, Inc. (Nasdaq: UNTD), through its operating subsidiaries, is a leading provider of consumer products and services over the Internet, where their respective brands have attracted a large online audience that includes more than 100 million registered accounts worldwide. The company's FTD segment provides floral-related products and services (FTD, Interflora, Flying Flowers, and Flowers Direct) for consumers and retail florists, as well as other retail locations offering floral and related products and services. The company's Content & Media segment provides online nostalgia products and services (Classmates, schoolFeed and StayFriends) and online loyalty marketing (MyPoints). Its primary Communications segment service is Internet access (NetZero and Juno), including high-speed 4G mobile broadband (NetZero Wireless).
Cautionary Information Regarding Forward-Looking Statements:
This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on our current expectations, estimates and projections about our operations, industry, financial condition, performance, results of operations, and liquidity. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” “estimate,” or similar expressions constitute forward-looking statements.These forward-looking statements include, but are not limited to, statements about the proposed spin-off of the FTD segment; the exploration of strategic alternatives for the company’s other businesses and monetization opportunities for the company’s patent portfolio; future financial performance; revenues; operating expenses; operating income; capital expenditures; depreciation and amortization; and stock-based compensation. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, among others: the effects of the proposed spin-off or other transactions on our businesses; risks associated with the integration or commercialization of new businesses, products, services, applications or features or the success of new business models; the severity and duration of current economic conditions; the effect of competition; the company’s inability to maintain or increase the number of free and pay accounts, visitors to its websites, and members of the floral network; risks associated with litigation and governmental regulations or investigations, including reviews of business practices such as marketing, billing, renewal, and post-transaction sales practices; problems associated with the company’s operations, systems or technologies; changes in marketing conditions and laws; the company’s inability to maintain or increase its advertising revenues; potential write down, reserve against or impairment of assets including receivables, goodwill, intangible assets or other assets; the company’s inability to enforce or defend its ownership and use of intellectual property; financial market risk resulting from fluctuations in foreign currency exchange rates, particularly the British Pound and Euro; changes in stock-based compensation due to future equity issuances or other reasons; changes in amortization or depreciation due to a variety of factors; changes in the floral industry; the company’s inability to retain key customers, vendors and personnel; changes in tax laws, the company’s business or other factors that would impact anticipated tax benefits or the tax treatment of the proposed spin-off transaction; the impact of, and restrictions associated with, the company’s indebtedness; as well as the risk factors disclosed in the company’s filings with the Securities and Exchange Commission (www.sec.gov), including, without limitation, information under the captions “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as the date hereof. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that may cause actual performance and results to differ materially from those predicted. Reported results should not be considered an indication of future performance.Except as required by law, the company undertakes no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Source: United Online
